We propose a finite-capacity single-vacation model, with close-down/se
tup times and a Markovian arrival process (MAP), for SVC-based IP-over
-ATM networks. This model considers the SVC processing overhead and th
e bursty nature of IP packet arrivals. Specifically, the setup time co
rresponds to the SVC setup time and the vacation time corresponds to t
he SVC release time, while the close-down time corresponds to the SVC
timeout. The MAP is a versatile point process by which typical bursty
arrival processes like the IPP (interrupted Poisson process) or the MM
PP (Markov modulated Poisson process) is treated as a special case. Th
e approach we take here is the supplementary variable technique. Compa
red with the embedded Markov chain approach, it is more straightforwar
d to obtain the steady-state probabilities at an arbitrary instant and
the practical performance measures such as packet loss probability, p
acket delay time, and SVC setup rate. For the purpose of optimal desig
n of the SVC-based IP-over-ATM networks, we also propose and derive a
new performance measure called the SVC utilization ratio. Numerical re
sults show the sensitivity of these performance measures to the SVC ti
meout period as well as to the burstiness of the input process.