Application of Queuing Theory in

Government Commercial Bank

EMIS-517, MANAGEMENT SCIENCE

Submitted To

Professor Dr. Md. Abdul Hannan Mia

Department of Management Information System
University of Dhaka

Group Members

Md. Asifur Rouf; ID: 61221-14-053

Salah Uddin Sikder; ID: 15-041
Md. Abdullah Al Ahad; ID: 61323-16-029
Farhana Jahan; ID: 61324-17-005
Date of Submission: 7th Januray 2016

Semester Fall 2015

MBA (Evening) Program

Department of Management Information System
University of Dhaka

Acknowledgement
This term paper is prepared within the course, EMIS-517 (Management Science) under
the MBA (Evening) Program at the University of Dhaka. The research is accomplished
based on the knowledge developed through learning one of the course contents which is
Queuing Theory. We, the group members would like to place gratitude towards our
Course Teacher, Professor Dr. Md. Abdul Hannan Mia for generating the capacity
among us to implement Queuing Theory in real time customer service system in a
Commercial Bank.

Application of Queuing Theory in Government Commercial Bank | 1

Abstract:
Queuing is the process of moving customers in a specific sequence to a specific service
according to the customer need. This paper contains the analysis of Queuing systems for
the empirical data of a Government Commercial Bank Teller scheduling system for
optimizing its customer service. One of the expected gains from studying queuing
systems is to review the efficiency of the models in terms of utilization and waiting length.
We may use queuing simulation to obtain a sample performance result and we are more
interested in obtaining estimated solutions for multiple queuing models. Queues are
common sight of many banks in Bangladesh. The obvious implication of customers
waiting in long and winding queues could result to prolonged discomfort and economic
cost to them; however increasing the service rate will require additional number of tellers
which implies extra cost to management. Customer satisfaction is a concern to service
industries as customers expect to be served promptly when they arrive. Demand for
service is highly variable: depends one hour of the day, or day of the week, or even dates
of the month. For a service industry like a Bank, there is a need for enceinte Bank Teller
scheduling system which takes into account varying customer service demand levels.
The model takes into account real time system behavior including changing customer
arrival rates throughout the day and customer balking. It provides scheduling rules and
the corresponding service levels when demand varies with cost minimization as goals.

Keywords- Multiple-Server Model, Queuing System Analysis; Scheduling Algorithms,

Service Optimization, Customer Satisfaction, Commercial Bank

Application of Queuing Theory in Government Commercial Bank | 2

Table of Contents
Acknowledgement ........................................................................................................... 1
Abstract: .......................................................................................................................... 2
1.

Introduction: ............................................................................................................. 5

2.

Literature Review ..................................................................................................... 6

3.

Queuing Systems ..................................................................................................... 8

Characteristics of a Queuing System:.......................................................................... 9
Arrival Characteristics .............................................................................................. 9
Size of the Calling Population .................................................................................. 9
Pattern of arrivals at the system ............................................................................... 9
Behavior of the Arrival .............................................................................................. 9
Waiting Line characteristics ....................................................................................... 10
Queue .................................................................................................................... 10
Queue discipline..................................................................................................... 10
Service Facility Characteristics .............................................................................. 10
Basic Queuing System Configurations ................................................................... 11
Service Time Distribution ....................................................................................... 11

4. System Modeling ....................................................................................................... 12

4.1 Approach to solving the problem ......................................................................... 12
Collection of data samples: .................................................................................... 13
4.2 Mathematical queuing models ............................................................................. 13
Single-Server Waiting Line System ........................................................................ 13
Multiple-Server Waiting Line .................................................................................. 15
5. Advantages and Limitations of Queuing Theory ........................................................ 17

6.

