Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization

Ogunlade Temitope Olu

doi:doi:10.11648/j.ml.20190501.12

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Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization

Ogunlade Temitope Olu

Published in Mathematics Letters (Volume 5, Issue 1)

Received: 16 April 2019 Accepted: 29 May 2019 Published: 24 June 2019

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Abstract

Automated teller machine (ATM) is one of the several electronic banking channels used in the banking industry. This brought about queue (waiting line) and this is because customers waiting in line to receive service by using the ATM are inevitable and hence queue control became an issue This paper applies queuing theory to determine the average time customers spend on queue and actual time of delivery thereby examining the impact of time wasting and cost associated with it. Direct non-participatory observation and questionnaire were engaged to record time measurements and primary data. Performance measure of the system was calculated and the number of servers for optimum service delivery was also analysed. To analyse customers’ satisfaction, questionnaires were administered to ATM customers. Respondents fairly represent the ATM customer population, males and females, old and young and persons from various occupation backgrounds. Responses from above are analyzed as answers to questions, presented on the questionnaire. For each question, we analyzed using incidences and percentage to determine the weight of support for a particular option. Means, variances and standard derivation are computed for questions on tolerable waiting time and average cash withdrawal. It was commended that the case bank increase the number of servers so as to help reduce wait time and wait cost. From the analysis and observation, service unavailability was observed to be a contributory factor to queue formation at the case ATM.

Published in	Mathematics Letters (Volume 5, Issue 1)
DOI	10.11648/j.ml.20190501.12
Page(s)	8-12
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Queueing Theory, Waiting Time, Service Time, Optimum Service, Performance Measure

References

[1]	Aldajani, M. A. and Alfares, H. K. (2009), Location of Banking Automatic Teller Machines Based on Convolution. System Engineering Department, King fand University of Petroleum and Minerals, Dharan 31261, Saudi Arabia.
[2]	Abor J. (2005). Technology Innovations and Banking in Ghana: An Evaluation of Customers Perceptions legion. Ife Psychologia 13 (1): 170-187.
[3]	Sharma A. K (2013) Advanced Numerical Modeling: University of Delhi, India.
[4]	Olorunsola S. A, Adeleke R. A and Ogunlade T. O (2014) Queueing Analysis of Patient Flow in Hospital. IOSR Journal of Mathematics 10 (4): 47-53.
[5]	Ogunlade Temitope Olu and Okoro Joshua Otonritse (2015) Waiting Time Analysis of A Single Server Queue in an Out-Patient Clinic. IOSR Journal of Mathematics 11 (3): 54-58.
[6]	Eze, E. O. and Odunukwe, A. D (2015). On Application of Queuing Models to Customers Management in Banking System. American Research Journal of Bio Sciences 1 (2): 14-20.
[7]	Raimi O. A. and Nenuwa I. O (2015). Queueing Model for Banking System: A Comparative Study of Selectected Banks in Ondo State Nigeria. American Journal of Engineering Research 4 (8): 191-195.
[8]	Bakari H. R. Chamalwa1, H. A. and Baba A. M.(2014) Queuing Process and Its Application to Customer Service Delivery (A Case study of Fidelity Bank Plc, Maiduguri) International Journal of Mathematics and Statistics Invention. 2 (1): 14-21.
[9]	Ahmed S. A. and Huda K. T. (2011) Automatic Queuing Model for Banking Application. International Journal of Advanced Computer Science and Applications. 2 (7): 11-15.
[10]	Toshiba S, Sanjay K. S and Anil K. K (2013). Application Of Queuing Theory For The Improvement Of Bank Service International Journal Of Advanced Computational Engineering And Networking, 1 (4): 15-18.
[11]	Nityangini J. And Pravin B. (2016). Application Of Queuing Theory In Banking Sector. IOSR Journal of Mathematics 12 (2): 73-75.
[12]	Xiao, H and Zhang G (2010), The Queuing Theory Application in Bank Service Optimization Proceedings of the International Conference on Logistics Systems and Intelligent Management. IEE, China.
[13]	Lin, P and Yang A. S (2006). Service Efficiency Evaluation of Automatic Teller Machines: A study of Taiwan financial institutions with the application of queuing theory. Journal of Statistics and Management Systems 9 (3): 555 – 570.
[14]	Vasumathi, A and Dhanavathan, P (2010) Application of Simulation Technique in Queuing Model for ATM Facility. International journal of Applied Engineering Research, Dindigul. 1 (3): 469-482.
[15]	Singh, L. K and Srivastava, R (2007) “Memory Estimation of Internet Server using Queuing Theory: Comparative Study between M / G/ 1, G / M / 1 and G / G / 1 queuing model” World Academy of Science, Engineering and Technology International Journal of Mathematical and Computational Sciences (1) 9: 416-420.
[16]	Hillier, F. S, & Lieberman, S. (1974) Operation Research. S. K Jain, Inc.

