SMG OM 323 Chapter ch18: OM323TextbookCh18Notes

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Om323 textbook chapter 18 notes february 15, 2017. Queuing theory, which is a mathematical approach to the analysis of waiting lines. 5. the results congestion that may disrupt other business operations and/or customers. Tc = customer waiting cost + capacity cost. Capacity costs are the costs of maintaining the ability to provide a service. The costs of customer waiting include the salaries paid to employees while they wait for service and any loss of business due to customers refusing to wait and possibly going elsewhere in the future. As capacity increases, the number of customers waiting and time they wait tend to decrease, thereby decreasing waiting costs. 18. 4 characteristics of waiting lines: population source, number of servers (channels, arrival and service patterns, queue discipline (order of service) Infinite-source situation potential number of customers greatly exceeds capacity; exists where service is unrestricted. Finite-source situation potential number of customers is limited.

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