Homework Question on The Significance of Waiting Line Costs
- Discuss the significance of waiting line costs. Here, ensure to address the importance of satisfied customers, arrival points, and service characteristics.
Homework Answer on The Significance of Waiting Line Costs
There is difference between the systems that provide products and those that offer services. This is experienced in the way that manufacturers can create a buffer the processes that they use in manufacturing from their customers. This is done using inventories. However, in systems that are purely involved in services, especially those where the customer receives the services directly from the service provider, there is a boundary that is created towards the customer from the provider.
In such cases, when there is an increased demand for services in a way that exceed the capacity for the services offered there is the creation of many waiting lines which at time leads to some of the customers leaving the system without being served. Most of the service providers such as doctors and lawyers cannot usually inventory the significant services that they offer.
Thus, there are two categories of costs related to waiting lines. They are critical in providing a balance for the waiting line. They include the charge of service and the cost of waiting. This is done without considering the other cost that is in terms of the cost of a scheduling system since it is a management strategy that is designed to avoid waiting lines.Most waiting lines have different points of arrival depending on the type of service offered. Thus, the cost of waiting caters for the time that customers have to wait for a particular service.