bluuebunny/crossref_metadata_2025 huggingface dataset:
Regularity Conditions for a Class of Convex Programs
Authors: Garstka Stanley J.
Published: November 2008

This paper develops regularity conditions for a class of convex programming problems (convex objective functions and linear constraints). The objective functions considered are lower semicontinuous and have bounded level sets. The constraint set may be unbounded. Results pertaining to the solvability, stability and dualizability of such programs are obtained. The results are then applied to a class of nonlinear stochastic programs with recourse.
Imperfect Inspection in a Multistage Production Process
Authors: Hurst E. Gerald
Published: November 2008

The probabilistic behavior of good and defective in-process units in a multistage production process is explored, under the assumption of imperfect inspection. For binomial processing and inspection, the joint distribution of the two state variables at each stage is shown to be the product of two nonindependent binomial distributions. Initial simplifying assumptions about inspection policy, processing losses, and additional information are relaxed, and the modified forms of the resultant joint binomial distributions are presented.
The Use of Tax Incentives for Employment of Underutilized Resources
Authors: Southwick L. , Zionts S.
Published: November 2008

This paper considers the use of subsidies or tax credits for the purpose of increasing the utilization of underemployed or underutilized resources. The particular formulation studied is the subsidy which is associated with changes in the level of usage of a particular input factor. The effects on both subsidized and unsubsidized factors are considered in terms of changed demand, the market effects, and economy-wide influences.
A Model for a Multi-Item, Multi-Echelon, Multi-Indenture Inventory System
Authors: Muckstadt John A.
Published: November 2008

The purpose of this paper is to describe a mathematical model, called MOD-METRIC, for the control of a multi-item, multi-echelon, multi-indenture inventory-system for recoverable items, that is, items subject to repair when they fail. Discussion is limited to two-echelon multi-item systems in which an item may be demanded at any one of several locations called bases; in turn, these bases receive inventory from a central location called a depot. The objectives of the model are to describe the logistics relationship between an assembly and its subassemblies, and to compute spare stock levels for both echelons for the assembly and subassemblies with explicit consideration of this logistics relationship. In particular, the model is used to determine the base and depot spare stock levels which minimize total expected base backorders for the assembly subject to a system investment constraint. An example is given showing how the model can be used to calculate spare engine and engine module stock levels. MOD-METRIC has been implemented by the Air Force as the method for computing recoverable spare stock levels for the F-15 weapon system.
A Critique of “The Distribution System Simulator” by M. M. Connors, et al
Authors: Aggarwal Sumer
Published: November 2008

This paper compares DSS with other simulation models and modelling approaches of the past with respect to its weaknesses and strengths, as well as its novel and specialized characteristics. The importance of the “question-and-answer” superstructure of DSS is discussed. The need for regularly updating the parameters of inventory-distribution systems is noted. The serious limitations of DSS are brought into focus and reference is made to those situations which cannot be easily handled by simulation models like DSS, in general. For the benefit of the practitioners, this paper describes how and by whom DSS can be used with facility. Finally, the overall effectiveness of DSS in improving management objectives is questioned.
Determining the Optimal Investment Policy for the Tourism Sector of a Developing Country
Authors: Gearing Charles E. , Swart William W. , Var Turgut
Published: November 2008

For developing countries trying to increase their “buying power” in the community of nations, the establishment of a tourism industry is an important strategy for the generation of foreign exchange earnings. This paper develops a decision structure whereby investment allocation decisions for touristic projects may be made. The decision structure consists of a procedure to quantify the concepts of touristic attractiveness, a mathematical model representing the allocation problem, and a procedure for the solution of the model.
Educational Innovation; The Impact of Organizational and Community Variables on Performance Contract
Authors: Belasco James A.
Published: November 2008

In astrology this is the age of Aquarius. In education this is the age of accountability and innovation. At the most general level, the principal concern of this paper is to identify those organizational, teacher and community characteristics which are associated with varying levels of student achievement growth—one measure of success for a performance contract.

Social systems analysis suggests that the most general hypothesis of this study is: there will be a direct relationship between the ability of the innovation to satisfy the input supplying and output accepting dependencies and the success of the innovation. Based on prior research, four specific dependencies were examined in this study: Expectations concerning decisional participation levels in the school held by parents, [Belasco, James, Joseph Alutto, Alan Glassman. Differing perceptions of authority structures held by teachers and community members. Education and Urban Society (forthcoming).] teachers, [Morphet, Edgar, Roe Johns, Theodore Reller. 1967. Educational Organization and Administration, 2nd ed. Prentice Hall, Englewood Cliffs.] personal predispositions of teachers to accept change, [Rokeach, Milton. 1960. The Open and Closed Mind. Basic Books, New York.] and the maintenance of manageable tension levels and high commitment levels [Miles, Matthew. 1965. Planned changes and organization health. Change Processes in the Public School. Center for the Advanced Study of Educational Administration, Oregon University.].
Utility Functions for Test Performance
Authors: Dyer James S. , Farrell William , Bradley Paul
Published: November 2008

