Monte Carlo Method of Simulation for Queuing Problems in the Bank: A Management Decision-Making Tool
Abstract
In this paper, we study the queuing of loan customers of FUTO Microfinance Bank Nigeria Limited. The management of the bank was faced with the decision problem of either to employ an extra clerk to join a single server in the loan section of the bank or to assign the clerk (server) with extra duties. The management wanted to determine the idle time of the server, the waiting time of the customers and the busy time of the server within the period under study. A sample of fifty loan customers was drawn for the study using the Monte Carlo simulation method. From the analysis, the researchers discovered that the server was idle for about 24% of the time; the customers wait in the queue for about 21% of the time and the server was busy for about 55% of the time. Based on this information, the management can see that the server was not overburdened and should not consider employing another server; rather, the management should assign more job to the server; assigning such extra job will engage the server and add more value to the bank.
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