Reducing the Wait in Waiting-Line Systems: Waiting Line Segmentation

Abstract

The problem of long wait in queue in apparent wherever there is a waiting-line system, but the cost of waiting is not the same for all customers. The authors propose a new model of waiting, called Waiting Line Segmentation. Waiting lines are segmented into customers who are willing to pay a premium for faster service and those who are not. Analytic results show that this approach results in increased customer satisfaction for both segments, increased profits, and increased efficiency.

Keywords: waiting line

JEL Classification: C00