Two Aspects of Waste Management from the Viewpoints of a Waste Generator and a Recipient

Regulations specify the maximum amount of waste that can be stored on site by a waste generating firm. When this regulatory threshold is reached, a polluting firm must move its on site waste to an off site recipient. In this setting, we analyze two questions in a stochastic framework from the viewpoints of a waste generator and a recipient that have received scant theoretical attention in the literature. First, given that off site storage is costlier than on site storage, we derive the long run average cost incurred by a waste generating firm that stores waste both on and off site. Second, we compute the expected amount of time until the off site recipient's waste storage facility is full