Describes the optimal control of a single infinite capacity carrier transporting passengers between two terminals. Passengers arrive according to independent Poisson processes, and dispatching decisions to hold the carrier for more passengers can be made at only one terminal. The objective is minimization of the long-run average of a linear passenger waiting cost and a fixed charge per trip. When complete information about the system state is available, and travel times are deterministic, the carrier can be dispatched only if the number of passengers at both terminals is greater than a cutoff value. An iterative method for computing this value is approximated by a function of system costs and parameters similar to the economic lot size formula. A dispatching rule is proposed for when the number of passengers waiting at only one terminal is known, and its efficiency is compared with that of the optimal rule. 37 pp. Ref.
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