Waiting-Line Theory as a Management Tool

According to recent figures published by the U.S. Department of Commerce, approximately $28 billion were invested in new facilities and equipment by industries in this country during the year 1955. This large expenditure undoubtedly reflects the need for increased output in this country's rapidly expanding economy. But how have decisions been made in arriving at the amount and distribution of this additional productive effort? What proportion of this vast sum can be attributed to decisions based on intuition, judgment, and hunches? To what extent have expenditures been based upon sound scientific analysis? A great deal of inefficiency and waste of resources could certainly be avoided if management were to employ the many scientific techniques and tools that are currently available. In particular, waiting-line theory can be used to determine how many facilities one ought to have in a process or system for which output requirements can be specified. However, the theory has general applicability to a wide variety of problems not only in production areas but also in many other situations where service facilities of one kind or another must be coordinated with demands for service.