5.1

Following are the Potential Benefits: ................................................................ 17

5.2

Major limitations of Queuing Theory are: ......................................................... 17

Implementation of Queuing theory in Sonali BANK: ............................................... 18

Data Analysis: ............................................................................................................ 18
Goran Branch: ........................................................................................................... 18
Data Collection and Analysis 01:............................................................................ 18

Application of Queuing Theory in Government Commercial Bank | 3

Data Collection and Analysis 02:............................................................................ 20

Jatrabari Branch: ....................................................................................................... 21
Data Collection and Analysis for CASH Counters[Sunday-Thursday] : .................. 21
Jatrabari Branch: ....................................................................................................... 22
Data Collection and Analysis for SERVICE DESK [Sunday-Thursday] : ................ 22
7. Conclusion: .............................................................................................................. 24
8.

References ............................................................................................................. 25

Application of Queuing Theory in Government Commercial Bank | 4

1. Introduction:
Today banks are one of the most important business units for the public. Since the
foundational work of banks, many researchers try to get full advantage of any new
technology to increase customer satisfaction. Therefore an active research has focused
on analyzing the queues to optimize their operations and to reduce waiting time for
customers. In service industries, demand for service is variable and often depends on the
day of the month, day of the week, or even on the time of the day. However, service need
to be delivered promptly when it is demanded. Bad staff customer scheduling results in
long customer waiting times, long queues, and consequently, waiting cost. Bad
scheduling can also result in loss of productively of Tellers due to idle times. On the other
hand, good scheduling results in low waiting cost, good Teller utilization, customer
satisfaction, and more profit. Operations managers are faced with the problem of
recognizing the trade-off that must be taken between providing good service and the cost
of waiting for such service. As service speeds up, time spent waiting on queue decreases.
Service cost however in-creases as the level of service increase. The goal of managers
is to schedule as few employees as possible while maintaining a minimum customer
service level. Managers want queues short enough so that customers do not become
dissatisfied and either leaves without transacting their business or transact and never
return in the future. Some waiting can be allowed if the waiting cost is balanced with
significant saving in service cost. A typical Teller-Customer scheduling system has two
goals:

To determine the minimum number of personnel to satisfy a set of service level

requirements, and
To build a schedule that specifies when a staff should start shift so that, the staffing level
requirements of each period of the day are met.

It is therefore important to recognize peak and non-peak periods to decide the staffing
needs. Identifying the changes in the demand level from past or real- time data is not a
straightforward matter due to high variability. Using queuing theory, one can model and
analyze a real time queuing situation in a Bank, compare scheduling alternatives and the
corresponding service levels, and provide the best scheduling rule based on the desired
service level.
Application of Queuing Theory in Government Commercial Bank | 5

2. Literature Review
Several approaches have been used by researchers for Bank Teller scheduling. These
approaches include the use of Operations Research based scheduling tools such as
Statistics, Work measurement, Queuing theory, and Integer programming [2]. The use of
these operations research based scheduling tools for the staff scheduling problem do not
solve the problem adequately. Mathematical models are very cumbersome and seldom
provide complete answers to real time problems rather; they provide partial solutions [3].
For instance, real time situations violate the assumptions of classical analytical waiting
line models. Queuing theory approach may help Banks schedule services using a FIFO
scheduling policy. However, this approach does not capture and take customer
information or service information generated continuously with time into account. Queuing
theory rely mainly on probability predictions which may be unreliable. The existing
approaches forecast arrival pattern of customers based on historical data and use that to
schedule Tellers. Such approach does not perform real time scheduling using actual
arrival of customers. It does not handle dynamic resource availability. In such a system,
a sudden explosion in the arrival rate may cause a serious deviation in the forecasted
schedule based on historical data. This model presents a scheme for monitoring the
system at all times to identify immediately when changes have occurred in the system
and then generate corrective action to take.
It is the practice of Banks to often staff their Tellers as if all Teller staff had the same
service capabilities. Most applications of queuing models for recommending staffing
levels assume that service times are exponentially distributed and that each staff member
has the same service time distribution [4]. Previously, there has not been strong reason
to abandon these assumptions given the relative scarcity of Teller performance data. This
model in this paper shows how to tract Teller transaction activities to obtain the Teller
performance data thus, allowing service time data to be routinely generated and
integrated with staffing schedules. In most Banks, customer and service information are
identified generally based on manual observation and personal judgment (this is obtained
through information from visits to some local Banks). This gives inaccurate results and
wastes time. It also requires continuous observation by management personnel and thus
Application of Queuing Theory in Government Commercial Bank | 6

