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Queueing system analysis of multi server model at XYZ insurance company in

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Conference Paper  in  AIP Conference Proceedings · August 2017

DOI: 10.1063/1.4995119

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Queueing system analysis of multi server model at XYZ insurance company in
Tasikmalaya city
Ahmad Muhajir, and Nikenasih Binatari

Citation: AIP Conference Proceedings 1868, 040004 (2017);

View online: https://doi.org/10.1063/1.4995119
View Table of Contents: http://aip.scitation.org/toc/apc/1868/1
Published by the American Institute of Physics

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 Queueing System Analysis of Multi Server Model at XYZ
Insurance Company in Tasikmalaya City
Ahmad Muhajira) and Nikenasih Binatarib)

Department of Mathematics Education, Faculty of Mathematics and Natural Science, Yogyakarta State University
Jl Kolombo No 1, Karangmalang, Depok, Sleman, Yogyakarta, Indonesia
a)
Corresponding author: amuhajirskl@gmail.com,
b)
nikenasih@uny.ac.id

Abstract. Queueing theory or waiting line theory is a theory that deals with the queue process from the customer comes,
queue to be served, served and left on service facilities. Queue occurs because of a mismatch between the numbers of
customers that will be served with the available number of services, as an example at XYZ insurance company in
Tasikmalaya. This research aims to determine the characteristics of the queue system which then to optimize the number
of server in term of total cost. The result shows that the queue model can be represented by (M/M/4):(GD/∞/∞), where the
arrivals are Poisson distributed while the service time is following exponential distribution. The probability of idle customer
service is 2,39% of the working time, the average number of customer in the queue is 3 customers, the average number of
customer in a system is 6 customers, the average time of a customer spent in the queue is 15,9979 minutes, the average
time a customer spends in the system is 34,4141 minutes, and the average number of busy customer servicer is 3 server.
The optimized number of customer service is 5 servers, and the operational cost has minimum cost at Rp 4.323.

INTRODUCTION
In this modern era, more people know the importance of insured as a guarantee in case of risks in the future, such
as health risk, education risk, financial risk and the mortality risk. This condition brings to the increase of the number
of the customers. Therefore to provide satisfying service, an insurance company should considered the number of
server such that the waiting time of the customer for being served where not too long. Otherwise, they will leave and
choose another insurance company.
At XYZ insurance company in Tasikmalaya city, the customer service is always busy serving customers who want
to have a transaction or doing the filing of claims. The process of transaction or claim takes quite a long time and a
large number of customer have complained it. Therefore, the company wants to evaluate its service system to keep
the customer's convenience by considering the characteristics of the queue syste. These characteristics include the
probability of idle customer service, the average number of the customer in the queue, the average number of the
customer in the system, the average time of a customer in the queue, the average time of a customer in the system and
the average number of busy customer service.
Queue theory was first investigated by A.K Erlang in 1990 in his paper entitled ‘The Theory of Probabilities and
Telephone Conversations’ [1]. More research on the application of the theory to telephony after that, and it accelerated
in 1950s since the theory was applied in wider area such as traffic flow, scheduling, facility design etc. The queueing
system and its applications in different system has been describes in [2].
In standard notation, according to Kendall-Lee, the service system can be described by the notation ܽȀܾȀܿǣ ݀Ȁ݁Ȁ݂,
where ܽǡ ܾǡ ܿǡ ݀ǡ ݁ and ݂ respectively indicate the interarrival-time distribution, service time distribution, number of
server, queueing dicipline, system capacity and population size [3]. Suppose ߣ is the mean arrival rate (per unit of
time) and ͳȀߤ is the mean service time for each server. Traffic intensity ߩ is the ratio of arrival to total service rate.
For multiserver case, c servers, the traffic intensity is ߣൗܿߤ. If the traffic intensity is greater than 1, the number of
arrivals into system exceeds the number of customer being served. In order words, as time goes on, the number of

The 4th International Conference on Research, Implementation, and Education of Mathematics and Science (4th ICRIEMS)
AIP Conf. Proc. 1868, 040004-1–040004-7; doi: 10.1063/1.4995119
Published by AIP Publishing. 978-0-7354-1548-5/$30.00

