Dynamic payment and lead-time control in queueing systems with heterogeneous customers and strategic delay
Chen-An Lin, Kevin Shang, Peng Sun
Duke University, United States of America
We consider a first-come-first-serve single-server system in which heterogeneous customers. Customers are both payment and lead-time sensitive and are heterogeneous in both immediate service valuation and lead-time sensitivity. The service provider considers incentive-compatible price/lead-time menus based on the system congestion to maximize revenue. The optimal policy suggests the timing to offer a state-independent inflated lead-time option which may be easy to implement in practice.