bluuebunny/crossref_metadata_2025 huggingface dataset:
A Tool for More Effective Financial Analysis
Authors: Cooper D. O. , Davidson L. B. , Denison W. K.
Published: October 2008

Investments totaling billions of dollars annually are now required of the nation's energy companies in order to keep up with the nation's needs. Getty Oil Company itself is now investing $200 to $300 million annually. This requires many significant investment decisions each year, and the fortunes of the corporation are tied to the wisdom of the choices. The incentive to excel is a strong one—avoiding even a few bad investments can save millions of dollars.

This incentive has fostered a dynamic evolution in our financial analysis. Decisions once necessarily based on limited information and short-cut discounted cash flow calculations are now supported by much more thorough and rapid analysis. Financial analysts who seldom never used computers are now directly and effectively exploiting this resource to extend their capabilities. A key factor in this progress is PAMS, the Plan Analysis and Modeling System.

PAMS is designed for a more complete approach to financial investigation than most other systems. It is a computer system that does all phases of analysis work. It has features for: extensive data management, complete yet flexible calculations, and tabular and graphic management reports. The PAMS approach is used today for hundreds of applications in Getty, from project analysis to a corporate model, from price forecasting to acquisition and divestment analysis.

PAMS has had a major impact by helping to achieve: Better investment decisions, Improved long-range planning, New more effective approaches to financial analysis, Company-wide introduction of new concepts such as risk analysis.
A Comment on Blanning's “Metamodel for Sensitivity Analysis: The Regression Metamodel in Simulation”
Authors: Kleijnen Jack P. C.
Published: October 2008

The purpose of this note is to provide some statistical tools to make operational the idea of “metamodels” as discussed by Blanning (Blanning, R. W. 1974. The sources and uses of sensitivity information. Interfaces 4 (4, August) 32–38.) in a recent issue of Interfaces. He distinguishes between the simulation model or “decision model” itself and its approximation called the “metamodel”. An example of a simulation model may be a GPSS program for a queuing system, or a FORTRAN program for an inventory system. The purpose of the metamodel is to measure the sensitivity of the output (e.g., mean waiting time, mean inventory cost) to the inputs, the inputs being either decision variables (e.g., number of service stations, reorder point) or environmental variables (e.g., arrival rate, demand). The sensitivity to decision variables is required for finding optimal or sufficient solutions. The sensitivity to the environmental variables is needed to determine the validity range of the proposed solution. If the solution is very sensitive to the values of the environmental variables, then good estimates of these variables are needed, or suboptimal but more robust solutions (i.e., decision rules) may be suggested, etc.; see also Blanning (1974). As a “metamodel” to study these sensitivities, we propose the linear regression model.
Response to Michel, Kleijnen and Permut
Authors: Blanning Robert W.
Published: October 2008

Professors Michel and Permut have identified an important application of metamodels. Metamodels may be used to determine the need for accuracy in a forecasting model that provides input to a decision model.

This suggests an interesting possibility—an analyst may wish to construct a metamodel of the forecasting model as well. This metamodel can be combined with the metamodel of the decision model (using the chain rule of differential calculus) to provide a single metamodel for the complex of models.
Information Science in Management Science—Data Base Management Systems
Authors: Vazsonyi Andrew
Published: October 2008

In my last column I focused on the dual aspects of information systems, namely operators and operands. The need for algorithmic languages and way of thinking I covered last November. Now I will focus on the importance of data and its structure.

The same data is used by many programs, perhaps in different forms, and even in contradictory manner. Updating, modifying and auditing data becomes expensive. Each time an application program is changed or a new one written, new files must be created, new storage space required and problems are compounded.
Practice of Management Science—A Simulation Model of the College Admission Process
Authors: Holzman Albert G. , Johnson Donald B.
Published: October 2008

A computer simulation model, capable of operating in a conversational mode, was developed to enable a college admissions director to evaluate the outcome of a given decision policy before its actual implementation. A major advantage of this work is that it recognizes the uncertainty of the parameters in the admissions process, and includes a systematic sampling procedure for developing more accurate estimates of the parameters as new information is received.
Information Science in Management Science—The Quest for a Theory of Management Information Systems
Authors: Vazsonyi Andrew
Published: October 2008

