Abstract

In a preceding paper we have introduced a new approach for solving a wide class of Markov decision problems in which the state-space may be general and the system may be continuously controlled. The criterion is the average cost. This paper discusses two applications of this approach. The first application concerns a house-selling problem in which a constructor builds houses which may be sold at any stage of the construction and potential customers make offers depending on the stage of the construction. The second application considers an M/M/c queuing problem in which the number of operating servers can be controlled by turning servers on or off.

Authors
G. de Leve, Awi Federgruen, and H. C. Tijms
Format
Journal Article
Publication Date
Journal
Advances in Applied Probability

Full Citation

de Leve, G., Awi Federgruen, and H. C. Tijms
. “A general Markov decision method II: Applications.”
Advances in Applied Probability
vol.
9
, (January 01, 1977):
316
-
335
.