3. Prescriptive Analytics

Queueing and Simulation

Model congestion, variability and capacity when averages are not enough

Queueing and Simulation

Utilisation is nonlinear risk

Orders arrive at 18 per hour. One picker completes 10 per hour on average.

  • two pickers provide capacity 20 per hour, utilisation ρ=18/20=0.90\rho=18/20=0.90;
  • three provide capacity 30 per hour, ρ=0.60\rho=0.60.

Average capacity exceeds average demand with two pickers, yet random arrival and service variation create queues. Waiting rises sharply as utilisation approaches one.

Little’s Law

For a stable system over a consistent boundary,

L=λW,L=\lambda W,

where LL is average number in system, λ\lambda throughput and WW average time in system. If throughput is 18 orders/hour and average system time is 20 minutes (1/31/3 hour), then L=6L=6 orders.

Little’s Law does not by itself determine the waiting distribution or required capacity.

Simulate the operating assumptions

Py

Compare two- and three-picker queues

Idle

This is an M/M/c-style teaching simulation: exponential interarrival and service times, independent jobs, identical always-available pickers and no priorities. Real data may reject every assumption.

Build a simulation audit

ComponentEvidence needed
arrivalstimestamp pattern by hour/day; batches and cancellations
servicedistribution by basket, picker and interruption
routingfirst-come, priority or skill matching
resourcesbreaks, failures, shared tasks and shift boundaries
warm-upremove artificial empty-system start when appropriate
replicationsMonte Carlo error and stable quantiles
validationcompare simulated and observed queue measures

Simulation code implements assumptions; it does not validate them.

Capacity decision

Compare staffing cost with the full distribution of waits, lateness, abandonment and service harm. Test peak and disruption scenarios. A policy can schedule a third picker only in vulnerable windows rather than permanently.

Quick check

Observed average arrivals are 18/hour and two-pick capacity is 20/hour. Why might the queue still be unstable during an evening?

Answer
Arrival rate varies within the period, jobs may be batched, service may slow for large baskets, staff may be unavailable, and dependence can create sustained peaks. A whole-evening average can hide intervals where offered load exceeds capacity.

Next: Pricing and Revenue Management

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