This paper discusses a utility function estimation procedure developed to provide curriculum planning information to elementary school principals. Both theoretical and empirical studies were performed to evaluate the procedure. The results of the use of this approach to obtain data from a national sample of principals are presented.
Note—A Model for Minimizing the Cost of Drilling Dual Completion Oil Wells
Authors: Devine Michael D.
Published: November 2008

When developing offshore oil fields most wells are dual completions; i.e., two oil traps (targets) are produced together through a single hole. This problem is discussed and a model is developed for finding the pairing of targets in order to minimize the total drilling cost. The mathematical formulation of this problem turns out to be the well known “symmetric assignment problem” (or “matching problem”). Algorithms for the solution of these problems are discussed and computational results are presented.
On Lawler's K Best Solutions to Discrete Optimization Problems, 2: Additional Comments
Authors: Lawler Eugene L.
Published: November 2008

I believe that my rebuttal to Mr. Marshall's previous letter was essentially correct. I will be happy for the interested reader to make his own evaluation of the facts.
Commentary on the Canadian Issue of Management Science
Authors: Starr Martin K.
Published: November 2008

Management Science in Canada is an exciting publication. It is the first issue of MANAGEMENT SCIENCE that is specifically dedicated to the activities of practitioners of a particular country or region of the world. As such, it can serve as a model. This model must be adapted to reflect the characteristics of Management Science, as its practice has evolved in other nations, groups of nations, industries, institutions, etc.
Preface to Management Science in Canada
Authors: Peterson Rein , Conrath David W. , Janssen C. T. L.
Published: November 2008

Management Science is not unique to any particular country or set of countries. It is comprised of processes, techniques and tools that are potentially applicable to problems found in a wide range of social and economic systems. The scope and style of management science practices vary from country to country. In Canada the community of Operational Research/Management Science (OR/MS) practitioners has grown to approximately 1200, according to the membership lists of professional societies. The time has come to take stock. It is with this goal in mind that we accepted the challenge of editing and contributing to Management Science in Canada.
On Bridging the Gaps
Authors: Daly D. J. , Peterson Rein
Published: November 2008

In this paper the authors present an interpretive discussion of the scope for management scientists to make a more effective contribution to improving the performance of the Canadian economy, by active involvement in management and decision making in Canadian institutions, both private and public. Initially the paper surveys the evidence on the differences in economic performance between Canada and the United States, outlining the methods used, and the results. Some factors turn out to be relatively unimportant in the differences, while others are quite crucial. In the broad area of manufacturing, the gap in economic performance is particularly wide. Tariffs in Canada and other countries have become important contributions to the existing product diversity, short production runs, high cost and low productivity in relation to performance in other countries. A further important area is the pattern of decision making in Canada which has led to a survival strategy and resistance to change rather than innovation, creativity and risk taking. This tends to perpetuate the lower levels of productivity found to exist.

In the light of this analysis of economic factors and decision making, the paper makes some broad recommendations on the role of management scientists, the need for change in management style, and changes in tariffs that would accelerate change and would recognize the importance of interdependence for more efficient performance. The paper concludes on the theme “The Time is Now!”
Comment: Corporate Planning that Works
Authors: McCaskill Donald B.
Published: November 2008

In short, management science models must deal with significant unstructured problems or supplement existing decision processes within an organization, to be of any use. To contribute to the improvement of corporate planning in Canada, management scientists must learn how to generate commitment to their models among management. They must achieve such commitment gradually, for it is impossible to take an operating manager out of the main stream, protect him from his peers and then get him to change his personalized way of taking action. Based on my experience management scientists, for the most part, have not had the patience to create commitment to their methods.
Comment: Computer-Based Decision Systems and Canadian Management
Authors: Grindlay Andrew A. , Cummer Gordon
Published: November 2008

We interviewed 65 senior executives in 42 organizations and asked them about their use of computers in decision making and found that: 1. In the 42 organizations studied, none had a functioning, fully integrated Corporate Decision-Information System. 2. With the exception of budget preparation, little use is being made of the computer for strategic planning purposes in Canada. 3. The computer appears to be used mostly to help lower and middle levels of management but has not found much use in the mahogany-panelled offices in the executive suite.
Communications Environment and its Relationship to Organizational Structure
Authors: Conrath David W.
Published: November 2008

This paper is concerned with the relationships between modes of communication, the communication environment and organizational structure. This is a very neglected area of organizational analysis, which is surprising considering the possible implications of such relationships. A framework is presented within which the above relationships can be identified and studied.

