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A regeneration-theory approach is undertaken to analytically characterize the average overall completion time in a distributed system. The approach considers the heterogeneity in the processing rates of the nodes as well as the randomness in the delays imposed by the communication medium. The optimal one-shot load balancing policy is developed and subsequently extended to develop an autonomous and distributed load-balancing policy that can dynamically reallocate incoming external loads at each node. This adaptive and dynamic load balancing policy is implemented and evaluated in a two-node distributed system. The performance of the proposed dynamic load-balancing policy is compared to that of static policies as well as existing dynamic load-balancing policies by considering the average completion time per task and the system processing rate in the presence of random arrivals of the external loads.