Cost analysis of a queue system with impatient customers

The paper deals the cost analysis of M/M/1/N queuing system with impatient customers. We assume that the arriving customers balk with some probability and reneging follow negative exponential distribution. The Markov process techniques have been applied to develop the steady state probability. Matrix form solution is given along with some performance measures. A cost model has been developed to find the optimal service rate. To demonstrate the use of the model, different parametric values have been specified and lucid illustration has been presented with the help of table and graphs.