results in additional cost. There is no correct procedure for tracking customers sojourn in
the system therefore shunting and jockeying are typical occurrences. These lead to some
customers being dissatisfied as a customers who came first may be served last. The
present work presents a scheme for continuously monitoring the system changes,
generating the information as the changes occur [5].
Automated Teller Machine (ATM) etc. by banks in attempt to minimize waiting line
problem at over-the counter services have not yielded the much desired result due to
frequent breakdown of such computerization and fraudulent activities. Hence, long queue
persisted in almost all Bangladeshi banks. The danger of keeping customers waiting can
cause prolonged discomfort and economic cost to them. The time wasted on the queue
would have been judiciously utilized elsewhere (opportunity cost of time spent in
queuing). In a queuing system, managers must decide what level of service to offer. A
low level of service may be inexpensive, at least in the short run, but may incur high costs
of customer dissatisfaction, such as loss of future business. A high level of service will
cost more to provide and will result in lower dissatisfaction costs. When considering
improvements in services, the management of the bank weighs the cost of providing a
given level of service against the potential costs from having customers waiting. [6]The
goal of queuing analysis is therefore to strike a balance between minimize the economic
cost to the system and provision of satisfactory and reasonable quick service.

Application of Queuing Theory in Government Commercial Bank | 7

3. Queuing Systems
A queuing system consists of one or more servers that provide service to arriving
customers. Figure 1 shows the characteristics of queuing system. The population of
customers may be finite (closed systems) or infinite (open systems). The arrival process
describes how customers enter the system. The customers arrive to the service center in
a random fashion. Queue represents a certain number of customers waiting for service.
The capacity of a queue is either limited or unlimited. Bank is an example of unlimited
queue length. The service is an activity requested by a customer, where each service
takes a specific time. The scheduling algorithm is used to order the customers and to
choose the next customer from the queue.

Population of the
Customers
Arrival

Departure

Queue

Service

Figure: Simplex Queuing System

In queuing system, there are many types of queue models such as :
a) SQ (Single Queue): In this model each customer waits till the service point is ready to
take him for servicing.
b) MQ (Multiple Queues): In this model each customer tries to choose the shortest queue
from a number of individual queues.
c) DQ (Diffuse Queue): In this model each customer take a ticket from a ticket machine
with single or multiple buttons each for specific service. After the customer registers

Application of Queuing Theory in Government Commercial Bank | 8

Characteristics of a Queuing System:

We take a look at the three part of queuing system (1) the arrival or inputs to the system
(sometimes referred to as the calling population), (2) the queue or the waiting line itself,
and (3) the service facility. These three components have certain characteristics that must
be examined before mathematical queuing models can be developed.
Arrival Characteristics
The input source that generates arrivals or customers for the service system has three
major characteristics. It is important to consider the size of the calling population, the
pattern of arrivals at the queuing system, and the behavior of the arrivals.
Size of the Calling Population
Population sizes are considered to be either unlimited (essential infinite) or limited (finite).
When the number of or arrivals on hand at any customers given moment is just a small
portion of potential arrivals, the calling population is considered unlimited. For practical
purpose, in our examples the limited customers arriving at the bank for deposit cash. Most
queuing models assume such an infinite calling population. When this is not the case,
modelling becomes much more complex. An example of a finite population is a shop with
only eight machines that might deposit cash break down and require service.
Pattern of arrivals at the system
Customers either arrive at a service facility according to some known schedule customers
or else they arrive randomly. Arrivals are considered random when they are independent
of one another and their occurrence cannot be predicted exactly. Frequently in queuing
problems, the number of arrivals per unit of time can be estimated by a probability
distribution known as the Poisson distribution. For any given arrival rate, such as two
passengers per hour, or four airplanes per minute, a discrete, Poisson distribution can be
established.
Behavior of the Arrival
Most queuing models assume that an arriving passenger is a patient traveler. Patient
customer is people or machines that wait in the queue until they are served and do not
switch between lines.

