Resource Allocation in Multisite Service Systems with Intersite Customer Flows

Xiuli Chao, Liming Liu () and Shaohui Zheng
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Liming Liu: Department of Industrial Engineering and Engineering Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong, China

Management Science, 2003, vol. 49, issue 12, 1739-1752

Abstract: Motivated by a project in health-care management, we study the resource allocation problem in multisite service systems with intersite customer flows. We aim at providing insights to and guidelines for resource allocation in these service systems when some service criterion, such as average waiting time, loss rate, or blocking probability, is a major concern. We develop analytical optimization models and from them we obtain the explicit optimal allocation policy. Our results demonstrate that the optimal resource allocation solution exhibits a structure of "one large and many small."

Keywords: Multisite Service System; Resource Allocation; Service Quality; Waiting Time; Customer Switching; Health Care; Incentive Compatibility (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (17)

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