Random vehicle dispatching with options and optimal fleet size |
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Authors: | Dror Zuckerman Charles S. Tapiero |
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Affiliation: | Jerusalem School of Business Administration, Jerusalem, Israel |
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Abstract: | A dispatching problem with random availability of vehicles and options to send rented vehicles is considered. We assume passenger arrivals to be described by a pure-birth process. Such a problem is analytically attractive and is shown to have practical applications in vehicle dispatching models. An average cost criterion is used to determine firm's fleet size and option (renting) strategy. |
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