040004-1
customer in the system will increase by time. In queue theory, we call this condition as transient-state condition,
otherwise it is called as steady-state condition.
There are numerous researchs relating to the queue system, particularly for customer service application. For
example, a case study of ATM service in Fidelity Bank [4]. The result shows that the traffic intensity is 0.96 or the
server has idle time only 4% of time period. It is implied that the system already has high utilization. Another queue
case on ATM service was analyzed in [5]. The optimal number of machine was found to be two machine. The machine
maintenance should be done intensively since if there is only one machine worked, the system will reach transient
state condition.
The optimal number of server can be obtained by considering various variables. For instance, [6] was taking
operating cost and waiting cost into account. In complex mathematical model, the optimal number of server sometimes
rather difficult to obtain analytically. A simulation is then used to quantify the impact of number of server towards the
total cost. This impact has been studied by Shanmugasundaram and Punitha in [7]. The results of the
study indicate that the transient-state can be completed by using Monte Carlo simulation, which then can obtained the
average customer in a queue, waiting in a queue, time of service, the time in the system and the model cost.
Based on the problem faced in XYZ insurance company in Tasikmalaya city, this paper will analyze the queue
system in XYZ insurance company and determine the optimal number of server considering the operating cost and
waiting cost.

MATERIALS AND METHOD

To identify the queue model of the system, this research followed four steps. The steps are (1) collecting the data,
(2) selecting the distribution, (3) counting the effective measurements and (4) simulating the total cost. Data in this
research was collected from XYZ insurance company in Tasikmalaya city. The methods used during the data
collection were direct observation and personal interview which taken on Tuesday, January 19th, 2016 until Thursday,
January 21st, 2016 starting from 07.50 a.m. to 12.04 p.m. The obtained arrival data was then was grouped per 15
minutes while service time grouped by time interval length of service. To select the distribution for arrival and service
process, the goodness of fitness distribution was done using Kolmogorov-Smirnov One-sample test by initial hipotesa
that the arrival number is poisson distributed while the service time is exponentially distributed. Next, the formula of
effective measurements for multiserver model were derived from [1,8]. Last, the value for operating cost and waiting
cost were taken from [9,10,11]. By these values, the simulation for several number of server were then conducted to
obtain the optimal value.

Kolmogorov-Smirnov One-Sample Test

The Kolmogorov-Smirnov one-sample test is a test of goodness of fit. That is, it is concerned with the degree of
agreement between the distribution of a set of sample values (observed scores) and some specified theoretical
distribution. It determines wheater the scores in the sample can reasonably be thought to have come from a population
theoretical distribution [12]. Briefly, the test involves specifying the cumulative frequency distribution which would
occur under the theoretical distribution ሺ‫ܨ‬଴ ሺܺሻሻ and comparing it with the observed cumulative frequency distribution
ሺܵே ሺܺሻሻǤ The theoretical distribution represents what would be expected under the initial hypotesa, ‫ܪ‬଴ . Under ‫ܪ‬଴ we
would expect the differences between ܵே ሺܺሻ and ‫ܨ‬଴ ሺܺሻ expect to be small and within the limits of random errors. The
Kolmogorov-Smirnov test focuses on the largest of the deviations. The largest value of ‫ܨ‬଴ ሺܺሻ  െ  ܵே ሺܺሻ is called the
maximum deviation, D:

D max F0  X   S N  X  (1)

Multi Server ሺࡹȀࡹȀࢉሻǣ ሺࡳࡰȀλȀλሻ Model

According to [8], multiserver queue is the model used most in analyzing service stations with more than one server.
Assume that all server are independentand the service time is following identically distribution by mean service time
μ [1]. Multiserver model ሺ‫ܯ‬Ȁ‫ܯ‬Ȁܿሻǣ ሺ‫ܦܩ‬ȀλȀλሻ follows six conditions which are the number of arrivals is Poisson

040004-2
distributed, the service time is exponentially distributed, there are c servers (c > 1), the queue discipline is general
discipline, the system capacity and the population are both infinity.

The formulas for Multi Server model:

Utilization factor:
O
U (2)
cP

The probability of idle customer service:

1
­ c 1 U n U c § 1 · ½
P0 ®¦  ¨ ¸¾ (3)
¯ n 0 n! c ! © 1  U / c ¹¿

The average number of customer in the queue:

ª U c 1 º
Lq « P
2 » 0
(4)
¬ (c  1)!(c  U ) ¼

The average number of customer in the system:

ª U c 1 º
Ls « P U
2 » 0
(5)
¬ ( c  1)!( c  U ) ¼

The average time a customer in the queue:

Uc
Wq P0 (6)
P (c  1)!(c  U ) 2

The average time a customer in the system:

Uc 1
Ws P0  (7)
P (c  1)!(c  U ) 2 P

The average customer service busy:

­ª
° U c 1 º ½ ­
° °ª U c 1 º ° ½
c ®« 2 »
P  U ¾  ® « » P ¾ (8)
¯ ¬ (c  1)!(c  U ) ¼ ° «¬  c  1 ! c  U  »¼ ¿
0 2 0
° °
¿ ¯ °