Application of Queuing Theory in Government Commercial Bank | 9

Unfortunately, life and quantitative analysis are complicated by the fact that people have
been known to balk or renege. Balking refers to customers who refuse to join the waiting
lines because it is to suit their needs or interests. [7] Reneging customers are those who
enter the queue but then become impatient and leave the need for queuing theory and
waiting line analysis. How many times have you seen a shopper with a basket full of
groceries, including perishables such as milk, frozen food, or meats, simply abandon the
shopping cart before checking out because the line was too long? This expensive
occurrence for the store makes managers acutely aware of the importance of service
level decisions.
Waiting Line characteristics
Queue
The waiting line itself is the second component of a queuing system. The length of a line
can be either limited or unlimited. A queue is limited when it cannot, by law of physical
restrictions, increase to an infinite length. Analytic queuing models are treated in this
article under an assumption of unlimited queue length. A queue is unlimited when its size
is unrestricted, as in the case of the tollbooth serving arriving automobiles.
Queue discipline
A second waiting line characteristic deals with queue discipline. This refers to the rule by
which passengers in the line are to receive service. Most systems use a queue discipline
known as the first in, first out rule (FIFO). This is obviously not appropriate in all service
system, especially those dealing with emergencies.
In most large companies, when computer-produced pay checks are due out on a specific
date, the payroll program has highest priority over other runs.
Service Facility Characteristics
The third part of any queuing system is the service facility. It is important to examine two
basic properties: (1) the configuration of the service system and (2) the pattern of service
times.

Application of Queuing Theory in Government Commercial Bank | 10

Basic Queuing System Configurations

Service systems are usually classified in terms of their number of channels, or number of
servers, and number of phases, or number of service stops, that must be made.
The term FIFS (first in, first served) is often used in place of FIFO. Another discipline,
LIFS (last in, first served), is common when material is stacked or piled and the items on
top are used first.
A single-channel system, with one server, is typified by the drive in bank that has only
one open teller.
If, on the other hand, the bank had several tellers on duty and each customer waited in
one common line for the first available teller, we would have a multi-channel system at
work. Many banks today are multi-channel service systems, as are most large
barbershops and many airline ticket counters.
A single-phase system is one in which the customer receives service from only one station
and then exits the system. Multiphase implies two or more stops before leaving the
system.
Service Time Distribution
Service patterns are like arrival patterns in that they can be either constant or random. If
service time is constant, it takes the same amount of time to take Care of each customer.
More often, service times are randomly distributed in many cases it can be assumed that
random service times are described his/her place in the queue by a ticket he/she will
monitor the ticket number being served. The customers can not estimate when they will
be served.

Application of Queuing Theory in Government Commercial Bank | 11

4. System Modeling
The problem is how managers can schedule the available tellers so that customers do
not wait too long before receiving the desired service irrespective of the time of their
arrival, and that tellers are not kept idle typically because there are no customers to be
served irrespective of the periods. How to get these optimum service conditions is the
objective of this work. The optimum point is reached when a balance is made between
the minimum service cost and the minimum waiting cost. During busy hours, such as
lunch hours, and during busy days, such as pay days, customers must wait in a queue
before being served by a Teller. Increasing the number of Tellers will actually reduce the
waiting time for the customers, but it does so at the expense of the cost of provision of
extra Teller stations and Tellers. Thus this solution has only a limited applicability. Even
when there are a large number of Tellers, they must be utilized efficiently. Waiting for
customers who are not there at Teller stations does not constitute such an efficient
utilization. Maximum efficiency together with maximum customer service is best
accomplished by scheduling Teller staff based on accurate prediction of levels of traffic
at the Bank during hours of the day. This can only be achieved accurately if the system
is monitored continuously.
Goals of this research:
1. To find a trade-off between the cost of waiting and the cost of providing service in Bank.
This helps managers to eliminate long queues and reduce labor cost by providing efficient
Teller scheduling.
2. To maintain a minimum wait time and service cost by knowing when to increase the
number of Tellers or withdraw Tellers. This maximizes the level of customer satisfaction
with the service provided thereby optimizing service.
4.1 Approach to solving the problem
An algorithm for a superimposed control system which can continuously sample the
throughput system waiting line is developed. This algorithm is used to monitor the system
at all times and to communicate changes in the system input and output to other distant
Application of Queuing Theory in Government Commercial Bank | 12

