Abstract
We consider a loss system with a fixed budget for servers. The system owner's problem is choosing the price, and selecting the number and quality of the servers, in order to maximize profits, subject to a budget constraint. We solve the problem with identical and different service rates as well as with preemptive and nonpreemptive policies. In addition, when the policy is preemptive, we prove the following conservation law: the distribution of the total service time for a customer entering the slowest server is hyperexponential with expectation equal to the average service rate independent of the allocation of the capacity.
| Original language | English |
|---|---|
| Pages (from-to) | 81-97 |
| Number of pages | 17 |
| Journal | Naval Research Logistics |
| Volume | 62 |
| Issue number | 2 |
| DOIs | |
| State | Published - 1 Mar 2015 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2015 Wiley Periodicals, Inc.
Funding
| Funders | Funder number |
|---|---|
| Israel Science Foundation | 526/08, 1015/11 |
Keywords
- capacity allocation
- loss system
- queues
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