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AKTU MBA Semester 2 • BMB 206 Unit 4: Sequencing & Queuing Theory Est. Reading Time: 8 Mins

Queuing Theory: System Structure, Kendall’s Notation & Characteristics of (M/M/1) Model

MAuthored by mbanotes.in Academic Editorial Team
Verified Syllabus Alignment: AKTU MBA CoreTarget Score: 10/10 Marks (Section B/C)
Waiting Line Cause
Queues form because customer arrival rates fluctuate randomly even when long-term service capacity exceeds average demand.
Kendall’s Notation
Standard (A/B/c):(d/e) format. For (M/M/1):(infty/ FIFO), Poisson arrivals, Exponential service, single server, infinite capacity.
Formula & Metric
Key formulation: rho = (Ī» / mu) = (12 / 15) = 0.80 quad mathbf(80 % text Server Busy / Utilization). Master for exam numericals.
Traffic Intensity
rho = Ī» / mu. Steady-state stability requires rho < 1 (Ī» < mu); otherwise queue length expands indefinitely.
Little’s Laws
Fundamental bridge relations: Lā‚› = Ī» Wā‚›, L_q = Ī» W_q, and Wā‚› = W_q + 1/ mu, establishing universal queue equilibrium.
Queuing Theory MM1 Model Infographic
Figure 2: Complete Architectural Framework for Queuing Systems & (M/M/1) Model (BMB 206 Unit 4)

1. Queuing System Architecture & Structural Components

Queuing theory (waiting line theory) represents the mathematical investigation of delays and congestion experienced when customer demand temporarily outpaces operational service facility throughput. It provides managers with quantitative tools to strike a balance between customer waiting costs and facility capacity costs.

  • Input Calling Population: The source population from which arrival entities originate. Classified as finite (e.g., breakdown of 10 factory machines) or infinite (e.g., retail shoppers entering a supermarket).
  • Arrival Pattern ($\lambda$): The statistical frequency with which entities enter the system. Parameterized by arrival rate $\lambda$ (mean arrivals per unit time) or mean inter-arrival interval $1/\lambda$.
  • Queue Discipline: The procedural prioritization rule governing which waiting entity is served next:
    • FIFO (First-In-First-Out): Standard equitable queuing order (e.g., ticket counters).
    • LIFO (Last-In-First-Out): Reverse order (e.g., cargo unloading from freight holds).
    • SIRO (Service In Random Order): Lottery or random pick.
    • Priority Service: Preemptive or non-preemptive urgent access (e.g., hospital trauma units).
  • Service Mechanism ($\mu$): Comprises the number of parallel servers ($c$), arrangement of sequential phases, and average service rate $\mu$ (mean entities completed per unit time per server).
  • System Capacity: The maximum allowable queue buffer limit. Infinite capacity permits unbounded lines, whereas finite capacity rejects arrivals once buffer saturation occurs (balking).
  • Customer Behavioral Variations: Real-world waiting dynamics including Balking (refusing to join long queue), Reneging (leaving queue after waiting), and Jockeying (switching between parallel lines).

2. Kendall’s Notation & Model Assumptions

To universally classify waiting lines, British statistician D. G. Kendall formulated the shorthand notation $(A / B / c) : (d / e)$:

  • $A$ (Arrival Probability Distribution): $M$ = Markovian/Poisson, $D$ = Deterministic, $E_k$ = Erlang-$k$, $G$ = General distribution.
  • $B$ (Service Probability Distribution): $M$ = Markovian/Negative Exponential, $D$ = Deterministic, $G$ = General service distribution.
  • $c$ (Number of Parallel Service Channels): $1, 2, \dots, \infty$.
  • $d$ (System Capacity Limit): Maximum allowed customers in system ($\infty$ if unrestricted).
  • $e$ (Queue Discipline): FIFO, LIFO, SIRO, or Priority.
  • $(M/M/1) : (\infty / \text{FIFO})$ Foundational Assumptions:
    • Arrivals occur purely at random following a Poisson probability distribution with constant mean rate $\lambda$.
    • Service times follow an Exponential distribution with constant mean rate $\mu$.
    • A single server processes customers independently one at a time.
    • Waiting room capacity is infinite; no incoming customer is turned away.
    • The system is operating in steady-state equilibrium ($\lambda < \mu$, meaning $\rho < 1$).

