Fluid queues with synchronized output

Authors
Publication date 11-2019
Journal Operations Research Letters
Volume | Issue number 47 | 6
Pages (from-to) 629-635
Organisations
  • Faculty of Science (FNWI) - Korteweg-de Vries Institute for Mathematics (KdVI)
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.
Document type Article
Language English
Published at https://doi.org/10.1016/j.orl.2019.10.007
Other links https://www.scopus.com/pages/publications/85074346267
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