A simple example of producer-consumer problem solution. Notice that JDK classes (AtomicBoolean and BlockingQueue) are used for synchronization, which reduces the chance of creating an invalid solution. Consult Javadoc for various types of BlockingQueue; choosing different implementation may drastically change the behavior of this example (like DelayQueue or Priority Queue).

public class Producer implements Runnable {

    private final BlockingQueue<ProducedData> queue;

    public Producer(BlockingQueue<ProducedData> queue) {
        this.queue = queue;
    }

    public void run() {
        int producedCount = 0;
        try {
            while (true) {
                producedCount++;
                //put throws an InterruptedException when the thread is interrupted
                queue.put(new ProducedData());
            }
        } catch (InterruptedException e) {
            // the thread has been interrupted: cleanup and exit
            producedCount--;
            //re-interrupt the thread in case the interrupt flag is needeed higher up
            Thread.currentThread().interrupt();
        }
        System.out.println("Produced " + producedCount + " objects");
    }
}

public class Consumer implements Runnable {

    private final BlockingQueue<ProducedData> queue;

    public Consumer(BlockingQueue<ProducedData> queue) {
        this.queue = queue;
    }

    public void run() {
        int consumedCount = 0;
        try {
            while (true) {
                //put throws an InterruptedException when the thread is interrupted
                ProducedData data = queue.poll(10, TimeUnit.MILLISECONDS);
                // process data
                consumedCount++;
            }
        } catch (InterruptedException e) {
            // the thread has been interrupted: cleanup and exit
            consumedCount--;
            //re-interrupt the thread in case the interrupt flag is needeed higher up
            Thread.currentThread().interrupt();
        }
        System.out.println("Consumed " + consumedCount + " objects");
    }
}

public class ProducerConsumerExample {
    static class ProducedData {    
        // empty data object
    }

    public static void main(String[] args) throws InterruptedException {
        BlockingQueue<ProducedData> queue = new ArrayBlockingQueue<ProducedData>(1000);
        // choice of queue determines the actual behavior: see various BlockingQueue implementations

        Thread producer = new Thread(new Producer(queue));
        Thread consumer = new Thread(new Consumer(queue));

        producer.start();
        consumer.start();

        Thread.sleep(1000);
        producer.interrupt();
        Thread.sleep(10);
        consumer.interrupt();
    }
}