Operational Characteristics & Solved Step-by-Step Numerical

(M/M/1) Model

1. Governing Mathematical Equations

Metric SymbolDescriptionAnalytical Formula
$\rho$Traffic Intensity / Server Utilization$\rho = \frac{\lambda}{\mu}$
$P_0$Probability Server is Idle (Empty System)$P_0 = 1 - \rho = 1 - \frac{\lambda}{\mu}$
$P_n$Probability of exactly $n$ customers in system$P_n = (1 - \rho)\rho^n = \left(1 - \frac{\lambda}{\mu}\right)\left(\frac{\lambda}{\mu}\right)^n$
$P(n > k)$Probability system contains more than $k$ units$P(n > k) = \rho^{k+1} = \left(\frac{\lambda}{\mu}\right)^{k+1}$
$L_s$Average number of customers in the system$L_s = \frac{\lambda}{\mu - \lambda} = \frac{\rho}{1 - \rho}$
$L_q$Average number of customers waiting in queue$L_q = \frac{\lambda^2}{\mu(\mu - \lambda)} = L_s - \frac{\lambda}{\mu}$
$W_s$Average time a customer spends in system$W_s = \frac{1}{\mu - \lambda} = \frac{L_s}{\lambda}$
$W_q$Average time a customer waits in queue$W_q = \frac{\lambda}{\mu(\mu - \lambda)} = W_s - \frac{1}{\mu} = \frac{L_q}{\lambda}$
Numerical Illustration (AKTU Semester Exam Standard):

At a retail bank counter, customers arrive according to a Poisson process at an average rate of $\lambda = 12$ customers per hour. The single teller completes transactions at an average exponential rate of $\mu = 15$ customers per hour. Calculate: (a) Server utilization factor and probability that the teller is idle, (b) Average number of customers in the system ($L_s$) and waiting in the line ($L_q$), (c) Average time a customer spends in the bank ($W_s$) and in the waiting line ($W_q$), (d) The probability that there are more than 3 customers in the system ($P(n > 3)$).

Strict Step-by-Step Mathematical Solution:

Step 1: Verify System Stability Condition
Arrival rate $\lambda = 12\text{ cust/hr}$, Service rate $\mu = 15\text{ cust/hr}$.
Because $\lambda < \mu$ ($12 < 15$), the system reaches steady-state equilibrium.

Step 2: Utilization Factor ($\rho$) and Idle Probability ($P_0$)
$$\rho = \frac{\lambda}{\mu} = \frac{12}{15} = 0.80 \quad \mathbf{(80\%\text{ Server Busy / Utilization})}$$ $$P_0 = 1 - \rho = 1 - 0.80 = 0.20 \quad \mathbf{(20\%\text{ Probability of Idle Server})}$$
Step 3: Average Customers in System ($L_s$) & Queue ($L_q$)
$$L_s = \frac{\lambda}{\mu - \lambda} = \frac{12}{15 - 12} = \frac{12}{3} = \mathbf{4\text{ customers}}$$ $$L_q = \frac{\lambda^2}{\mu(\mu - \lambda)} = \frac{12^2}{15(15 - 12)} = \frac{144}{15 \times 3} = \frac{144}{45} = \mathbf{3.2\text{ customers}}$$ Cross-verification: $L_q = L_s - \frac{\lambda}{\mu} = 4 - 0.80 = 3.2\text{ customers}$. (Exact Match)

Step 4: Average Time in System ($W_s$) & Queue ($W_q$)
$$W_s = \frac{1}{\mu - \lambda} = \frac{1}{15 - 12} = \frac{1}{3}\text{ hour} = \frac{1}{3} \times 60 = \mathbf{20\text{ minutes}}$$ $$W_q = \frac{\lambda}{\mu(\mu - \lambda)} = \frac{12}{45}\text{ hour} = \frac{4}{15} \times 60 = \mathbf{16\text{ minutes}}$$ Cross-verification: $W_s = W_q + \frac{1}{\mu} = 16\text{ min} + \frac{1}{15}(60)\text{ min} = 16 + 4 = 20\text{ minutes}$. (Exact Match)

Step 5: Probability of More than 3 Customers in System ($P(n > 3)$)
$$P(n > k) = \rho^{k+1} \implies P(n > 3) = \rho^{3 + 1} = \rho^4$$ $$P(n > 3) = (0.80)^4 = 0.4096 \approx \mathbf{40.96\%}$$ There is a $40.96\%$ probability that an arriving customer encounters 4 or more individuals already present in the bank.

