Many banks and post offices have switched from having a line at each teller or clerk to a single waiting linecordoned off by a set of ropes or chains. Examine this change by considering the following two cases:A. Case 1. Customers arrive at a bank at an average rate of 80 per hour and form a single line. There are fivetellers, and the average service time is 3.0 minutes for each teller. Assuming exponential interarrival andservice times, how long is the average wait in line?B. Case 2. Customers arrive at a teller's window at a rate of 16 per hour. There are five tellers so that thetotal arrival rate is 80 per hour. There is separate line at each window (with no switching between lines).As in Case 1, the average service time for each teller is 3.0 minutes. How long is the average wait in line?C. Comment on the results of Cases 1 and 2. What additional factors might affect waiting times in a realbanking situation?

In any queueing/waiting line model, there are either one server or multiple (more than 1) servers.…

Answered: Many banks and post offices have…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section12.5: Analytic Steady-state Queueing Models

Problem 9P

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During nearly four decades of business operations, Memphis-based FedEx has earned a reputation for reliable, on-time delivery of packages to homes and offices around the country. Founder Fred Smith originally focused on overnight deliveries, choosing Memphis as the company’s headquarters because the airport rarely closes due to bad weather. With FedEx’s planes departing and arriving on schedule nearly all the time, its express shipments usually remained on schedule, then and now. To reassure customers that delivery will take place when and where promised, the firm offers a money-back guarantee on time-sensitive express shipments, among other services. FedEx has steadily expanded its portfolio of services since the 1970s. Its original overnight express delivery is currently available to U.S. customers in various forms, including “first-overnight” delivery, next-morning delivery, next-afternoon delivery, and budget-pleasing two- or three-day delivery. The company’s services also include cost-effective ground delivery for parcels and extra-speedy same-day delivery for urgent deliveries within 1,800 cities. Over the years, FedEx has widened its delivery network to more than 220 countries. It has purchased more cargo jets and acquired specialized shipping firms, including Tiger International, Roberts Express, RPS, and TNT Express, to support global growth. For international business customers needing products, parts, or raw materials shipped across countries or continents, the company now offers time-saving services such as commercial freight forwarding and cross-border logistical support. To add the convenience of local drop-off and pickup points for U.S. consumers and small businesses, FedEx acquired the Kinko’s office services company in 2004 and later rebranded it as FedEx Office. This acquisition also added printing and copying to the menu of services offered. Then the company arranged for large U.S. retailers such as Walgreens, Albertsons, Kroger, and Safeway to accept packages for shipment and receive package delivery for customer pickup in thousands of store locations. This means people who want to send a package can head to a nearby retailer and ship where they shop, rather than making a separate trip to the FedEx location. It’s also a safe alternative for packages to be picked up by people who don’t want FedEx shipments left by the front door. Another service FedEx offers to small and mid-sized businesses, including retailers, is FedEx Fulfillment. The purpose is to expedite order fulfillment by having each business store its products in a FedEx warehouse. Then, when the business’s customers place orders, FedEx puts the products into boxes bearing the business’s own logo and ships directly to those customers. The business doesn’t need a separate warehouse or staff for fulfillment, and packages are on their way to customers more quickly because the products were in FedEx’s warehouse, ready to be packed and shipped. This service puts FedEx into direct competition with Amazon.com, which offers a similar service to merchants that sell through the online Amazon Marketplace. But it also gives businesses that don’t sell via Amazon a fast and professional fulfillment alternative. FedEx is careful to let customers know, through media and social-media announcements, when it anticipates that extreme weather or other conditions will cause delays or force it to halt pickups and deliveries. For the duration of Hurricane Irma, for example, FedEx said it would suspend deliveries in Florida. Some Florida customers who had ordered generators to be delivered via FedEx were unhappy, because they worried about being without power during and after the storm. But one FedEx employee loaded several generator orders into his car and took them to customers himself. When a customer posted a grateful compliment to FedEx on Facebook, the message generated thousands of likes, shares, and positive comments. The company also received positive comments for its donations of cash and transportation services to areas devastated by Hurricanes Irma, Harvey, and Maria. According to the American Customer Satisfaction Index (ACSI), FedEx often tops the list of U.S. shipping companies as ranked by customers surveyed. Every day, the company delivers 13 million packages—and during the busy year-end holiday season, it delivers many more. By meeting customers’ expectations for on-time deliveries, FedEx has increased annual revenues beyond $60 billion and positioned itself for continued growth in the future. How does FedEx’s money-back guarantee address customers’ concerns about heterogeneity?
The vehicles are entering the parking area of the a mall.There is only one ticket line to get and pay a parkingticket. Each ticket purchase takes an average of 18seconds. The average arrival rate is 3 vehicles/minute.Find the average length of queue, average waiting timein queue and average time spent by the vehicles in thesystem assuming M/M/1 queuing.
Many of a bank’s customers use its automatic teller machine to transact business after normalbanking hours. During the early evening hours in the summer months, customers arrive at acertain location at the rate of one every other minute. This can be modeled using a Poissondistribution. Each customer spends an average of 90 seconds completing his or hertransaction. Transaction time is exponentially distributed. A) Identify the Queuing Model and sketch the system. B) What is the arrival rate? C) What is the service rate?
Patients arrive at a dentist’s office with an arrival rate of 2.8 patients per hour. The dentist can treat patients at a service rate of 3 patients per hour. A study of patient waiting times shows that a patient waits an average of 30 minutes before seeing the dentist. Note the M/M/1 model does not necessarily apply here. What are the arrival and service rates in terms of patients per minute? What is the average number of patients in the waiting room? If a patient arrives at 10:10am, at what time is the patient expected to leave the office?
Note: Formulas to solve the following problems are given in the class and example problems were solved in the class. Follow the examples described in the class and read the literature posted on blackboard. 1. Huntsville Bank (a fictitious one) has a drive-through teller window and observed that customers arrive for service one every three minute, on an average, and the average service time per customer is 2.4 minutes. Assume inter-arrival time and service time follow a negative Exponential distribution. The bank hires you as a consultant. You guess that this is an M|M|1 system and you are required to determine the following: a. Probability (teller is busy) b. Probability (teller is idle) c. Average number of customers waiting for service, that is, number of autos in the line excluding the one at the teller window. d. Average number of customers in the system, that is, number of autos in the line including the one at the teller window. e. Average time a customer spends in the waiting…

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