Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
481098 | European Journal of Operational Research | 2010 | 8 Pages |
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)
Authors
Tieming Liu, Chinnatat Methapatara, Laura Wynter,