Queuing Modeling for Comparative Study of Banking System on Commercial Bank of Ethiopia Tona Branch and Dashen Bank: the Case of Wolaita Zone, Ethiopia

Abstract

In order to deliver service in quality specially in banking system the queuing model was appropriate in order to suggest waiting time, service rate and etc for efficient service delivery of better implementation of banking system. Comparative study of two selected banks (Commercial Bank of Ethiopia & Dashen Bank) in Wolaita zone of Ethiopia was investigated. The queuing model was employed for both banking system in order to measure the behavioral queuing characteristics of customers in terms of their arrival and service rate respectively. The data for the arrival and service rate of the two banks were collected by observation methods for two days of a week simultaneously. The result revealed that on average 10.2 and 8.6 customers arrive and served per hours, respectively in Commercial Bank of Ethiopia Tona branch. The average waiting time in queue and in system was 0.0001 minutes and 0.43 minutes, respectively in Commercial Bank of Ethiopia Tona branch. When comparing to Dashen Bank, on average 7.125 and 6.125 customers per hour arrive and served, respectively. Regarding the average waiting time in queue and in system was 0.216 minutes and 0.828 minutes, respectively in Dashen Bank. Findings indicated that Dashen Bank has a more waiting service time value which may have a negative significant effect on customers on waiting line compared to Commercial Bank of Ethiopia Tona branch; we realize Commercial Bank of Ethiopia Tona branch has an advantageous effect of service time value which will have a positive significant effect on customers in experiencing little or no queue at all. Also Dashen bank has the highest waiting probability service when compared with Commercial Bank of Ethiopia Tona branch this result may clearly suggests that for optimum efficiency in the banks, there is need to increase the number of servers since increasing servers will reduce the waiting lines of customers. The analysis of this study may suggest reviewing for better efficiency and performance of banking system in general.

Keywords: Arrival rate, Banking system, Customer, Commercial Bank of Ethiopia, Dashen Bank, Ethiopia, Queuing Model, Waiting service time, Wolaita zone