Waiting Lines and Queuing Theory Models: To Accompany

Chapter 14
Waiting Lines and Queuing

Theory Models
To accompany
Quantitative Analysis for Management, Tenth Edition,
by Render, Stair, and Hanna © 2008 Prentice-Hall, Inc.
Power Point slides created by Jeff Heyl © 2009 Prentice-Hall, Inc.
Learning Objectives
After completing this chapter, students will be able to:
1. Describe the trade-off curves for cost-of-
waiting time and cost-of-service
2. Understand the three parts of a queuing
system: the calling population, the queue
itself, and the service facility
3. Describe the basic queuing system
configurations
4. Understand the assumptions of the common
models dealt with in this chapter
5. Analyze a variety of operating characteristics
of waiting lines
© 2009 Prentice-Hall, Inc. 14 – 2
Chapter Outline
14.1 Introduction
14.2 Waiting Line Costs
14.3 Characteristics of a Queuing System
14.4 Single-Channel Queuing Model with
Poisson Arrivals and Exponential Service
Times (M/M/1)
14.5 Multichannel Queuing Model with Poisson
Arrivals and Exponential Service Times
(M/M/m)

Chapter Outline
14.6 Constant Service Time Model (M/D/1)
14.7 Finite Population Model (M/M/1 with Finite
Source)
14.8 Some General Operating Characteristic
Relationships
14.9 More Complex Queuing Models and the
Use of Simulation

Introduction
 Queuing theory is the study of waiting lines
 It is one of the oldest and most widely used
quantitative analysis techniques
 Waiting lines are an everyday occurrence for most
people
 Queues form in business process as well
 The three basic components of a queuing process
are arrivals, service facilities, and the actual waiting
line
 Analytical models of waiting lines can help
managers evaluate the cost and effectiveness of
service systems

Waiting Line Costs
 Most waiting line problems are focused on
finding the ideal level of service a firm should
provide
 In most cases, this service level is something
management can control
 When an organization does have control, they
often try to find the balance between two
extremes
 A large staff and many service facilities generally
results in high levels of service but have high
costs

Waiting Line Costs
 Having the minimum number of service facilities
keeps service cost down but may result in
dissatisfied customers
 There is generally a trade-off between cost of
providing service and cost of waiting time
 Service facilities are evaluated on their total
expected cost which is the sum of service costs
and waiting costs
 Organizations typically want to find the service
level that minimizes the total expected cost

Waiting Line Costs
 Queuing costs and service level
Total Expected Cost
Cost of Providing Service

Cost
Cost of Waiting Time
* Service Level
Optimal
Figure 14.1 Service
Level
Characteristics of a Queuing System
 There are three parts to a queuing system

1. The arrivals or inputs to the system
(sometimes referred to as the calling
population)
population
2. The queue or waiting line itself
3. The service facility
 These components have their own
characteristics that must be examined
before mathematical models can be
developed

 Arrival Characteristics have three major

characteristics, size,
size pattern,
pattern and behavior
 Size of the calling population
 Can be either unlimited (essentially infinite)
infinite
or limited (finite)
finite
 Pattern of arrivals
 Can arrive according to a known pattern or
can arrive randomly

 Behavior of arrivals
 Most queuing models assume customers are
patient and will wait in the queue until they are
served and do not switch lines
 Balking refers to customers who refuse to join
the queue
 Reneging customers enter the queue but
become impatient and leave without receiving
their service
 That these behaviors exist is a strong
argument for the use of queuing theory to
managing waiting lines

 Waiting Line Characteristics

 Waiting lines can be either limited or unlimited
 Queue discipline refers to the rule by which
customers in the line receive service
 The most common rule is first-in, first-out
(FIFO)
FIFO
 Other rules are possible and may be based on
other important characteristics
 Other rules can be applied to select which
customers enter which queue, but may apply
FIFO once they are in the queue

