Decision Areas for Management

After analyzing a waiting-line problem, management can improve the service system by making changes in one or more of the following areas.

  1. Arrival Rates. Management often can affect the rate of customer arrivals, λ through advertising, special promotions, or differential pricing. For example, hotels in the Caribbean will reduce their room rates during the hot, rainy season to attract more customers and increase their utilization.

  2. Number of Service Facilities. By increasing the number of service facilities, such as tool cribs, toll booths, or bank tellers, or by dedicating some facilities in a phase to a unique set of services, management can increase system capacity.

  3. Number of Phases. Managers can decide to ...

Get Operations Management: Processes and Supply Chains, 12th Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.