At the end of the day, simply learning about how long a customer might wait in line will help a business better design their service to provide more value-add to the customer experience.

More businesses could stand to benefit from its use and application. Queueing Theory isn’t used enough, in my experience. Fulfillment/Distribution Center or Warehousing.

Where can you apply this?Īny business process where lines are a matter of fact - this means: There’s a lot of quant-jock mystique around it, but it’s really not difficult to understand and it can really impact how companies conduct business. Queueing Theory is very pragmatic, applicable, and fairly easy to do. With a few simple calculations we can determine the the load of a system the how long it is on average for a customer to wait for service. For Hours, create a field that will calculate the following (1/(B7-B5)) and for Minutes ((1/(B7-B5)*60). Average Time in the System: System here is defined the cumulative time of (Waiting in the Line + Being Served).Average Waiting Time in the Line: Now, we can determine how long it is, on average, for a customer to Wait in the Line in hours (B5/(B7*(B7-B5)) and in minutes ((B5/(B7*(B7-B5)))*60).Average Number of Customers in the System: Now, create a field to calculate the Average Number of Customers in the System (B5/(B7-B5)).Average Number of Customers in the Line: Set-up a field to calculate the Average Number of Customers in the Line (B5^2/(B7*(B7-B5))).Average Server Utilization: Create a field to calculate the Average Server Utilization (B5/B7).Now, we can learn about the characteristics of the queue and also how the customer might experience the queue: This is followed by a field to accept Average Service Time in Minutes (60/B7). To do this, create a field that will accept Customers Per Hour (B7). Service Rate: Next, we need to set-up the Service Rate.Arrival Rate: Set-up a field to accept the Customers Per Hour (B5) Followed by a field to accept the Average Minutes Between Arrivals (60/B5).The items in parenthesis below are the cell/row numbers in my example image (see below). Queueing Theory shows the interplay between the arrival rate and the service rate, which both reveal the characteristics of the queue and, ultimately the customer experience. These Queueing Theory Calculations can then be used in various settings.

Today, I’ll briefly explain how to set-up a model in Microsoft Excel to simulate a Single-Server Queue. You can also view all 40+ articles on Queueing Theory. I previously wrote on Queueing Theory and titled those posts as Queueing Theory: Part 1 and Queueing Theory: Part 2.

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