 Service Facility Characteristics

 Basic queuing system configurations
 Service systems are classified in terms of
the number of channels, or servers, and the
number of phases, or service stops
 A single-channel system with one server is
quite common
 Multichannel systems exist when multiple
servers are fed by one common waiting line
 In a single-phase system the customer
receives service form just one server
 If a customer has to go through more than
one server, it is a multiphase system
 Four basic queuing system configurations
Queue
Service Departures
Arrivals Facility after Service
Single-Channel, Single-Phase System
Queue
Type 1 Type 2 Departures
Arrivals Service Service after
Facility Facility Service
Single-Channel, Multiphase System
Figure 14.3 (a)

Service
Facility Departures
Queue
1
Service
Arrivals Facility after
2
Service
Facility Service
3
Multichannel, Single-Phase System
Figure 14.3 (b)

Type 1 Type 2
Queue Service Service
Facility Facility
1 1 Departures
Arrivals after
Service
Type 1 Type 2
Service Service
Facility Facility
2 2
Multichannel, Multiphase System
Figure 14.3 (c)

 Service time distribution

 Service patterns can be either constant or
random
 Constant service times are often machine
controlled
 More often, service times are randomly
distributed according to a negative exponential
probability distribution
 Models are based on the assumption of
particular probability distributions
 Analysts should take to ensure observations fit
the assumed distributions when applying these
models
Identifying Models Using
Kendall Notation
 D. G. Kendall developed a notation for queuing
models that specifies the pattern of arrival, the
service time distribution, and the number of
channels
 It is of the form
Arrival Service time Number of service
distribution distribution channels open
 Specific letters are used to represent probability

distributions
M = Poisson distribution for number of occurrences
D = constant (deterministic) rate
G = general distribution with known mean and variance

Identifying Models Using
Kendall Notation
 So a single channel model with Poisson arrivals
and exponential service times would be
represented by
M/M/1
 If a second channel is added we would have
M/M/2
 A three channel system with Poisson arrivals and
constant service time would be
M/D/3
 A four channel system with Poisson arrivals and
normally distributed service times would be
M/G/4

Single-Channel Model, Poisson Arrivals,
Exponential Service Times (M/M/1)
 Assumptions of the model
 Arrivals are served on a FIFO basis
 No balking or reneging
 Arrivals are independent of each other but rate
is constant over time
 Arrivals follow a Poisson distribution
 Service times are variable and independent but
the average is known
 Service times follow a negative exponential
distribution
 Average service rate is greater than the average
arrival rate
 When these assumptions are met, we can
develop a series of equations that define the
queue’s operating characteristics
 Queuing Equations
 We let
 = mean number of arrivals per time period
 = mean number of people or items served
per time period
 The arrival rate and the service rate must be
for the same time period

1. The average number of customers or units in the
system, L

L

2. The average time a customer spends in the
system, W
1
W 

3. The average number of customers in the queue, Lq
2
Lq 
(   )
4. The average time a customer spends waiting in
the queue, Wq

Wq 
(   )
5. The utilization factor for the system, , the

probability the service facility is being used




6. The percent idle time, P0, the probability no one is
in the system

P0  1 

7. The probability that the number of customers in

the system is greater than k, Pn>k
k 1

Pn k  


Arnold’s Muffler Shop Case
 Arnold’s mechanic can install mufflers at a rate of
3 per hour
 Customers arrive at a rate of 2 per hour
 = 2 cars arriving per hour
 = 3 cars serviced per hour
 2 2
L    2 cars in the system
  32 1 on the average
1 1
W    1 hour that an average car
  32 spends in the system

2 22 4
Lq     1.33 cars waiting in line
 (    ) 3(3  2) 3(1) on the average
 2
Wq   hour  40 minutes average
(   ) 3 waiting time per car
 2
    0.67  percentage of time
 3 mechanic is busy
 2
P0  1   1   0.33  probability that there
 3 are 0 cars in the system

 Probability of more than k cars in the system
k Pn>k = (2/3)k+1
0 0.667 Note that this is equal to 1 – P0 = 1 – 0.33 = 0.667

1 0.444
2 0.296
3 0.198 Implies that there is a 19.8% chance that more
than 3 cars are in the system
4 0.132
5 0.088
6 0.058
7 0.039