Field research methodology is essential to the effort and is discussed in some detail, along with the associated problems of measure and measurement of organizational communications behaviour and organizational structure.

An empirical study is described, and some initial propositions tested. Distance appears to be a dominant factor in the mode of communication chosen, and it strongly influences the association of formal structural relations with modes of communication. Such conclusions are tentative, however, as we are describing an on-going research effort.
Forest Fire Detection Systems Design
Authors: Harnden Boyd M. , Maher P. Michael , Martin Gregory A.
Published: November 2008

Empirical data would suggest that forestry managers have been hesitant in their adoption of a management sciences approach to their problems of prevention, detection and suppression of forest fires. A joint program of research has been undertaken between the Alberta Forest Service and the Faculty of Business Administration and Commerce at the University of Alberta in an attempt to develop, test and evaluate state-of-the-art management science approaches to the problems of forest management. This paper outlines the program of research being undertaken and describes a simulation model which has been developed as part of the research program. The model, which can be readily adapted for analysis of any forest, has been used to examine various fire detection strategies for the Footner Forest in Northern Alberta. The results from this examination are presented along with the results from the goodness-of-fit tests used to validate the model. The model is presently being used and evaluated by forestry personnel.
Simulation, Synthesis and Urban Public Decision-Making
Authors: Goldberg Michael A.
Published: November 2008

The 1960's saw the introduction of simulation techniques into the area of urban and regional planning. The present paper describes a large-scale urban simulation effort currently underway in Vancouver, British Columbia. The project differs from similar work in a number of ways. Most notably, the current effort stresses the process of model-building, including the widespread public use and discussion of the work and its limitations.

The paper emphasizes this process orientation, and illustrates the content of the models with a detailed description of the economic submodel. This submodel combines input-output analysis with a simulation model of final demands to yield consistent economic forecasts for the region. Capsule summaries of the other submodels are also presented. The paper concludes with a focus on questions of use and misuse of simulation models.
A Simulation Model for the Evaluation of Fishing Trawler Designs
Authors: Nickerson T. B. , O'Flaherty T. G. , Rice D. W.
Published: November 2008

This paper describes the development, testing, validation and application of a computer simulation model. The model is designed to determine the economic potential of a specified offshore stern fishing trawler.

The basic structure of the model consists of four sections: (1) Skipper section-this is the decision-maker in the model; (2) Vessel section—the vessel with its crew carry out the actions decided on by the skipper. (3) Environment section—distributions are specified here for catch rates and weather conditions, varying over time. (4) Operational section—this section contains the overall time-keeping function, financial accounting routines, data banks, and so on.

Validation was carried out by specifying to the program particulars of actual vessels for which operational data existed, and then comparing the model results with the actual recorded results.

The model was applied to identifying, from among a range of vessel designs, those that ranked highest according to various specified economic criteria.
A Computation Study on Start Procedures, Basis Change Criteria, and Solution Algorithms for Transportation Problems
Authors: Glover Fred , Karney D. , Klingman D. , Napier A.
Published: November 2008

This paper presents an in-depth computational comparison of the basic solution algorithms for solving transportation problems. The comparison is performed using “state of the art” computer codes for the dual simplex transportation method, the out-of-kilter method, and the primal simplex transportation method (often referred to as the Row-Column Sum Method or M O D I method). In addition, these codes are compared against a state of the art large scale LP code, O P H E L I E/LP.

The study discloses that the most efficient solution procedure arises by coupling a primal transportation algorithm (embodying recently developed methods for accelerating the determination of basis trees and dual evaluators) with a version of the Row Minimum start rule and a “modified row first negative evaluator” rule. The resulting method has been found to be at least 100 times faster than OPHELIE, and 9 times faster than a streamlined version of the SHARE out-of-kilter code. The method's median solution time for solving 1000 × 1000 transportation problems on a CDC 6600 computer is 17 seconds with a range of 14 to 22 seconds.

