Optimal admission pricing and service rate control of an M[x]/M/s queue with reneging

Michael Q. Anderson

Naval Research Logistics Quarterly, 1983, vol. 30, issue 2, 261-270

Abstract: In this article we consider the optimal control of an M[X]/M/s queue, s ≧ 1. In addition to Poisson bulk arrivals we incorporate a reneging function. Subject to control are an admission price p and the service rate μ. Thus, through p, balking response is induced. When i customers are present a cost h(i,μ,p) per unit time is incurred, discounted continuously. Formulated as a continuous time Markov decision process, conditions are given under which the optimal admission price and optimal service rate are each nondecreasing functions of i. In Section 4 we indicate how the infinite state space may be truncated to a finite state space for computational purposes.

Date: 1983
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https://doi.org/10.1002/nav.3800300207

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Persistent link: https://EconPapers.repec.org/RePEc:wly:navlog:v:30:y:1983:i:2:p:261-270

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