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The Optimality of Full Service Policies

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  • Matthew J. Sobel

    (Georgia Institute of Technology, Atlanta, Georgia)

Abstract

The structure of optimal service rate adjustment policies is considered here for single server, multiple server, and arborescence network models. It is shown that a full service policy , namely, always using the highest effective service rate, is optimal under general conditions. The criteria are the long-run averages of the cost per customer served and the cost per unit time. Underlying costs are assumed to include waiting time penalties and rates depending on the number of customers in the system and on the pace at which service is proceeding. The only essential restriction on probability distributions or costs is that the highest service rate minimizes the expected cost of serving a customer.

Suggested Citation

  • Matthew J. Sobel, 1982. "The Optimality of Full Service Policies," Operations Research, INFORMS, vol. 30(4), pages 636-649, August.
    • Handle: RePEc:inm:oropre:v:30:y:1982:i:4:p:636-649
    DOI: 10.1287/opre.30.4.636
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    Cited by:

    1. Dimitris Bertsimas & Ioannis Ch. Paschalidis, 2001. "Probabilistic Service Level Guarantees in Make-to-Stock Manufacturing Systems," Operations Research, INFORMS, vol. 49(1), pages 119-133, February.
    2. Tan, Barış & Karabağ, Oktay & Khayyati, Siamak, 2023. "Production and energy mode control of a production-inventory system," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1176-1187.
    3. Xiuli Chao & Frank Y. Chen, 2005. "An Optimal Production and Shutdown Strategy when a Supplier Offers an Incentive Program," Manufacturing & Service Operations Management, INFORMS, vol. 7(2), pages 130-143, March.
    4. Ioannis Ch. Paschalidis & Yong Liu, 2003. "Large Deviations-Based Asymptotics for Inventory Control in Supply Chains," Operations Research, INFORMS, vol. 51(3), pages 437-460, June.
    5. Shaler Stidham, 2005. "On the optimality of a full-service policy for a queueing system with discounted costs," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 62(3), pages 485-497, December.
    6. Khayyati, Siamak & Tan, Barış, 2020. "Data-driven control of a production system by using marking-dependent threshold policy," International Journal of Production Economics, Elsevier, vol. 226(C).
    7. H. G. H. Tiemessen & M. Fleischmann & G. J. Houtum, 2017. "Dynamic control in multi-item production/inventory systems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 165-191, January.
    8. William P. Millhiser & Charu Sinha & Matthew J. Sobel, 2016. "Optimality of the fastest available server policy," Queueing Systems: Theory and Applications, Springer, vol. 84(3), pages 237-263, December.

    More about this item

    Keywords

    696 full service policies;

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