Case study on server assignment policy in DBBL using queuing model

Abstract

We live in a fast moving world where we are moving even faster and our time is more precious than jewels which definitely cannot be wasted through waiting in big lines. However waiting in lines is consequent to overcrowded service providing spaces, system and server capacity overload or due to congestion. Anytime when there is more customer demand for a service than can be provided, forms a waiting line. Waiting time depends on the number of people waiting, the number of servers serving the queue, and the serving time for individual customer. It is the demand of time and technologically advanced modern world to develop a model to reduce customer waiting time to ensure effective at the same time efficient world class customer service for any organization. This study aims to develop a comprehensive policy for server assignment of bank teller operation representing one of the eminent banks in the banking industry of Bangladesh- Dutch-Bangla Bank Limited popularly known as DBBL. With its 130 branches around the country the bank has voluminous customers to be served on weekdays through its cash counters. Managing long queues during peak business hours has always been a great dilemma for DBBL. The existing poor queue management system of DBBL explains the escalating customer dissatisfaction. In this above revealed situation, service quality improvement can be achieved by increasing the number of servers, but conversely it will incur additional cost. Hence, the necessity to optimize total operating cost by determining the optimal balance between the cost of making customers to wait for service and the cost of providing additional service. This study develops an integrated model to maximize the long-run average throughput by forecasting the number of customers from historical data, consequently assessing the required number of servers (tellers) in a dynamic way and assigning the customers to the servers in an effective and efficient way in achieving waiting time reduction at the same time attaining customer satisfaction. On a concluding note this report successfully illustrates the minimized customer waiting time in banks.