Management Science and Financial Engineering

  • 제14권1호
  • /
  • Pages.35-63
  • /
  • 2008
  • /
  • 2287-2043(pISSN)
  • /
  • 2287-2361(eISSN)
한국경영과학회 (The Korean Operations Research and Management Science Society)
권호 표지

Optimal Admission and Pricing Control Problem with Sideline Profit, Customer Order Cancellation, and No Waiting Room

  • Son, Jae-Dong (Department of Industrial and Information Systems Engineering Soongsil University)
  • 발행 : 2008.05.31
PDF 다운로드
⟨ 이전 논문 다음 논문 ⟩

초록

We discuss the problem of selecting profitable customer orders arriving at a company providing two classes of services. For an arriving customer order for the first class, the company 1) makes a decision whether to accept or reject it (admission control), or 2) decides a price of the order to offer to an arriving customer (pricing control). The customer order undergoing processing in the system may be cancelled owing to unavoidable circumstances with the customer. The second class of service is provided as a sideline, which prevents the server from being idle when all the customer orders for the first class are completed and delivered. This yields the sideline profit. We discuss both admission control and pricing control problems in an identical framework as well as examine the structure of the optimal policies maximizing the total expected present discounted net profit gained over an infinite planning horizon.

키워드

참고문헌

  1. Dewan, S. and H. Mendelson, "User delay costs and internal pricing for a service facility," Management Science, 36, 12 (1990), 1502-1517 https://doi.org/10.1287/mnsc.36.12.1502
  2. Gans, N. and S. Savin, "Pricing and capacity rationing in rentals," Working Paper, Wharton School of Business, University of Pennsylvania (2005)
  3. Heyman, D. P., "Optimal operating policies for M/G/1 queueing systems," Operations Research, 16 (1968), 362-382 https://doi.org/10.1287/opre.16.2.362
  4. Ikuta, S., "Optimal stopping problem with uncertain recall," Journal of the Operations Research Society of Japan, 31, 2 (1988), 145-170
  5. Johansen, S. G., "Optimal prices of an M/G/1 job shop," Operations Research, 42 (1994), 765-774 https://doi.org/10.1287/opre.42.4.765
  6. Kang, B.-K., "Optimal stopping problem with recall cost," European Journal of Operational Research, 117 (1999), 222-238
  7. Koole, G., "Structural results for the control of queueing systems using event based dynamic programming," Queueing Systems, 30 (1998), 323-339 https://doi.org/10.1023/A:1019177307418
  8. Kuri, J. and A. Kumar, "Optimal control of arrivals of queues with delayed queue length information," IEEE Transactions on Automatic Control, 40, 8 (1995), 1444-1450 https://doi.org/10.1109/9.402238
  9. Lin, K. Y. and R. M. Ross, "Optimal admission control for a single-server loss queue," Journal of Applied Probability, 41, 2 (2004), 535-546 https://doi.org/10.1239/jap/1082999084
  10. Lippman, S. A., "Applying a new device in the optimization of exponential queueing systems," Operations Research, 23 (1975), 687-710 https://doi.org/10.1287/opre.23.4.687
  11. Lippman, S. A. and S. M. Ross, "The streetwalker's dilemma: a job shop model," SIAM Journal on Applied Mathematics, 20, 3 (1971), 336-342 https://doi.org/10.1137/0120036
  12. Low, D. W., "Optimal dynamic pricing policies for an M/M/s queue," Operations Research, 22, 3 (1974), 545-561 https://doi.org/10.1287/opre.22.3.545
  13. Mendelson, H., "Pricing computer services: queueing effects," Communications of the ACM, 28 (1985), 312-321 https://doi.org/10.1145/3166.3171
  14. Miller, M., "A queueing reward system with several customer classes," Management Science, 16, 3 (1969), 234-245 https://doi.org/10.1287/mnsc.16.3.234
  15. Ormeci, E. L., A. Burnetas, and H. Emmons, "Dynamic policies of admission to a two-class system based on customer offers," IEEE Transactions, 34 (2002), 813-822
  16. Paschalidis, I. C. and J. N. Tsitsiklis, "Congestion-dependent pricing of network services," IEEE/ACM Transactions on Networking, 8 (2000), 171-184 https://doi.org/10.1109/90.842140
  17. Ross, S. M., Introduction to stochastic dynamic programming, Academic Press, 1983
  18. Saito, T., 'Optimal stopping problem with controlled recall,' Probability in the Engineering and Informational Sciences, 12 (1998), 91-108 https://doi.org/10.1017/S0269964800005076
  19. Son, J. -D., "Customer selection problem with profit from a sideline," European Journal of Operational Research, 176, 2 (2007), 1084-1102 https://doi.org/10.1016/j.ejor.2005.09.029
  20. Son, J.-D. and S. Ikuta, "Customer selection problem with search cost, due date, sideline profit, and no waiting room," Asia-Pacific Journal of Operational Research, 24, 5 (2007), 647-666 https://doi.org/10.1142/S0217595907001437
  21. Stidham, S., "Optimal control of admission to a queueing system," IEEE Transactions on Automatic Control, 30, 8 (1985), 705-713 https://doi.org/10.1109/TAC.1985.1104054
  22. Stidham, S., "Pricing and capacity decisions for a service facility: stability and multiple local optima," Management Science, 38, 8 (1992), 1121-1139 https://doi.org/10.1287/mnsc.38.8.1121
  23. Yoon, S. H. and M. E. Lewis, "Optimal pricing and admission control in a queueing system with periodically varying parameters," Queueing Systems: Theory and Applications, 47, 3 (2004), 177-199 https://doi.org/10.1023/B:QUES.0000035313.20223.3f
  24. You, P. S., "Sequential buying policies," European Journal of Operational Research, 120 (2000), 535-544 https://doi.org/10.1016/S0377-2217(98)00386-5
  25. Ziya, S., H. Ayhan, and R. D. Foley, "Optimal pricing for a service facility," Working Paper, School of Industrial and Systems Engineering, Georgia Institute of Technology, 8 (2002), 171-184