Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State

Muhammad Sani Burodo; Shamsuddeen Suleiman; Yakubu Shaba

doi:doi:10.11648/j.ajomis.20190403.12

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Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State

Muhammad Sani Burodo, Shamsuddeen Suleiman, Yakubu Shaba

Published in American Journal of Operations Management and Information Systems (Volume 4, Issue 3)

Received: 27 June 2019 Accepted: 16 August 2019 Published: 5 September 2019

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Abstract

The consequence of queuing in relation to the time spent by customers to access financial services is increasingly becoming a major source of concern to most stakeholders, especially the banks, their teeming customers and regulatory agencies. Even more critical are the costs that accrue thereof. In this study, the queuing characteristics at the Kaura Namoda Branch of First Bank Ltd were analyzed using three service efficiency parameters – single, two and three servers. The study collected, through observation, queuing data at the bank from Monday through Wednesday to develop an optimal queuing model. Consistent with conventional wisdom and prior studies, the findings provide evidence to support the idea that the multiple-server model is more efficient than the single channel. For instance, whilst with two or three servers, a customer spends on the average, 0.0409 hours (about 3 minutes) and 0.0310 hours (about 2 minutes), the same customer spends an average of 0.2 hours (12 minutes) in the system if it is a single channel. Thus, the study concludes that higher number of servers is associated with lower average time spent in the system, a finding that is in tandem with past studies within and outside Nigeria. Drawing from these findings, the study suggests the need to increase number of servers to meet the changing expectations of the bank’s teeming customers.

Published in	American Journal of Operations Management and Information Systems (Volume 4, Issue 3)
DOI	10.11648/j.ajomis.20190403.12
Page(s)	80-86
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

Queuing Theory, Arrival Rate, Service Rate, Server, Customers

References

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[2]	Cabas, M. G. (2001). A History of the Future of Banking: Predictions and Outcomes. Available at http://www.hass.berkley.edu/finance/CMWpaper.pdf.
[3]	Moulinho, L. (1992). Customer Satisfaction Measurements: Prolonged Satisfaction with ATMs. International Journal of Bank Marketing, 10 (7), 30–37.
[4]	Okechi, O., and O. M. Kepeghorn (2013). Empirical Evaluation of Customers’ Use of Electronic Banking System in Nigeria. African Journal of Computing and ICT, 6 (1), 7-20.
[5]	Erlang, A. K. (1909). The Theory of Probabilities and Telephone Conversations (Nyttidsskrift for Mathematics), B, 20, p. 33.
[6]	Nita, H. S., M. G. Ravi, and S. Hardik (2010). Operations Research. 4th Edition, ISBN 978-81- 203-3128-0. Eastern Economy Edition.
[7]	Tiwari N. K., and S. K. Shandilya (2009). Operations Research. Third Edition, ISBN 978-81-203- 2966-9. Eastern Economy Edition.
[8]	Augustine, A. N. (2013). Queuing Model as a Technique of Queue Solution in Nigeria Banking Industry. Developing Countries Studies, 3 (8), 188-195.
[9]	Eze, E. O., and A. D. Odunukwe (2015). On Application of Queuing Models to Customers Management in Banking System. American Research Journal of Bio Sciences, 1 (2), 14-20.
[10]	Agyei, W., C. Asare-Darko, and F. Odilon (2015). Modeling and Analysis of Queuing Systems in Banks: (A case study of Ghana Commercial Bank Ltd. Kumasi Main Branch). International Journal of Scientific & Technology Research, 4 (7), 160-163.
[11]	Abiodun, R. O., and N. I. Omosule (2015). Queuing Model for Banking System: A Comparative Study of Selected Banks in Owo Local Government Area of Ondo State, Nigeria. American Journal of Engineering Research (AJER), 4 (8), 191-195.
[12]	Zewude, B. T. (2016). Queuing Modeling for Comparative Study of Banking System on Commercial Bank of Ethiopia Tona Branch and Dashen Bank: The Case of Wolaita Zone, Ethiopia. Research Journal of Finance and Accounting, 7 (21), 11-16.
[13]	Jhala, N., and P. Bhathawala (2016). Application of Queuing Theory in Banking Sector. IOSR Journal of Mathematics (IOSR-JM), 12 (2 Ver. II), 73-75.
[14]	Kabamba, A. M. (2019). Modeling and Analysis of Queuing Systems in Banks: A Case Study of Banque Commerciale duCongo-BCDC/Mbujimayi. Available at https://mpra.ub.uni-muenchen.de/92579/MPRA Paper No. 92579.
[15]	Kendall, D. G. (1953). Stochastic Processes Occurring in the Theory of Queues and their Analysis by the Method of the Imbedded Markov Chain. The Annals of Mathematical Statistics, 24 (3), 388.
[16]	Lee, A. M. (1966). Applied Queuing Theory, St. Martins Press. New York, 1966.

