A queuing model with balking index and reneging rate

Pen-Yuan Liao

International Journal of Services and Operations Management, 2011, vol. 10, issue 1, 1-12

Abstract: This paper presents a queuing model for estimating business loss, although business loss is quite difficult to estimate. Balking index and reneging rate are used in the model to represent different configurations of balking behaviour and reneging behaviour respectively for different queuing systems. Using balking index and reneging rate enables decision makers to have the capability to estimate the incurred business loss for different values of balking index, reneging rate and service level. This model is an effective tool for linking the phases of operations management and perceptions management. With this linkage, managers can decide how to utilise these management techniques to reduce business loss and enhance customer satisfaction.

Keywords: queuing theory; balking index; reneging rate; business loss estimation; service systems; modelling; operations management; perceptions management; customer satisfaction. (search for similar items in EconPapers)
Date: 2011
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