Optimal monotone hysteretic Markov policies in an M/M/1 queueing model with switching costs and finite time horizon

Optimal monotone hysteretic Markov policies in an M/M/1 queueing model with switching costs and finite time horizon

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Article ID: iaor1992658
Country: Germany
Volume: 35
Start Page Number: 377
End Page Number: 399
Publication Date: Jun 1991
Journal: Mathematical Methods of Operations Research (Heidelberg)
Authors:
Abstract:

In an M/M/1 queueing model, a decision maker can choose m pairs of arrival- and service rates. He can change his action at any time epoch, a ‘switch’ of action costs an amount depending on the size of the switch. Besides that there are continuously incurring costs. Over a finite time horizon, there exists an optimal monotone hysteretic Markov policy. This is shown essentially by the technique of time discretization.

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