Department of Industrial Engineering2024-11-0920111532-634910.1080/15326349.2011.5427192-s2.0-79551567047http://dx.doi.org/10.1080/15326349.2011.542719https://hdl.handle.net/20.500.14288/12748We consider dynamic admission and termination control policies in a Markovian loss system with two classes, each with a fixed reward, a termination cost, an arrival and service rate. The system may admit or reject an arriving job or admit it by terminating a job in the system to maximize its total expected discounted reward. We prove that (1) when there is an idle server, it is never optimal to terminate a job, (2) there exists an optimal threshold policy for both admission and termination decisions. Furthermore, we identify the conditions which ensure that a class is "preferred" or "strongly preferred."StatisticsProbabilityJournal Article1532-4214290429500002Q46098