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Estimating the Implied Value of the Customer's Waiting Time

Author

Listed:
  • Lawrence W. Robinson

    (Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

  • Rachel R. Chen

    (Graduate School of Management, University of California, Davis, Davis, California 95616)

Abstract

Almost all research in appointment scheduling has focused on the trade-off between customer waiting times and server idle times. In this paper, we present an observation-based method for estimating the relative cost of the customer waiting time, which is a critical parameter for finding the optimal appointment schedule.

Suggested Citation

  • Lawrence W. Robinson & Rachel R. Chen, 2011. "Estimating the Implied Value of the Customer's Waiting Time," Manufacturing & Service Operations Management, INFORMS, vol. 13(1), pages 53-57, February.
    • Handle: RePEc:inm:ormsom:v:13:y:2011:i:1:p:53-57
    DOI: 10.1287/msom.1100.0304
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    References listed on IDEAS

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    1. Liberopoulos, George & Tsikis, Isidoros & Delikouras, Stefanos, 2010. "Backorder penalty cost coefficient "b": What could it be?," International Journal of Production Economics, Elsevier, vol. 123(1), pages 166-178, January.
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    4. Brant E. Fries & Vijay P. Marathe, 1981. "Determination of Optimal Variable-Sized Multiple-Block Appointment Systems," Operations Research, INFORMS, vol. 29(2), pages 324-345, April.
    5. B. L. Schwartz, 1970. "Optimal Inventory Policies in Perturbed Demand Models," Management Science, INFORMS, vol. 16(8), pages 509-518, April.
    6. Benjamin L. Schwartz, 1966. "A New Approach to Stockout Penalties," Management Science, INFORMS, vol. 12(12), pages 538-544, August.
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    Citations

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    Cited by:

    1. Michael Freeman & Nicos Savva & Stefan Scholtes, 2017. "Gatekeepers at Work: An Empirical Analysis of a Maternity Unit," Management Science, INFORMS, vol. 63(10), pages 3147-3167, October.
    2. Alex Kuiper & Robert H. Lee, 2022. "Appointment Scheduling for Multiple Servers," Management Science, INFORMS, vol. 68(10), pages 7422-7440, October.
    3. Vusal Babashov & Antoine Sauré & Onur Ozturk & Jonathan Patrick, 2023. "Setting wait time targets in a multi‐priority patient setting," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1958-1974, June.
    4. William P. Millhiser & Emre A. Veral, 2019. "A decision support system for real-time scheduling of multiple patient classes in outpatient services," Health Care Management Science, Springer, vol. 22(1), pages 180-195, March.
    5. Carlos Chaves & Abhijit Gosavi, 2022. "On general multi-server queues with non-poisson arrivals and medium traffic: a new approximation and a COVID-19 ventilator case study," Operational Research, Springer, vol. 22(5), pages 5205-5229, November.
    6. Wen-Ya Wang & Diwakar Gupta, 2011. "Adaptive Appointment Systems with Patient Preferences," Manufacturing & Service Operations Management, INFORMS, vol. 13(3), pages 373-389, July.
    7. Kong, Qingxia & Lee, Chung-Yee & Teo, Chung-Piaw & Zheng, Zhichao, 2016. "Appointment sequencing: Why the Smallest-Variance-First rule may not be optimal," European Journal of Operational Research, Elsevier, vol. 255(3), pages 809-821.
    8. Liron Ravner & Jiesen Wang, 2023. "Estimating customer delay and tardiness sensitivity from periodic queue length observations," Queueing Systems: Theory and Applications, Springer, vol. 103(3), pages 241-274, April.
    9. Pinar Keskinocak & Nicos Savva, 2020. "A Review of the Healthcare-Management (Modeling) Literature Published in Manufacturing & Service Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 59-72, January.

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    Keywords

    health-care management; service operations;

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