Optimal service‐capacity allocation in a loss system |
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| Authors: | Refael Hassin Yair Y. Shaki Uri Yovel |
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| Affiliation: | Department of Statistics and Operations Research, Tel Aviv University, Tel Aviv, Israel |
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| Abstract: | We consider a loss system with a fixed budget for servers. The system owner's problem is choosing the price, and selecting the number and quality of the servers, in order to maximize profits, subject to a budget constraint. We solve the problem with identical and different service rates as well as with preemptive and nonpreemptive policies. In addition, when the policy is preemptive, we prove the following conservation law: the distribution of the total service time for a customer entering the slowest server is hyperexponential with expectation equal to the average service rate independent of the allocation of the capacity. © 2015 Wiley Periodicals, Inc. Naval Research Logistics 62: 81–97, 2015 |
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| Keywords: | queues capacity allocation loss system |
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