Decision making in service industries : a practical approach by Javier Faulin; et al

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Louis. Dr. Sen’s research interests are in franchising, service design, health care marketing, and sports economics. He has published in academic journals such as the Journal of Advertising Research, Journal of Consumer Marketing, and Managerial and Decision Economics. D. student at Hull University, Business School. Her current research is related to supply chain management, risk analysis, and rare event modeling. xxxii Contributors Peer-Olaf Siebers University of Nottingham Nottingham, United Kingdom Peer-Olaf Siebers is a research fellow at the University of Nottingham, School of Computer Science.

We note that a single customer may, and typically does, have multiple SLAs in place for the different services contracted with the SDP. We also note that SLAs are contracted on a customer-by-customer basis. As such, there is significant variance between the contract terms (in particular, the SLT and PA) across the SLAs for the different customers supported by the SDP. As an example, for our motivating SDP, we often find approximately 30 SLAs for a given customer and over 500 distinct SLAs across the customer base.

These fundamental differences and the actual business motivating our study led us to develop a novel decisionmaking solution framework that addresses the needs of real-world IT services delivery processes in practice. The remainder of this chapter is organized as follows. We first describe the motivating IT SDE and related key business issues. We then present our formulation of the SDM problems, followed by a description of our two-stage solution framework. A representative sample of results from a vast collection of numerical experiments is presented next.

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