 Input data and formulas using Excel QM
Program 14.1A
 Output from Excel QM analysis
Program 14.1B
 Introducing costs into the model
 Arnold wants to do an economic analysis of
the queuing system and determine the waiting
cost and service cost
 The total service cost is
Total (Number of channels)

=
service cost x (Cost per channel)
Total
service cost = mCs
where
m = number of channels
Cs = service cost of each channel
 Waiting cost when the cost is based on time in
the system
Total (Total time spent waiting by all
=
waiting cost arrivals) x (Cost of waiting)
(Number of arrivals) x
=
(Average wait per arrival)Cw
Total
waiting cost = (W)Cw
 If waiting time cost is based on time in the queue
Total
waiting cost = (Wq)Cw

 So the total cost of the queuing system when

based on time in the system is
Total cost = Total service cost + Total waiting cost

Total cost = mCs + WCw
 And when based on time in the queue
Total cost = mCs + WqCw

 Arnold estimates the cost of customer waiting
time in line is $10 per hour
Total daily
waiting cost = (8 hours per day)WqCw
= (8)(2)(2/3)($10) = $106.67
 Arnold has identified the mechanics wage $7 per
hour as the service cost
Total daily
service cost = (8 hours per day)mCs
= (8)(1)($7) = $56
 So the total cost of the system is
Total daily cost of
the queuing system = $106.67 + $56 = $162.67
 Arnold is thinking about hiring a different
mechanic who can install mufflers at a faster rate
 The new operating characteristics would be
 = 2 cars arriving per hour
 = 4 cars serviced per hour
 2 2
L    1 car in the system
  42 2 on the average
1 1
W    1/2 hour that an average car
  42 spends in the system

2 22 4
Lq     1/2 cars waiting in line
 (    ) 4( 4  2) 8(1) on the average
 1
Wq   hour  15 minutes average
(   ) 4 waiting time per car
 2
    0.5  percentage of time
 4 mechanic is busy
 2
P0  1   1   0 .5  probability that there
 4 are 0 cars in the system

 The customer waiting cost is the same $10 per
hour
Total daily
waiting cost = (8 hours per day)WqCw
= (8)(2)(1/4)($10) = $40.00
 The new mechanic is more expensive at $9 per
hour
Total daily
service cost = (8 hours per day)mCs
= (8)(1)($9) = $72
Total daily cost of
the queuing system = $40 + $72 = $112
 The total time spent waiting for the 16 customers

per day was formerly
(16 cars per day) x (2/3 hour per car) = 10.67 hours
 It is now is now
(16 cars per day) x (1/4 hour per car) = 4 hours

 The total system costs are less with the new
mechanic resulting in a $50 per day savings
$162 – $112 = $50

Multichannel Model, Poisson Arrivals,
Exponential Service Times (M/M/m)
 Assumptions of the model
 Arrivals are served on a FIFO basis
 No balking or reneging
 Arrivals are independent of each other but rate
is constant over time
 Arrivals follow a Poisson distribution
 Service times are variable and independent but
the average is known
 Service times follow a negative exponential
distribution
 Average service rate is greater than the average
arrival rate
 Equations for the multichannel queuing model
 We let
m = number of channels open
 = average arrival rate
 = average service rate at each channel
1. The probability that there are zero customers in
the system
1
P0  for m   
 n  m 1
1
n
 1  m
m
   
n!   
  
 n0  m!    m   

2. The average number of customer in the system
 ( /  ) m 
L P 
( m  1)! ( m    )2 0 
3. The average time a unit spends in the waiting line

or being served, in the system
 ( /  )m 1 L
W  P  
( m  1)! ( m    ) 2 0
 

4. The average number of customers or units in line
waiting for service

Lq  L 

waiting for service
1 Lq
Wq  W  
 
waiting for service


m
Arnold’s Muffler Shop Revisited
 Arnold wants to investigate opening a second
garage bay
 He would hire a second worker who works at the
same rate as his first worker
 The customer arrival rate remains the same
1
P0  for m   
 n  m 1
1 
n
 1  m
m
   
n!   
   
