Average cost under the P
M
λ, τ policy in a finite dam with compound Poisson inputs
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Published:2003-06
Issue:02
Volume:40
Page:519-526
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ISSN:0021-9002
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Container-title:Journal of Applied Probability
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language:en
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Short-container-title:J. Appl. Probab.
Author:
Bae Jongho,Kim Sunggon,Lee Eui Yong
Abstract
We consider the policy in a finite dam in which the input of water is formed by a compound Poisson process and the rate of water release is changed instantaneously from a to M and from M to a (M > a) at the moments when the level of water exceeds λ and downcrosses τ (λ > τ) respectively. After assigning costs to the changes of release rate, a reward to each unit of output, and a cost related to the level of water in the reservoir, we determine the long-run average cost per unit time.
Publisher
Cambridge University Press (CUP)
Subject
Statistics, Probability and Uncertainty,General Mathematics,Statistics and Probability