3. Little’s Laws & System Performance Evaluation

Formulated by MIT professor John Little in 1961, Little’s Law provides a mathematically robust theorem applicable to almost any queuing system in steady-state, regardless of arrival distribution or service patterns:

  • First Little’s Relation ($L_s = \lambda W_s$): The long-term average number of customers in a stationary queuing system equals the long-term average effective arrival rate multiplied by the average time spent inside the system.
  • Second Little’s Relation ($L_q = \lambda W_q$): The long-term average number of customers waiting in the line equals arrival rate multiplied by the average queue waiting duration.
  • Additive System Decomposition ($W_s = W_q + E(T)$): Total time in system cleanly decomposes into waiting time plus active service time ($1/\mu$).
  • Sensitivity to Utilization ($\rho \to 1$): As traffic intensity approaches 1 ($100\%$), queue length does not grow linearly—it explodes exponentially toward infinity due to random clustering.

5. Corporate Case Vignette: Retail Bank Teller Optimization

HDFC Bank: Branch Service Bottleneck Resolution

At a busy commercial branch in Lucknow, HDFC Bank noticed significant customer attrition linked to excessive waiting times at cash deposit windows. With average customer arrivals at $\lambda = 28$ per hour and a single high-capacity teller operating at $\mu = 30$ per hour, the utilization was $\rho = 28/30 = 93.3\%$. The average wait time was $W_q = \lambda / [\mu(\mu - \lambda)] = 28 / [30 \times 2] = 0.467\text{ hours} \approx 28\text{ minutes}$, and average queue length stood at $L_q = 13.06\text{ customers}$.

By deploying an automated cash deposit kiosk that absorbed routine transactions and augmented teller throughput to $\mu = 35$ per hour, utilization dropped from $93.3\%$ to $\rho = 28/35 = 80\%$. In response, customer waiting time plummeted from 28 minutes to just $W_q = 28 / [35 \times 7] = 0.114\text{ hours} \approx 6.8\text{ minutes}$ (a $75.7\%$ reduction). Customer satisfaction scores rose by 34 points in the subsequent quarter.

6. AKTU University Examination Question Bank

Section A • 2 Marks

Q1: What does $(M/M/1) : (\infty / \text{FIFO})$ stand for in Kendall’s notation?

Model Answer: In Kendall’s notation, $(M/M/1) : (\infty / \text{FIFO})$ represents: First ‘M’ = Markovian (Poisson) arrival distribution, Second ‘M’ = Markovian (Negative Exponential) service time distribution, ‘1’ = Single server channel, ‘$\infty$’ = Infinite system capacity buffer, ‘FIFO’ = First-In-First-Out service discipline.

Section A • 2 Marks

Q2: What is Traffic Intensity ($\rho$) and what occurs if $\rho \ge 1$?

Model Answer: Traffic intensity $\rho = \lambda / \mu$ represents the proportion of time the server is actively occupied. If $\rho \ge 1$ (meaning arrival rate equals or exceeds service capacity), steady-state equilibrium cannot exist, and the waiting queue expands infinitely over time.

Section B / C • 10 Marks

Q3: Derive the operational characteristics of an $(M/M/1)$ queuing model. A petrol pump station has arrival rate $\lambda = 10$ cars/hr and service rate $\mu = 15$ cars/hr. Find $L_s, L_q, W_s, W_q$, and probability of more than 2 cars.

Exam Strategy: State core steady-state assumptions. State the probability of state $P_n = (1 - \rho)\rho^n$. Write out and evaluate formulas: $\rho = 10/15 = 2/3$, $L_s = 2\text{ cars}$, $L_q = 4/3 = 1.33\text{ cars}$, $W_s = 1/5\text{ hr} = 12\text{ min}$, $W_q = 8\text{ min}$, and $P(n > 2) = (2/3)^3 = 8/27 \approx 29.6\%$.

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