Queuing Model Set of Formula

M/M/1
Single-Channel Queuing Model
with Poisson Arrivals and Exponential
Service Times

M/M/m
Multichannel Queuing Model
With Poisson ARIVALS and Exponential
Service Times

arrivals
M/D/1
Constant Service Time Model

M/M/1
Finite Population Model
Working case:
ARNOLD’S MUFFLER SHOP CASE (for Model 1 and Model 2)

Scenario 1:
Arnold’s mechanic, Reid Blank, is able to install new mufflers at an average rate of 3 per hour, or about 1 every 20
minutes. Customers needing this service arrive at the shop on the average of 2 per hour. Larry Arnold, the shop
owner, studied queuing models in an MBA program and feels that all seven of the conditions for a single-channel
model are met. He proceeds to calculate the numerical values of the preceding operating characteristics.

l = 2 cars arriving per hour,

µ = 3 cars serviced per hour

After utilizing the formula for the operating characteristics, the following values were obtained.

No. Operating 1 mechanic

characteristics
1 L 2 cars in the system
2 W 1 hour (ave time in the system)
3 Lq 1.33 cars waiting in line (ave)
4 Wq 2/3 hour = 40minutes
5 r 0.67
6 P0 0.33
7 P n>k

Total service cost =. (Number of channels)(Cost per channel) = mCs

Total waiting cost = (Total time spent waiting by all arrivals)(Cost of waiting) = (No. of arrivals)(Ave wait/arrival)Cw
Total cost = Total service cost + Total waiting cost = mCs + lWqCw

Arnold estimates that the cost of customer waiting time, in terms of customer dissatisfaction and lost goodwill, is
$50 per hour of time spent waiting in line. (After customers’ cars are actually being service on the rack, customers
don’t seem to mind waiting). Because on the average a car has a 2/3 hour wait and there are approximately 16 cars
serviced per day(2 per hour x 8 working hours/day), the total number of hours that customers spend waiting for
mufflers to be installed each day is (2/3)(16) = (32/3) equivalent to 10 and 2/3 hours.

Total daily waiting cost = (8hrs per day) lWqCw = (8)(2)(2/3)($50) = $533.3
Total daily service cost = (8hrs per day) mCs = (8)(1)($15) = $120
Total daily cost of the queuing system = $533.33 + $120 = $653.33
Scenario 2:
Arnold finds out through the muffler business grapevine that the Rusty Muffler, a cross-town competitor, employs a
mechanic named Jimmy Smith who can efficiently install new mufflers at the rate of 4 per hour. Larry Arnold contacts
Smith and inquires as to his interest in switching employers. Smith says that he would consider leaving the Rusty
Muffler but only if he were paid a $20 per hour salary. Arnold, being a crafty businessman, decides that it may be
worthwhile to fire Blank and replace him with the speedier but more expensive Smith.

No. Operating Mechanic: Mechanic:

characteristics Reid Blank Jimmy Smith
1 L 2 cars in the system 1 car in the system
2 W 1 hour (ave time in the system) ½ hour in the system (ave)
3 Lq 1.33 cars waiting in line (ave) ½ car waiting in line (ave)
4 Wq 2/3 hour = 40minutes ¼ hour waiting time
5 r 0.67 0.5
6 P0 0.33 0.5
7 P n>k
Cost 1 Total daily waiting cost $533.33 $200
Cost 2 Total daily service cost $120 $160
Cost 3 Total daily cost $653.33 $360

Earlier, Larry Arnold examined two options. He could retain his current mechanic, Reid Blank, at a total expected
cost of $653 per day; or he could fire Blank and hire a slightly more expensive but faster worker named Jimmy
Smith. With Smith on board, service system costs could be reduced to $260 per day.

Scenario 3:
Arnold finds out that at minimal after-tax cost he can open a second garage bay in which mufflers can be installed.
Instead of firing his first mechanic, Blank, he would hire a second worker. The new mechanic would be expected to
install mufflers at the same rate as Blank – about µ = 3 per hour. Customers, who would still arrive at the rate of l
= 2 per hour, would wait in a single line until one of the two mechanics is free. 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:

No. Operating Mechanic: Mechanic: 2 mechanics:

characteristics Reid Blank Jimmy Smith Blank + another
mechanic
1 L 2 cars in the system 1 car in the system 0.75
2 W 1 hour (ave time in the ½ hour in the system 22.5 minutes
system) (ave)
3 Lq 1.33 cars waiting in line ½ car waiting in line 0.083
(ave) (ave)
4 Wq 2/3 hour = 40minutes ¼ hour waiting time 2.5mins
5 r 0.67 0.5
6 P0 0.33 0.5 0.5
7 P n>k
Cost 1 Total daily waiting $533.33 $200 $33.36
cost
Cost 2 Total daily service $120 $160 $240
cost
Cost 3 Total daily cost $653.33 $360 $273.20
 L
for Problem 1 Scenario 3

M 3 cars serviced per hour

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Working case:
GARCIA-GOLDING RECYCLING, INC. (for Model 3)

Garcia-Golding Recycling, Inc. collects and compacts aluminum cans and glass bottles in New York City. Its truck
delivers who arrive to unload these materials for recycling, currently wait an average of 15 minutes before emptying
their loads. The cost of the driver and truck time wasted while in queue is valued at $60 per hour. A new automated
compactor can be purchased that will process truck loads at a constant rate of 12 trucks per hour (i.e. 5 minutes
per truck). Trucks arrive according to a Poisson distribution at an average rate of 8 per hour. If the new compactor
is put in use, its cost will be amortized at a rate of $3 per truck unloaded. A summer intern from a local college did
the following analysis to evaluate the costs versus benefits of the purchase:

Current waiting cost/trip = $15/trip

New system:
l = 8 cars arriving per hour,
µ = 12 cars serviced per hour

No. Operating Model 3

characteristics
1 L
2 W
3 Lq
4 Wq 1/12 hour
5 r
6 P0
7 P n>k
Cost 1 Total daily waiting cost
Cost 2 Total daily service cost (1/12 hour wait)($60/hr) = $5/trip
Cost 3 Total daily cost
Savings $15 (current system) - $5 (new system) = $10/trip
Net savings $10 - $3 (cost of eqpt amortization) = $7
Working case:
DEPARTMENT of COMMERCE EXAMPLE (for Model 4)

Past records indicate that each of the five high-speed “page” printers at the U.S. Department of Commerce, in
Washington, D.C. needs repair after about 20 hours of use. Breakdowns have been determined to be Poisson
distributed. The one technician on duty can service a printer in an average of 2 hours, following an exponential
distribution.

To compute the system’s operation characteristics, we first note that the mean arrival rate is l = 1/20 = 0.05
printer/hour. The mean service rate is µ = 1/2 = 0.05 printer per hour

No. Operating 0.5 Model 4

characteristics
1 L 0.64 printer
2 W 2.91 hours
3 Lq 0.2 printer
4 Wq 0.91 hour
5 r
6 P0 0.564
7 P n>k

If the printer downtime costs $120 per hour and the technician is paid $25 per hour we can also compute the total
cost per hour.

Total hourly cost =. (Average number of printers down)(Cost per down time hour) + Cost per technician hour
Total hourly cost = (0.64)($120) + $25 = $76.80 + $25.00 = $101.80

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