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Author:Cheng, H.
Title:Optimal internal pricing and backup capacity of computer systems subject to breakdowns
Journal:Decision Support Systems
1997 : FEB, VOL. 19:2, p. 93-108
Index terms:DECISION SUPPORT SYSTEMS
SOFTWARE
ECONOMICS
Language:eng
Abstract:In a recent survey computers were found to break down nine times per year in the average company and computer downtime cost U.S. business $4 billion in 1991. The existing literature that combines pricing and queuing analysis of a shared service facility does not explicitly consider the failures of computer systems. The objective of this paper is to examine the impact of computer breakdowns on various aspects of the pricing and capacity decisions. It also examines the issue whether to acquire backup capacity when the computer system is in repair.
SCIMA record nr: 161258
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