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Persistent link: https://www.econbiz.de/10010210713
Many service providers offer customers the choice of either waiting in a line or going offline and returning at a dynamically determined future time. The best-known example is the FASTPASS<sup>®</sup> system at Disneyland. To operate such a system, the service provider must make an upfront decision on how...
Persistent link: https://www.econbiz.de/10009218748
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Motivated by a $2.2 billion inventory write-off by Cisco Systems, we investigate how duplicate orders can lead a manufacturer to err in estimating the demand rate and customers' sensitivity to delay, and to make faulty decisions about capacity investment. We consider a manufacturer that sells...
Persistent link: https://www.econbiz.de/10009214203
This paper employs sample path arguments to derive the following convexity properties and comparative statics for an M/M/S queue with impatient customers. If the rate at which customers balk and renege is an increasing, concave function of the number of customers in the system (head count), then...
Persistent link: https://www.econbiz.de/10009218701