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Theory Models
"The goal is to find the service level that minimizes total expected
cost."
To accompany 14-5 © 2003 by Prentice
Queuing Costs and
Service Levels
Total
Optimal Expected
Service Level Cost
Cost of Operating
Service Facility
Cost of
Providing
Service
Cost of
Waiting
Time
Service Level
To accompany 14-6 © 2003 by Prentice
Waiting Line Costs\continued
Three Rivers Shipping Company Example
• Three Rivers run a huge docking facility located on the Ohio
River near Pittsburgh. Approximately five ships arrive to unload
their cargoes of steel and ore during every 12-hour work shift.
Each hour that a ship sits idle in line waiting to be unloaded costs
the firm a great deal of money, about $1,000 per hour. From
experience, management estimates that if one team of stevedores
is on duty to handle the unloading work, each ship will wait an
average of 7 hours to be unloaded. If two teams are working, the
average waiting time drops to 4 hours; for three teams, it's 3
hours; and four teams of stevedores, only 2 hours. But each
additional team of stevedores is also an expensive proposition,
due to union contacts.
• Three rivers' superintendent would like to determine the optimal
number of teams of stevedores to have on duty each shift.
• The objective is to minimize total expected costs. This analysis is
summarized in the next table:
To accompany 14-7 © 2003 by Prentice
Waiting Line Cost Analysis
Three Rivers Shipping
Number of Stevedore Teams
1 2 3 4
Avg. number of ships
arriving per shift 5 5 5 5
Average waiting time 7 4 3 2
per ship
Total ship hours lost 35 20 15 10
Est. cost per hour of $1,000 $1,000 $1,000 $1,000
idle ship time
Value of ships' lost 35,000 29,000 $15,000 $10,000
time
Stevedore teams
salary $6,000 $12,000 18,000 $24,000
Total Expected Cost $41,000 $32,000 $33,000 $34,000
To accompany 14-8 © 2003 by Prentice
Characteristics Of A Queuing
System
P(X)
P(X)
.35
.30 .30
.25 .25
.20 .20
.15 .15
.10 .10
.05 .05
.00 .00
0 1 2 3 4 5 6 7 8 9 10 1 0 1 2 3 4 5 6 7 8 9 10 1
X 1 X 1
1. Number of channels
• A single-channel system, with one server, is typified by
the drive-in bank that has only one open teller.
• A multi-channel system, when the bank has several
tellers on duty and each customer waits in one common
line for the first available teller.
Service
facility
Single Channel, Single Phase
Facility Facility
1 2
Multi-Channel, Service
Single Phase facility 3
Type 1 Type 2
Multi-Channel, Service Service
Multiphase Phase Facility Facility
We let
• λ = means number of arrivals per time period (for example, per
hour)
• µ = means number of people or items served per time period
• When determining the arrival rate (λ) and the service rate (µ), the
same time period must be used.
Average number in system, L
-
1
Average waiting time in system, W
-
2
Average number in queue, L q
-
Average waiting time in the queue, Wq
-
To accompany 14-33 © 2003 by Prentice
Single-Channel Queuing Model With
Poisson Arrivals And Exponential
Service Times (M/M/1)
Queuing Equations
The queuing equations follow:
Utilization Factor,
(The utilization factor for the system, , that is, the probability that the
service facility is being used)
Percent Idle, P0 1
(The percent idle time, P0, that is, the probability that no one is in the system)
k 1 (The probability that the number of
customers in the system is greater than
Pn k
K, Pn>k)
2 2
Wq hour = 40 minutes = average waiting
- 3(3 2) 3 time per car
• Calculate the probability that more than three cars are in the system:
k 1 31
2
Pn k 0.198 implies that there is a 19.8%
3 chance that more than three
cars are in the system.
• Because on the average a car has a 2/3 hour wait and there
are approximately 16 cars serviced per day (2 per hour times
8 working hours per day), the total number of hours that
customers spend waiting for mufflers to be installed each day
is 2/3 *16=32/3 hours. Hence, in this case,
2 2 1
Wq hour = 15 minutes = average waiting
- 4(4 2) 8 4 time per car
L
W
4. The average number of customers or units in line waiting for
service
Lq L
To accompany 14-49 © 2003 by Prentice
Multiple-Channel Queuing Model
With Poisson Arrivals And
Exponential Service Times (M/M/m)
5. The average time a customer or unit spends in the queue
waiting for service
1 Lq
Wq W
5. Utilization factor
M
To find out how this option compares with the old single
channel waiting line system, Arnold computes several
operating characteristics for the m=2 channel system
L
3
2(3) 2
2
2
(0.5) 0.75
1! 2(3) 2
2
3
0.75
W 22.5 minutes
2
0.083 2
Wq 0.0415 hour L q 0.75 0.083
2 3
To accompany 14-52 © 2003 by Prentice
Arnold’s Muffler Shop Example
(multichannel)/solution
To complete his economic analysis, Arnold assumes that the
second mechanic would be paid the same as the current one,
Blank, namely, $7 per hour. The daily waiting cost now will be
2
Lq
2
Wq
2
L Lq
1
W Wq
To accompany 14-56 © 2003 by Prentice
Constant service model
(Grocia-Golding Recycling Example)
GGR collects and compacts aluminum cans and glass
bottles in New York city. Their truck drivers, who
arrive to unload these materials for recycling, currently
wait an average of 15 minutes before emptying their
loads. The cost while waiting in queue is $ 60 /hr.
1
P0 n
N
N!
n 0 ( N n )!
Lq N 1 P0
L Lq 1 P0
Lq
Wq
N L
1
W Wq
n
N!
P(n, n N) Pn P0
N n !
n 0 ( N n)!
(
n 0 (5 n)! 0.5
)
Lq 0.2
Wq 0.91hr
N L (5 0.64)(0.05)
1 1
W Wq 0.91 2.91hr
0.5