• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.1
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• pp.1-13
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• 2006

In this paper we consider a design problem of a cyclic queueing network with two stages, each with a local buffer of limited capacity. Based on the theory of reversibility and product-form solution, we derive the throughput function of the network as a key performance measure to maximize. Two cases are considered. In case each stage consists of a single server, an optimal allocation policy of a given buffer capacity and work load between stages as well as the optimal number of customers is identified by exploiting the properties of the throughput function. In case each stage consists of multiple servers, the optimal policy developed for the single server case doesn't hold any more and an algorithm is developed to allocate with a small number of computations a given number of servers, buffer capacity as well as total work load and the total number of customers. The differences of the optimal policies between two cases and the implications of the results are also discussed. The results can be applied to support the design of certain manufacturing and computer/communication systems.