Earlier quoted context omitted.
Re: your edit: I think in latency insensitive applications, having standing queues that never empty can be totally fine. We custom manufacture ordered items and have priority queues that process input orders into machine-ready output files. We don't need those queues to ever empty as the fastest delivery times are 3 days and the slowest typical is 14 days. Some of the file-prep software is licensed (so we have econom…
Agreed, if there's no latency cost and no cost to maintaining the queue. But if your queue is never emptying, you've hit an equilibrium where you're persistently overloaded and constantly load shedding. In that case you can reduce the queue size so that it is only just not emptying - you'll still be running at 100% capacity and shedding the same amount of demand. And if there was a latency cost or a cost per item in…
I believe this is an incorrect assertion. You have hit equilibrium, yes. But you are not load shedding unless you are preventing new queue entrants. And if you are allowing new entrants and the latency is acceptable to customers, you are not overloaded. Like you said, you are at an equilibrium.