Title

Consolidating or Non-consolidating Queues: A Game Theoretic Queuing Model with Holding Costs

Publication Type

Journal Article

Publication Date

2011

Abstract

We consider a two-server queueing system in which the servers choose their service rate based on the demand and holding cost allocation scheme offered by the demand generating entity. We provide an optimal holding cost allocation scheme that leads to the maximum possible service rate for each of a pooled and a split system. Our results suggest that careful allocation of holding costs can create incentives that enable minimum turnaround times using a common queue.

Discipline

Operations and Supply Chain Management

Research Areas

Operations Management

Publication

Operations Research Letters

Volume

39

Issue

1

First Page

4

Last Page

12

ISSN

0167-6377

Identifier

10.1016/j.orl.2010.09.011

Publisher

Elsevier