Operations Management: An Integrated Approach, 5th Edition

WAITING LINE MODELS WITHIN OM: HOW IT ALL FITS TOGETHER

Although it is unlikely that you calculate performance measures for the lines you wait in on a day-to-day basis, you should now be aware of the potential for mathematical analysis of these systems. More importantly, management has a tool by which it can evaluate system performance and make decisions as to how to improve the performance while weighing performance against the costs to achieve that performance.

Waiting line models are important to a company because they directly affect customer service perception and the costs of providing a service. Several functional areas are affected by waiting line decisions. Accounting is concerned with the cost of the waiting line system used. If system average utilization is low, that suggests the waiting line design is inefficient and too expensive. Poor system design can result in overstaffing or unnecessary capital acquisitions in an effort to improve customer service. Marketing is concerned about response time for customers—how long customers must wait in line before being served and how long it takes to be served. Quick service or response can be a competitive advantage. Long waits suggest a lack of concern by the organization or can be linked to a perception of poor service quality. Purchasing must be sure to buy capital equipment capable of achieving the proposed service rate. Operations uses waiting line theory to estimate queues or waiting times at different processing points, ...