skip to main content
10.1145/1254882.1254909acmconferencesArticle/Chapter ViewAbstractPublication PagesmetricsConference Proceedingsconference-collections
Article

Optimal capacity planning in stochastic loss networks with time-varying workloads

Published: 12 June 2007 Publication History

Abstract

We consider a capacity planning optimization problem in a general theoretical framework that extends the classical Erlang loss modeland related stochastic loss networks to support time-varying workloads. The time horizon consists of a sequence of coarse time intervals, each of which involves a stochastic loss network under a fixed multi-class workload that can change in a general manner from one interval to the next. The optimization problem consists of determining the capacities for each time interval that maximize a utility function over the entire time horizon, finite or infinite, where rewards gained from servicing customers are offset by penalties associated with deploying capacities in an interval and with changing capacities among intervals. We derive a state-dependent optimal policy within the context of a particular limiting regime of the optimization problem, and we prove this solution to be a symptotically optimal. Then, under fairly mild conditions, we prove that a similar structural property holds for the optimal solution of the original stochastic optimization problem, and we show how the optimal capacities comprising this solution can be efficiently computed.

References

[1]
E. J. Anderson and P. Nash. Linear Programming in Infinite-Dimensional Spaces: Theory and Applications. John Wiley and Sons, 1987.
[2]
A. Bassamboo, J. M. Harrison, and A. Zeevi. Dynamic routing and admission control in high volume service systems: Asymptotic analysis via multi-scale fluid limits. Queueing Systems Theory and Appls., 51:249--285, 2006.
[3]
M. S. Bazaraa, H. D. Sherali, and C. M. Shetty. Nonlinear Programming: Theory and Algorithms. John Wiley and Sons, 2nd edition, 1993.
[4]
S. L. Bell and R. J. Williams. Dynamic scheduling of a system with two parallel servers in heavy traffic with resource pooling: Asymptotic optimality of a threshold policy. Ann. Appl. Prob., 11:608--649, 2001.
[5]
D. P. Bertsekas. Nonlinear Programming. Athena Scientific, Second edition, 1999.
[6]
D. P. Bertsekas. Dynamic Programming and Optimal Control, Volume II. Athena Scientific, 2nd edition, 2001.
[7]
D. Bertsimas and J. N. Tsitsiklis. Introduction to Linear Optimization. Athena Scientific, 1997.
[8]
T. Bonald. The Erlang model with non-Poisson call arrivals. In Proc. Joint SIGMETRICS/Performance Conf. Meas. and Model. Comp. Systems, pp. 276--286, 2006.
[9]
D. Y. Burman, J. P. Lehoczky, and Y. Lim. Insensitivity of blocking probabilities in a circuit-switching network. J. Appl. Prob., 21:850--859, 1984.
[10]
G. B. Dantzig. Linear Programming and Extensions. Princeton University Press, 1963.
[11]
A. K. Erlang. Solution of some problems in the theory of probabilities of significance in automatic telephone exchanges. In E. Brockmeyer, H. L. Halstrom, and A. Jensen, editors, The Life and Works of A. K. Erlang. Academy of Technical Sciences, Denmark, 1948.
[12]
L. Green and P. Kolesar. The pointwise stationary approximation for queues with non-stationary arrivals. Man. Sci., 37(2):84--97, 1991.
[13]
A. Greenberg, R. Srikant, and W. Whitt. Resource sharing for book-ahead and instantaneous-request calls. In Proc. ITC 15, pages 539--548, 1997.
[14]
A. A. Jagers and E. A. V. Doorn. On the continued Erlang loss function. Op. Res. Letters, 5(1):43--46, 1986.
[15]
F. P. Kelly. Blocking probabilities in large circuit-switched networks. Adv. Appl. Prob., 18(2):473--505, 1986.
[16]
F. P. Kelly. Routing in circuit-switched networks: Optimization, shadow prices and decentralization. Adv. Appl. Prob., 20(1):112--144, 1988.
[17]
F. P. Kelly. Loss networks. Ann. Appl. Prob., 1(3):319--378, 1991.
[18]
G. Louth, M. Mitzenmacher, and F. Kelly. Computational complexity of loss networks. Theoretical Comp. Sci., 125(1):45--59, 1994.
[19]
Y. Lu and J. S. Song. Order-based cost optimization in assemble-to-order systems. Op. Res., 53(1):151--169, 2005.
[20]
A. A. Puhalskii and M. I. Reiman. A critically loaded multirate link with trunk reservation. Queueing Systems Theory and Appls., 28:157--190, 1998.
[21]
S. M. Ross. Introduction to Stochastic Dynamic Programming. Academic Press, 1983.
[22]
B. A. Sevastyanov. An ergodic theorem for Markov processes and its application to telephone systems with refusals. Theoretical Prob. Appls., 2:104--112, 1957.
[23]
W. Whitt. Blocking when service is required from several facilities simultaneously. AT&T Bell Laboratories Technical Journal, 64(8):1807--1856, 1985.
[24]
W. Whitt. The pointwise stationary approximation for Mt/Mt/s queues is asymptotically correct as the rate increases. Man. Sci., 37(2):307--314, 1991.
[25]
D. Wischik and A. Greenberg. Admission control for booking ahead shared resources. In Proc. IEEE INFOCOM 98, volume 2, pages 873--882, 1998.
[26]
S. Xu, J. S. Song, and B. Liu. Order fulfillment performance measures in an assemble-to-order system with stochastic leadtime. Op. Res., 47(1):131--149, 1999.
[27]
G. Yin and Q. Zhang. Discrete-Time Markov Chains: Two-Time-Scale Methods and Applications. Springer-Verlag, 2005.
[28]
P. H. Zipkin. Foundations of Inventory Management. McGraw-Hill, 2000.

