Managing service facilities with endogenous arrival and service rates : Managing service facilities with endogenous arrival and service rates

Details

Serval ID
serval:BIB_93673C6F220A
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Managing service facilities with endogenous arrival and service rates : Managing service facilities with endogenous arrival and service rates
Journal
International Transactions in Operational Research
Author(s)
Delgado Alvarez C.A., van Ackere A., Larsen E.R.
ISSN
0969-6016
Publication state
Published
Issued date
12/06/2017
Peer-reviewed
Oui
Pages
1-29
Language
english
Abstract
We conduct a simulation-based experiment to analyze how past experiences in a service facility system affectcustomers’ and service providers’ behavior. We study the problem faced by service providers in decidingby how much to adjust the capacity of their facility when captive repeat customers choose which facilityto join based on their expected sojourn times. The customers’ decision-making process differs from that ofservice providers in that the former is based on the customers’ experience, whereas the latter is based on themost recent information service providers have regarding demand. Customers use their previous experienceand that of their neighbors to update their perceptions of the future average sojourn time, whereas serviceproviders form perceptions of the future arrival rate. We use cellular automata to model the interactionbetween customers and service providers. We perform simulations to assess the way the customers’ andservice providers’ decisions evolve and affect system behavior. Our findings demonstrate that the system westudy possesses a certain degree of path dependence. The primary conclusion is that the more conservativeservice providers are regarding new information, the larger the market share they achieve, and the lower theprobability that their facility will shut down.
Keywords
Management of Technology and Innovation, Management Science and Operations Research, Strategy and Management, Business and International Management, Computer Science Applications
Create date
19/12/2017 16:14
Last modification date
20/08/2019 15:56
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