RELATIONSHIP BETWEEN SERVICE AND COST
An improvement of service level is always possible by increasing the number of employees. Apart from increasing the cost an immediate consequence of such a step is unutilised or idle time of the servers. In addition, it is unrealistic to assume that a large-scale increase in staff is possible in an organisation. Queuing methodology indicates the optimal usage of existing manpower and other resources to improve the service. It can also indicate the cost implication if the existing service facility has to be improved by adding more servers.
The relationship between queuing and service rates can be diagrammatically illustrated using the cost curves as shown in following figure.
At a slow service rate, queues ...
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