Technical Note—Optimization of the Capacity in a Storage System

Abstract

This paper presents the problem of determining the optimal capacity of a storage system with respect to some specified criteria. It assumes that the storage system is subject to an input X and a release Y , at least one of which is a random variable following a known distribution function, so that the storage function Z is a stochastic process. The optimal capacity over a time horizon (0, T ) is determined by maximizing the expected profit.