The Assessment of Bank Service Performance in Delta State, Nigeria: A Queuing Theory Approach

This study used the queue theory to evaluate the performance of the United Bank for Africa (UBA) banking service in Agbor, Delta State, Nigeria. The objectives of the study include: to determine the operating characteristics of the banking queuing discipline, to ascertain the service cost of the banking queuing system, to ascertain the waiting cost of the banking queuing system and to determine the total operating cost of the banking queuing system. The data used in this study were primary data collected through direct observation. Data was collected for 20 weeks, one day a week for each day of the week (April - August 2019). The results of the study revealed that the traffic intensity of the queue model decreases as the number of cashiers increases. The distribution of the number of inactive servers showed that as the number of servers increases, so does the number of inactive servers. The results showed that an increase in the number of servers leads to an increase in the total cost of the service in the bank. Furthermore, the analysis of the total waiting cost found that an increase in the number of cashiers leads to a decrease in the total cost of waiting. An increase in the number of servers (cashiers) has been found to increase the total operating cost. Additionally, it was revealed that an increase in the number of cashiers dramatically decreases the average wait time in the system and an increase in the number of cashiers dramatically reduces the average number of customers in the system. The results of the study revealed that the system should be optimal between 3 servers and 4 servers as there is little variation in the cost of the service, pending the cost and total operating cost for the two-server scenario. This implies that the bank will get the best service discipline by using 3 servers on off-peak days such as Tuesday through Thursday and 4 servers during peak hours such as Mondays and Fridays.