Optimal pricing strategy for queuing systems with balking loss and reneging loss

The lost profit from lost business is quite difficult to be estimated for the queuing systems with cyclic demands. My previous work presented a creative and effective approach to formulate waiting cost as balking loss plus reneging loss. Using the estimation of waiting cost may allow decision makers to have the capability to determine the optimal number of servers for each planning period. Unfortunately, some queuing systems have trouble in extending the number of servers to earn more profit. Hence, an alternative way, the optimal pricing strategy, can be used to solve this capacity constraint problem. In this paper, the balking index and reneging index are introduced and formulated with discount level as three key parameters on maximizing the total profit.