Question: 3 ) Consider a make - to - order ( MTO ) production system, where demand orders arrive according to a Poisson process with rate

3)Consider a make-to-order (MTO) production system, where demand orders arrive according to a Poisson process with rate \lambda >0. Upon arrival, each order waits in a first-in-first-out (FIFO) queue until the system starts processing the order. The processing time of an order is distributed as an exponential distribution with processing rate , and assume that there is a single processor (so orders are fulfilled one at a time). The demand orders are impatient, and while waiting to be processed, may get cancelled. (Note that a job currently undergoing processing will not be cancelled.) Assume that each waiting order gets cancelled after waiting a period of time that is distributed independently and identically as an exponential distribution with rate \gamma . Note that if there are k orders waiting to be fulfilled, the rate at which cancellations happen is k\gamma .
(a)(3 points) Model the production system as an birth-death chain. Specify the states and the state space, and draw the state transition diagram. Make sure to correctly label the transition rates for each transition.
(b)(2 points) Write the detailed balance equations that the steady state distribution satisfies.
(c)(3 points) Assume =\gamma . Solve the detailed balance equations to find the steady state distribution. (See useful formulae on the first page for series summations.)
(d)(2 points) Assume =\gamma . What is the throughput of this system? (Note: throughput of a system is the rate at which jobs are successfully completed.)
(e)(2 points) Assume =\gamma . What is the steady state probability that an arriving order is cancelled rather than fulfilled?

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