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作者 Randhawa, Ramandeep Singh
書名 Operations with subscribers
國際標準書號 9780542895432
book jacket
說明 103 p
附註 Source: Dissertation Abstracts International, Volume: 67-09, Section: B, page: 5381
Adviser: Sunil Kumar
Thesis (Ph.D.)--Stanford University, 2006
This thesis studies a monopolistic firm that offers reusable products, or a service, to price and quality-of-service sensitive customers---a rental firm can be thought of as the canonical example. Customers' perception of quality is determined by their likelihood of obtaining the product or service immediately upon request. We model the rental firm as a loss system with multiple servers used by pay-per-use customers, as well as by a pool of subscribers. Though a Poisson process is widely used to model pay-per-use customers, it is inappropriate to model the subscribers, especially as a non-negligible fraction of the subscriber pool could be renters at any time. We propose a Markovian On-Off-Hold model of subscriber requests for the product. An added benefit of the proposed request model is that retrials by subscribers denied service are implicitly taken into account. We analyze the system when the load on the system, and consequently, the number of servers are large. We obtain diffusion approximations in this asymptotic regime, which we use to compute an estimate for the corresponding invariant distribution. Though the limiting diffusion process depends on the Markovian assumptions for the subscribers, the invariant distribution is insensitive to the distributional assumptions, as long as the Off and Hold times are distributed identically, though independently
We then study the firms' alternatives of offering either a subscription option or a pay-peruse option from a profit-maximizing perspective. In a large market setting, under the assumption of exponential demand, using the diffusion approximations obtained earlier we show that using the subscription option is more profitable for the firm. Further, via a numerical study, we show that this assumption is not essential for the result to hold. However, we show that it is not necessarily true that the subscription option dominates the pay-per-use option on quality-of-service. The firm is able to manage the trade-off between price and quality-of-service better in the subscription option. Moreover, we show that the social welfare and the consumer surplus can also be higher in the subscription option, indicating that both the firm and the consumers can benefit from the subscription option
School code: 0212
DDC
Host Item Dissertation Abstracts International 67-09B
主題 Business Administration, Management
Operations Research
0454
0796
Alt Author Stanford University
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