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Article: Minimizing equilibrium expected sojourn time via performance-based mixed threshold demand allocation in a multiple-server queueing environment

TitleMinimizing equilibrium expected sojourn time via performance-based mixed threshold demand allocation in a multiple-server queueing environment
Authors
KeywordsDemand allocation
Principal-agent problem
Queueing system
Strategic server
Threshold allocation
Issue Date2012
PublisherAmerican Institute of Mathematical Sciences. The Journal's web site is located at http://aimsciences.org/journals/jimo/description.htm
Citation
Journal of Industrial and Management Optimization, 2012, v. 8 n. 2, p. 299-323 How to Cite?
AbstractWe study the optimal demand allocation policies to induce high service capacity and achieve minimum expected sojourn times in equilibrium in a queueing system with multiple strategic servers. We propose the mixed threshold allocation policy as an optimal state-dependent policy that induces optimal service capacity from strategic servers. Compensation to the server can be paid at customer allocation or upon job completion. Our study focuses on the use of a multiple-server mixed threshold allocation policy to replicate the demand of a given state-independent policy to achieve a symmetric equilibrium with lower expected sojourn time. The results indicate that, under both payment schemes, for any given multiple-server state-independent policy, there exists a multiple-server threshold policy that produces identical demand allocation and Nash equilibrium (if any). Moreover, the policy can be designed to minimize the expected sojourn time at a symmetric equilibrium. Further-more, under the payment-at-allocation scheme, our results, combining with existing results on the optimality of the multiple-server linear allocation policy, show that the mixed threshold policy can achieve the maximum feasible service capacity and thus the minimum feasible equilibrium expected sojourn time. Hence, our results agree with previous two-server results and affirm that a trade-off between incentives and efficiency need not exist in the case of multiple servers.
Persistent Identifierhttp://hdl.handle.net/10722/146397
ISSN
2015 Impact Factor: 0.776
2015 SCImago Journal Rankings: 0.639
ISI Accession Number ID
Funding AgencyGrant Number
RGC7017/07P
HKU
Funding Information:

The authors would like to thank all the anonymous reviewers for their helpful comments, corrections and suggestions. The preliminary version of the paper has been presented and published in the proceedings of the 40th International Conference on Computer & Industrial Engineering (CIE2010) 2010, Hyogo, Japan [1]. Research supported in part by RGC Grant 7017/07P and HKU Strategic Research Theme Fund on Computational Sciences.

References

 

DC FieldValueLanguage
dc.contributor.authorChoi, SMen_HK
dc.contributor.authorHuang, Xen_HK
dc.contributor.authorChing, WKen_HK
dc.date.accessioned2012-04-24T07:51:26Z-
dc.date.available2012-04-24T07:51:26Z-
dc.date.issued2012en_HK
dc.identifier.citationJournal of Industrial and Management Optimization, 2012, v. 8 n. 2, p. 299-323en_HK
dc.identifier.issn1547-5816en_HK
dc.identifier.urihttp://hdl.handle.net/10722/146397-
dc.description.abstractWe study the optimal demand allocation policies to induce high service capacity and achieve minimum expected sojourn times in equilibrium in a queueing system with multiple strategic servers. We propose the mixed threshold allocation policy as an optimal state-dependent policy that induces optimal service capacity from strategic servers. Compensation to the server can be paid at customer allocation or upon job completion. Our study focuses on the use of a multiple-server mixed threshold allocation policy to replicate the demand of a given state-independent policy to achieve a symmetric equilibrium with lower expected sojourn time. The results indicate that, under both payment schemes, for any given multiple-server state-independent policy, there exists a multiple-server threshold policy that produces identical demand allocation and Nash equilibrium (if any). Moreover, the policy can be designed to minimize the expected sojourn time at a symmetric equilibrium. Further-more, under the payment-at-allocation scheme, our results, combining with existing results on the optimality of the multiple-server linear allocation policy, show that the mixed threshold policy can achieve the maximum feasible service capacity and thus the minimum feasible equilibrium expected sojourn time. Hence, our results agree with previous two-server results and affirm that a trade-off between incentives and efficiency need not exist in the case of multiple servers.en_HK
dc.languageengen_US
dc.publisherAmerican Institute of Mathematical Sciences. The Journal's web site is located at http://aimsciences.org/journals/jimo/description.htmen_HK
dc.relation.ispartofJournal of Industrial and Management Optimizationen_HK
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subjectDemand allocationen_HK
dc.subjectPrincipal-agent problemen_HK
dc.subjectQueueing systemen_HK
dc.subjectStrategic serveren_HK
dc.subjectThreshold allocationen_HK
dc.titleMinimizing equilibrium expected sojourn time via performance-based mixed threshold demand allocation in a multiple-server queueing environmenten_HK
dc.typeArticleen_HK
dc.identifier.emailChing, WK:wching@hku.hken_HK
dc.identifier.authorityChing, WK=rp00679en_HK
dc.description.naturepublished_or_final_version-
dc.identifier.doi10.3934/jimo.2012.8.299en_HK
dc.identifier.scopuseid_2-s2.0-84861766682en_HK
dc.identifier.hkuros199377en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-84861766682&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume8en_HK
dc.identifier.issue2en_HK
dc.identifier.spage299en_HK
dc.identifier.epage323en_HK
dc.identifier.isiWOS:000304007400003-
dc.publisher.placeUnited Statesen_HK
dc.identifier.scopusauthoridChoi, SM=55237815400en_HK
dc.identifier.scopusauthoridHuang, X=36617352800en_HK
dc.identifier.scopusauthoridChing, WK=13310265500en_HK

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