Queuing models

Every time demand exceeds capacity a queue is formed, which means that customers have to wait for service.

Queuing models are designed to help determine an appropriate level of service. These models consider:

1. The speed of the service, and
2. The optimal number of service stations

The goal is to minimize the cost of providing the service.

 

Reference

Turban, E. and J.R. Meredith (1985): Fundamentals of Management Science. Third Edition Business Publications, Inc.