A note on a queueing optimization problem

Van Ackere and Ninios (VN) used discrete-event simulation to determine the optimal strategies for a monopolist who operates a single-server facility and uses advertising to attract customers. Their model was based upon an M/Er/1/K queue. This paper re-analyzes their model using queueing theory and numerical optimization. The results allow the optimal strategies to be characterized more precisely, and this leads to a reassessment and modification of the conclusions reached by VN.