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The concept of customer reneging has been exploited to a great extent in recent past by the queuing modelers. Economically, if we see, the customer reneging leads to loss of potential customers and thereby results into the loss in the total revenue. Taking into consideration this customers’ loss due to reneging, a new queuing model has been developed that deals with customer retention. According to this model, a reneged customer can be convinced in many cases by employing certain convincing mechanism to stay in the queue for completion of his service. Thus, a reneged customer can be retained in the queuing system with some probability (say, q) and it may leave the queue without receiving service with probability p (=1-q). This process is referred to as customer retention. We consider a single server, finite capacity queuing system with customer retention in which the inter-arrival and service times follow negative-exponential distribution. The reneging times are assumed to be exponentially distributed. The steady state solution of the model has been obtained. Some performance measures have been computed. The sensitivity analysis of the model has been carried out. The effect of probability of retention on the average system size has been studied. The numerical results show that the average system size increases steadily as the probability of retention increases. Some particular cases of the model have been derived and discussed.
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