Admission Control in Multi-server Systems Under Binary Reward Structure

We study a multi-server queueing system where a customer is satisfied (and generates a unit revenue) if their queueing time is at most a given constant. If the queueing time of the admitted customer exceeds this constant, the customer gets served, but is unsatisfied and generates no revenue. Such queueing systems arise in the context of modeling service systems where excessive delays are of concern. A key challenge is how to design an admission control policy to maximize the number of satisfied customers per unit time in the long run, assuming that we can observe the number of customers in the system at any time. We call this the binary reward structure system and show that a threshold-type admission policy is optimal. The optimal threshold policy has to be computed numerically. Hence we propose a square-root admission policy to approximate the optimal admission control policy, and compare the performance of these two policies. We derive an analytical upper bound on the performance of optimal admission control policy by deriving an optimal admission policy assuming we have full information over the queueing time of the admitted customers. This is equivalent to a queueing system where customers abandon the queue (i.e., leave without service) if their queueing time exceeds the given constant. We demonstrate that the optimal policy that includes customer abandonment, or alternatively, the optimal policy under full information, the optimal threshold policy, and the square-root admission policy, all exhibit identical performance in the asymptotic regions of the parameter space. Our numerical results indicate that the worst optimality gap of the square-root admission policy is within 3.9% of the optimal revenue, and implementing the square-root admission policy in the observable queueing system leads to a revenue loss that is at most 5.6% of the maximum possible revenue rate in the full information system. We also compare the binary reward structure with the more common linear reward structure where the system incurs holding cost per unit queueing time per customer. In addition, we also show that the analysis based on queueing time is applicable to the system time as well.