Queueing Theory and Teller Staffing; A Successful Application

In the May, 1978 issue of Interfaces, Jack Byrd questioned whether there is use for queueing theory, and he presented a series of scenario problems where queueing theory was not appropriate to solving real life problems. His argument was based upon the complexities of real life environments where (1) non-steady-state conditions could exist, (2) undefined service times were present, (3) unstructured queue disciplines existed, and (4) nonexponential service times were present. Several authors have published articles in this journal in the ensuing period with examples to disprove Byrd's thesis. We further argue that queueing theory is not the end in decision making, but just the beginning of the structuring of a decision making effort.

This paper highlights a successful application of queueing theory to the teller staffing decision at Bankers Trust Company of New York, the eighth largest bank in the United States. A more extensive discussion of the bank's background and methodology described in this article is available through the Bank Administration Institute [Deutsch, Howard, Vincent A. Mabert. 1979. Teller Staffing Guide: A Case Study of the Teller Staffing System at Bankers Trust Company. Bank Administration Institution, Park Ridge, Ill.].