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On maximizing service-level-agreement profits

Published: 14 October 2001 Publication History

Abstract

We present a methodology for maximizing profits in a general class of e-commerce environments. The cost model is based on revenues that are generated when Quality-of-Service (QoS) guarantees are satisfied and on penalties that are incurred otherwise. The corresponding QoS criteria are derived from multiclass Service-Level-Agreements (SLAs) between service providers and their clients, which include the tail distributions of the per-class delays in addition to more standard QoS metrics such as throughput and mean delays. Our approach consists of formulating the optimization problem as a network flow model with a separable set of concave objective functions based on queueing-theoretic formulas, where the SLA classes are taken into account in both the constraints and the objective function. This problem is then solved via a fixed-point iteration. Numerous experiments illustrate the benefits of our approach.

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cover image ACM Conferences
EC '01: Proceedings of the 3rd ACM conference on Electronic Commerce
October 2001
277 pages
ISBN:1581133871
DOI:10.1145/501158
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Published: 14 October 2001

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EC01: Third ACM Conference on Electronic Commerce
October 14 - 17, 2001
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EC '01 Paper Acceptance Rate 35 of 100 submissions, 35%;
Overall Acceptance Rate 664 of 2,389 submissions, 28%

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  • (2019)Service System Design Under Information UncertaintyService Science10.1287/serv.2018.023411:1(40-56)Online publication date: 1-Mar-2019
  • (2018)Dispatching Discrete-Size Jobs with Multiple Deadlines to Parallel Heterogeneous ServersSystems Modeling: Methodologies and Tools10.1007/978-3-319-92378-9_3(29-46)Online publication date: 17-Oct-2018
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