Application of Queueing Theory to ATM Service

najeeb al-matar

Abstract


Unmanaged queues may sometimes become detrimental to the operations of the banking activities whereby it can even become a major problem to the management of the banking services. The use of Automated Teller Machines (ATMs) in banks prevents losing customers because of long waits in the queue. For this case, application of Queueing theory can be of benefit to the running of the banking activities thus reducing the waiting time and improving on utilization time. In this case study, the researcher uses a direct non-participatory observational method to collect data over a period of one month within the banking hours between 9:30 AM to 4:30 PM in one of the local banks in town which are analyzed and various workings illustrated. Later, the researcher gives recommendations on how the ultimate goal of improving service time and reducing waiting time can be achieved.

Additionally, arrival rate, waiting time in the queue, service rate, utility rate and approximated average number of customers in a line are illustrated to enable the surveyor to solve the problem in Queueing  model analysis. Further, M/M/1 Queueing model has been used to explain Queueing system at the ATM facility. In this case, the Queueing  theory is employed to solve the problem of long queues to achieve the required satisfactory service. Lastly, the researcher concludes the importance of Queueing  model analysis to a bank ATM especially when maximum service delivery and customer satisfaction is an enterprise’s primary mission to earn an economic profit and remain economically relevant in the banking industry.


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ISSN : 2251-1563