Some of the unique characteristics of this study are (1) all of the fundamental solution techniques are tested on the same machine and the same problems, (2) a broad spectrum of problem sizes are examined, varying from 10 × 10 to 1000 × 1000; (3) a broad profile of nondense problems are examined ranging from 100 percent to 1 percent dense; and (4) additional tests using the best of the codes have been made on three other machines (IBM 360/65, UNIVAC 1108, and CDC 6400), providing surprising insights into conclusions based on comparing times on different machines and compilers.
An Application of Mixed Integer Programming in the Direct Mail Industry
Authors: Kalvaitis Rimas , Posgay Anthony G.
Published: November 2008

The object is to help a mailing list compilation company (M.C.R.B.) to select the most promising types of mailing lists for development and to schedule the development of the selected lists in one of the two available production facilities. A mixed integer programming model is used to perform the selection and the scheduling task. The formulation of the model places the solution technique in the general family of “project selection” models. The problem was solved using CDC's OPHELIE II code. The size of the program is 229 rows by 871 variables of which 65 are zero-one. As a result of the study, management substantially modified the company's product mix and reduced the level of production resources employed. There was a marked improvement in the profitability of the Company.
Multicommodity Distribution System Design by Benders Decomposition
Authors: Geoffrion A. M. , Graves G. W.
Published: November 2008

A commonly occurring problem in distribution system design is the optimal location of intermediate distribution facilities between plants and customers. A multi-commodity capacitated single-period version of this problem is formulated as a mixed integer linear program. A solution technique based on Benders Decomposition is developed, implemented, and successfully applied to a real problem for a major food firm with 17 commodity classes, 14 plants, 45 possible distribution center sites, and 121 customer zones. An essentially optimal solution was found and proven with a surprisingly small number of Benders cuts. Some discussion is given concerning why this problem class appears to be so amenable to solution by Benders' method, and also concerning what we feel to be the proper professional use of the present computational technique.
Self-Scaling Variable Metric (SSVM) Algorithms
Authors: Oren Shmuel S. , Luenberger David G.
Published: November 2008

A new criterion is introduced for comparing the convergence properties of variable metric algorithms, focusing on stepwise descent properties. This criterion is a bound on the rate of decrease in the function value at each iterative step (single-step convergence rate). Using this criterion as a basis for algorithm development leads to the introduction of variable coefficients to rescale the objective function at each iteration, and, correspondingly, to a new class of variable metric algorithms.

Effective scaling can be implemented by restricting the parameters in a two-parameter family of variable metric algorithms. Conditions are derived for these parameters that guarantee monotonic improvement in the single-step convergence rate. These conditions are obtained by analyzing the eigenvalue structure of the associated inverse Hessian approximations.
Decisions on Social and Technological Tasks Incorporating Expression of Preference and Environmental Insult
Authors: Dooley J. E.
Published: November 2008

A task of a social or technological nature is to be undertaken. There are n methods that can be used singly or in combination to accomplish the task. Several insults to the social and aesthetic factors expressing quality of life occur as a result of the task. The problem is to obtain a measure of importance for the factors and then use this to evaluate the alternatives. The paper attempts to integrate a number of components of this problem that have been dealt with extensively in the literature, in a way that provides information for the decision maker. A case study is reported and several problems needing further research are discussed.
General Planning Horizons for Production Smoothing with Deterministic Demands
Authors: Kunreuther Howard C. , Morton Thomas E.
Published: November 2008

In Part I of this paper, we developed an algorithm for finding planning horizons for the deterministic production smoothing problem when all demand was required to be met from regular production, under rather general assumptions for the production, production smoothing, and holding cost functions. Here, in Part II, we develop analogous planning horizons when the model is extended to include such factors as overtime, lost sales, simple subcontracting, undertime, and backlogging. Part II depends heavily on Part I.

To avoid unnecessary tedium, all cost functions will be assumed to be stationary in Part II. Overtime, undertime, holding, and backlogging will be assumed to be convex increasing, all other costs linear and proportional. However, it is not difficult to see that the techniques of Part I can be utilized directly to cover more general cost functions. Part II concludes with a discussion of the application of our general approach to actual data.
Labor Flexibility in Multiechelon Dual-Constraint Job Shops
Authors: Frye John S.
Published: November 2008

In this paper a simulation study of the effects of labor flexibility on the performance of a multiechelon dual-constraint job shop is described. Machines and workers are constraining resources in the hypothetical shop. The organizational structure of the shop consists of divisions comprised of work centers that contain machines and workers. There are fewer workers than machines. Independent variables are interdivisional and intradivisional labor flexibility. Mean flow-time, flow-time variance and worker transfers between divisions and work centers are used as measures of shop performance.

