Computational results for a dam problem with variable release rate and service level constraints

We consider a dam problem in which the release rate can be continuously controlled in order to ensure an appropriate balance between emptiness and overflows. Both the finite capacity and infinite capacity models are studied. The input process is a compound Poisson process. For controlling the release of the content two release rates are available. The content is controlled by a two-level switch-over rule. We focus on service measures such as the probability of emptiness and the fraction of input lost by overflows. Tractable approximations are derived for the switch-over levels in order to achieve a prespecified service level for the service measures considered. The accuracy of the approximations has been validated by computer simulation for many numerical examples