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The roles of coupling and the deviation matrix in determining the value of capacity in M/M/1/C queues

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  • Peter Braunsteins

    (The University of Melbourne)

  • Sophie Hautphenne

    (The University of Melbourne
    Ecole Polytechnique Fédérale de Lausanne)

  • Peter G. Taylor

    (The University of Melbourne)

Abstract

In an M/M/1/C queue, customers are lost when they arrive to find C customers already present. Assuming that each arriving customer brings a certain amount of revenue, we are interested in calculating the value of an extra waiting place in terms of the expected amount of extra revenue that the queue will earn over a finite time horizon [0, t]. There are different ways of approaching this problem. One involves the derivation of Markov renewal equations, conditioning on the first instance at which the state of the queue changes; a second involves an elegant coupling argument; and a third involves expressing the value of capacity in terms of the entries of a transient analogue of the deviation matrix. In this paper, we shall compare and contrast these approaches and, in particular, use the coupling analysis to explain why the selling price of an extra unit of capacity remains the same when the arrival and service rates are interchanged when the queue starts at full capacity.

Suggested Citation

  • Peter Braunsteins & Sophie Hautphenne & Peter G. Taylor, 2016. "The roles of coupling and the deviation matrix in determining the value of capacity in M/M/1/C queues," Queueing Systems: Theory and Applications, Springer, vol. 83(1), pages 157-179, June.
    • Handle: RePEc:spr:queues:v:83:y:2016:i:1:d:10.1007_s11134-016-9480-3
    DOI: 10.1007/s11134-016-9480-3
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    References listed on IDEAS

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    1. Joseph Abate & Ward Whitt, 1995. "Numerical Inversion of Laplace Transforms of Probability Distributions," INFORMS Journal on Computing, INFORMS, vol. 7(1), pages 36-43, February.
    2. Hautphenne, Sophie & Kerner, Yoav & Nazarathy, Yoni & Taylor, Peter, 2015. "The intercept term of the asymptotic variance curve for some queueing output processes," European Journal of Operational Research, Elsevier, vol. 242(2), pages 455-464.
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