QUEUEING THEORY AND APPLICATION: A TOOL FOR BUSINESS GROWTH (A STUDY OF A. A RANO PETROL STATION, OPOLO, YENAGOA)

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ABSTRACT

The study explored the application of queueing models in addressing the issue of frequent waiting times at A. A. Rano Petrol Station Opolo, Yenagoa, Bayelsa state as a tool for business growth. Whenever the immediate demand for a service exceeds the current capacity to deliver that service, it results to queues. The formation of queue leads to longer waiting times for customers, overuse of the available servers, and a potential loss of customers due to a decline in customer satisfaction. Queueing theory is employed to assess the performance metrics of a service facility, aiding in the design of suitable service installation. The data for this study were gathered at the A.A. Rano Petrol Station in Opolo, Yenagoa, for six consecutive days. Each day from 6:00AM to 6:00PM utilizing observations, interviews, and customer PMS purchase records. The model yielded an average queue time of 13.397 minute and an average queue length of 61 customers. M/M/S gave optimal results and can be adopted for solving similar problems. The management of A. A. Rano Filling station should open four additional service points. Incentives should be given to creating over time that will increase or sustain the acceptable utilization factor.

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