Abstract
The optimal number of servers and service rate are characterized for multiserver systems in which waiting times in service and in queue have different costs. It is shown that the optimal choice of the service rate and the number of servers depends on the ratio of the in-service waiting cost coefficient to the in-queue waiting cost coefficient. For M/M/c systems, a single server is optimal if the cost-coefficient ratio exceeds a threshold value of one-half. For GI/M/c and M/G/c systems, the threshold ratio increases as the variation of the interarrival or service time increases.