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APA Style

Ogunlade Temitope Olu. (2019). Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization. Mathematics Letters, 5(1), 8-12. https://doi.org/10.11648/j.ml.20190501.12

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ACS Style

Ogunlade Temitope Olu. Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization. Math. Lett. 2019, 5(1), 8-12. doi: 10.11648/j.ml.20190501.12

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AMA Style

Ogunlade Temitope Olu. Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization. Math Lett. 2019;5(1):8-12. doi: 10.11648/j.ml.20190501.12

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@article{10.11648/j.ml.20190501.12,
  author = {Ogunlade Temitope Olu},
  title = {Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization},
  journal = {Mathematics Letters},
  volume = {5},
  number = {1},
  pages = {8-12},
  doi = {10.11648/j.ml.20190501.12},
  url = {https://doi.org/10.11648/j.ml.20190501.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ml.20190501.12},
  abstract = {Automated teller machine (ATM) is one of the several electronic banking channels used in the banking industry. This brought about queue (waiting line) and this is because customers waiting in line to receive service by using the ATM are inevitable and hence queue control became an issue This paper applies queuing theory to determine the average time customers spend on queue and actual time of delivery thereby examining the impact of time wasting and cost associated with it. Direct non-participatory observation and questionnaire were engaged to record time measurements and primary data. Performance measure of the system was calculated and the number of servers for optimum service delivery was also analysed. To analyse customers’ satisfaction, questionnaires were administered to ATM customers. Respondents fairly represent the ATM customer population, males and females, old and young and persons from various occupation backgrounds. Responses from above are analyzed as answers to questions, presented on the questionnaire. For each question, we analyzed using incidences and percentage to determine the weight of support for a particular option. Means, variances and standard derivation are computed for questions on tolerable waiting time and average cash withdrawal. It was commended that the case bank increase the number of servers so as to help reduce wait time and wait cost. From the analysis and observation, service unavailability was observed to be a contributory factor to queue formation at the case ATM.},
 year = {2019}
}

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TY - JOUR
T1 - Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization
AU - Ogunlade Temitope Olu
Y1 - 2019/06/24
PY - 2019
N1 - https://doi.org/10.11648/j.ml.20190501.12
DO - 10.11648/j.ml.20190501.12
T2 - Mathematics Letters
JF - Mathematics Letters
JO - Mathematics Letters
SP - 8
EP - 12
PB - Science Publishing Group
SN - 2575-5056
UR - https://doi.org/10.11648/j.ml.20190501.12
AB - Automated teller machine (ATM) is one of the several electronic banking channels used in the banking industry. This brought about queue (waiting line) and this is because customers waiting in line to receive service by using the ATM are inevitable and hence queue control became an issue This paper applies queuing theory to determine the average time customers spend on queue and actual time of delivery thereby examining the impact of time wasting and cost associated with it. Direct non-participatory observation and questionnaire were engaged to record time measurements and primary data. Performance measure of the system was calculated and the number of servers for optimum service delivery was also analysed. To analyse customers’ satisfaction, questionnaires were administered to ATM customers. Respondents fairly represent the ATM customer population, males and females, old and young and persons from various occupation backgrounds. Responses from above are analyzed as answers to questions, presented on the questionnaire. For each question, we analyzed using incidences and percentage to determine the weight of support for a particular option. Means, variances and standard derivation are computed for questions on tolerable waiting time and average cash withdrawal. It was commended that the case bank increase the number of servers so as to help reduce wait time and wait cost. From the analysis and observation, service unavailability was observed to be a contributory factor to queue formation at the case ATM.
VL - 5
IS - 1
ER -

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Author Information

Ogunlade Temitope Olu

Department of Mathematics, Ekiti State University, Ado-Ekiti, Nigeria

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APA Style

Ogunlade Temitope Olu. (2019). Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization. Mathematics Letters, 5(1), 8-12. https://doi.org/10.11648/j.ml.20190501.12

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ACS Style

Ogunlade Temitope Olu. Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization. Math. Lett. 2019, 5(1), 8-12. doi: 10.11648/j.ml.20190501.12

Copy | Download

AMA Style

Ogunlade Temitope Olu. Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization. Math Lett. 2019;5(1):8-12. doi: 10.11648/j.ml.20190501.12

Copy | Download

@article{10.11648/j.ml.20190501.12,
  author = {Ogunlade Temitope Olu},
  title = {Application of Queuing Theory to a Bank’s Automated Teller Machine (ATM) Service Optimization},
  journal = {Mathematics Letters},
  volume = {5},
  number = {1},
  pages = {8-12},
  doi = {10.11648/j.ml.20190501.12},
  url = {https://doi.org/10.11648/j.ml.20190501.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ml.20190501.12},
  abstract = {Automated teller machine (ATM) is one of the several electronic banking channels used in the banking industry. This brought about queue (waiting line) and this is because customers waiting in line to receive service by using the ATM are inevitable and hence queue control became an issue This paper applies queuing theory to determine the average time customers spend on queue and actual time of delivery thereby examining the impact of time wasting and cost associated with it. Direct non-participatory observation and questionnaire were engaged to record time measurements and primary data. Performance measure of the system was calculated and the number of servers for optimum service delivery was also analysed. To analyse customers’ satisfaction, questionnaires were administered to ATM customers. Respondents fairly represent the ATM customer population, males and females, old and young and persons from various occupation backgrounds. Responses from above are analyzed as answers to questions, presented on the questionnaire. For each question, we analyzed using incidences and percentage to determine the weight of support for a particular option. Means, variances and standard derivation are computed for questions on tolerable waiting time and average cash withdrawal. It was commended that the case bank increase the number of servers so as to help reduce wait time and wait cost. From the analysis and observation, service unavailability was observed to be a contributory factor to queue formation at the case ATM.},
 year = {2019}
}

Copy | Download