Labor flexibility is shown to have a major effect on shop performance. The effectiveness of interdivisional labor flexibility as a management variable is found to be concentrated in the region of high flexibility while intradivisional labor flexibility is most effective in the region of low flexibility.
Cost Minimizing Single Sampling Plans with AIQL and AOQL Constraints
Authors: Ercan Sedat Sami , Hassan M. Zia , Taulananda Ajva
Published: November 2008

This paper investigates and formulates the relationships among average incoming quality limit (AIQL), production process quality level and average fraction defective after production process for a single-stage manufacturing connected-unit situation. Cost components of the system are identified. In order to derive minimum cost single sampling plans where inspection is by attribute, a mathematical model is developed and plans are obtained using discrete optimization for the total expected loss function subject to AIQL and AOQL equality constraints.
Optimal Production Smoothing and Safety Inventory
Authors: Schneeweiss Christoph A.
Published: November 2008

A new approach is suggested to solve a production smoothing problem. The problem is divided essentially into two subproblems. First the derivation of the optimal smoothing policy is given for a model having a quadratic cost structure. The second step then takes into account the special features of the actually given nonquadratic cost functions. In the framework of a special model the applicability of this approach is discussed.
Erratum—The Political Properties of Crystalline H2O: Planning for Snow Emergencies in New York
Authors: Savas K. S.
Published: November 2008

Erratum—The Political Properties of Crystalline H2O: Planning for Snow Emergencies in New York (Vol. 20, No. 2 (October 1973), pp. 137–145).
Autonomy, Gratification and R & D Outputs: A Small-Sample Field Study
Authors: Souder William E.
Published: November 2008

Thirty-two research and development scientists working under high and low autonomy conditions were studied for differences in attitudes and behavior, and their (thirty-two) one-man projects were studied for differences in output levels. High autonomy development scientists were found to have higher levels of work gratification and interpersonal compatibility than their low autonomy counterparts. For research scientists, no such attitudinal and behavioral differences were found between high and low autonomy conditions. Development projects were found to have generally higher levels of outputs than research projects, where outputs were measured in terms of the percent technical problems solved and the project degree of achievement. However, for both research and development projects, the output levels did not vary with the degree of autonomy. Taken together, the detailed results indicate that the work orientation of a project, research or development, can have a significant influence on project outputs. By contrast, the degree of autonomy may only influence certain attitudinal and behavioral dimensions, which may be unrelated to output levels. These results are consistent with the conventional wisdoms, and their implications for management are largely in accord with modern management practices.
A Search Procedure for Policy Oriented Simulations: Applications to Urban Dynamics
Authors: Nelson Carl W. , Krisbergh Harold M.
Published: November 2008

The application of a computerized optimum-seeking search procedure, called Razor Search, to large-scale simulation experiments is presented using the language of control theory. Results of the search procedure's use with the Urban Dynamics model are given and discussed.
Optimal Weighted Ancestry Relationships
Authors: Glover Fred , Klastorin T. , Kongman D.
Published: November 2008

A solution method is given for a class of practical optimization problems requiring the determination of a consistent partial ordering for sets of objects, events, preferences, and the like. These problems are characterized by the existence of “noisy” (or contradictory) links of varying strengths. The origin of this class of problems is an anthropological study in which it is desired to specify a global chronological ordering of ancient cemetery data. A mathematical formulation is given which results in a minimum weight feedback model. A heuristic is developed similar to the Greedy algorithm for minimum weight spanning trees which requires only one pass through the network.
Mathematical Programming Models for the Determination of Attribute Weights
Authors: Pekelman Dov , Sen Subrata K.
Published: November 2008

Several versions of a mathematical programming model which determines attribute weights for each consumer are empirically eavluated using data on dry cereals and automobiles. The model is found to be a good predictor of consumer preferences, particularly for dry cereals. Managerial implications for product repositioning, new product design, and market segmentation are discussed in the paper.
Representational Systems Theory
Authors: Betz Frederick , Mitroff Ian I.
Published: November 2008

The methodology of simulation involves a representational approach to observed phenomena. Systems theory has been, in the past, more terminology than theory. However, a logical classification of the possible representational forms available for any simulation would serve as a meta-theory in simulation methodology.

This paper presents such a classification based upon an analysis of the possible kinds of relations of explanation which can be used to connect elements of existential sets. Four types of relations are possible: cause-effect, producer-product, genetic, accidental. Of these, only two (the cause-effect and producer-product) have been used to construct formal representations in science: ateleological and teleological representations. This taxonomy, together with the notions of open and closed systems, provides a logical framework for any general form of a simulation. We show how familiar paradigms such as decision theory, allocation problems and stochastic processes are derived in this representational theory.
Multi-Echelon Production Scheduling When Demand is Stochastic
Authors: William Jack F.
Published: November 2008

This paper presents a dynamic programming algorithm for determining optimal production in a series type multi-echelon inventory system with stochastic final product demand. Setup costs at individual facilities are permitted. For the case where it is physically possible (but not required) for a product unit to pass through all the facilities within a single time period, a second dynamic programming algorithm is presented which can be used in conjunction with the first to substantially decrease computation time. The model can also be readily specialized to the case of deterministic demand and permits a larger class of cost functions than existing deterministic multi-echelon models.
The Triangular E-Model of Chance-Constrained Programming with Stochastic A-Matrix
Authors: Gochet Willy F. , Padberg Manfred W.
Published: November 2008

