Different virtual machines can share servers, subject to resource constraints. Incoming jobs whose resource requirements cannot be satisfied are queued and receive service according to a preemptive-resume scheduling policy. The problem is to evaluate a cost function, including holding and server costs, with a view to searching for the optimal number of servers. A model with two job types is analyzed exactly and the results are used to develop accurate approximations, which are then extended to more than two classes. Numerical examples and comparisons with simulations are presented.

Previous studies on emergency management of large-scale urban networks have commonly concentrated on system development to off-load intensive computations to remote cloud servers or improving communication quality during a disaster and ignored the effect of energy consumption of vehicles, which can play a vital role in large-scale evacuation owing to the disruptions in energy supply. Hence, in this paper we propose a cloud-enabled navigation system to direct vehicles to safe areas in the aftermath of a disaster in an energy and time efficient fashion. A G-network model is employed to mimic the behaviors and interactions between individual vehicles and the navigation system, and analyze the effect of re-routing decisions toward the vehicles. A gradient descent optimization algorithm is used to gradually reduce the evacuation time and fuel consumption of vehicles by optimizing the probabilistic choices of linked road segments at each intersection. The re-routing decisions arrive at the intersections periodically and will expire after a short period. When a vehicle reaches an intersection, if the latest re-routing decision has not expired, the vehicle will follow this advice, otherwise, the vehicle will stick to the shortest path to its destination. The experimental results indicate that the proposed algorithm can reduce the evacuation time and the overall fuel utilization especially when the number of evacuated vehicles is large.

From health care to maintenance shops, many systems must contend with allocating resources to customers or jobs whose initial service requirements or costs change when they wait too long. We present a new queueing model for this scenario and use a Markov decision process formulation to analyze assignment policies that minimize holding costs. We show that the classic cμ rule is generally not optimal when service or cost requirements can change. Even for a two-class customer model where a class 1 task becomes a class 2 task upon waiting, we show that additional orderings of the service rates are needed to ensure the optimality of simple priority rules. We then show that seemingly-intuitive switching curve structures are also not optimal in general. We study these scenarios and provide conditions under which they do hold. Lastly, we show that results from the two-class model do not extend to when there are n≥3 customer classes. More broadly, we find that simple priority rules are not optimal. We provide sufficient conditions under which a simple priority rule holds. In short, allowing service and/or cost requirements to change fundamentally changes the structure of the optimal policy for resource allocation in queueing systems.

Various types of systems across a broad range of disciplines contain tandem queues with nested sessions. Strong dependence between the servers has proved to make such networks complicated and difficult to study. Exact analysis is in most of the cases intractable. Moreover, even when performance metrics such as the saturation throughput and the utilization rates of the servers are known, determining the limiting factor of such a network can be far from trivial. In our work, we present a simple, tractable and nevertheless relatively accurate method for approximating the above mentioned performance measurements for any server in a given network. In addition, we propose an extension to the intuitive “slowest server rule” for identification of the bottleneck, and show through extensive numerical experiments that this method works very well.

In this paper, we investigate executive stock options with endogenous departure and time-varying variances. We use a “Generalized Autoregressive Conditional Heteroskedasticity” process to capture the variance process of the log stock price. In addition, we take into consideration the departure risk of the executive and assume that the probability of remaining employed has a power form of stock price ratios. After deriving the closed-form pricing formulae of executive stock options, we illustrate the effects of the departure risk on the values of executive stock options.

We consider a resource allocation model to analyze investment strategies for financial services firms in order to minimize their operational risk losses. A firm has to decide how much to invest in human resources and in infrastructure (information technology). The operational risk losses are a function of the activity level of the firm, of the amounts invested in personnel and in infrastructure, and of interaction effects between the amounts invested in personnel and infrastructure. We first consider a deterministic setting and show certain monotonicity properties of the optimal investments assuming general loss functions that are convex. We find that because of the interaction effects “economies of scale" may not hold in our setting, in contrast to a typical manufacturing environment. We then consider a general polynomial loss function in a stochastic setting with the number of transactions at the firm being a random variable. We characterize the asymptotic behaviors of the optimal investments in both heavy and light trading environments. We show that when the market is very liquid, that is, it is subject to heavy transaction volumes, it is optimal for a financial firm that is highly risk sensitive to use a balanced investment strategy. Both a heavier right tail of the distribution of transaction volume and a firm's risk sensitivity necessitate larger investments; in a heavy trading environment these two factors reinforce one another. However, in a light trading environment with the transaction volume having a heavy left tail the investment will be independent of the firm's sensitivity to risk.

This paper considers stochastic comparison of parallel systems in terms of likelihood ratio order under scale models. We introduce a new order, the so-called q-larger order, and show that under certain conditions, the q-larger order between the scale vectors can imply the likelihood ratio order of parallel systems. Applications are given to the generalized gamma scale family.

In this paper, the complete consistency for the weighted estimator of non-parametric regression model based on widely orthant-dependent errors is established, where the restriction imposed on the dominating coefficient g(n) is very general. Moreover, under some stronger moment condition, we further obtain the convergence rate of the complete consistency, where the assumption on the dominating coefficient g(n) is also very general.