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...
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Format: | Article |
Language: | en_US |
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IST-Africa
2020
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Online Access: | http://hdl.handle.net/20.500.12493/465 |
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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 |