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Optimal Admission and Pricing Control Problem with Sideline Profit, Customer Order Cancellation, and No Waiting Room
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  • Optimal Admission and Pricing Control Problem with Sideline Profit, Customer Order Cancellation, and No Waiting Room
  • Optimal Admission and Pricing Control Problem with Sideline Profit, Customer Order Cancellation, and No Waiting Room
저자명
Son. Jae-Dong
간행물명
International journal of management science
권/호정보
2008년|14권 1호|pp.35-63 (29 pages)
발행정보
한국경영과학회
파일정보
정기간행물|ENG|
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이 논문은 한국과학기술정보연구원과 논문 연계를 통해 무료로 제공되는 원문입니다.
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기타언어초록

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.