Application of Multi-Channel, Single Stage Queue Model to Optimize Service Delivery in Banking Industry (A Case Study of Diamond Bank PLC, Eziukwu Branch, Aba)

In this paper, the problem of maximizing customer satisfaction and minimizing cost of providing service were examined with the view of establishing optimal service level that will cater for the tradeoff between the cost of providing banking service to customers and waiting cost. To achieve this, multichannel, single stage queuing (M/M/S) model was adopted and applied. The operating characteristics were calculated with the help of Microsoft Excel package and graph of total expected cost, expected service cost and expected waiting cost were plotted against service level. The data for this study were collected from Diamond bank Plc, Eziukwu Aba through observations and personal interview. The paper suggested an optimal service level of 7tellers for the case study used. The result of this study will be a guide to other operation managers of banks as the factors to be considered when deciding the number of service levels to use for optimal service to be achieved have been x-rayed.