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Optimal admission and routing with congestion-sensitive customer classes

Aslan, Ayse

Authors

Ayse Aslan



Abstract

This paper considers optimal admission and routing control in multi-class service systems in which customers can either receive quality regular service which is subject to congestion or can receive congestion-free but less desirable service at an alternative service station, which we call the self-service station. We formulate the problem within the Markov decision process framework and focus on characterizing the structure of dynamic optimal policies which maximize the expected long-run rewards. For this, value function and sample path arguments are used. The congestion sensitivity of customers is modeled with class-independent holding costs at the regular service station. The results show how the admission rewards of customer classes affect their priorities at the regular and self-service stations. We explore that the priority for regular service may not only depend on regular service admission rewards of classes but also on the difference between regular and self-service admission rewards. We show that optimal policies have monotonicity properties, regarding the optimal decisions of individual customer classes such that they divide the state space into three connected regions per class.

Journal Article Type Article
Acceptance Date Feb 1, 2021
Online Publication Date Mar 1, 2021
Publication Date 2022-07
Deposit Date Mar 21, 2022
Publicly Available Date Mar 21, 2022
Journal Probability in the Engineering and Informational Sciences
Print ISSN 0269-9648
Electronic ISSN 1469-8951
Publisher Cambridge University Press
Peer Reviewed Peer Reviewed
Volume 36
Issue 3
Pages 774-798
DOI https://doi.org/10.1017/s0269964821000073
Keywords admission control, congestion, Markov decision processes, revenue management, routing control
Public URL http://researchrepository.napier.ac.uk/Output/2855714

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