Structure of Waiting Line Model - Definition & Meaning
What is Structure of Waiting Line Model?
Waiting line model consists of various parameters like cost of waiting (Cw), cost of service (Ck), time taken for an object in the waiting line (Wq), time taken for an object in the entire system (W), average number of units in the system (L), average number of unit in waiting line (Lw).
The rate of service is directly proportional to the cost of service while the cost of waiting is inversely proportional to the rate of service.
It means if the cost of service is high, the cost of waiting will be low while the rate of service will be high. The Waiting line model stipulates that the rate of service should be at an optimal level in order for doctors, lawyers and others who have a high price for time.
Cost of Waiting Line system = Cw *l + Ck* k
Where L is the number of units in the waiting line and k is the number of units serviced
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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