Resource allocation in multisite service systems with intersite customer flows

Resource allocation in multisite service systems with intersite customer flows

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Article ID: iaor20073347
Country: United States
Volume: 49
Issue: 12
Start Page Number: 1739
End Page Number: 1752
Publication Date: Dec 2003
Journal: Management Science
Authors: , ,
Keywords: allocation: resources, service
Abstract:

Motivated by a project in health-care management, we study the resource allocation problem in multisite service systems with intersite customer flows. We aim at providing insights to and guidelines for resource allocation in these service systems when some service criterion, such as average waiting time, loss rate, or blocking probability, is a major concern. We develop analytical optimization models and from them we obtain the explicit optimal allocation policy. Our results demonstrate that the optimal resource allocation solution exhibits a structure of ‘one large and many small’.

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