Seminar: Fluctuation Scaling in Large Service Systems: Statistics, Stochastics, and Simulation
Date: Feb 9 (Fri), 2018
Time: 11:00am to 12:30pm
Venue: Room 7-208, 7/F, Lau Ming Wai Academic Building

Operational decision making in service systems often depends largely on the characterization of the random fluctuations involved. Exogenous arrivals represent a primary source of uncertainty and their stochastic behavior needs to be modeled carefully. In this talk, we will first argue that the conventional approach to arrival modeling which focuses on the microstructure, e.g., the distribution of the inter-arrival times, may be inadequate. Instead, as demonstrated via statistical experiments, the behavior of the arrival process over a longer time scale really matters for the system performance and operational decisions. Then, we will present a critical statistical feature regarding the random fluctuations of the arrival process in large service systems, and propose a tractable model accordingly. When a service system under the new arrival model is scaled up, its dynamics is fundamentally different from that typical queueing analysis stipulates, and leads to a new staffing rule for managing the servers. At last, we will demonstrate via data-driven simulation that our staffing rule improves the system performance substantially in general.

Event Speaker
Dr. Xiaowei Zhang, The Hong Kong University of Science and Technology

Xiaowei Zhang is an assistant professor in the Department of Industrial Engineering and Decision Analytics at the Hong Kong University of Science and Technology. He received his Ph.D. in Management Science and Engineering in 2011 and M.S. in Financial Mathematics in 2010, both from Stanford University. His research interests include stochastic simulation, decision analytics, and applied probability.