Service center in electricity distribution sector with variable peak electricity time: A two-stage queuing model approach with nested simulation

Abstract

Customer service is essential for any business, significantly impacting customer satisfaction, brand reputation, and reducing associated costs. In the electricity industry, this importance is heightened due to the critical nature of electricity in daily life and growing usage rate of new technologies. Effective customer service in electric distribution companies involves handling a wide range of inquiries, from billing issues to technical support, requiring both remote and on-site assistance. The variability in customer calls, influenced by factors such as peak electricity hours, and different service and customer types, presents unique challenges in designing efficient service centers. This research develops a tailored model for the service center operations of a power distribution company, focusing on optimal staffing levels within budget constraints. A two-stage queuing model is proposed to address the needs of residential and non-residential customers. The study employs nested simulation techniques to account for variability in customer arrival times and peak hours. Key performance indicators (KPIs) are used to evaluate the effectiveness of staffing policies, considering both quantitative and qualitative costs. The study integrates stochastic optimization and ranking and selection methods to identify the best staffing configurations. The findings offer actionable insights for improving customer service efficiency and operational effectiveness in electricity customer service centers.