Application of Queuing Theory in Business Decision Making

28/03/2020 0 By indiafreenotes

Queues happen when resources are limited. In fact, queues make economic sense; no queues would equate to costly overcapacity. Queuing theory helps in the design of balanced systems that serve customers quickly and efficiently but do not cost too much to be sustainable. All queuing systems are broken down into the entities queuing for an activity.

At its most elementary level, queuing theory involves the analysis of arrivals at a facility, such as a bank or fast food restaurant, then the service requirements of that facility, e.g., tellers or attendants.

The origin of queuing theory can be traced back to the early 1900s, found in a study of the Copenhagen telephone exchange by Agner Krarup Erlang, a Danish engineer, statistician and, mathematician. His work led to the Erlang theory of efficient networks and the field of telephone network analysis.

  • Queuing theory is the study of congestion and waiting in line.
  • The theory can help with creating an efficient and cost-effective workflow, allowing the user to improve traffic flow.
  • Queuing theory assesses two key aspects customer arrival at the facility and service requirements.
  • Often used as an operations management tool, queuing theory can address staffing, scheduling and customer service shortfalls