 n0  m!    m   
P0  0.5
 probability of 0 cars in the system

 Average number of cars in the system
 ( /  ) m 
L P   0.75
( m  1)! ( m    ) 2 0

 Average time a car spends in the system
L 3
W   hours  22 1 minutes
 8 2

 Average number of cars in the queue
 3 2 1
Lq  L      0.083
 4 3 12
 Average time a car spends in the queue
1 Lq 0.083
Wq  W     0.0415 hour  2 1 minutes
  2 2

 Effect of service level on Arnold’s operating
characteristics
LEVEL OF SERVICE
ONE TWO ONE FAST
OPERATING MECHANIC MECHANICS MECHANIC
CHARACTERISTIC =3  = 3 FOR BOTH =4
Probability that the system
0.33 0.50 0.50
is empty (P0)
Average number of cars in
2 cars 0.75 cars 1 car
the system (L)
Average time spent in the
60 minutes 22.5 minutes 30 minutes
system (W)
Average number of cars in
1.33 cars 0.083 car 0.50 car
the queue (Lq)
Average time spent in the
40 minutes 2.5 minutes 15 minutes
queue (Wq)
Table 14.2
 Adding the second service bay reduces the
waiting time in line but will increase the service
cost as a second mechanic needs to be hired
Total daily waiting cost = (8 hours per day)WqCw
= (8)(2)(0.0415)($10) = $6.64
Total daily service cost = (8 hours per day)mCs
= (8)(2)($7) = $112
Total system cost = $6.64 + $112 = $118.64
 The fast mechanic is the cheapest option

 Input data and formulas for Arnold’s multichannel
queuing decision using Excel QM
Program 14.2A
 Output from Excel QM analysis
Program 14.2B
Constant Service Time Model (M/D/1)
 Constant service times are used when

customers or units are processed
according to a fixed cycle
 The values for Lq, Wq, L, and W are always
less than they would be for models with
variable service time
 In fact both average queue length and
average waiting time are halved in
constant service rate models

1. Average length of the queue
2
Lq 
2 (    )
2. Average waiting time in the queue

Wq 
2 (    )

3. Average number of customers in the system

L  Lq 

4. Average time in the system
1
W  Wq 


 Garcia-Golding Recycling, Inc.

 The company collects and compacts aluminum
cans and glass bottles
 Trucks arrive at an average rate of 8 per hour
(Poisson distribution)
 Truck drivers wait about 15 before they empty
their load
 Drivers and trucks cast $60 per hour
 New automated machine can process
truckloads at a constant rate of 12 per hour
 New compactor will be amortized at $3 per
truck

 Analysis of cost versus benefit of the purchase
Current waiting cost/trip = (1/4 hour waiting time)($60/hour cost)

= $15/trip
New system:  = 8 trucks/hour arriving
 = 12 trucks/hour served
Average waiting
time in queue = Wq = 1/12 hour
Waiting cost/trip
with new compactor = (1/12 hour wait)($60/hour cost) = $5/trip
Savings with
new equipment = $15 (current system) – $5 (new system)
= $10 per trip
Cost of new equipment
amortized = $3/trip
Net savings = $7/trip
 Input data and formulas for Excel QM’s constant

service time queuing model
Program 14.3A

 Output from Excel QM constant service time

model
Program 14.3B

Finite Population Model
(M/M/1 with Finite Source)
 When the population of potential customers is
limited, the models are different
 There is now a dependent relationship between
the length of the queue and the arrival rate
 The model has the following assumptions
1. There is only one server
2. The population of units seeking service is
finite
3. Arrivals follow a Poisson distribution and
service times are exponentially distributed
4. Customers are served on a first-come, first-
served basis

 Equations for the finite population model
 Using
 = mean arrival rate,  = mean service rate,
N = size of the population
 The operating characteristics are
1. Probability that the system is empty
1
P0  n
N
N!   
  
n  0 ( N  n )!   

