Dynamic admission and service rate control of a queue (Q600905)

A joint admission and service rate control problem is studied for a single-server queue with Poisson arrivals and exponential service times. A cost function is associated with the available service rates, in addition to a rejection cost and a general holding cost. The objective is to minimize the long-run average costs. The corresponding optimality equations and an associated verification theorem is presented. The stationarity of the optimal control policy is examined. Furthermore, a solution algorithm is described, and some numerical examples are presented.