How to Create a Local Queue in WebSphere MQ
A local queue object identifies a local queue belonging to the queue manager to which the application is connected. All queues are local queues in the sense that each queue belongs to a queue manager and, for that queue manager, the queue is a local queue. Right click on Queues and choose New->Local Queue option. 
Set queue name like: “Excercise1QL1” 
Click Next & Finish
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