The waste transfer station allocation optimization of urban life is an important part in the process of garbage disposal. According to M/M/S queuing model and relevant statistical data, waste transfer station allocation of Qinhuangdao is investigated based on queuing service system in this paper. The proposed model is studied by using computer simulation, and simulation results reveal that there are some disadvantages for the existing resources and services management, such as the average queue length lasts for bigger, and the customer usually waits for a long time. In view of the above shortcomings, queuing theory method is utilized for allocation optimization research. In the case of compression equipment number is 2, optimal service rate mu* = 11.1516 is obtained in this paper, which is higher than the current service rate and the cost of queuing service system in waste transfer station can be reduced by improving the service rate. Furthermore, in the case of service rate unchanged, the optimal service number s* = 3 is obtained and a compression equipment can be applied in the model to make the system optimized. Finally, numerical simulations are carried out to show efficiency of the theoretical analysis obtained in this paper.