Application of queuing theory to reduce waiting period at ATM using a simulated approach

Abstract

Queuing theory is the mathematical study of waiting lines, or queues. A queuing model is constructed so that queue lengths and waiting time can be predicted. A basic queuing system consists of an arrival process (how customers arrive at the queue, how many customers are present in total), the queue itself, and the service process for attending to those customers, and departures from the system. This paper investigates the Automated Teller Machine (ATM) service optimization in the banking industry using queuing modelling approach. Data were collected over a week and calculations are done on an average. Measurements were taken about arrival time and service time of customers who arrived at the bank within the period of investigation. In ATM, bank customers arrive randomly and the service time is also random. We use Little’s theorem and M/M/1 queuing model to derive the arrival rate, service rate, utilization rate, waiting time in the queue.