Stochastic knapsack revisited: The service level perspective

• Main Authors: LYU, Guodong, CHOU, Mabel C., TEO, Chung-Piaw, ZHENG, Zhichao, ZHONG, Yuanguang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: stochastic knapsack; resource allocation; capacity pooling; service level; persistency value; Operations and Supply Chain Management; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7092; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8091/viewcontent/SSRN_id3674463.pdf
• Institution: Singapore Management University

A key challenge in the resource allocation problem is to find near-optimal policies to serve different customers with random demands/revenues, using a fixed pool of capacity (properly configured). In this paper, we study the properties of three classes of allocation policies-responsive (with perfect...