Optimal capacity management and planning in services delivery centers

Abstract

This paper considers human server systems of queues that arise within the information technology services industry. We develop a two-phase stochastic optimization solution approach to effectively and efficiently address the capacity management and planning processes of information technology services delivery centers. A large collection of numerical experiments of real-world human server system environments investigates various issues of both theoretical and practical interest, quantifying the significant benefits of our approach as well as evaluating the financial-performance trade-offs often encountered in practice.