Wavetec Blog

Wavetec

Wavetec

As a global leader in delivering customer experiences solutions to transform customer journey, Wavetec provides a diverse portfolio of solutions from queue management systems, to digital signage, customer feedback systems, service area design and financial displays.

Subscribe Today

Economics of the waiting game!

[fa icon="calendar"] Aug 7, 2013 2:00:00 AM / by Wavetec

Managing and organizing the waiting lines have become the challenge for today’s managers. The managers must mind the challenge of providing rapid service and the perceived waiting cost. Managing the cost of these two variables is the real economics of the waiting game which is played by all of us doing business in a customer centric marketplace!

It has become essential to balance the cost of service and waiting time. As the number of service counter reduces, the cost of waiting line increases. But, as the managers increase the number of service counters, the cost of waiting line will decrease. The exponential curve shows the relationship between these two variables. The cost curve of installing a queue management system is shown in the graph as a linear function. The service optimization is found at the line which crosses the points between number of service counters and cost of waiting line, creating a U-curve of aggregate cost.