Waiting to be Dispatched. Items arrive to a dispatching station according to a Poisson process with rate λ, and all items in the system will be dispatched at a time t. Example 3 shows that the...

Waiting to be Dispatched. Items arrive to a dispatching station according to a Poisson process with rate λ, and all items in the system will be dispatched at a time t. Example 3 shows that the expected time items wait before being dispatched at time t is E[ ! t 0 N(s)ds] = λ2/2. Suppose there is a cost hw2 for holding an item in the system for a time w. Then the total holding cost in (0, t] isExample 3