Dynamic Control of a Multiclass Queue with Thin Arrival Streams

Authors:
Barış Ata
Affiliations:
Kellogg School of Management, Northwestern University, Evanston, Illinois 60208
Venue:
Operations Research
Year:
2006

Citing 15
Cited 8

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Abstract

As a model of make-to-order production, we consider an admission control problem for a multiclass, single-server queue. The production system serves multiple demand streams, each having a rigid due-date lead time. To meet the due-date constraints, a system manager may reject orders when a backlog of work is judged to be excessive, thereby incurring lost revenues. The system manager strives to minimize long-run average lost revenues by dynamically making admission control and sequencing decisions. Under heavy-traffic conditions the scheduling problem is approximated by a Brownian control problem, which is solved explicitly. Interpreting this solution in the context of the original queueing system, a nested threshold policy is proposed. A simulation experiment is performed to demonstrate the effectiveness of this policy.