2011
DOI: 10.1287/opre.1110.0991
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Refining Square-Root Safety Staffing by Expanding Erlang C

Abstract: We apply a new corrected diffusion approximation for the Erlang C formula to determine staffing levels in cost minimization and constraint satisfaction problems. These problems are motivated by large customer contact centers that are modeled as an M/M/s queue with s the number of servers or agents. The proposed staffing levels are refinements of the celebrated square root safety staffing rule, and have the appealing property that they are as simple as the conventional square root safety staffing rule. In addit… Show more

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Cited by 55 publications
(60 citation statements)
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“…However, we take a different approach, aiming for new asymptotic expansions for the probability of delay and the probability of rejection. The first terms of these expansions are the QED limits, and the higherorder terms are refinements to these QED limits for finite s. This generalizes earlier results on the Erlang B, C and A models [JvLZ08,JvLZ11,ZvLZ12].…”
Section: Introductionsupporting
confidence: 82%
“…However, we take a different approach, aiming for new asymptotic expansions for the probability of delay and the probability of rejection. The first terms of these expansions are the QED limits, and the higherorder terms are refinements to these QED limits for finite s. This generalizes earlier results on the Erlang B, C and A models [JvLZ08,JvLZ11,ZvLZ12].…”
Section: Introductionsupporting
confidence: 82%
“…Observe that even for very small values of λ, the capacity function s QED ( ) coincides with the exact solution for almost all ∈ (0, 1) and differs no more than by one server for all . Borst et al [20] recognized this in their numerical experiments too, and [74] later confirmed this theoretically (see Section 4). One can easily formulate other constraint satisfaction problems and reformulate them in the QED regime.…”
Section: Constraint Satisfactionmentioning
confidence: 70%
“…In the context of M /M /s + M queues, Zhang et al [157] obtained similar results on optimality gaps. Motivated by the results in [74,157], Randhawa [124] takes a more abstract approach to quantify optimality gaps of asymptotic optimization problems. He shows under generally assumptions that when the approximation to the objective function is accurate up to O(1), the prescriptions that are derived from this approximation are o(1)-optimal.…”
Section: Optimality Gapsmentioning
confidence: 99%
“…We analyze this system in the Halfin-Whitt regime, in a similar spirit as was done for the M/M/s queue [7], [10], the M/M/s/s queue [9], and the Erlang A model (M/M/s queue with abandonments) [12]. Compared to these earlier studies, the system with retrials brings about additional mathematical challenges, mainly because the retrial rate of returning customers is given implicitly as the solution of what we call Cohen's equation; cf.…”
Section: Introductionmentioning
confidence: 99%