Using the banking systems as an example, describe the components of a discrete-

event system.  4MKS

Discrete-event systems (DES) are frequently used to model and evaluate complicated processes

involving discrete events in a variety of disciplines, including financial systems. Discrete events

including customer transactions, account updates, as well as system faults are frequently present

in banking systems. Designing effective and dependable banking systems requires an

understanding of the discrete-event system's components. Some of the elements include the

following:

Events

The essential units of a discrete-event system are events. Events in the banking industry might be

customer requests, system errors, account changes, and transaction successes. These occurrences

take place at particular times and initiate further systemic activities (Kelton, Sadowski, &

Sadowski, 2021). An account update event, for instance, is started when a consumer deposits

money into their account and the account balance is updated.

Entities

The objects or things that interact with the system are represented by entities. Entities in a

banking system can include clients, accounts, ATMs, bank staff, and system parts. Each entity

has features and interactions within the system that are defined by its traits and behaviors (Banks,

Carson, & Nelson, 2020). For instance, a customer entity may have properties like an account

number, name, and balance, as well as actions like making deposits or withdrawals.
 Resources

Resources are the components needed to carry out specific systemic tasks. Bank tellers, ATMs,

cash registers, and computer systems are examples of resources in banking systems. The

allocation and exploitation of these resources, which can be scarce, have an impact on the

functionality of the system (Pinedo, 2016). A bank teller resource, for instance, may be needed to

handle customer transactions and can be distributed across many customer entities.

Activities

The acts carried out by system entities are represented by activities. Customer transactions,

account changes, cash withdrawals, and system maintenance are all examples of activity in a

banking system. According to Pinedo (2016), each activity has a time limit and uses resources.

For instance, when a consumer uses an ATM to withdraw money, they start an activity that uses

up ATM resources and takes some time to finish.

Queues

Queues are used to control the holding or waiting of entities while they wait to accomplish

specific tasks. Queues can develop at ATMs, teller counters, or online transaction systems in a

banking system, where individuals wait for their turn to be assisted (Kelton et al., 2021). Queues

can be set up in a variety of ways, such as priority-based or first-come-first-served, and how they

are managed has an impact on how well the system works and how satisfied customers are.

Timing and Scheduling

Timing and scheduling elements regulate the order and timing of actions and occurrences within

the system. The timely and effective processing of entities is ensured in banking systems via
timing and scheduling methods. The sequence of events, resource allocation, and wait time

management are all part of this (Banks et al., 2020). Customer wait times can be reduced and

system throughput increased with effective scheduling.

Conclusion

Events, entities, resources, activities, queues, and timing/scheduling methods are the elements of

a discrete-event system in banking. Designing as well as optimizing banking systems to increase

productivity, client happiness, and overall system performance requires a thorough understanding

of these components. Banking systems can be improved to give consumers dependable and

efficient services by modeling and analyzing these components.

References

Banks, J., Carson, J. S., & Nelson, B. L. (2020). Discrete-event system simulation (6th ed.).

Pearson.

Kelton, W. D., Sadowski, R. P., & Sadowski, D. A. (2021). Simulation with Arena (7th ed.).

McGraw-Hill.

Pinedo, M. (2016). Scheduling: Theory, algorithms, and systems (5th ed.). Springer.

Reply 1:

I agree with the statement that by considering the components mentioned, we can model and

simulate the behavior of the banking system as a discrete-event system. Modeling and simulating

the banking system as a discrete-event system provides a powerful tool for analyzing and

optimizing its behavior. It enables us to explore different scenarios, evaluate the impact of
changes, and make informed decisions to enhance customer experience, staff utilization, and

overall system performance.

Reply 2

I concur that time is a key component of discrete-event systems, including financial systems.

Events happen in discrete-event systems at specified times, and the timing of these events and

the length of processes have a big impact on system performance.

Just to add, in a banking system, time is essential for various aspects of system performance

evaluation. For instance, measuring waiting times is important to assess customer satisfaction

and identify potential bottlenecks in the service process. Longer waiting times can lead to

customer dissatisfaction and may indicate the need for improved resource allocation or process

optimization.

Moreover, transaction durations are another time-related factor that impacts system performance.

Efficient processing of transactions, such as depositing or withdrawing funds, can contribute to

faster service and improved customer experience. Monitoring transaction durations allows banks

to identify any delays or inefficiencies in the system and take appropriate measures to address

them.