Stochastic Modeling of Internet Service for Profit Optimization in Uganda

We consider an internet cafe faced with an optimal choice of bandwidth for internet users under stochastic stationary demand. The choice is made over uniformly time horizons with a goal of optimizing profits. Considering customer demand, price and operating costs of internet service, we formulate...

Full description

Saved in:
Bibliographic Details
Main Authors: Christopher, Senfuka, Paul, Kizito Mubiru, Maureen, N. Ssempijja
Format: Article
Language:en_US
Published: IST-Africa 2020
Subjects:
Online Access:http://hdl.handle.net/20.500.12493/465
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1800403076970971136
author Christopher, Senfuka
Paul, Kizito Mubiru
Maureen, N. Ssempijja
author_facet Christopher, Senfuka
Paul, Kizito Mubiru
Maureen, N. Ssempijja
author_sort Christopher, Senfuka
collection KAB-DR
description We consider an internet cafe faced with an optimal choice of bandwidth for internet users under stochastic stationary demand. The choice is made over uniformly time horizons with a goal of optimizing profits. Considering customer demand, price and operating costs of internet service, we formulate a finite state Markov decision process model where states of a Markov chain represent possible states of demand for internet service. A profit matrix is generated; representing the long run measure of performance for the Markov decision process problem. The problem is to determine an optimal bandwidth adjustment policy so that the long run profits are maximized for a given state of demand. The bandwidth adjustment policies are determined using dynamic programming over a finite period planning horizon. Results from a case study demonstrate the existence of an optimal statedependent option for bandwidth adjustment and profits in providing internet service.
format Article
id oai:idr.kab.ac.ug:20.500.12493-465
institution KAB-DR
language en_US
publishDate 2020
publisher IST-Africa
record_format dspace
spelling oai:idr.kab.ac.ug:20.500.12493-4652024-01-17T04:49:00Z Stochastic Modeling of Internet Service for Profit Optimization in Uganda Christopher, Senfuka Paul, Kizito Mubiru Maureen, N. Ssempijja Bandwidth adjustment; internet service; modelling; profit optimization; stochastic demand We consider an internet cafe faced with an optimal choice of bandwidth for internet users under stochastic stationary demand. The choice is made over uniformly time horizons with a goal of optimizing profits. Considering customer demand, price and operating costs of internet service, we formulate a finite state Markov decision process model where states of a Markov chain represent possible states of demand for internet service. A profit matrix is generated; representing the long run measure of performance for the Markov decision process problem. The problem is to determine an optimal bandwidth adjustment policy so that the long run profits are maximized for a given state of demand. The bandwidth adjustment policies are determined using dynamic programming over a finite period planning horizon. Results from a case study demonstrate the existence of an optimal statedependent option for bandwidth adjustment and profits in providing internet service. Kabale University 2020-11-17T17:03:17Z 2020-11-17T17:03:17Z 2018 Article 978-1-905824-59-5 http://hdl.handle.net/20.500.12493/465 en_US application/pdf IST-Africa
spellingShingle Bandwidth adjustment; internet service; modelling; profit optimization; stochastic demand
Christopher, Senfuka
Paul, Kizito Mubiru
Maureen, N. Ssempijja
Stochastic Modeling of Internet Service for Profit Optimization in Uganda
title Stochastic Modeling of Internet Service for Profit Optimization in Uganda
title_full Stochastic Modeling of Internet Service for Profit Optimization in Uganda
title_fullStr Stochastic Modeling of Internet Service for Profit Optimization in Uganda
title_full_unstemmed Stochastic Modeling of Internet Service for Profit Optimization in Uganda
title_short Stochastic Modeling of Internet Service for Profit Optimization in Uganda
title_sort stochastic modeling of internet service for profit optimization in uganda
topic Bandwidth adjustment; internet service; modelling; profit optimization; stochastic demand
url http://hdl.handle.net/20.500.12493/465
work_keys_str_mv AT christophersenfuka stochasticmodelingofinternetserviceforprofitoptimizationinuganda
AT paulkizitomubiru stochasticmodelingofinternetserviceforprofitoptimizationinuganda
AT maureennssempijja stochasticmodelingofinternetserviceforprofitoptimizationinuganda