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Bamboo House

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Submitted By acepilot1990
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Queuing Theory Significance
There is a very significant reason why Queuing Theory exists. Not only does it apply to a wide variety of topic, many within the business and supply chain industries, it also helps prove cause and effect. In addition to this, it provides a very logical idea of what a solution to a problem it has discovered should be. Measuring and understanding both order rate and service rate can potentially be the difference between business success and business failure. For example, if a company has too slow of a service rate, it is going to lose business because of the long wait times. On the opposite end of the spectrum, if a company focuses too much on improving its service rate instead of understanding its ratio compared to order rate, it will be misusing its very valuable resources. It is also important to have knowledge of all different types of queuing systems.

Importance of Queuing Configuration
As one can imagine, the importance of a queuing system configuration is very significant as well. As stated above, there are several different types of queuing systems and queuing configurations. If a business uses an improper queuing system or queuing configuration, it can suffer from one of many different negative consequences. Some examples of different types of queuing systems/queuing configurations are First Come First Served, First In First Out, Round Robin, Service in Random order, and many more. Queuing systems and configurations also vary by the number or servers/number of lines. This is something that can change the entire system and entire rate of the queuing configuration.

Discuss how BHI is planning to implement QT and how it will all pan out using your knowledge of QT
Bamboo House Incorporated has a problem that is fairly common in many different business practices. Their problem deals with queuing rates and queuing systems. According to the case study based on Bamboo House, they have attempted to detail a plan on how to approach their queuing theory problem. In order to have a successful queuing configuration/system, they need to have their service rate exceed their order rate and fully understand what both of those rates are. In reality, there are three different situations that can take place. The order rate can equal the service rate, the order rate can exceed the service rate, or the order rate can be less than the service rate. According to queuing theory, only the last option/situation is desirable. This is because if the order rate is equal to or greater than the service rate, the line will be never ending, which is obviously bad practice. After some calculation, I have found that Bamboo House Incorporated SHOULD be able to have a higher service rate than order rate for most of the time. That is according to the queuing configuration that was hinted at in the case study. However, if product demand does rise, there is no guarantee that the service rate stays above the order rate. This can be a very large problem for Bamboo House Incorporated. They need to establish a better queuing configuration if they experience an increase in demand for their product.

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