Serel, D. A.Erel, E.2016-02-082016-02-0820081524-1904http://hdl.handle.net/11693/23066Customer demand is sensitive to the price paid for the service in many service environments. Using queueing theory framework, we develop profit maximization models for jointly determining the price and the staffing level in a service company. The models include constraints on the average waiting time and the blocking probability. We show convexity of the single-variable subproblem under certain plausible assumptions on the demand and staffing cost functions. Using numerical examples, we investigate the sensitivity of the price and the staffing level to changes in the marginal service cost and the user-specified constraint on the congestion measure.EnglishErlang lossNonlinear programmingOptimal staffing levelPricingQueueWaiting linesCost functionsEnterprise resource managementGame theoryHuman resource managementManagement sciencePersonnel selectionQueueing theoryRisk assessmentAverage waiting timeCongestion measureCustomer demandsErlang lossNonlinear programmingNumerical examplesOptimal staffing levelPricingPricing decisionsProfit maximizationQueueService costsWaiting linesBlocking probabilityArticle10.1002/asmb.708