Dynamic scheduling to minimize lost sales subject to set-up costs

Eungab Kim, Mark P. Van Oyen

Research output: Contribution to journalArticlepeer-review

12 Scopus citations


We consider scheduling a shared server in a two-class, make-to-stock, closed queueing network. We include server switching costs and lost sales costs (equivalently, server starvation penalties) for lost jobs. If the switching costs are zero, the optimal policy has a monotonic threshold type of switching curve provided that the service times are identical. For completely symmetric systems without set-ups, it is optimal to serve the longer queue. Using simple analytical models as approximations, we derive a heuristic scheduling policy. Numerical results demonstrate the effectiveness of our heuristic, which is typically within 10% of optimal. We also develop and test a heuristic policy for a model in which the shared resource is part of a series network under a CONWIP release policy.

Original languageEnglish
Pages (from-to)193-229
Number of pages37
JournalQueueing Systems
Issue number2-4
StatePublished - Oct 1998


  • Closed queueing network
  • Heuristic policy
  • Make-to-stock scheduling
  • Markov decision process
  • Set-up costs


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