Queuing Theory & Competitive Strategies
Case : Hong Kong Savings Bank ATM Queuing System
Suppose that Hong Kong Savings Bank (HKSB) will open several
new branch banks during the coming year.
Each new branch is designed to have one automated teller
machine (ATM). A concern is that during busy periods several
customers may have
to wait to use the ATM.
The bank’s vice president wants to determine whether one ATM
at each branch will be sufficient. The bank established service
guidelines for its
ATM system stating that the average customer waiting time for
an ATM should be one minute or less.
Let us show how a simulation model can be used to study the
ase : Hong Kong Savings Bank ATM Queuing System
Customer Arrival Times:
Follows Uniform Probability distribution between 0 and 5
minutes.
( ie : One customer arrive between 0 to 5 minutes )
Customer Service Times :
Another probabilistic input in the ATM simulation model
is the service time, which is the time a customer spends
using the ATM machine.
Past data from similar ATMs indicate that a normal
probability distribution with a mean of 2 minutes and a
ase : Hong Kong Savings Bank ATM Queuing System
Customer Arrival Times:
Follows Uniform Probability distribution between 0 and 5
minutes.
( ie : One customer arrive between 0 to 5 minutes )
Customer Service Times :
Another probabilistic input in the ATM simulation model is the
service time, which is the time a customer spends using the ATM
machine.
Past data from similar ATMs indicate that a normal probability
distribution with a mean of 2 minutes and a
standard deviation of 0.5 minutes.
Case : Hong Kong Savings Bank ATM Queuing System
Excel Solution
Create in the Excel the above format……
Case : Hong Kong Savings Bank ATM Queuing System
Excel Solution
We are simulating 1000 customers…
A4 Enter ‘1’
We are simulating 1000 customers…
Fill 1 to 1000 numbers in A column
We are simulating 1000 customers…
Fill 1 to 1000 numbers in A column
Simulate : B Column
Uniform distn. Between ‘0’ and ‘5’
Simulate : B Column
Uniform distn. Between ‘0’ and ‘5’
Simulate : B Column
Uniform distn. Between ‘0’ and ‘5’
Simulate : B Column
Uniform distn. Between ‘0’ and ‘5’
Simulate : C Column
Normal distn. Mean=2, SD=0.5
Simulate : C Column
Normal distn. Mean=2, SD=0.5
Simulate : C Column
Normal distn. Mean=2, SD=0.5
Simulate : C Column
Normal distn. Mean=2, SD=0.5
D4 Enter formula “ =B4”
E4 Enter formula “ =D4”
F4 Enter formula “=E4-D4”
G4 Enter formula “=C4+E4”
H4 Enter formula “=G4-D4”
D5 Enter formula “=D4+B5”
( 2nd customer arrival time after 1st
customer arrival )
E5 Enter formula “ =IF(D5>G4,D5,G4) “
Service will start …
IF 2nd cat > 1st cat 2nd customer not waits
Else;
2nd customer waits till 1st customer completes.
[ cat = customer arrival time ]
F5 Enter formula “ =E5-D5“
G5 Enter formula “=C5+E5“
H5 Enter formula “=G5-D5“
Now…copy D5: H5 upto 1003 rows
Left Top corner
In Name box enter D6:H1003 Enter CTRL + V
Left Top corner
In Name box enter D6:H1003 Enter CTRL + V
Create Summary Stats format
K4 Enter formula “=AVERAGE(F4:F1003)”
K5 Enter formula “=MAX(F4:F1003)”
K6 Enter formula
=COUNTIF(F4:F1003,">0")
K7 Enter formula
=AVERAGE(H4:H1003)
The bank’s vice president wants to
Conclusion :
determine whether one ATM at each
branch will be sufficient. The bank One ATM at each
established service guidelines for its branch is sufficient
ATM system stating that the average
customer waiting time for an ATM should
be one minute or less.