How Costly Was That (In)Decision?

In this paper, we introduce a new metric, named Penalty upon Decision (PuD), for measuring the impact of communication delays and state changes at the source on a remote decision maker. Specifically, the metric quantifies the performance degradation at the decision maker's side due to delayed, erroneous, and (possibly) missed decisions. We clarify the rationale for the metric and derive closed-form expressions for its average in M/GI/1 and M/GI/1/1 with blocking settings. Numerical results are then presented to support our expressions and to compare the infinite and zero buffer regimes. Interestingly, comparing these two settings sheds light on a buffer length design challenge that is essential to minimize the average PuD.