Article ID Journal Published Year Pages File Type
481098 European Journal of Operational Research 2010 8 Pages PDF
Abstract

This paper presents a model for applying revenue management to on-demand IT services. The multinomial logit model is used to describe customer choice over multiple classes with different service-level agreements (SLAs). A nonlinear programming model is provided to determine the optimal price or service level for each class. Through a numerical analysis, we examine the impacts of system capacity and customer waiting incentives on the service provider’s profit and pricing strategies.

Related Topics
Physical Sciences and Engineering Computer Science Computer Science (General)
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