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A discrete time single-server queue with balking: economic applications

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  • Macarena Lozano
  • Pilar Moreno

Abstract

This article studies a discrete time single-server queue with finite and infinite buffer where the users have the option to leave the queue upon arrival (balking). We consider two variants of the model in accordance with the balking policies. Firstly, all the arriving customers balk with a constant probability. Secondly, arriving customers increase their balking probabilities as more customers join the system. Specifically, we find the ergodicity condition and closed-form expressions for the stationary distribution of the system size, of the waiting/spending time in the FCFS system and of the unfinished work. The mathematical model is applied in order to resolve several real-life problems in the economic field; in this sense, practical applications in the secondary and tertiary sector are shown. We also develop a cost model to determine the buffer capacity that minimizes certain cost function and give some numerical examples.

Suggested Citation

  • Macarena Lozano & Pilar Moreno, 2008. "A discrete time single-server queue with balking: economic applications," Applied Economics, Taylor & Francis Journals, vol. 40(6), pages 735-748.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:735-748
    DOI: 10.1080/00036840600749607
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