systems which performs some action (example, a system that raises alarm when the
number in the queue exceeds some threshold). This complementary system is
incorporated to cross-check the queuing system continuously to actually see what is
happening. This is necessary because of inaccuracy of queuing model which is based on
probability theory.
Collection of data samples:
Three branches from Sonali Bank of Bangladesh were been selected for our analysis.
The number of customers arriving in a given interval of time from Sunday to Thursday is
collected continuously, starting from first working day of the month. Service time duration
per-customer and Wait time duration per customer are collected. The average time a
customer spends while waiting for service from the time the customer enters the system
is collected. Customers monthly income and transaction volume which would be used for
cost analysis are also collected. The problem is formulated as a series of relationships in
a mathematical model. A mathematical queuing model is used to estimate the probability
of waiting time exceeding a given threshold when the arrival rate and service rates are
known. A model of the Banks customer-Teller scheduling system is produced such that
the customers waiting time does not exceed the threshold which is determined by
operations managers taking into account changing arrival rates and service time
durations while balancing the service cost with waiting cost.
4.2 Mathematical queuing models

Single-Server Waiting Line System

Assumptions of the basic single-server model:

An infinite calling population

A first-come, first-served queue discipline

Poisson arrival rate

Exponential service times

Application of Queuing Theory in Government Commercial Bank | 13

 Parameter definitions:
= the arrival rate (average number of arrivals/time period)
= the service rate (average number served/time period)
Customers must be served faster than they arrive (< ) or an infinitely large
queue will build up.
Probability that no customers are in the queuing system:

P0 1

Probability that n customers are in the system:

P 1
Pn
0

Average number of customers in system:

Average number of customer in the waiting line:

Lq

Average time customer spends waiting and being served:

W 1 L

Average time customer spends waiting in the queue:

Wq

Probability that server is busy (utilization factor):

Probability that server is idle:

I 1 U 1

Application of Queuing Theory in Government Commercial Bank | 14

Multiple-Server Waiting Line

Assumptions:

The queue discipline is First-Come, First-Served (FCFS) basis.

Arrivals follow a Poisson probability distribution.

The service times have an exponential distribution.

There is an infinite population from which customers come from.

Service time varies from one customer to the next and is independent of
another, but their average rate is known.

Every customer waits to be served regardless of the length of the queue

(i.e. there is no reneging or balking).

The service providers are working at their full capacity.

The waiting space available for customers in the queue is infinite.

Parameter definitions:

= arrival rate (average number of arrivals per time period)

= the service rate (average number served per time period) per server
(channel)

c = number of servers

c = mean effective service rate for the system (must exceed arrival rate)

Application of Queuing Theory in Government Commercial Bank | 15

P0

Pn

probability no customers in system

c

nc1 1

c
1
n! c! c

n0
n

n
1 P for n c
c!cnc 0

n
1 P for n c probability of n customers in system
Pn n
0

( / )c P average customers in the system

0

(c 1)!(c )2

W L average time customer spends in the system

Lq L
average number of customers in the queue
1 Lq average time customer is in the queue
Wq W

c P probability customer must wait for service

Pw 1

c! c 0

Application of Queuing Theory in Government Commercial Bank | 16

5. Advantages and Limitations of Queuing Theory

5.1

Following are the Potential Benefits:

1. Queuing theory provides models that are capable of determining arrival pattern of
customers or most appropriate number of service stations.
2. Queuing models are helpful in creating balance between the two opportunity costs for
optimization of waiting costs and service costs.
3. Queuing theory provides better understanding of waiting lines so as to develop
adequate service with tolerable waiting.
5.2

Major limitations of Queuing Theory are:

1. Most of the queuing models are very complex and cannot be easily understood. The
element of uncertainty is there in almost all queuing situations. Uncertainty arises due to:
I.

We may not know the form of theoretical probability distribution which applies.

II.

