ABSTRACT

Nigeria being an essentially cash based economy, in teni1 of transaction payment system, left the bank with the problem of having to contend with huge volume of transaction which directly translates to long queue for services of banks. It now becomes one of the challenges for banks to be able to manage the cost and time spent by customers in the banking hail to remain competitive. The objective of the study is to determining the optimal balance between the cost of making customers to wait for service and the cost of providing additional service. Primary data were collected through observation and a well structured questionnaire that were administered to customers of Enterprise bank plc Umuahia. The data observed on arrival rate and service time was first used to determine if they follow Poisson and exponential distribution respectively using Chi-square goodness of fit test and thereafter the performance measure of multi-server queuing model was calculated. The probability that the servers are busy is 0.6209. The number of customers in the queue and system is iperson and lOpersons respectively and the average waiting time for a customer in the queue and system is 0.14secs and 3mins 36secs respectively. The data captured in the questionnaire which are on the level of service delivery of the bank were analyzed using Chi-square test of independence and it reveals that both male and female customers are unhappy with long waiting time before being servedABSTRACT Nigeria being an essentially cash based economy, in teni1 of transaction payment system, left the bank with the problem of having to contend with huge volume of transaction which directly translates to long queue for services of banks. It now becomes one of the challenges for banks to be able to manage the cost and time spent by customers in the banking hail to remain competitive. The objective of the study is to determining the optimal balance between the cost of making customers to wait for service and the cost of providing additional service. Primary data were collected through observation and a well structured questionnaire that were administered to customers of Enterprise bank plc Umuahia. The data observed on arrival rate and service time was first used to determine if they follow Poisson and exponential distribution respectively using Chi-square goodness of fit test and thereafter the performance measure of multi-server queuing model was calculated. The probability that the servers are busy is 0.6209. The number of customers in the queue and system is iperson and lOpersons respectively and the average waiting time for a customer in the queue and system is 0.14secs and 3mins 36secs respectively. The data captured in the questionnaire which are on the level of service delivery of the bank were analyzed using Chi-square test of independence and it reveals that both male and female customers are unhappy with long waiting time before being served