Business to Business through Application of Queuing Theory

Abstract
This research explores queuing theory for managing business operations during the coronavirus
pandemic, focusing on electronic queue systems to maintain social distancing and improve customer
experience.
Introduction
Queuing theory is a simulation technique that aids in time management and delays. It is based on the first
come, first served (FCFS) concept, where an electronic queue system generates token numbers for each
customer and provides a time line for payment. An Android-based system was introduced in five small
towns in India, measuring its effectiveness by calculating sales during and before the pandemic. The
system converts traditional shopping into electronic services, ensuring sufficient accountants for billing
and clear exits. This system offers advantages such as self-service checkout and self-payment, allowing
stores to serve more customers in less time and without more interaction with customers.
However, challenges such as security and privacy concerns, technological awareness, and customer
illiteracy hindered its implementation. Despite these challenges, the results show that queuing theory is
effective in managing crowds, achieving social distancing, and achieving profit maximization, even
during the pandemic.
LITERATURE RIVEW
French mathematician S.D. Poisson developed a viable queuing theory in the late 1800s, which used a
statistical approach to describe the probability of a prescribed outcome after repeated iterations of
independent trials. This theory was most important during the late 1800s when telephone companies faced
the problem of how many operators to place on duty at a given time. At the time, all calls were switched
manually by an operator who physically connected a wire to a switchboard. Supervisors had to decide
how many operators to keep on the boards, as too many operators would remain idle for minutes at a
time, while too few would be overwhelmed by service requests. Callers who were unable to gain an
operator's attention often hung up in frustration, waiting several minutes before trying again, or repeated
calls hoping the operator would be sufficiently annoyed to serve them next.
Traffic engineers faced challenges due to behavioral discrepancies in operator demand. Turning away
calls were lost, while repeat calls increased demands. Poisson's formula was designed for this situation,
but systems were often overengineered, resulting in resource waste and overutilization of switchboards.
DISCUSSION
Queuing theory is used to identify and correct points of congestion in a process. The queue may consist of
people, things, or information. In any case, they are being forced to wait for service. That is inefficient,
bad for business, and annoying (when the queue consists of people). Queuing theory is used to analyze
the existing process and map out alternatives with a better result.
QUEUING MODELS
The M/M/I queue model is a queue where items arrive randomly, service intervals are first-in/first-out and
exponential, and the queue processes or services only one item at a time. This model is similar to an
ordinary queue, where customers arrive at random times, are served in the order they come, and one
server handles everyone. However, this model assumes no upper limit on system capacity or item
population, which is not true in real-life applications. Formulas describing the M/M/I model can be used
to calculate important system measurements, such as capacity utilization, waiting times for servicing, and
the average number of items in the queue. A grocery store must maintain a minimum of three customers
in a queue at any given time.
To achieve this, the store would need to check out 1.33 customers per unit of time, resulting in an average
wait of just over three minutes per customer. To save on staffing costs, the store could increase its
capacity usage to 90%, causing an effective rate of service to slow down to 1.1 customers per minute.
This would result in an average of nine customers in the queue at any time, with an average wait of 9
minutes. A 20% increase in the store's utilization rate would result in a threefold increase in waiting time
for the average customer.
A different model of a store's queuing system can yield different values, but this example demonstrates
how models can be applied to real-life problems. Queuing models vary in arrival and servicing patterns,
server numbers, and constraints. Examples include deterministic and general patterns, which can be used
in different combinations. The order of processing/servicing can also vary, with models offering
alternatives like LIFO, SIRO, and priority orders.

EXAMPLES OF QUEUING THEORY APPLICATIONS

The "busy hour" is a recurring pattern that dictates the system's design. The number of operators assigned
depends on the call patterns from one hour to the next. The Poisson and Erlang formulas show that the
relationship between operators and congestion is not parallel. For instance, if 10 operators handle 30%
more calls than they usually handle, the backlog will gradually fall, forcing others to idle for extended
periods. If 10 operators handle 130 percent of their normal volume, 13 operators would be required.
However, adding only one operator resolves the problem, as repeated calls are disposed of and the
aggregate wait of all holding operators is reduced one factor at a time. The backlog cannot regenerate
itself fast enough. In a grocery store with five lines and 12 people in each line, adding one extra cashier
can reduce the lines to one or two people. This eliminates the backlog and allows the sixth cashier to take
on another job. Unusual nonrandom disturbances can cause a system to collapse, as demonstrated by the
New York water system during the 1950s.
Engineers discovered that water pressure dropped significantly during a period of hours every Sunday
evening. Milton Berle, a comedian hosting a popular weekly television show, caused the system to
collapse. Tens of thousands of people retreated to their bathrooms simultaneously, causing sewers to be
inundated and toilet tanks to refill, consuming two or three gallons of fresh water. The system was
reengineered to handle more demanding peaks, allowing for better water pressure and reducing the need
for additional water towers.
The 1989 San Francisco earthquake highlighted the issue of people trying to place calls simultaneously,
leading to a breakdown in the telephone system. Despite automated switching systems, they were unable
to handle the volume of dial tone requests. Radio and television reporters advised people to stay off the
lines for emergency calls. The occurrence of earthquakes is not consistently repeated, making it
uneconomical to engineer the telephone network for peak usages. Additionally, radio hosts offering prizes
to "caller number x" can also cause temporary breakdowns. Telephone companies and public officials
have convinced many radio stations to discontinue this practice.

RESULTS
Queuing theory is a widely used concept in business settings, primarily in operations management and
research problems like production scheduling, logistics/distribution, and computer network management.
It involves cost shifting and burden averaging, with service providers serving limited resources and
customers waiting for their turn. Waiting customers are forced to pay in time for the privilege of being
served, shifting costs from the service provider to the customer. In a post office, the next person to be
served is the one who has stood longest in line, and the burden of the wait is shared by all in line. The
larger the line, the longer the average wait.
In a grocery store, the burden of waiting is less equally shared among clerks, as each line has different
orders and customers. This results in a longer wait time for customers. To provide good service, a cashier
for every shopper would be the highest level, but this would be costly and logistically impractical. To
minimize costs, a single cashier may be provided, forcing customers into a long, slow-moving line. This
may lead customers to abandon their stores and start shopping at a new store.
Queuing theory is the basis for traffic management, which aims to maintain smooth traffic flows and
minimize congestion and bottlenecks. Understanding traffic flow can lead to solutions that increase
efficiency and lower operating costs.
FUTURE APPLICATIONS OF QUEUING THEORY
Queuing theory has potential applications in computer science and manufacturing systems. In computer
science, queuing is crucial for competing for processing resources, as advanced computation relies on
distributed processing power. In manufacturing, queuing is essential for flexible systems that adjust
production factors to handle periodic increases in demand. Excess capacity during low demand can be
converted into working capital, rather than idle assets. Companies like Boeing face periods of low
demand but must quickly adapt to increased production. Queuing theory focuses on machine reliability,
depreciation, processing, and cycle times, allowing companies to convert assets into more productive
applications.