The theory of storage processes, originally formulated by Moran [1] in 1954, has developed in the past fourteen years into a minor subfield of Applied Probability, closely allied to queueing theory. While dam models with discrete inputs are analogous to queueing processes, the essentially continuous nature of water inflows has distinguished generalized storage processes from queues. Indeed, some of the most complex of storage problems have arisen in the case of continuous flows.
Convenience yield and the theory of storage: applying an option-based approach