Dynamic storage allocation problem, both as an online problem and an offline problem, is widely studied in literature, such as this article by Jordan Gergov. Here I present a similar problem which I call "The Tower Hotel Problem."
The Tower Hotel is peculiar. It has an infinite number of floors, but each floor has the same fixed number of rooms. The proprietor wanted to keep the number of floors open to the public minimal in order to save costs on maintenance; a closed floor incurs no cost. A floor is closed if none of the rooms are occupied. But as long as there is at least one occupied room, the floor must be open to public. Once a guest arrives and settles in a room, the proprietor must not ask the guest to move to another room.
In a zealous attempt to minimize cost, the proprietor requires all guests to make reservations before the year begins. The guest would indicate upon reservation the arrival and departure dates. Once the year begins, no more reservation can be made. The proprietor then optimizes the placement of guests on floors. This eccentric policy may be one reason the hotel is not very well known.
A number of years passed, and the proprietor passed away. His son knows nothing about hotel management, so the son interviewed three potential managers. In order to make the hotel more popular, the son required that the managers must not assume the reservations are made in advance. In fact, he went a step further and said that a guest could arrive at any time and leave at any time.
Each manager had a different strategy. The first manager would place the guest at random on any of the opened floors with vacancy (and open up a new floor if none of the existing floors are available). The second manager would place the guest on the floor with the most number of occupied rooms (but still has vacancy). The third manager would place the guest on the lowest numbered floor with vacancy. The third manager has an assistant who, due to her desire to be promoted, secretly proposes to the proprietor's son a slightly different strategy than her manager: she would locate the lowest numbered floors with vacancy, fill it entirely first, then find again the lowest numbered floors with vacancy, which may be lower than the previously chosen floor because some guests below may have checked out.
How does the proprietor's son determine which manager has the most cost-effective strategy? How do these managers and the third manager's assistant compare with what the proprietor could do, when the proprietor had full knowledge of all the reservations in the whole year?
This problem describes segregate fits dynamic storage allocation with virtual memory where all objects are of the same size, and a memory page could fit a fixed number of these objects. A virtual memory page has to be backed by a physical memory page if there is at least one object in the page. Once all objects in the page are freed, the physical memory page backing can be removed. This presents a different sort of fragmentation problem where certain long-lived objects can pin a memory page even though the page is mostly unused.