Customers are scheduled to arrive at periodic scheduling intervals to
receive service from a single server system. A customer must start rec
eiving service within a given departure interval; if this is not the c
ase, the system will pay a penalty and/or transfer the customer to ano
ther facility at the system's cost. A complete transient and steady-st
ate analysis of the system is given, the optimal scheduling and depart
ure intervals are determined, and the virtual work in the system is an
alyzed.