Question: A machine produces items one at a time, the production times being iid exponential with mean 1 / lambda . The items produced are

A machine produces items one at a time, the production times being iid exponential with
mean 1/\lambda . The items produced are stored in a warehouse of capacity K. When the warehouse
is full, the machine is turned off, and it is turned on again when the warehouse has space
for at least one item. Demand for the items arises according to a P P(). Any demand that
cannot be satisfied is lost. Suppose the mean manufacturing time is 1 hour and the demand
rate is 20 per day. The warehouses capacity is 10.

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