Dynamic Pricing Policy for M/M/K Queue


Queueing System with controllable arrival rate


Queueing System with controllable arrival rate

OBJECTIVE: Find the optimal price policy to reduce the waiting time of customer in the system, while maximizing the long-run reward.


Where g is period cost function and is a given positive discount parameter.

After uniformization, we can transfer the continuous-time Markov chain to discrete-time Markov chain with transition probability :



Program solves optimal price policy and draw the figure.

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