Optimal control of a dam using Pλ,τM policies and penalty cost when the input process is a compound Poisson process with positive drift

In this paper we consider the optimal control of an infinite dam using P-lambda,P- (M)(tau) policies assuming that the input process is a compound Poisson process with a nan-negative drift term, and using the total discounted cost and long-run average cost criteria. The results of Lee and Ahn (1998) as well as other well-known results are shown to follow from our results.