We consider a single-server queueing system with Poisson arrivals in which
the speed of the server depends on whether an associated fluid reservoir is
empty or not. Conversely, the rate of change of the content of the reservo
ir is determined by the state of the queueing system, since the reservoir f
ills during idle periods and depletes during busy periods of the server. Ou
r interest focuses on the stationary joint distribution of the number of cu
stomers in the system and the content of the fluid reservoir, from which va
rious performance measures such as the steady-state sojourn time distributi
on of a customer may be obtained. We study two variants of the system. For
the first, in which the fluid reservoir is infinitely large, we present an
exact analysis. The variant in which the fluid reservoir is finite is analy
sed approximatively through a discretization technique. The system may serv
e as a mathematical model for a traffic regulation mechanism - a two-level
traffic shaper - at the edge of an ATM network, regulating a very bursty so
urce. We present some numerical results showing the effect of the mechanism
.