Cited By

View all
  • (2019)Revisiting Stochastic Loss Networks: Structures and ApproximationsMathematics of Operations Research10.1287/moor.2018.0949Online publication date: 21-May-2019
  • (2016)Optimal resource capacity management for stochastic loss network systems with applications in clouds and data centers2016 IEEE 55th Conference on Decision and Control (CDC)10.1109/CDC.2016.7799095(5384-5389)Online publication date: Dec-2016
  • (2015)An Adaptive Learning Approach for Efficient Resource Provisioning in Cloud ServicesACM SIGMETRICS Performance Evaluation Review10.1145/2788402.278840542:4(3-11)Online publication date: 2-Jun-2015
  • Show More Cited By

Recommendations

Comments

Information & Contributors

Information

Published In

cover image ACM Conferences
SIGMETRICS '07: Proceedings of the 2007 ACM SIGMETRICS international conference on Measurement and modeling of computer systems
June 2007
398 pages
ISBN:9781595936394
DOI:10.1145/1254882
  • cover image ACM SIGMETRICS Performance Evaluation Review
    ACM SIGMETRICS Performance Evaluation Review  Volume 35, Issue 1
    SIGMETRICS '07 Conference Proceedings
    June 2007
    382 pages
    ISSN:0163-5999
    DOI:10.1145/1269899
    Issue’s Table of Contents
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

Sponsors

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 12 June 2007

Permissions

Request permissions for this article.

Check for updates

Author Tags

  1. asymptotic optimality
  2. capacity planning
  3. erlang fixed-point approximation
  4. erlang loss formula
  5. stochastic dynamic programming
  6. stochastic loss networks
  7. time-varying workloads

Qualifiers

  • Article

Conference

SIGMETRICS07

Acceptance Rates

Overall Acceptance Rate 459 of 2,691 submissions, 17%

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • Downloads (Last 12 months)3
  • Downloads (Last 6 weeks)0
Reflects downloads up to 28 Feb 2025

Other Metrics

Citations

Cited By

View all
  • (2019)Revisiting Stochastic Loss Networks: Structures and ApproximationsMathematics of Operations Research10.1287/moor.2018.0949Online publication date: 21-May-2019
  • (2016)Optimal resource capacity management for stochastic loss network systems with applications in clouds and data centers2016 IEEE 55th Conference on Decision and Control (CDC)10.1109/CDC.2016.7799095(5384-5389)Online publication date: Dec-2016
  • (2015)An Adaptive Learning Approach for Efficient Resource Provisioning in Cloud ServicesACM SIGMETRICS Performance Evaluation Review10.1145/2788402.278840542:4(3-11)Online publication date: 2-Jun-2015
  • (2014)Workforce management: Risk-based financial planning and capacity provisioningIBM Journal of Research and Development10.1147/JRD.2014.232770958:4(8:1-8:10)Online publication date: Jul-2014
  • (2014)Refining piecewise stationary approximation for a Markov-regulated fluid queueACM SIGMETRICS Performance Evaluation Review10.1145/2667522.266752642:2(15-17)Online publication date: 4-Sep-2014
  • (2012)Provisioning for large scale loss network systems with applications in cloud computingACM SIGMETRICS Performance Evaluation Review10.1145/2425248.242527040:3(83-85)Online publication date: 4-Jan-2012
  • (2012)Decentralized capacity reallocation for a loss network2012 46th Annual Conference on Information Sciences and Systems (CISS)10.1109/CISS.2012.6310748(1-5)Online publication date: Mar-2012
  • (2011)OnTheMarkInterfaces10.1287/inte.1110.059641:5(414-435)Online publication date: 1-Sep-2011
  • (2010)Workforce Analytics for the Services EconomyHandbook of Service Science10.1007/978-1-4419-1628-0_19(437-460)Online publication date: 22-Mar-2010
  • (2008)Revisiting stochastic loss networksACM SIGMETRICS Performance Evaluation Review10.1145/1384529.137550336:1(407-418)Online publication date: 2-Jun-2008
  • Show More Cited By

View Options

Login options

View options

PDF

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

Figures

Tables

Media

Share

Share

Share this Publication link

Share on social media