Capacity adjustment in a service facility with reactive customers and delays: simulation and experimental analysis

Details

Serval ID
serval:BIB_5F91E3FD271F
Type
Inproceedings: an article in a conference proceedings.
Collection
Publications
Institution
Title
Capacity adjustment in a service facility with reactive customers and delays: simulation and experimental analysis
Title of the conference
Proceedings of the 29th International Conference of the System Dynamics Society
Author(s)
Delgado-Alvarez C.A., Larsen E., van Ackere A., Arango S.
Publisher
The System Dynamics Society
Address
Washington D.C., USA
ISBN
978-0-9564944-2-9 (printed)
978-0-9564944-3-6 (CD)
Publication state
Published
Issued date
2011
Peer-reviewed
Oui
Editor
Lyneis J. M. , Richardson G. P.
Language
english
Abstract
In this paper, we apply system dynamics to model a queuing system wherein the manager of a service facility adjusts capacity based on his perception of the queue size; while potential and current customers react to the managers' decisions. Current customers update their perception based on their own experience and decide whether to remain patronizing the facility, whereas potential customers estimate their expected waiting time through word of mouth and decide whether to join the facility or not. We simulate the model and analyze the evolution of the backlog of work and the available service capacity. Based on this analysis we propose two alternative decision rules to maximize the manager's cumulative profits. Then, we illustrate how we have developed an experiment to collect information about the way human subjects taking on the role of a manager in a lab environment face a situation in which they must adjust the capacity of a service facility.
Keywords
Queuing system, capacity adjustment management, system dynamics, experimental economics, adaptive expectations
Create date
22/11/2012 15:57
Last modification date
21/08/2019 5:18
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