On a make-to-stock production/mountain model with hysteretic control

We consider a make-to-stock production-inventory model with one machine that produces stock in a buffer. The machine is subject to breakdowns. During up periods, the machine fils the buffer at a level-dependent rate a(x) > 0. During down periods, the production rate is zero, and the demand rate is either ß(x) > 0 or ¿(x) > 0 when the inventory level is x; which of the two demand rates applies depends on a hysteretic control policy. We determine the conditions under which the steady-state distribution of the inventory level exists, and we derive that distribution. Other performance measures under consideration are the number of switches from ß(.) to ¿(.) per busy period, the busy period distribution, and the overshoot above a particular hysteretic level.