QUEUING THEORY AND ITS APPLICATION: ANALYSIS OF THE SALES CHECKOUT OPERATION IN ICA SUPERMARKET

ABSTRACT

ANALYSIS OF THE SALES CHECKOUT OPERATION IN ICA SUPERMARKET USING QUEUING SIMULATION

This paper contains the analysis of Queuing systems for the empirical data of supermarket checkout service units as an example. One of the expected gains from studying queuing systems is to review the efficiency of the models in terms of utilization and waiting for length, hence increasing the number of queues so customers will not have to wait longer when servers are too busy. In other words, trying to estimate the waiting time and length of queue(s), is the aim of this research paper. We may use queuing simulation to obtain a sample performance result and we are more interested in obtaining estimated solutions for multiple queuing models.

This paper describes a queuing simulation for a multiple-server process as well as for single queue models. This study requires empirical data which may include the variables like arrival time in the queue of checkout operating unit (server), departure time, service time, etc.

A questionnaire is developed to collect the data for such variables and the reaction of the ICA Supermarket from the customers separately.

This model is developed for a sales checkout operation in ICA supermarket, Borlänge. The model designed for this example is the multiple queues, multiple-server model. The model contains five servers which are checkout sales counters; attached to each server is a queue. In any service system, a queue forms whenever current demand exceeds the existing capacity to serve. This occurs when the checkout operation unit is too busy to serve the arriving customers, immediately. Keywords: multiple-server model, queuing simulation, steady-state condition, confidence intervals for arrival rate and service rate, estimated queue length, interarrival time

CHAPTER ONE

INTRODUCTION

This paper is a review of queuing theory and for empirical study, the sales checkout service unit of ICA supermarket is chosen as an example.

ICA AB is a Swedish corporate group in the retail business, which started in 1938 and operated 1,668 stores as of 2003. The stores have different profiles, depending on location, range of products, and size:

Each store is owned and operated separately, but operations are coordinated within the group. All feature ICA brand products.

There are two ICA Supermarkets in Borlänge; the bigger one was chosen to be the research object and to collect data from.

The main purpose of this paper is to review the application of queuing theory and to evaluate the parameters involved in the service unit for the sales checkout operation in ICA Supermarket. Therefore, a mathematical model is developed to analyze the performance of the checking-out service unit. Two important results need to be known from the data collected in the supermarket by the mathematical model: one is the ‘service rate’ provided to the customers during the checking out process, and the other is the gaps between the arrival times (interarrival time) of each customer per hour. In order to get an

overall perspective of the customer’s quality of service, the questionnaires which indicate the result in percentages, are also used to get the evaluation from the customers directly.

There are five counters in ICA Borlänge in one place, which means consisting of five servers with five queues in terms of Queuing Theory. A queue forms whenever current demand exceeds the existing capacity to serve when each counter is so busy that arriving customers cannot receive immediate service facility. So each server process is done as a queuing model in this situation.

The data used in the Queuing model is collected for the arrival time of each customer in two days by the questionnaire form. The observations for the number of customers in a queue, their arrival time, and departure time were taken without distracting the employees. The whole procedure of the service unit each day was observed and recorded using a time watch during the same time period for each day. In addition, the questionnaires are conducted at the same time each day.

The aim of studying queuing system simulation is trying to detect the variability in the quality of service due to queues in sales checkout operating units, find the average queue length before getting served in order to improve the quality of the services where required, and obtain a sample performance result to obtain time-dependent solutions for complex queuing models. The defined model for this kind of situation where a network of queues is formed is time-dependent and needs to run the simulation. The results obtained from ICA Supermarket using queuing model suggest that the sales checkout operating unit is rather busy each day of the week but the service is satisfactory.

OBJECTIVES OF STUDY

The purpose of this study is to review Queuing Theory and its empirical analysis based on the observed data of checking out the sales service unit of ICA Supermarket. The main idea in the application of a mathematical model is to measure the expected queue length in each checkout sales service unit (server) and the service rate provided to the customers while checking out. Another idea is to give an insight view of the steady-state behavior of queuing processes and run the simulation experiments to obtain the required statistical results.

Descriptions of events are given i.e. the arrivals and service rate in each checkout unit and how they can be generated for any amount of working hours. The other important factor analyzed is the comparison of two different queuing models: single-queue multiple-server and multiple-queue multiple-server models.

MAXI ICA Stormarknad (these are Hypermarkets with a full range of groceries as well as fashions, homewares, entertainment, and electrical. Smaller stores do not offer the fashion and electrical ranges while the largest stores also have a DIY and Garden department).
ICA Kvantum (Superstores for large, planned, purchases. Large spaces allocated for traffic and parking. Typically located outside of the cities);
ICA Supermarket (Mid-size supermarkets, located near where customers dwell or work carrying a wide range of products);
ICA Nara (“ICA Near-by”, convenience-type stores for daily retail needs)....

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