Fluid queues with synchronized output

Onno Boxma, Offer Kella, Liron Ravner*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

We present a model of parallel Lévy-driven queues that mix their output into a final product; whatever cannot be mixed is sold on the open market for a lower price. The queues incur holding and capacity costs and can choose their processing rates. We solve the ensuing centralized (system optimal) and decentralized (individual station optimal) profit optimization problems. In equilibrium the queues process work faster than desirable from a system point of view. Several model extensions are also discussed.

Original languageAmerican English
Pages (from-to)629-635
Number of pages7
JournalOperations Research Letters
Volume47
Issue number6
DOIs
StatePublished - Nov 2019

Bibliographical note

Publisher Copyright:
© 2019 Elsevier B.V.

Keywords

  • Capacity allocation
  • Coupled queues
  • Lévy driven queues
  • Non-cooperative games

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