Queuing Models

IE122
Chapter 1
Waiting Lines and Queuing
Theory Models
To accompany
Quantitative Analysis for Management, Tenth Edition,
by Render, Stair, and Hanna
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
Chapter Outline
Introduction
Waiting Line Costs
Characteristics of a Queuing System
Single-Channel Queuing Model with
Poisson Arrivals and Exponential Service
Times (M/M/1)
Multichannel Queuing Model with Poisson
Arrivals and Exponential Service Times
(M/M/m)
Chapter Outline
Constant Service Time Model (M/D/1)
Finite Population Model (M/M/1 with Finite
Source)
Some General Operating Characteristic
Relationships
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
Service
Level
Three Rivers Shipping Company
Example
Three Rivers Shipping operates a docking facility
on the Ohio River
An average of 5 ships arrive to unload their
cargos each shift
Idle ships are expensive
More staff can be hired to unload the ships, but
that is expensive as well
Three Rivers Shipping Company wants to
determine the optimal number of teams of
stevedores to employ each shift to obtain the
minimum total expected cost
Three Rivers Shipping Company
Example
Three Rivers Shipping waiting line cost analysis
NUMBER OF TEAMS OF STEVEDORES
WORKING
1 2 3 4
(a) Average number of ships arriving 5 5 5 5
per shift
(b) Average time each ship waits to 7 4 3 2
be unloaded (hours)
(c) Total ship hours lost per shift 35 20 15 10
(a x b)
(d) Estimated cost per hour of idle $1,000 $1,000 $1,000 $1,000
ship time
(e) Value of ships lost time or waiting $35,000 $20,000 $15,000 $10,000
cost (c x d)
(f) Stevedore team salary or service $6,000 $12,000 $18,000 $24,000
cost
(g) Total expected cost (e + f) $41,000 $32,000 $33,000 $34,000
Optimal cost
There are three parts to a queuing system

1. The arrivals or inputs to the system
(sometimes referred to as the calling
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, pattern, and behavior
Size of the calling population
Can be either unlimited (essentially infinite)
or limited (finite)
Pattern of arrivals
Can arrive according to a known pattern or
can arrive randomly
Random arrivals generally follow a Poisson
distribution
The Poisson distribution is

e X
P( X ) for X 0, 1, 2, 3, 4,...
X!
where
P(X) = probability of X arrivals
X = number of arrivals per unit of time
= average arrival rate
e = 2.7183
If = 2, we can find the values for X = 0, 1, and 2
e X
P( X )
X!
e 2 20 0.1353(1)
P (0 ) 0.1353 14%
0! 1
e 2 21 e 2 2 0.1353(2)
P (1) 0.2706 27%
1! 1 1
e 2 22 e 2 4 0.1353( 4 )
P (2 ) 0.2706 27%
2! 2(1) 2
Two examples of the Poisson distribution for

arrival rates
0.30 0.25
0.25 0.20
0.20
Probability
Probability
0.15
0.15
0.10
0.10
0.05 0.05
0.00 | | | | | | | | | | 0.00 | | | | | | | | | |
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9
X X
= 2 Distribution = 4 Distribution
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)
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

Service
Facility Departures
Queue
1
Service
Arrivals Facility after
2
Service
Facility Service
3
Multichannel, Single-Phase System

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

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
Two examples of exponential distribution for

service times
f (x)
f (x) = ex
for x 0
and > 0

= Average Number Served per Minute

Average Service Time
of 20 Minutes

Average Service Time of 1 Hour
| | | | | | |
0 30 60 90 120 150 180 Service Time (Minutes)
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
queues 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

Arnolds Muffler Shop Case
Arnolds 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
32 1 on the average
1 1
W 1 hour that an average car
32 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 QM
Output from QM analysis
Output from QM analysis
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
= mCs
service cost
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
= (W)Cw
waiting cost
If waiting time cost is based on time in the queue
Total
= (Wq)Cw
waiting cost
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
42 2 on the average
1 1
W 1/2 hour that an average car
42 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
Probability of more than k cars in the system
k Pn>k = (2/4)k+1
0 0.500
1 0.250
2 0.125
3 0.062
4 0.031
5 0.016
6 0.008
7 0.004
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
Enhancing the Queuing Environment
Reducing waiting time is not the only way

to reduce waiting cost
Reducing waiting cost (Cw) will also
reduce total waiting cost
This might be less expensive to achieve
than reducing either W or Wq
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!

n0 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
Arnolds 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!

n0 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 Arnolds 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)
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

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
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 n
0.564
5
5! 0.05

n0 ( 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

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 Littles 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

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IE122

Total Expected Cost

Cost of Providing Service

Cost of Waiting Time

There are three parts to a queuing system

Arrival Characteristics have three major

The Poisson distribution is

If = 2, we can find the values for X = 0, 1, and 2

Two examples of the Poisson distribution for

Waiting Line Characteristics

Service Facility Characteristics

Four basic queuing system configurations

Single-Channel, Single-Phase System

Single-Channel, Multiphase System

Four basic queuing system configurations

Multichannel, Single-Phase System

Four basic queuing system configurations

Multichannel, Multiphase System

Service time distribution

Two examples of exponential distribution for

= Average Number Served per Minute

Specific letters are used to represent probability

5. The utilization factor for the system, , the

7. The probability that the number of customers in

Arnolds mechanic can install mufflers at a rate of

Probability of more than k cars in the system

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

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

Arnold is thinking about hiring a different

Probability of more than k cars in the system

The total time spent waiting for the 16 customers

Reducing waiting time is not the only way

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

Average number of cars in the system

Average time a car spends in the system

Average number of cars in the queue

Average time a car spends in the queue

Total daily service cost = (8 hours per day)mCs

So the total cost of the system is

The fast mechanic is the cheapest option

Constant service times are used when

1. Average length of the queue

2. Average waiting time in the queue

3. Average number of customers in the system

4. Average time in the system

Garcia-Golding Recycling, Inc.

Equations for the finite population model

1. Probability that the system is empty

3. Average number of customers (units) in the system

4. Average waiting time in the queue

6. Probability of n units in the system

The Department of Commerce has five printers

3. L 0.2 1 0.564 0.64 printer

= (0.64)($120) + $25 = $101.80

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