This paper concerns M-[X] / M / 1 queue. The number of customers in each ar
riving unit is a random variable. There is two control threshold values K a
nd N, K is smaller than N. Service rate is switched from u to tu whenever t
he system size increases to N. The tu rate is switched to u when the system
size drops to the value K. We derive the steady-state probabilities of the
number of customers in system and the expected number of customers in syst
em. A cost model is introduced for the service cost, queuing cost, and swit
ching cost. (C) 1999 Elsevier Science Ltd. All rights reserved.