Production-Inventory Model. Consider a production-inventory system that produces a product at a constant rate of c units per unit time and the items are put in inventory to satisfy demands. The...

Production-Inventory Model. Consider a production-inventory system that produces a product at a constant rate of c units per unit time and the items are put in inventory to satisfy demands. The products may be discrete or continuous (e.g., oil, chemicals). Demands occur according to a Poisson process N(t) with rate λ, and the demand quantities X₁, X₂,... are independent, identically distributed positive random variables with mean μ,