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APA Style

Muhammad Sani Burodo, Shamsuddeen Suleiman, Yakubu Shaba. (2019). Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State. American Journal of Operations Management and Information Systems, 4(3), 80-86. https://doi.org/10.11648/j.ajomis.20190403.12

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ACS Style

Muhammad Sani Burodo; Shamsuddeen Suleiman; Yakubu Shaba. Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State. Am. J. Oper. Manag. Inf. Syst. 2019, 4(3), 80-86. doi: 10.11648/j.ajomis.20190403.12

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AMA Style

Muhammad Sani Burodo, Shamsuddeen Suleiman, Yakubu Shaba. Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State. Am J Oper Manag Inf Syst. 2019;4(3):80-86. doi: 10.11648/j.ajomis.20190403.12

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@article{10.11648/j.ajomis.20190403.12,
  author = {Muhammad Sani Burodo and Shamsuddeen Suleiman and Yakubu Shaba},
  title = {Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State},
  journal = {American Journal of Operations Management and Information Systems},
  volume = {4},
  number = {3},
  pages = {80-86},
  doi = {10.11648/j.ajomis.20190403.12},
  url = {https://doi.org/10.11648/j.ajomis.20190403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20190403.12},
  abstract = {The consequence of queuing in relation to the time spent by customers to access financial services is increasingly becoming a major source of concern to most stakeholders, especially the banks, their teeming customers and regulatory agencies. Even more critical are the costs that accrue thereof. In this study, the queuing characteristics at the Kaura Namoda Branch of First Bank Ltd were analyzed using three service efficiency parameters – single, two and three servers. The study collected, through observation, queuing data at the bank from Monday through Wednesday to develop an optimal queuing model. Consistent with conventional wisdom and prior studies, the findings provide evidence to support the idea that the multiple-server model is more efficient than the single channel. For instance, whilst with two or three servers, a customer spends on the average, 0.0409 hours (about 3 minutes) and 0.0310 hours (about 2 minutes), the same customer spends an average of 0.2 hours (12 minutes) in the system if it is a single channel. Thus, the study concludes that higher number of servers is associated with lower average time spent in the system, a finding that is in tandem with past studies within and outside Nigeria. Drawing from these findings, the study suggests the need to increase number of servers to meet the changing expectations of the bank’s teeming customers.},
 year = {2019}
}

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TY  - JOUR
T1  - Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State
AU  - Muhammad Sani Burodo
AU  - Shamsuddeen Suleiman
AU  - Yakubu Shaba
Y1  - 2019/09/05
PY  - 2019
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DO  - 10.11648/j.ajomis.20190403.12
T2  - American Journal of Operations Management and Information Systems
JF  - American Journal of Operations Management and Information Systems
JO  - American Journal of Operations Management and Information Systems
SP  - 80
EP  - 86
PB  - Science Publishing Group
SN  - 2578-8310
UR  - https://doi.org/10.11648/j.ajomis.20190403.12
AB  - The consequence of queuing in relation to the time spent by customers to access financial services is increasingly becoming a major source of concern to most stakeholders, especially the banks, their teeming customers and regulatory agencies. Even more critical are the costs that accrue thereof. In this study, the queuing characteristics at the Kaura Namoda Branch of First Bank Ltd were analyzed using three service efficiency parameters – single, two and three servers. The study collected, through observation, queuing data at the bank from Monday through Wednesday to develop an optimal queuing model. Consistent with conventional wisdom and prior studies, the findings provide evidence to support the idea that the multiple-server model is more efficient than the single channel. For instance, whilst with two or three servers, a customer spends on the average, 0.0409 hours (about 3 minutes) and 0.0310 hours (about 2 minutes), the same customer spends an average of 0.2 hours (12 minutes) in the system if it is a single channel. Thus, the study concludes that higher number of servers is associated with lower average time spent in the system, a finding that is in tandem with past studies within and outside Nigeria. Drawing from these findings, the study suggests the need to increase number of servers to meet the changing expectations of the bank’s teeming customers.
VL  - 4
IS  - 3
ER  -

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Author Information

Muhammad Sani Burodo

Department of Business Administration and Management, Federal Polytechnic, Kaura Namoda, Nigeria
Shamsuddeen Suleiman