Cost Model
In large measure, the models presented thus far have had as their objective, the description of some characteristic
of the queueing system investigated; that is, we have been concerned with describing mathematically the behavior of
certain characteristics of the system [13]. The addition of server influences other variables, cost as an example. Thus,
the optimal number of server is those which minimize the total amount of cost.
In this research, the costs which are involved are only operating cost and waiting cost. Therefore, the total cost
optimization problem can be expressed as

Minimize
‫ܥܶܧ‬ሺܿሻ ൌ ‫ܥܱܧ‬ሺܿሻ ൅ ‫ܥܹܧ‬ሺܿሻ (9)

where c is the number of servers, ETC is the Expected Total Cost per unit time, EOC is the Expected Operating Cost
per unit time and EWC is the Expected Waiting Cost per unit time.

040004-3
 The expected operating cost is linear to the number of server while the waiting cost is linear to the number of
customer spent in the system. The more number of the server, the greater amount of operating cost. Suppose ‫ܥ‬ଵ is the
marginal cost per unit server per unit time and ‫ܥ‬ଶ is the cost of waiting per unit time per (waiting) customer. Therefore,
the optimization problem can be written as
Minimize
‫ܥܶܧ‬ሺܿሻ ൌ ‫ܥ‬ଵ ܿ ൅ ‫ܥ‬ଶ ‫ܮ‬௦ (10)

where ‫ ݏܮ‬is the expected number of customer spent in the system according ‫݋ݐ‬ሺ‫ܯ‬Ȁ‫ܯ‬Ȁܿሻ model.
The value of c which minimize the total cost can be found analytically or by using simulation. However, in this
research, the optimal value was analyzed using Monte Carlo Simulation.

RESULT AND DISCUSSION

The obtained data was tested to obtain the fits distribution. The arrival data and service time data were expected
to follow Poisson distribution and Exponential distribution, respectively. By using Kolmogorov-
Smirnov test with 0.05 significance level, it was obtained that the data for all three days was following the expectation
as it is can be seen in Table 1 and Table 2.
TABLE 1. Poisson test
POISSON TEST
DAY Dmax D0,05 Poisson
Tuesday 0,117 0,309 Yes
Wednesday 0,1401 0,309 Yes
Thursday 0,0932 0,309 Yes

Based on the result of the analysis in Tabel 1, values of Dmax < D0,05 so can be inferred that the Poisson
arrivals. The following table 2 shows the results of the analysis to exponential test:

TABLE 2. Exponential test

DAY EXPONENTIAL TEST
Dmax D0,05 Exponential
Tuesday 0,1839 0,1886 Yes
Wednesday 0,1509 0,2027 Yes
Thursday 0,1562 0,1984 Yes

Again, based on the analysis in Tabel 2, the value of Dmax < D0,05 so can be inferred that the Exponential service time.
From this result, since there were 4 servers, it can be inferred that the queue system of XYZ insurance company can
be modeled as ሺࡹȀࡹȀ૝ǣ ࡳࡰȀλȀλሻ.

Utilization Factor
The average of arrivals rate and average of service rate acquired to find the effective measurement which then can
be used to determine the optimum number of server. Table 3 shows the steady state analysis:

040004-4
 TABLE 3. Utilization factor
Days λ μ ρ= λ/ μ.c Steady State
Tuesday 0,1926 0,0559 0,8614 Yes
Wednesday 0,1667 0,0545 0,7647 Yes
Thursday 0,1741 0,0524 0,8306 Yes
The Average 0,1778 0,0543 0,8186 Yes

From Table 3, the data on Tuesday, Wednesday, Thursday and the average is following steady state condition. So, the
effective measurement can be solved with ሺࡹȀࡹȀࢉሻ model with steady state condition.

Effective Measurement
Based on Table 3, the queueing system of multi-server model at XYZ insurance company in Tasikmalaya city has
mean arrival rate (λ) = 0,1778 customers/minute, the mean service rate (μ) = 0,0543 customers/minute and the
utilization factor (U) is 81,86% < 1. By substituting these values into the effective measurements Eq.(3) – Eq. (8), we
can obtain the probability of idle customer service is 0,0239 or 2,39% of the working time, the average number of
customer in the queue is 2,8444 ≈ 3 customers, the average number of customer in a system is 6,1188 ≈ 6 customers,
the average time a customer spent in the queue is 15,9979 minutes, the average time a customer spends in the system
is 34,4141 minutes, and the average of customer service busy is 3,3274 ≈ 3 server. These values are given in Table 4.

