In: Operations Management
Consider two systems: M/M/1 and M/M/1/k. There are two types of costs associated: (i) a rejection cost r (cost per rejection); and (ii) a holding-cost rate h (cost per unit time per customer in system). Note that there is no rejection in M/M/1. Assuming ρ<1 for both systems, what is the condition for k that makes the M/M/1/k better than M/M/1. Simplify your answer as far as possible
Lets start with the basic.
QUEUEING MODELS -IS created to predict the the queue length & waiting time. queues are part of ones regular life and they are one of the most unpleasant experience of life .this mostly happens at the telephone exchange,supermarket,petrol station . queueing theory is the mathematical study of waiting lines & considered as branch of OPERATION RESEARCH ,with the help of it many business decisions are taken regarding providing sevices.QUEUEING THEORY is propounded in a research conducted by AGNER KRARUP ERLANG.
lets see the two theories