We might not know the parameters of the process even when the particular
distribution is known.

III.

We would simply be knowing only the probability distribution of out-comes and not
the distribution of actual outcomes even when (i) and (ii) are known.

2. In addition to the above complications, queue discipline may also impose certain
limitations. If the assumption of First come first served is not a true one (and this
happens in many cases) queuing analysis becomes more complex.
3. In many cases, the observed distributions of service times and time between arrivals
cannot be fitted in the mathematical distributions of usually assumed in queuing models.
For example, the Poisson distribution which is generally supposed to apply may not fit
many business situations.
4. In multi-channel queuing, the departure from one queue often forms the arrival of
another. This makes the analysis more difficult.

Application of Queuing Theory in Government Commercial Bank | 17

6.

Implementation of Queuing theory in Sonali BANK:

Sonali Bank Limited is a state-owned leading commercial bank in Bangladesh. It is the

largest bank of the country. Sonali Bank was established in 1972 under the Bangladesh
Banks (Nationalization) Order, through the amalgamation and nationalization of the
branches of National Bank of Pakistan, Bank of Bhowalpur and Premier Bank branches
located in East Pakistan until the 1971 Bangladesh Liberation War. When it was
established, Sonali Bank had a paid up capital of 30 million taka. In 2001, its authorized
and paid up capital were Tk 10 billion and Tk 3.272 billion respectively. Presently, its
authorized and paid up capital is Tk 10 billion and Tk 9 billion respectively The bank's
reserve funds were Tk 60 million in 1979 and Tk 2.050 billion on 30 June 2000.
Data Analysis:
We have collected data from Sonali Bank .[http://www.sonalibank.com.bd/].Here we took
data from 2 Branch(Two type data have been collected. Cash Counter Queue data and
Service desk queue data.)
i. Goran Branch
ii. Jatrabari Branch
Goran Branch:
Data Collection and Analysis 01:
For Cash Transaction Counter] [10.00 A.M-12.00P.M] [Sun-Thurs]

Collected Data:
= arrival rate
c = number of servers

50
4

= the service rate

c = mean effective service rate

15person/hr
60

Analyzed Data:
Average Customers in System, L =6.6219 Customers
Average Customers in queue, Lq = 3.2886 Customers
Average Time Spent in System , W = 0.1324 Hours
Application of Queuing Theory in Government Commercial Bank | 18

Average Time Waiting in Line, Wq = 0.0658 Hours

Server Utilization , p = 0.8333
For Cash Transaction Counter] [12.00 P.M-2.00P.M] [Sun-Thurs]

Collected Data:
= arrival rate
c = number of servers

36
4

= the service rate

c = mean effective service rate

15person/hr
60

Analyzed Data:
Average Customers in System, L =2.83 Customers
Average Customers in queue, Lq = 0.43 Customers
Average Time Spent in System , W = 0.078 Hours
Average Time Waiting in Line, Wq = 0.012 Hours
Server Utilization , p = 0.6
For Cash Transaction Counter] [2.00 P.M-4.00P.M] [Sun-Thurs]

Collected Data:
= arrival rate
c = number of servers

59
4

= the service rate

c = mean effective service rate

15person/hr
60

Analyzed Data:
Average Customers in System, L =30.752 Customers
Average Customers in queue, Lq = 26.8854 Customers
Average Time Spent in System , W = 0.5302 Hours
Average Time Waiting in Line, Wq = 0.4635 Hours
Server Utilization , p = 0.9667
Application of Queuing Theory in Government Commercial Bank | 19

For Cash Transaction Counter] [Our Assumption] [Full day][Sun-Thurs]

Collected Data:
= arrival rate
c = number of servers

49
= the service rate
6[Assumption] c = mean effective service rate

15person/hr
60

Analyzed Data:
If Server Count , C=4

If Server Count , C=5

If Server Count , C=6

L =6.05 Customers

L =3.85 Customers

L =3.43 Customers

Lq =2.79 Customers

Lq =0.58 Customers

Lq =0.16 Customers

W = 0.1236 Hours

W = 0.08 Hours

W = 0.07 Hours

Wq = 0.06 Hours

Wq = 0.0118 Hours

Wq = 0 Hours

p = 0.82

p = 0.6533

p = 0.54

So, We Suggest Number of Cash Counter should be 5

Data Collection and Analysis 02:

