CLOUD SERVICE REVENUE MANAGEMENT

Successful Internet service offerings can only thrive if customers are satisfied with service performance. While large service providers can usually cope with fluctuations of customer visits retaining acceptable Quality of Service, small and medium-sizes enterprises face a big challenge due to limited resources in the IT infrastructure. Popular services, such as justin.tv and SmugMug, rely on external resources provided by cloud computing providers in order to satisfy their customers demands at all times. The paradigm of cloud computing refers to the delivery model of computing services as a utility in a pay-as-you-go manner. In this paper, we provide and computationally evaluate decision models and policies that can help cloud computing providers increase their revenue under the realistic assumption of scarce resources and under both informational certainty and uncertainty of customers? resource requirement predictions. Our results show that in both cases under certainty and under uncertainty applying the dynamic pricing policy significantly increases revenue while using the client classification policy substantially reduces revenue. We also show that, for all policies, the presence of uncertainty causes losses in revenue; when the client classification policy is applied, losses can even amount to more than 8%

Strict Solution Method for Linear Programming Problem with Ellipsoidal Distributions under Fuzziness

This paper considers a linear programming problem with ellipsoidal distributions including fuzziness. Since this problem is not well-defined due to randomness and fuzziness, it is hard to solve it directly. Therefore, introducing chance constraints, fuzzy goals and possibility measures, the proposed model is transformed into the deterministic equivalent problems. Furthermore, since it is difficult to solve the main problem analytically and efficiently due to nonlinear programming, the solution method is constructed introducing an appropriate parameter and performing the equivalent transformations

Evaluation and Selection of the Quality Methods for Manufacturing Process Reliability Improvement-Intuitionistic Fuzzy Sets and Genetic Algorithm Approach

The aim of this research is to propose a hybrid decision-making model for evaluation and selection of quality methods whose application leads to improved reliability of manufacturing in the process industry. Evaluation of failures and determination of their priorities are based on failure mode and effect analysis (FMEA), which is a widely used framework in practice combining with triangular intuitionistic fuzzy numbers (TIFNs). The all-existing uncertainties in the relative importance of the risk factors (RFs), their values, applicability of the quality methods, as well as implementation costs are described by pre-defined linguistic terms which are modeled by the TIFNs. The selection of quality methods is stated as the rubber knapsack problem which is decomposed into subproblems with a certain number of solution elements. The solution of this problem is found by using genetic algorithm (GA). The model is verified through the case study with the real-life data originating from a significant number of organizations from one region. It is shown that the proposed model is highly suitable as a decision-making tool for improving the manufacturing process reliability in small and medium enterprises (SMEs) of process industry

Evaluation and Selection of the Quality Methods for Manufacturing Process Reliability Improvement-Intuitionistic Fuzzy Sets and Genetic Algorithm Approach

The aim of this research is to propose a hybrid decision-making model for evaluation and selection of quality methods whose application leads to improved reliability of manufacturing in the process industry. Evaluation of failures and determination of their priorities are based on failure mode and effect analysis (FMEA), which is a widely used framework in practice combining with triangular intuitionistic fuzzy numbers (TIFNs). The all-existing uncertainties in the relative importance of the risk factors (RFs), their values, applicability of the quality methods, as well as implementation costs are described by pre-defined linguistic terms which are modeled by the TIFNs. The selection of quality methods is stated as the rubber knapsack problem which is decomposed into subproblems with a certain number of solution elements. The solution of this problem is found by using genetic algorithm (GA). The model is verified through the case study with the real-life data originating from a significant number of organizations from one region. It is shown that the proposed model is highly suitable as a decision-making tool for improving the manufacturing process reliability in small and medium enterprises (SMEs) of process industry

Cooperative Games with Overlapping Coalitions

In the usual models of cooperative game theory, the outcome of a coalition formation process is either the grand coalition or a coalition structure that consists of disjoint coalitions. However, in many domains where coalitions are associated with tasks, an agent may be involved in executing more than one task, and thus may distribute his resources among several coalitions. To tackle such scenarios, we introduce a model for cooperative games with overlapping coalitions--or overlapping coalition formation (OCF) games. We then explore the issue of stability in this setting. In particular, we introduce a notion of the core, which generalizes the corresponding notion in the traditional (non-overlapping) scenario. Then, under some quite general conditions, we characterize the elements of the core, and show that any element of the core maximizes the social welfare. We also introduce a concept of balancedness for overlapping coalitional games, and use it to characterize coalition structures that can be extended to elements of the core. Finally, we generalize the notion of convexity to our setting, and show that under some natural assumptions convex games have a non-empty core. Moreover, we introduce two alternative notions of stability in OCF that allow a wider range of deviations, and explore the relationships among the corresponding definitions of the core, as well as the classic (non-overlapping) core and the Aubin core. We illustrate the general properties of the three cores, and also study them from a computational perspective, thus obtaining additional insights into their fundamental structure