A note on optimal pricing for finite capacity queueing systems with multiple customer classes

Serhan Ziya, Hayriye Ayhan and Robert D. Foley

Naval Research Logistics (NRL), 2008, vol. 55, issue 5, 412-418

Abstract: This article investigates optimal static prices for a finite capacity queueing system serving customers from different classes. We first show that the original multi‐class formulation in which the price for each class is a decision variable can be reformulated as a single dimensional problem with the total load as the decision variable. Using this alternative formulation, we prove an upper bound for the optimal arrival rates for a fairly large class of queueing systems and provide sufficient conditions that ensure the existence of a unique optimal arrival rate vector. We show that these conditions hold for M/M/1/m and M/G/s/s systems and prove structural results on the relationships between the optimal arrival rates and system capacity. © 2008 Wiley Periodicals, Inc. Naval Research Logistics, 2008

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:wly:navres:v:55:y:2008:i:5:p:412-418

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