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Chapter 13
Capacity Planning and Queuing Models
Chapter 13
Capacity Planning and Queuing Models
PAGE 242
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CHAPTER 13
CAPACITY PLANNING AND QUEUING MODELS
TEACHING NOTE
In this chapter we address the challenges of capacity planning for services and the strategic role of capacity planning. An early example of na?ve capacity planning is shown later in the chapter to be inadequate for services because the queuing aspect of service systems is ignored. The most useful of the analytical queuing models are developed next with examples. These models are used to gain insights and better understanding of the queuing phenomenon. For example, the M/G/l model is used to demonstrate that variation in arrivals and service times both contribute equally to congestion. The managerial implications of these insights are stressed. No attempt to derive the queuing models is made because the intent is to use the models to understand service operations and to make projections of waiting times for capacity decisions using a variety of planning criteria. Calculations using queuing models can be quite tedious. For this reason, in the exercises students are encouraged to use Appendix C Values of Lq for the M/M/c Queuing Models instead of the M/M/c formulas. A Computer Simulation Supplement to the chapter includes a demonstration and workshop in the use of ServiceModel, commercial simulation software found on the textbook website: /support/.
SUPPLEMENTARY MATERIAL
Case: Global Financial Corp. (HBS: OIT20-PDF-ENG)
Global Financial, a subsidiary of a major heavy equipment manufacturer, makes loans to customers for purchases of the parent company equipment. Global Financials loan application process is the major subject of this case. Customers are unhappy with the slowness of the process, and a major competitor promises to process loans much faster. The details of the processing system, including historical data, are included. This allows examination of bottlenecks in the s
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