The triangular model of chance-constrained programming with stochastic A-matrix and deterministic right-hand side is considered. The use of conditional probabilities makes it possible to solve this problem for any type of distribution function of the elements of the A-matrix provided that there is only one decision variable at each stage. The extension of the model to several decision variables per stage is possible under certain conditions and for special distribution (stable distributions) of the elements of A.
Some Further Thoughts on the Minimax Principle
Authors: Davis Morton
Published: November 2008

In a recent paper Aumann and Maschler [Aumann, R. J., M. Maschler. 1972. Some thoughts on the minimax principle. Management Sci. 18 (5, Part 2, January) P-54.] (we will subsequently refer to them as A-M) raised some questions about certain matters that had long been considered settled. In their words, “It is generally agreed that the minimax solution to a two-person zero-sum matrix game is intuitively satisfactory. Now in many applications of game theory a game is not described in matrix (or ‘normal’ or ‘strategic’) form, but rather in extensive form, i.e., by its rules. A game described in such a way may be reduced to a matrix game by means of the concept of ‘strategy.’ If, moreover, it is of perfect recall, then all mixed strategies, and in particular the optimal strategies of each player, are equivalent to behavior strategies The usual conclusion from these considerations is that for 2-person 0-sum games in extensive form, the minimax solution is intuitively satisfactory, and that in games of perfect recall, in particular, the players would do well to play in accordance with optimal (minimax) behavior strategies. In this paper we shall discuss some examples that, we believe, cast doubt on these conclusions.”
Note—Dynamic Facility Location and Simple Network Models
Authors: Erlenkotter Donald
Published: November 2008

Wesolowsky [Wesolowsky, G. O. 1973. Dynamic facility location. Management Sci. 19 (11, July) 1241–1248.] has examined a dynamic version of the location problem for a single facility, obtained by allowing relocation of the facility over time to optimize a cost or benefit expression. This problem is essentially one of facility replacement, and may be expressed and solved through a simple network model as in deterministic equipment replacement situations ([Veinott, A. F., Jr., H. M. Wagner. 1962. Optimal capacity and scheduling—I. Oper. Res. 10 (4, July–August) 518–532 and Wagner, H. M. 1969. Principles of Operations Research. Prentice-Hall, Englewood Cliffs, New Jersey, pp. 180–181 and pp. 340–342.]).
Rejoinder
Authors: Wesolowsky George O.
Published: November 2008

Rejoinder to the previous note (Erlenkotter, D. 1974. Note—Dynamic facility location and simple network models. Management Sci. 20 (9) 1311.).
Communications to the Editor—A Discussion of Minimax
Authors: Owen Guillermo
Published: November 2008

The author clarifies his position on the minimax principle.
Comment on “Economically Optimum Design of Cusum Charts” by A. L. Goel and S. M. Wu
Authors: McLaughlin Curtis P. , Khumawala Basheer M.
Published: November 2008

This note questions the authors' claim for optimality in designing cusum charts using the heuristic pattern search method.
Rejoinder
Authors: Goel Amrit L.
Published: November 2008

Rejoinder to the comment (McLaughlin, C. P., B. M. Khumawala. 1974. Comment on “Economically optimum design of cusum charts” by A. L. Goel and S. M. Wu. Management Sci. 21 (1) 115.).
A Sequential Algorithm for a Class of Programming Problems with Nonlinear Constraints
Authors: Jagannathan R.
Published: November 2008

The purpose of this paper is to furnish a computational scheme for a class of programming problems with nonlinear constraints. The algorithm is sequential in nature, producing a sequence of feasible solutions whose limit points are optimal solutions of the original problem. Further, with a view to accelerating convergence we suggest two variants of the solution procedure.
Job Shop Scheduling with Due Dates and Overtime Capability
Authors: Holloway C. A. , Nelson R. T.
Published: November 2008

A scheduling procedure is proposed for the static job shop problem with job due dates and overtime capability. An example is used to demonstrate the procedure and the generation of trade-off curves relating overtime and total tardiness for use in managerial evaluation of alternative schedules. Results are reported for a set of trial problems having 30 to 98 processing operations. An extension of the procedure is described for dynamic job shop scheduling.
Dynamic Price Models for New-Product Planning
Authors: Robinson Bruce , Lakhani Chet
Published: November 2008

