APPLICATION OF SIMULATION

TECHNIQUE IN QUEUING MODEL FOR

ATM FACILITY
Presented By
Sukesh R
15MBAP054
MBA I Year
Sub: Operations Research

Article Details
Authors: Vasumathi.A , Dhanavanthan P
Journal: International journal of applied engineering research
Vol No: 1
Year : 2010
Page Number: 469-482

INTRODUCTION
Development of Information technology in Bank Sectors is ATM
The main objective of ATM for bank is to keep away the customers
from coming to bank and make the process easy for them to avoid the
basic procedure they do in the bank
The major problem faced by these ATMs are the long queue of
customers at the peak hours and then at the off peak hours the lack of
customer entry

CONT.
The problem is to determine whether only one machine is required
to fulfil the need or two or more machines needed to be installed to
give comfort to customer which is really of short period of time
The cost of the installing an ATM machine accounts for a sizeable
part of the total operating cost of a company
But the customer satisfaction point of it is necessary to incur these
expenses as retaining them is more important

OBJECTIVE
The objective of the research is to develop a model to reduce
the waiting time of customers and the total cost related to
ATM installation

METHODOLOGY
3 ATM services of 3 different banks at VIT (Vellore Institute of Technology) is
selected for study
Monte Carlo method is used for simulation
The Poisson distribution involves the probability of occurrence of an arrival are
random and independent of all other operating conditions
Study conducted for 2 months.
In that there are two types of ATMs, Out of this three ATMs, one is branch ATM
(INDIAN BANK) and the other two are out of branch ATM (SBI and
CENTURION BANK).

Simulation And Queuing For ATM

Waiting Line
In order to solve the queuing model with simulation the service
facility must be manipulated so that an optimum balance is
obtained between the cost of waiting time and the cost of idle time
By increasing the investment in labor and service facility waiting
time and the losses associated with it can be decreased

Start
Read Input Data

Initialize Variables and Timers

Advance timer to At
update server to idle

Generate arrival time (At)

Advance timer to
At

Generate Departure Time (Dt)

Add to queue
Update

Generate Next
Arrival

Advance timer to
Dt

at<=d
t

Simul
ation

Print Results

Stop

Queue
Empty

Compute desire
statistics

Simul
ation

Comparison Characteristics Of Queuing Of Different Banks

Comparison Simulation Technique And Queuing

Theory For Different Banks
Banks

Simulation
Ws
Wq

Queuing
Ws

Wq

120

250

125

80

200

123

114

250

139

108
120

12
0

250
189

159
69

Indian bank
weekdays free
Indian bank
weekend
SBI weekdays
Free
SBI weekend
Centurion bank

DISCUSSION
SBI ATMs, which implies that the utilization factor is 1 on busy hours
On non busy hours utilization factor is 50% for INDIAN BANK and
55% for SBI
Most of the customers preferred SBI ATM Service
Only few customers have the ATM transaction with Centurion Bank
SBI ATM service is most preferred one

CONCLUSION
The results show that SBI bank ATM is fully utilised by the customers
when compared to other ATM services
So SBI can additionally install another ATM service center in order to
reduce the customer waiting time
Indian bank and centurion bank are need to improve their service which
should satisfy their customer

FUTURE SCOPE
This research can be extended with larger sample size and more days
of observation, it paves the way to give more accurate results
It is observed that if a person is not well versed with ATM takes more
time which is not considered
Out of stock situation and On holidays mostly after exams, the utility of
ATM to be considered