Arrival rates-service rates-traffic intensity, Managerial Accounting

Assignment Help:

Arrival Rates, Service Rates, and Traffic Intensity

The (average) arrival rate is the rate of arrival of customers at a queue, and is often denoted by x.

If 10 customers arrive at a queue each hour: x = 10 and (1/ x) x 60 minutes = every 6 minutes is the inter-arrival time.

The (average) service rate is the rate at which customers could be served, and is often denoted by the letter µ.

If on average, 20 customers could be served every hour, µ = 20 and the average service time would be

1/ µ x 60 minutes = 3 minutes.

The traffic intensity is the ratio or the average arrival rate to the average service rate.  It is denoted by P.

Thus P = x/ µ

If the arrival rate is 10 per hour and the average service rate is 20 per hour, the traffic intensity would be:

P = x/ µ = 10/20 = 0.5

If a queuing system is to work x must have a lower value than µ and the traffic intensity P, must be less than one. As x approaches µ in size, the average length of the queue and the average time spent in the system will grow as the service personnel find it increasingly hard to keep up with the demand. This point is illustrated below.

726_graph.jpg

When the traffic intensity is equal to or greater than 1, the average time spent by each customer in the system would theoretically be infinite.

 


Related Discussions:- Arrival rates-service rates-traffic intensity

Ratio analysis, Have lot of questions please any one help me

Have lot of questions please any one help me

What are direct expanses, What are Direct expanses These are expanses ...

What are Direct expanses These are expanses which can be directly, conveniently and wholly allocated to a specific cost centres or cost units examples of such expanses are hir

Capital asset pricing model, Cascade Water Company (CWC) currently has 30 0...

Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share.

Incremental budgeting, the suitability of incremental budgeting to a stable...

the suitability of incremental budgeting to a stable and static environment

Case Study, Can someone do my case study for managerial accounting includin...

Can someone do my case study for managerial accounting including writing a sales report?

Explain briefly about life cycle costing, LIFE CYCLE COSTING Introduc...

LIFE CYCLE COSTING Introduction Life cycle costing as its name implies costs the cost object i.e., product project etc. over its projected life. It is used to explain a s

Working capital management, literature review of effects of working capital...

literature review of effects of working capital on financial performance?

Budget costing, Archie Ltd manufactures a product called Gizmo. It uses th...

Archie Ltd manufactures a product called Gizmo. It uses the following direct inputs: Price Quantity Cost per unit of output Direct materials $4 per gram 10 grams per unit $40 per

Security analysis and portfolio management, Security Analysis and Portfolio...

Security Analysis and Portfolio Management Define Capital Market Line and how is it dissimilar from Security Market Line. Describe with illustrations?

Focus on traditional standard costing - kaizen costing, What have to Focus ...

What have to Focus on Traditional standard costing In traditional cost systems focus is to meet standard cost measurement by avoiding unfavorable variances. Under kaizen coat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd