Optimal policies for queuing systems with periodic review

Abstract : The general problem of finding optimal policies for operating queuing systems is investigated in order to determine when to open or close servers so as to minimize cost. The queue size is observed at equally spaced intervals of time and the structure of the optimal policy is determined. The main restriction made, at first, is to limit the model to a single server system. Justification for a form of an optimal policy is given. Then the proofs that this policy is in fact optimal for the finite horizon, and averaging cost criterion are given. Also, conditions for determining that the server should never be closed with customers in queue are presented. The problem is then generalized to allow for a fixed number of servers. (Author)