Congestion-Based Lead-Time Quotation for Heterogenous Customers with Convex-Concave Delay Costs: Optimality of a Cost-Balancing Policy Based on Convex Hull Functions

• 成果类型: Article
• 署名作者: Akan, Mustafa; Ata, Baris; Olsen, Tava
• 署名单位: Carnegie Mellon University; Northwestern University; University of Auckland
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.1120.1117
• 发表日期: 2012
• 页码: 1505-1519
• 关键词: multiclass queuing-networks; make-to-order; dynamic control; SYSTEM; decisions; services

摘要

We consider a congestible system serving multiple classes of customers who differ in their delay sensitivity and valuation of service (or product). Customers are endowed with convex-concave delay cost functions. A system manager offers a menu of lead times and corresponding prices to arriving customers, who then choose the lead-time price pair that maximizes their net utility (value minus disutility of delay and price). We investigate how such menus should be chosen dynamically (depending on the system backlog) to maximize welfare. We formulate a novel fluid model of the problem and show that the cost-balancing policy (based on the convex hulls of the delay cost functions) is socially optimal if the system manager can tell customer types apart. If types are indistinguishable to the system manager, the cost-balancing policy is also incentive compatible under social optimization. Finally, we show through a simulation study that the cost-balancing policy does well in the context of the original (stochastic) problem by testing it against various natural benchmarks. Subject classifications: stochastic uncertainty; diffusion models; review/lead-times policies. Area of review: Manufacturing, Service, and Supply Chain Operations. History: Received August 2008; revisions received December 2009, November 2010, April 2011; accepted June 2011. Published online in Articles in Advance November 20, 2012.