California Southern University Running head: ESSAY 1 ESSAY 2 Essay Please include details on what your readings covered and provide ideas and opinions on the overall content in the readings. Provide...

Quantitative analysis
Trade off curves:
A  trade-off curve is a graph that explains what happens to the performance of something when you change something else. ... A trade-off curve seems like a powerful tool for making good decisions, in certain situations. Here we are going to discuss trade off curve with relevance to the waiting time and cost of service in queuing theory.
Cost of Waiting:
The cost of waiting is the time spent by customers waiting to get their product or service from the staff or the centre. This is normally measured by monetary terms though strictly this includes psychological also. Customers lose their patience when they are wait for a long time in queues and also their valuable time is lost by waiting in a queue. Thus the customers waiting in the queue in addition to the time lost the psychological impact of boredom and also opportunity cost of losing the revenue earned by doing something else in that time. As far as business is concerned, when the customers wait and do not buy they incur the overhead rates and salaries paid to staff during that time also. Thus the optimal level is to keep the waiting time to the minimum thus increasing the number of customers and also reducing overhead cost.
Cost of services:
The cost of services will be the same as the cost of goods calculated mostly. For cost of goods, we add materials cost, labour cost and other overhead costs and divide by total units produced to get cost per unit. We add a profit margin and fix the costs per unit. The same thing applies for cost of services also, Here we add all material costs, labour costs and other overhead costs then divide by the number of hours of service to get service rate/hour cost. Add suitable profit margin to it for sales. Sometimes instead of hours, other driving factors may be used.
Three parts of queuing system:
There are mainly three parts of a queuing system.
They are
i) The number of servers – Here servers will be replaced by men sometimes. For example, in a hotel, servers are the waiters attending the incoming persons. In ATM centres, the ATM machines would be the servers. Sometimes combination of machines and men will work as servers for the queuing system
ii) Arrival time of customers: The arrival time of customers is a major part of queuing system. Customers arrive normally at an average of some numbers per hour. This can be calculated for each business by past survey, demands, and the practice in that area, etc. The rates determine the number of servers to be allotted for service
iii) The waiting time of customers. This is also an important part, and this represents the time lapsed between the customer entering and the time he gets his needs completed. This may range from 0 to 30 minutes depending on the queue and depending on the service provided.
The waiting time will be minimum if number of servers are more than number of customers arriving. But this will be very expensive for the business as during slack times, some servers have to be kept idle. Also overhead rates may increase due to some labor not utilized properly whenever customers are not there
When servers are kept at a minimum, the waiting time will...