Simulation and Analysis of Bank Teller Manning

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Proceedings of the 1995 Winter Simulation Conference ed. C. Alexopoulos, K. Kang, W. R. Lilegdon, and D. Goldsman

Donald Hammond Sathi Mahesh Department of Management The University of New Orleans New Orleans, Louisiana U.S.A.

This paper presents an application study to find cost effective bank teller management policies for providing high quality service levels at reasonable costs in a modern banking system. Two models are developed. The first is a spreadsheet model to calculate desired teller manning levels from mathematical queuing models, and the second is a simulation model for testing new management policies. Manning heuristics are tested and found to provide the
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This model was to demonstrate the ideal teller staffing required to deal with actual customer arrivals and to


Hammond and Mahesh

begin service within three minutes 95% of the time. Since the bank was not yet prepared to forecast customer arrival patterns, this model was an after-the-fact look at how service should have been provided. Any large deviations would indicate possible problems and motivate further studies to find solutions. The bank 's data collection system provided the average number of customer/teller transactions for each time period of the day, grouped into fifteen minutes intervals. This data was usually averaged for all days of the week and month to provide a "bank standard" for transactions per customer and time per transaction. The bank 's standards did not provide a breakdown by day of the week or day of the month. This local data collection model mirrored that provided by banking industry publications which compiled "national standard" data on the mean number of separate transactions each customer makes, both in the lobby and the drive through, and the mean length of time required for each transaction. The objective of the bank 's data model was to permit comparison of local performance to national standards. Our first step was to build a mathematical model to compute the number of teller Full Time Equivalents (FTE 's) needed in each time interval to provide service within three minutes 95% of the time. Since this is a

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