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

What are the factors which led to the development of abc, What are the fact...

What are the factors which led to the development of ABC: 1) Traditional costing fails to capture cause and effect relationship 2) Traditional costing often fails to highlig

Inventory control decisions, INVENTORY CONTROL DECISIONS Factories, wor...

INVENTORY CONTROL DECISIONS Factories, workshops, engineering departments handle raw materials used in the manufacture of products. The main objectives in handling these materi

Explain the growth, Explain the growth, index, sectoral, gilt and money mar...

Explain the growth, index, sectoral, gilt and money market methods? (i) What are the key variations among the open ended and close ended methods? What are the plus and minuses

Cost concepts and estimations, in the past,the company had difficulties sep...

in the past,the company had difficulties separating semi-variable costs between varible and fixed costs.the company''s varible cost per unit consists of the cost of patrol,maintena

Homework.., given the above data what would the breakeven in units and doll...

given the above data what would the breakeven in units and dollars be if u wanted a necessary after tax profit of $ 36,000 (assume a 30% tax rate ) units __________ ales dollars _

What is suggestion system, Suggestion system  The suggestion system is ...

Suggestion system  The suggestion system is as integral part of an established management system that aims at involving employees in kaizen. The number of worker s suggestion i

Prepare an overhead analysis sheet, QUESTION 1: P A RT A You are...

QUESTION 1: P A RT A You are the Cost Accountant of an industrial concern and have been assigned the duty of preparing a cost accounting system. Initially it has been de

Cost concept, Cost concept . techniques of costing . absorption costing

Cost concept . techniques of costing . absorption costing

Order acceptance or rejection, Excess machine hours 20,000. Received offers...

Excess machine hours 20,000. Received offers from two companies to buy 210,000 units of F at 0.60 and 300,000 units of D at 0.70. Estimated costs for the two products are;

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