Department Seminar: Cong Shi, MIT
Monday, Feb 20, 2012 @ 8 AM, IOE 1680
"Revenue Management of Reusable Resources with Advanced Reservations"
Abstract: This paper studies a class of revenue management problems in systems with reusable resources and advanced reservations. A simple control policy called the class selection policy (CSP) is proposed based on solving knapsack-type linear program (LP). It is shown that the CSP and its variants perform provably near optimal under several classical asymptotic parameter regimes, such as the critically loaded and the Halfin-Whitt heavy-traffic regimes. The analysis is based on entirely new approaches that model the problem as loss network systems with advanced reservations. In particular, asymptotic upper bounds on the blocking probabilities are derived under the above mentioned heavy-traffic regimes. There have been very few results on loss network systems with advanced reservations, and we believe that the approaches developed in this paper will be applicable in other operations management and other applications domains.
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