Department of Mathematics, Faculty of Science, Usmanu Danfodiyo University, Sokoto, Nigeria
Yakubu Shaba

Department of Business Administration, Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto, Nigeria

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APA Style

Muhammad Sani Burodo, Shamsuddeen Suleiman, Yakubu Shaba. (2019). Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State. American Journal of Operations Management and Information Systems, 4(3), 80-86. https://doi.org/10.11648/j.ajomis.20190403.12

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ACS Style

Muhammad Sani Burodo; Shamsuddeen Suleiman; Yakubu Shaba. Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State. Am. J. Oper. Manag. Inf. Syst. 2019, 4(3), 80-86. doi: 10.11648/j.ajomis.20190403.12

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AMA Style

Muhammad Sani Burodo, Shamsuddeen Suleiman, Yakubu Shaba. Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State. Am J Oper Manag Inf Syst. 2019;4(3):80-86. doi: 10.11648/j.ajomis.20190403.12

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@article{10.11648/j.ajomis.20190403.12,
  author = {Muhammad Sani Burodo and Shamsuddeen Suleiman and Yakubu Shaba},
  title = {Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State},
  journal = {American Journal of Operations Management and Information Systems},
  volume = {4},
  number = {3},
  pages = {80-86},
  doi = {10.11648/j.ajomis.20190403.12},
  url = {https://doi.org/10.11648/j.ajomis.20190403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20190403.12},
  abstract = {The consequence of queuing in relation to the time spent by customers to access financial services is increasingly becoming a major source of concern to most stakeholders, especially the banks, their teeming customers and regulatory agencies. Even more critical are the costs that accrue thereof. In this study, the queuing characteristics at the Kaura Namoda Branch of First Bank Ltd were analyzed using three service efficiency parameters – single, two and three servers. The study collected, through observation, queuing data at the bank from Monday through Wednesday to develop an optimal queuing model. Consistent with conventional wisdom and prior studies, the findings provide evidence to support the idea that the multiple-server model is more efficient than the single channel. For instance, whilst with two or three servers, a customer spends on the average, 0.0409 hours (about 3 minutes) and 0.0310 hours (about 2 minutes), the same customer spends an average of 0.2 hours (12 minutes) in the system if it is a single channel. Thus, the study concludes that higher number of servers is associated with lower average time spent in the system, a finding that is in tandem with past studies within and outside Nigeria. Drawing from these findings, the study suggests the need to increase number of servers to meet the changing expectations of the bank’s teeming customers.},
 year = {2019}
}

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TY  - JOUR
T1  - Queuing Theory and ATM Service Optimization: Empirical Evidence from First Bank Plc, Kaura Namoda Branch, Zamfara State
AU  - Muhammad Sani Burodo
AU  - Shamsuddeen Suleiman
AU  - Yakubu Shaba
Y1  - 2019/09/05
PY  - 2019
N1  - https://doi.org/10.11648/j.ajomis.20190403.12
DO  - 10.11648/j.ajomis.20190403.12
T2  - American Journal of Operations Management and Information Systems
JF  - American Journal of Operations Management and Information Systems
JO  - American Journal of Operations Management and Information Systems
SP  - 80
EP  - 86
PB  - Science Publishing Group
SN  - 2578-8310
UR  - https://doi.org/10.11648/j.ajomis.20190403.12
AB  - The consequence of queuing in relation to the time spent by customers to access financial services is increasingly becoming a major source of concern to most stakeholders, especially the banks, their teeming customers and regulatory agencies. Even more critical are the costs that accrue thereof. In this study, the queuing characteristics at the Kaura Namoda Branch of First Bank Ltd were analyzed using three service efficiency parameters – single, two and three servers. The study collected, through observation, queuing data at the bank from Monday through Wednesday to develop an optimal queuing model. Consistent with conventional wisdom and prior studies, the findings provide evidence to support the idea that the multiple-server model is more efficient than the single channel. For instance, whilst with two or three servers, a customer spends on the average, 0.0409 hours (about 3 minutes) and 0.0310 hours (about 2 minutes), the same customer spends an average of 0.2 hours (12 minutes) in the system if it is a single channel. Thus, the study concludes that higher number of servers is associated with lower average time spent in the system, a finding that is in tandem with past studies within and outside Nigeria. Drawing from these findings, the study suggests the need to increase number of servers to meet the changing expectations of the bank’s teeming customers.
VL  - 4
IS  - 3
ER  -

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