Collected Data: [For Service Desk ] [] [Sun-Thurs]

10.00 A.M-12.00P.M
[ = arrival rate]=15
[ = the service rate]=10/hr
[Server,C]=2
[c = mean effective
service rate]=20

12.00 P.M-2.00 P.M

[ = arrival rate]=12
[ = the service rate]=10/hr
[Server,C]=2
[c = mean effective
service rate]=20

2.00 P.M-4.00 P.M

[ = arrival rate]=19
[ = the service rate]=10/hr
[Server,C]=2
[c = mean effective
service rate]=20

Analyzed Data:

Analyzed Data:

Analyzed Data:

L =3.42 Customers
Lq = 1.92 Customers
W = 0.2286 Hours
Wq = 0.1286 Hours
p = 0.75

L =1.87 Customers
Lq = 0.67 Customers
W = 0.16 Hours
Wq = 0.06 Hours
p = 0.6

L =19.49 Customers
Lq = 17.59 Customers
W = 1.03 Hours
Wq = 0.96 Hours
p = 0.95

Application of Queuing Theory in Government Commercial Bank | 20

Assumptions:
[ = arrival rate]=16
[Average Arrival Rate]
[ = the service rate]=10/hr
[Server,C]=3
[c = mean effective
service rate]=20

[ = arrival rate]=16
[Average Arrival Rate]
[ = the service rate]=10/hr
[Server,C]=4
[c = mean effective
service rate]=20

[ = arrival rate]=16
[Average Arrival Rate]
[ = the service rate]=12/hr
[Server,C]=3
[c = mean effective
service rate]=20

Analyzed Data:

Analyzed Data:

Analyzed Data:

L =1.91 Customers
Lq = 0.31 Customers
W = 0.12 Hours
Wq = 0.02 Hours
p = 0.53

L =1.66 Customers
Lq = 0.06 Customers
W = 0.1 Hours
Wq = 0.00 Hours
p = 0.4

L =1.48 Customers
Lq = 0.14 Customers
W = 0.09 Hours
Wq = 0.01 Hours
p = 0.44

So, We Suggest Number of Cash Counter should be 3 and Service Rate Should be 12
person/hour.

Jatrabari Branch:
Data Collection and Analysis for CASH Counters[Sunday-Thursday] :
10.00 A.M-12.00P.M
Collected Data:

12.00 P.M-2.00 P.M

Collected Data:

2.00 P.M-4.00 P.M

Collected Data:

[ = arrival rate]=95
[ = the service rate]=20/hr
[Server,C]=5
[c = mean effective
service rate]=100

[ = arrival rate]=75
[ = the service rate]=20/hr
[Server,C]=5
[c = mean effective
service rate]=100

[ = arrival rate]=87
[ = the service rate]=20/hr
[Server,C]=5
[c = mean effective
service rate]=100

Analyzed Data:

Analyzed Data:

Analyzed Data:

L =21.43 Customers
Lq = 16.68 Customers
W = 0.23 Hours
Wq = 0.18 Hours
p = 0.95

L =5.14 Customers
Lq = 1.39 Customers
W = 0.07 Hours
Wq = 0.02 Hours
p = 0.75

L =9.01 Customers
Lq = 4.66 Customers
W = 0.1 Hours
Wq = 0.05 Hours
p = 0.87

Application of Queuing Theory in Government Commercial Bank | 21

Assumptions:
[ = arrival rate]=86
[Average Arrival Rate]
[ = the service rate]=10/hr
[Server,C]=6
[c = mean effective
service rate]=60

[ = arrival rate]=86
[Average Arrival Rate]
[ = the service rate]=10/hr
[Server,C]=7
[c = mean effective
service rate]=70

[ = arrival rate]=86
[Average Arrival Rate]
[ = the service rate]=12/hr
[Server,C]=7
[c = mean effective
service rate]=84

