Probability Bounds on the Size of Storage Areas

Published Online:https://doi.org/10.1287/opre.14.5.841

Through the use of generating functions upper and lower bounds are obtained for the probability that at least n units are in storage at any given time. The inputs to the storage area are assumed to be independent and of the Poisson type and the outputs are also independent and follow the negative exponential law. The storage area is assumed to be infinite. A numerical example is included.

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