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Modeling and Managing the Percentage of Satisfied Customers in Hidden and Revealed Waiting Line Systems

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  • Chester Chambers
  • Panagiotis Kouvelis

Abstract

We perform an analysis of various queueing systems with an emphasis on estimating a single performance metric. This metric is defined to be the percentage of customers whose actual waiting time was less than their individual waiting time threshold. We label this metric the Percentage of Satisfied Customers (PSC.) This threshold is a reflection of the customers' expectation of a reasonable waiting time in the system given its current state. Cases in which no system state information is available to the customer are referred to as “hidden queues.” For such systems, the waiting time threshold is independent of the length of the waiting line, and it is randomly drawn from a distribution of threshold values for the customer population. The literature generally assumes that such thresholds are exponentially distributed. For these cases, we derive closed form expressions for our performance metric for a variety of possible service time distributions. We also relax this assumption for cases where service times are exponential and derive closed form results for a large class of threshold distributions. We analyze such queues for both single and multi‐server systems. We refer to cases in which customers may observe the length of the line as “revealed” queues.“ We perform a parallel analysis for both single and multi‐server revealed queues. The chief distinction is that for these cases, customers may develop threshold values that are dependent upon the number of customers in the system upon their arrival. The new perspective this paper brings to the modeling of the performance of waiting line systems allows us to rethink and suggest ways to enhance the effectiveness of various managerial options for improving the service quality and customer satisfaction of waiting line systems. We conclude with many useful insights on ways to improve customer satisfaction in waiting line situations that follow directly from our analysis.

Suggested Citation

  • Chester Chambers & Panagiotis Kouvelis, 2006. "Modeling and Managing the Percentage of Satisfied Customers in Hidden and Revealed Waiting Line Systems," Production and Operations Management, Production and Operations Management Society, vol. 15(1), pages 103-116, March.
    • Handle: RePEc:bla:popmgt:v:15:y:2006:i:1:p:103-116
    DOI: 10.1111/j.1937-5956.2006.tb00033.x
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    References listed on IDEAS

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    1. Ziv Carmon & J. George Shanthikumar & Tali F. Carmon, 1995. "A Psychological Perspective on Service Segmentation Models: The Significance of Accounting for Consumers' Perceptions of Waiting and Service," Management Science, INFORMS, vol. 41(11), pages 1806-1815, November.
    2. Ward Whitt, 1999. "Predicting Queueing Delays," Management Science, INFORMS, vol. 45(6), pages 870-888, June.
    3. Ward Whitt, 1999. "Improving Service by Informing Customers About Anticipated Delays," Management Science, INFORMS, vol. 45(2), pages 192-207, February.
    4. Ronald W. Wolff, 1982. "Poisson Arrivals See Time Averages," Operations Research, INFORMS, vol. 30(2), pages 223-231, April.
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