Analyzed Data:

Analyzed Data:

Analyzed Data:

L =5.22 Customers
Lq = 0.92 Customers
W = 0.06 Hours
Wq = 0.01 Hours
p = 0.72

L =4.59 Customers
Lq = 0.29 Customers
W = 0.05 Hours
Wq = 0.00 Hours
p = 0.61

L =5.94 Customers
Lq = 0.88 Customers
W = 0.07 Hours
Wq = 0.01 Hours
p = 0.72

So, We Suggest Number of Cash Counter should be 7 and Service Rate Should be 20
person/hour. If service rate decreases to 17person/hour then no negative impact.

Jatrabari Branch:
Data Collection and Analysis for SERVICE DESK [Sunday-Thursday] :
10.00 A.M-12.00P.M
Collected Data:

12.00 P.M-2.00 P.M

Collected Data:

2.00 P.M-4.00 P.M

Collected Data:

[ = arrival rate]=35
[ = the service rate]=10/hr
[Server,C]=4
[c = mean effective
service rate]=40

[ = arrival rate]=32
[ = the service rate]=10/hr
[Server,C]=4
[c = mean effective
service rate]=40

[ = arrival rate]=39
[ = the service rate]=10/hr
[Server,C]=4
[c = mean effective
service rate]=40

Analyzed Data:

Analyzed Data:

Analyzed Data:

L =8.67 Customers
Lq = 5.17 Customers
W = 0.25 Hours
Wq = 0.15 Hours
p = 0.88

L =5.59 Customers
Lq = 2.39 Customers
W = 0.17 Hours
Wq = 0.07 Hours
p = 0.8

L =40.76 Customers
Lq = 36.86 Customers
W = 1.05 Hours
Wq = 0.95 Hours
p = 0.98

Application of Queuing Theory in Government Commercial Bank | 22

Assumptions:
[ = arrival rate]36
[Average Arrival Rate]
[ = the service rate]=10/hr
[Server,C]=5
[c = mean effective
service rate]=50

[ = arrival rate]=36
[Average Arrival Rate]
[ = the service rate]=10/hr
[Server,C]=6
[c = mean effective
service rate]=20

[ = arrival rate]=36
[Average Arrival Rate]
[ = the service rate]=12/hr
[Server,C]=7
[c = mean effective
service rate]=17

Analyzed Data:

Analyzed Data:

Analyzed Data:

L =4.66 Customers
Lq = 1.06 Customers
W = 0.13 Hours
Wq = 0.03 Hours
p = 0.72

L =3.89 Customers
Lq = 0.29 Customers
W = 0.11 Hours
Wq = 0.01 Hours
p = 0.6

L =3.69 Customers
Lq = 0.09 Customers
W = 0.1 Hours
Wq = 0.00 Hours
p = 0.51

So, We Suggest Number of Cash Counter should be 6 and Service Rate Should be
10person/hour at least. If service rate decreases then long time in queue will be
occurred.

Application of Queuing Theory in Government Commercial Bank | 23

7. Conclusion:
In a queue system, the balance between dealing with all customers fairly and the
performance of the system is very important. Sometimes the performance of the system
is more important than dealing with the customers fairly. Queuing models have found
widespread use in the analysis of service facilities, production and many other situations
where congestion or competition for scarce resources may occur. A scheme for
scheduling Tellers in Banks has been developed as discussed. This scheme optimizes
Customer-Teller service. Due to high variable arrival rates, it is not sufficient to forecast
the system conditions using queuing theory and simulation results only. In addition, the
system should also be monitored to see that deviations in the forecasted values are
compensated immediately. This avoids unnecessary costs. These deficiencies in hitherto
presented models are what this model has solved. It seeks to reduce the waiting Time
and hence the queue length by optimizing the number of Tellers at a reduced cost. This
will build up the customer loyalty, who will return for similar business in the future. The
analysis of the result can be used to improve throw of customers through the queuing
system. This would speed up services and provide competitive edge.

Application of Queuing Theory in Government Commercial Bank | 24

8.

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Application of Queuing Theory in Government Commercial Bank | 25