The encyclopedia · Strategy & Leadership · Operational decision · 1977–1979
Qantas staffed phone sales with queueing + integer programming
Qantas replaced yearly staffing guesswork with a queueing-plus-integer-programming model, cutting reservation-office staff costs by over US$235,000.
Qantas Airways
the move
Qantas Airways planned annual manpower requirements for its telephone sales reservation offices by traditional procedure. The result was staffing levels that reflected habit more than demand, with no formal link between staff size, waiting time, and service.
The airline replaced the procedure with a model using queueing and integer linear programming. It set the number of staff per shift and shift start times so customers received convenient service while headcount stayed as low as the queue allowed.
The savings were measured: staff reductions of over US$235,000 over a two-year period. The same approach was then investigated for several other Qantas service areas.
why it works
- Queueing made waiting time a tradeable number, not a guess.
- Integer programming respected that staff come in whole shifts.
- The model reused beyond reservations into other service areas.
what transfers
For any service where customers queue, replace annual headcount guesses with a queueing model plus integer optimization: staff sizes and shift times come out of demand, and the savings are measurable.
what came after
The approach spread to several other Qantas service areas, and the study became a standard textbook example of applying linear programming with embedded queueing analysis to manpower planning.
references
- Telephone Sales Manpower Planning at Qantas
- Selected LP Applications: Manpower Planning
- Telephone Sales Manpower Planning at Qantas (archived copy)
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