Optimization of a Multi-Server Stochastic Financial Queue

Abstract

Profit optimization imperative for any business. The businesses that are dealing with lots of stochastic variables he challenges become severe. Almost all of the business situations can be presented through a mathematical model. In this paper, the functioning of a financial institution such as the insurance firm is modelled as a stochastic queue. The cost model for the queue is developed and optimized for different stochastic parameters using pattern search and classical optimization techniques. An algorithm is written in MATLAB for the purpose. The paper can be referred by firms for practical implementation in order to maximize their profit.