Dynamic resource allocation and scheduling for appointment-based systems with walk-ins

Weifen Zhuang, Boqian Song, Michael Z. F. Li and Qinan Wang

IISE Transactions, 2025, vol. 57, issue 8, 976-993

Abstract: Effectively managing constrained and perishable capacity amid fluctuating demands is a common challenge in service industries, often addressed through appointment-based systems that incorporate walk-ins. Balancing appointments and walk-ins is crucial for enhancing system value and maintaining stability. In this article, we study an integrated decision problem for appointment scheduling and resource allocation across multiple facilities, considering stochastic demands from three segments: priority customers, walk-in customers, and appointment customers. We formulate the problem as a sequential scheduling-allocation challenge using stochastic dynamic programming. Leveraging the anti-multimodularity of the value function, we fully characterize the optimal dynamic resource allocation policy and its monotone structural properties under any appointment schedule. Given the complexity and intractability of optimal scheduling with dynamic resource allocation, we introduce two suboptimal scheduling policies—vertical scheduling and horizontal scheduling—and a heuristic allocation policy. Additionally, we create an Upper Bound (UB) for the original problem as a surrogate, establishing an asymptotically optimal UB for the scaled problem through its objective value and a corresponding lower bound through its solution. This UB solution serves as an efficient and effective heuristic, demonstrating superior performance compared with the combined performance of suboptimal scheduling policies with optimal dynamic resource allocation, especially as problem size increases. It also holds significant practical implications for integrated pooling systems.

Date: 2025
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DOI: 10.1080/24725854.2024.2397803

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