Optimal control of a dam using P λ,τ M policies and penalty cost when the input process is a compound Poisson process with positive drift

Abstract

In this paper we consider the optimal control of an infinite dam using policies assuming that the input process is a compound Poisson process with a non-negative drift term, and using the total discounted cost and long-run average cost criteria. The results of Lee and Ahn (1998) as well as other well-known results are shown to follow from our results.