The major points established in this paper are: classic marginal pricing is far from optimum for a rapidly evolving business; more appropriate dynamic models can be formulated if one has some feeling for the dominant evolutionary forces in the business environment; and, planning based on the dynamic models can lead to a significant improvement in the long run profit performance. Two developments in the management science literature, the experience curve phenomenon and market-penetration models, are used to illustrate the nature of the dynamic feedback between market and production activity which causes a new growth business to evolve. A specific illustrative example is offered which demonstrates the fact that dynamic price models can be used to test the long run consequences of specific pricing rules or to determine the optimum long run pricing scenario within the context of any constraints which a manager might wish to impose. As opposed to the conventional static theory which emphasizes the instantaneous profit flow, the dynamic models use an appropriately discounted accumulated profit as the major parameter for making value judgments. The specific example considered emphasizes the importance of these ideas for a growth market and suggests that dynamic models can lead to as much as an order of magnitude more profit in the long run than the conventional static theory. More modest, but significant, improvements in long run performance can be obtained in a moderate growth business.
Implementation of Analytical Planning Systems
Authors: Moses Michael A.
Published: November 2008

Decision makers in large organizations are faced with numerous alternative allocations of investment funds, financing possibilities and governmental and financial restrictions. Sophisticated strategic planning systems can enhance management's decision efficiency by assisting in the selection and implementation of optimal policies. This paper describes one such system with emphasis on the design concept and the planning procedure in its particular organizational setting. For demonstration purposes, the example of implementation experience in acquisition analysis is presented.
Multi-Item Lot Size Scheduling by Heuristic Part II: With Variable Resources
Authors: Newson E. F. Peter
Published: November 2008

In Part II, the CLSP Heuristic of Part I is extended to include variable capacity constraints—in this case the ability to adjust workforce levels and to employ overtime. The paper concludes with computational results for both the fixed and variable capacity heuristics.
Optimal Portfolio Revision with a Proportional Transaction Cost
Authors: Kamin Jules H.
Published: November 2008

The theory of the optimal investment decision is reexamined for a case in which the portfolio initialization problem is trivial but the portfolio adjustment decision presents some new and important problems. The investor is assumed to be a risk-averse expected utility maximizer whose portfolio consists of two risky assets. His objective is to maximize his expected utility at some time horizon, and there is a transaction cost for intermediate adjustment of the portfolio proportional to the value of assets traded. The solution for the optimum adjustment strategy consists of a set of pairs of control limits for the ratio of the amounts of the assets in the portfolio, one pair for each decision opportunity.

The model falls naturally into the class of “cash balance” and dynamic portfolio selection models. The most important departure from both of these subclasses of models is the explicit consideration of more than one risky asset in the portfolio together with the transaction cost. The introduction of the transaction cost implies investor behavior which is systematically different from that implied by the no-transaction-cost dynamic portfolio selection models. The implied behavior is, however, quite similar in form to that implied by the cash-balance models, in which the objective is expected cost minimization.
Economic Design of Fraction Defective Control Charts
Authors: Montgomery Douglas C. , Heikes Russell G. , Mance Joseph F.
Published: November 2008

An expected cost model for the fraction defective control chart for the case where there are several out-of-control states is developed. A procedure is presented for determining the sample size, control limit or critical region, and interval between samples which minimizes the expected cost of control per unit of product. The expected cost of control consists of the cost of sampling, the cost of investigating and possibly correcting the process when an out-of-control condition is indicated, and the cost of producing defective product. Direct search techniques are used to optimize the expected cost function. Numerical examples and sensitivity analysis of the model are presented.
The Solution of Leontief Substitution Systems using Matrix Iterative Techniques
Authors: Koehler Gary J. , Whinston Andrew B. , Wright Gordon P.
Published: November 2008

This paper considers the possibility of solving certain large scale linear programs using iterative procedures. The class of problems is characterized and a solution procedure developed. The advantages and computational efficiencies are noted in comparison to the product form Revised Simplex procedure. Applications are cited.
Bounds for Preference Function Assessment
Authors: Bradley Stephen P. , Frey Sherwood C.
Published: November 2008

It is well known that when an individual assesses a preference (utility) function, the set of assessed gambles and certainty equivalents is often inconsistent and, if consistent, many preference functions may satisfy the assessments. Mathematical programming is employed to examine properties that might be useful in a sequential determination of the individual's preference function. Specifically, given a consistent set of assessments, if an additional gamble were to be assessed, upper and lower bounds can be found for the probability of the better consequence of the gamble when the certainty equivalent is specified and also bounds for the certainty equivalent of the gamble when the probabilities are specified such that the augmented set of specifications remains consistent. The results are given for general, as well as risk averse preference functions.
A Note on Optimal Service Selection in a Single Server Queue
Authors: Schassberger R.
Published: November 2008

