Abstract: This paper considers two queues in tandem each of which has its own input of arriving customers which in turn may either be accepted or rejected. Suppose that for each accepted customer the system receives a fixed reward and pays a holding cost per customer per time unit in the system. The objective is to dynamically determine the optimal admission policies, based on the state of the system, so as to maximize the average profit. This model finds applications in flow control in communication systems, job shops, and traffic-flow systems. A novel approach is presented using fuzzy control.