M/M/C QUEUEING SYSTEMS WITH PRICING

Abstract

Queuing systems are prevalent in industries like healthcare, transportation, and telecommunications. Pricing policies play a crucial role in these systems, impacting revenue and congestion control. We investigate how pricing can impact a controlled M/M/c queuing system with holding costs. We consider two customer types: delay oblivious and delay sensitive. Our goal is to find a pricing strategy that maximizes the service provider’s revenue. We explore the effectiveness of dynamic pricing compared to static pricing and its implications on customer perception. Through simulations, we aim to optimize revenue in the M/M/c queuing system, contributing to pricing strategies in queuing systems, especially for delay-sensitive customers with holding costs.