In an M/G/1 environment with finite waiting room, the server, for each new customer to be served, may choose any of k different service modes. Under a certain cost structure and certain assumptions about the different “speeds” of service it is shown that the search for an optimal policy can be restricted to a relatively small class of possible policies. Using this information simple and feasible algorithms may be designed to explicitly obtain an optimal policy.
Note—Planning and Forecast Horizons for the Bond Refunding Problem
Authors: Friedman Yoram , Lieber Zvi
Published: November 2008

This paper discusses the planning horizon issues of the dynamic bond refunding problem, when interest, floatation and call costs are changing arbitrarily over time and are deterministic. A planning horizon theorem is proved, enabling us to identify planning and forecasting horizons and thus reducing information requirements and increasing computational efficiency.
On a Conjecture of Iglehart
Authors: Hordijk Arie , Tijms Henk
Published: November 2008

This paper gives an elementary proof of Iglehart's conjecture about the classical dynamic inventory model. This conjecture states that the minimal total expected cost for a planning horizon of n periods minus n times the minimal long-run average expected cost per period has a finite limit as n → ∞ for each initial stock.
Comparative Evaluation of Some Interactive Approaches to Multicriterion Optimization
Authors: Wallenius Jyrki
Published: November 2008

This paper describes the results of a laboratory experiment the purpose of which was to compare from a human decision-maker's point of view the performance of the interactive methods for multicriterion optimization recently developed by Geoffrion and Benayoun et al. (STEP-method), and a simple trial-and-error procedure for solving the multiple criteria problem. All the methods were tested on a time-sharing system using as subjects both business school students and managers recruited from industry. The experimental context chosen is a problem of planning production, inventory and labour for a fictitious company.
Investment Analysis Using the Probability Distribution of the Internal Rate of Return
Authors: Fairley William , Jacoby Henry D.
Published: November 2008

The probability distribution of the internal rate of return of an investment is derived under conditions where uncertainty in costs and returns can be described by a multi-variate normal distribution. The paper sketches the derivation of the exact probability distribution for the rate of return and gives the normal approximation to this distribution when variances of period costs and returns are small. A number of typical normal probability models are discussed in order to demonstrate the flexibility of the approach. An extended application of the analysis is presented using a World Bank appraisal of a hydroelectric power investment in Argentina.
Planning for Computer Networks: The Trade Analogy
Authors: Berg Sanford V.
Published: November 2008

This paper shows how the theory of international trade provides a useful framework for examining policy issues confronting educational resource sharing networks. It explores how the basis and gains from trade in free enterprise and centrally planned economies may be related to computer networks. In particular, institutions and procedures developed in the context of international trade and finance suggest ways to facilitate multilateral exchange and to cushion the adjustment process within a network.
A Note on “The Equivalence of Integer Programs to Constrained Recursive Systems”
Authors: Kafpauf Charles H.
Published: November 2008

Nanda proposes (Management Science, March, 1973) an algorithm for transforming a general integer programming problem with elements 0, +1, or −1 in the constraint matrix into an equivalent one in which the primary constraints are supposed to form an integral, recursive substitution system. Unfortunately, the algorithm does not always guarantee this. This note explains why and gives the addition which must be made to the algorithm to yield the results desired by Nanda.
The University Library: Analysis and Proposals
Authors: Weinberg Charles B.
Published: November 2008

The operation of the university library as a means to supply information is examined. It is shown that despite the increase in size of libraries, their standard of service is declining. Reasons for this decline are advanced. The strategic goals of the library are redefined with implications for the library's acquisition, shelving, and retention policies. A Bayesian approach is then developed for determining the information value of the library's resources. In contrast to other work in this field, stress is placed on user evaluation of the library's resources. The approach developed is applicable to decisions relating both to the acquisition of volumes and the maintenance of collections.
Management Information Systems: Appreciation and Involvement
Authors: Swanson E. Burton
Published: November 2008

Failures in the implementation of management information systems (“MIS's”) can be attributed in part to a lack of managerial “involvement” and “appreciation.” The concepts of involvement and appreciation are defined, and their measurement in a real-world research setting is presented. The testing of several hypotheses in this setting indicates that managers who involve themselves with the MIS will appreciate the system, and that managers who are uninvolved will be unappreciative.
A Parametric Decomposition Approach for the Solution of Uncapacitated Location Problems
Authors: Swain Ralph W.
Published: November 2008

This paper presents a new approach to determining the optimal facility locations for uncapacitated location problems in two stages. First, it is shown that a subset of all solutions to the uncapacitated public facility location problem can be obtained by considering a closely related private location problem. The exact nature of the problem is established using the Generalized Lagrange Multiplier results given by Everett. In the second section of the paper a particularly efficient parametric decomposition algorithm, which is based on the results of the first section, is presented. Computational results are given which summarize the current level of experience with the algorithm.