2. Average length of the queue
  
Lq  N    1  P0 
  
3. Average number of customers (units) in the system
L  Lq   1  P0 
4. Average waiting time in the queue
Lq
Wq 
( N  L)

5. Average time in the system
1
W  Wq 

6. Probability of n units in the system
n
N!   
Pn    P0 for n  0,1,..., N
 N  n !   

Department of Commerce Example
 The Department of Commerce has five printers

that each need repair after about 20 hours of
work
 Breakdowns follow a Poisson distribution
 The technician can service a printer in an average
of about 2 hours, following an exponential
distribution
 = 1/20 = 0.05 printer/hour
 = 1/2 = 0.50 printer/hour

1. 1
P0  5 n
 0.564
5!  0.05 

n0 ( 5  n )!

 0 . 5


2.  0.05  0.5 
Lq  5    1  P0   0.2 printer
 0.05 
3. L  0.2   1  0.564   0.64 printer

4. 0 .2 0 .2
Wq    0.91 hour
(5  0.64 ) 0.05  0.22
1
5. W  0.91   2.91 hours
0.50
 If printer downtime costs $120 per hour and the
technician is paid $25 per hour, the total cost is
Total (Average number of printers down)
hourly = (Cost per downtime hour)
cost + Cost per technician hour
= (0.64)($120) + $25 = $101.80

 Excel QM input data and formulas for solving the

Department of Commerce finite population
queuing model
Program 14.4A

 Output from Excel QM finite population queuing

model
Program 14.4B

Some General Operating
Characteristic Relationships
 Certain relationships exist among specific
operating characteristics for any queuing system
in a steady state
 A steady state condition exists when a system is
in its normal stabilized condition, usually after an
initial transient state
 The first of these are referred to as Little’s Flow
Equations
L = W (or W = L/)
Lq = Wq (or Wq = Lq/)
 And
W = Wq + 1/
More Complex Queuing Models and
the Use of Simulation
 In the real world there are often variations from
basic queuing models
 Computer simulation can be used to solve these
more complex problems
 Simulation allows the analysis of controllable
factors
 Simulation should be used when standard
queuing models provide only a poor
approximation of the actual service system

Waiting Lines and Queuing Theory Models: To Accompany

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Chapter 14

Waiting Lines and Queuing

© 2009 Prentice-Hall, Inc. 14 – 3

© 2009 Prentice-Hall, Inc. 14 – 4

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Total Expected Cost

Cost of Providing Service

Cost of Waiting Time

 There are three parts to a queuing system

© 2009 Prentice-Hall, Inc. 14 – 11

 Arrival Characteristics have three major

© 2009 Prentice-Hall, Inc. 14 – 12

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 Waiting Line Characteristics

© 2009 Prentice-Hall, Inc. 14 – 17

 Service Facility Characteristics

Single-Channel, Single-Phase System

Single-Channel, Multiphase System

Figure 14.3 (a)

© 2009 Prentice-Hall, Inc. 14 – 19

Multichannel, Single-Phase System

Figure 14.3 (b)

© 2009 Prentice-Hall, Inc. 14 – 20

Multichannel, Multiphase System

Figure 14.3 (c)

© 2009 Prentice-Hall, Inc. 14 – 21

 Service time distribution

 Specific letters are used to represent probability

© 2009 Prentice-Hall, Inc. 14 – 24

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5. The utilization factor for the system, , the

© 2009 Prentice-Hall, Inc. 14 – 29

7. The probability that the number of customers in

© 2009 Prentice-Hall, Inc. 14 – 30

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0 0.667 Note that this is equal to 1 – P0 = 1 – 0.33 = 0.667

© 2009 Prentice-Hall, Inc. 14 – 33

Total (Number of channels)

© 2009 Prentice-Hall, Inc. 14 – 37

 So the total cost of the queuing system when

Total cost = Total service cost + Total waiting cost

 And when based on time in the queue

Total cost = mCs + WqCw

© 2009 Prentice-Hall, Inc. 14 – 38

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 The total time spent waiting for the 16 customers

(16 cars per day) x (1/4 hour per car) = 4 hours

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3. The average time a unit spends in the waiting line

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 Average number of cars in the system

 Average time a car spends in the system

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 Average number of cars in the queue

 Average time a car spends in the queue

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