Optimal admission control in two‐class preemptive loss systems

We study optimal admission control in a two‐class preemptive loss system. A class‐1 customer arrival aborts service of a class‐2 customer if the system is full upon arrival. Each successfully serviced class‐2 customer leads to a reward, whereas each aborted class‐2 customer incurs a cost. Using dynamic programming, we characterize optimal admission control for class‐2 customers that maximizes the long‐run average profit. The optimal admission control policy depends only on the total occupancy and is of threshold type.