AUTOMATED TELLER MACHINE (ATM) SERVICE OPTIMIZATION: APPLICATION OF THE QUEUING THEORY
1 SALAMI, Akeem Olanrewaju & 2 OLAIFA, Oluwagbenga Oladele
1 email: email@example.com; 2 email: firstname.lastname@example.org
1&2 Department of Business Administration, Federal University of Agriculture, Abeokuta, Ogun State, Nigeria.
This study applies queuing model to Automated Teller Machine services of Guarantee Trust Bank (GTB) Alabata, Abeokuta, Ogun state, Nigeria. The study sample comprised of 349 customers and the basic data werecollected using observational timing of customer entry and service over a period of two weeks. The chi-square goodness of fit test was used to test the arrival pattern to determine if it follows a Poisson distribution and also tested the service pattern to determine if it follows an exponential distribution. Results obtained from the chi-square test showed that the arrival pattern follows a Poisson distribution and that the service pattern follows an exponential distribution, hence it can be analyzed using Markovian process. The raw data were then analyzed using Excel template bearing the multichannel queue model with two servers. Average service rate was found to be (µ) 0.5647 customers/minute (34 customers per hour), the mean arrival rate (λ) was 0.6609 customers/min (39 customers per hour), the probability that servers are idle was 0.4148 and the saving in the expected cost of waiting was N190.775. It was recommended based on the analysis, that the bank management should increase the number of servers to three so as to reduce the time customers spend on queue and also reduce cost incurred from waiting.
Keywords: Queue, Arrival-pattern, Service-pattern, Customers, Servers