TABLE 4 Effective measurements

Measurements Value Measurements Value
ߣ 0,1778 ‫ܮ‬௦ 6,1188
ߤ 0,0543 ‫ݍܮ‬ 2,8444
ߩ 3,3274 ܹ‫ݏ‬ 34,4141
ܲ଴ 0,0239 ܹ‫ݍ‬ 15,9979
ܿҧ 3,3274

Cost Model
The cost of waiting for the customer with regard to per capita income of Indonesia, so the cost of waiting is
equal to the cost of the customer if he was doing the job. According to Central Bureau of Statistics (Badan Pusat
Statitik, BPS) per-capita income of Indonesia by 2015 is Rp 32,999,500. If a customer working time is 7 hours per
days, and 5 days per weeks, then the total cost of customer’s waiting per minute (‫ܥ‬ଶ ) is Rp 327.
Marginal cost (‫ܥ‬ଵ ) regard to operational costs needed to hire employees and logistics costs in case the addition
of a server. The salary for a customer service at an insurance company according to www.qerja.com [9] is Rp
5.000.000 per month. The cost of purchasing a computer, desk and chairs according to www.lazada.co.id [10] is Rp
6.000.000, Rp 1.500.000, and Rp 1.200.000 respectively, where there are such goods can last up to 5 years.
The marginal cost conversion per minute indicated the Table 5

TABLE 5 Marginal cost

Types of Unit Cost per Cost per Cost per Cost per
cost month (Rp) day (Rp) hours minute (Rp)
(Rp)
Salary person 5.000.000 250.000 35.714 595
Computers Set 100.000 5.000 714 12
Tables Unit 25.000 1.250 179 3
Chairs Unit 20.000 1.000 143 2
Total 5.145.000 257.250 36.750 612

040004-5
Thus, marginal cost (C1) needs one server per minute is Rp 612. The average number of a customer in system
with different number of server are presented on Table 6.

TABLE 6 The average number of a customer in system

servers (c) λ μ ρ/c Steady Ls
state
3 0,1778 0,0543 1,0915 No -
4 0,1778 0,0543 0,8186 Yes 6,1188
5 0,1778 0,0543 0,6549 Yes 3,8617
6 0,1778 0,0543 0,5457 Yes 3,441

If the number of customer service is 4 server, then the marginal cost per minute is Rp 2.448. If the number of
customer service is 5 servers, then the marginal cost per minute is Rp 3.060. If the number of customer service is 6
servers, then the marginal cost per minute is Rp 3,672. The table shows the total cost needed if the occurrence of the
addition of a server.
TABLE 7 Expectation total cost
servers Marginal Operational Cost of The average Waiting Total Cost
(c) cost Cost customer’s number of Cost EWC(c)+
࡯૚ C1 × c waiting per customer in C2 × Ls EOC(c)
(EOC(c)) minute system (EWC(c)) (ETC(c))
(C2) (Ls)
4 612 2.448 327 6,1188 2.000 4.448
5 612 3.060 327 3,8617 1.263 4.323
6 612 3.672 327 3,441 1.125 4.797

Based on the calculation of the total costs per minute on table 3.22, the optimal number of customer service that is at
the moment operates 5 server because the total cost per minute of it the smallest, Rp 4.323. These lower costs compared
to using 4 servers is Rp 4.448 and 6 servers is Rp 4.797. Therefore, with the number of customer service as
much as 5 servers, the system is already in a state of optimal.

CONCLUSION
Queueing system of multiserver model at XYZ insurance company in Tasikmalaya city has (M/M/4):(GD/∞/∞)
model. It means that the arrivals follow a poisson probability distribution and service time have an exponential
distribution with four servers. The queue discipline is General Discipline. There are an infinite a system capacity and
source calling.
Effective measurement of the queueing system at xyz insurance company were obtained as the probability of idle
customer service is 2,39% of the working time, the average number of customer in the queue is 3 customers, the
average number of customer in a system is 6 customers,the average time a customer spent in the queue is 15,9979
minutes, the average time a customer spends in the system is 34,4141 minutes, the average of customer service busy
is 3 server.
Based on the calculation of the total costs per minute, the optimal number of customer service that is at the moment
operates 5 server because the total cost per minute of it the smallest is Rp 4.323. These lower costs compared to using
4 server is Rp 4.448 and 6 servers is Rp 4.797. Therefore, with the number of customer service as
much as 5 server system is already in a state of optimal.

040004-6
 ACKNOWLEDGMENTS

The authors would like to thank you to XYZ insurance company in Tasikmalaya City which gave permission for
this research.

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