At the June 1968 symposium on Management Information Systems at Carnegie Mellon University, Charles Kriebel, discussing theoretical frameworks for MIS, predicted that it would be “unlikely that a major breakthrough will occur during the 1970s.” He also predicted that he would “expect the major change to be an increasing awareness for the need for … and explicit framework.…” Today most agree that there is need for a theory, but few would say that such a theory exists or is even in the making. Yet it appears there are some theories on the horizon that deal with information and management scientists should be interested in the nature of these theories.

In my August 1973 column, when discussing Semantic Pollution in Information Systems, I used the word theory to illustrate Trap #7 of semantics: One symbol—one meaning. So, using my own recipe, before discussing a theory of Management Information Systems, I should explore the meaning of theory.
The Fifth Column—Three Short Studies in Industrial Psychology: Time, Don Juan & Motivation
Authors: Woolsey Gene
Published: October 2008

Three essays: (1) On not consulting for the Feds, horology and other depravities, (2) Return from Ixtlan or Don Juan strikes again, (3) Studies in human nature I: Optimum subcontracting.
Management Reporting System: A New Marriage Between Management and Financial Data Through Management Science
Authors: Bruce James W.
Published: October 2008

This paper reports a significant combination of a linear-programming model of the Liberty, a communication system which visually depicts the model's output by electronically-produced graphics, and a planning concept which has produced a new, more sensitive approach to asset/liability management of a banking organization in an increasingly volatile financial environment.

During the past decade, banks generally have increased leverage and reduced liquidity, thereby making them increasingly vulnerable to interest rate volatility. The Management Reporting System (MRS) described is a practical and unique approach in marrying the various sophisticated disciplines necessary for effective management given such constraints. Liberty's Chairman credited the system with 25¢ per share of the 1973 Operating Earnings and noted that the mix of bank assets and liabilities now can be guided by precise, automated facts, rather than by mere “seat-of-the-pants” instinct. In its 1972 Annual Report, the Corporation stated its 1973 earning's goal “because of the reliable way our Management Reporting System has functioned in 1972.” That objective was met even though economic conditions were vastly different than assumed. The MRS's use permitted the timely adjustments necessary to manage earnings and achieve the publicly stated objective.

The paper also explores a more realistic and sensitive approach to liquidity management developed at Liberty. Its impact and value was not only demonstrated during the 1974 liquidity crunch but by its adoption at several of the leading banks across the United States.
A Model to Schedule Sales Optimally Blended from Scarce Resources
Authors: Reddy James M.
Published: October 2008

In early 1973, it became apparent to the management of the Swift Chemical Company that the overcapacity and consequent general recession in the fertilizer industry was rapidly coming to an end. This paper describes the design, implementation and impact of the model developed to help them both plan for and operate under the new market conditions.

The model is a linear program of the Swift Chemical Company Phosphate Rock Mining and Sales Operation. The model starts with mining forecasts and optimally blends the rock to fill contracted sales in a multiple period environment. The results of a run include suggested scheduling of shipments by month for the current year, anticipated revenues intermediate inventory positions, and any outside purchase requirements.

A full 12 month run contains approximately 1,400 rows and 4,000 columns. Mine plans and sales requirements are entered on forms familiar to the nontechnical personnel in charge of running the model. Separate FORTRAN programs convert the data to usable form, automatically generate the Linear Program Matrix, solve the problem (Using IBM's MPSX), analyze the solution, revise the matrix and resolve the problem since the objective function is nonlinear, and produce output reports which summarize all the information in a form that nontechnical people can readily understand.

The model has been in operation about 15 months and has helped the management to plan both short range and long range sales strategies, along with the initial objective of optimizing on the mining and blending of rock. Validation runs indicate the model is increasing profits by several million dollars per year over a parallel manually prepared plan.
Practice of Management Science—Implementation of Computer Assisted Underwriting
Authors: Johnson James W.
Published: October 2008

The implementation strategy was the key to success of the Computer Assisted Underwriting System at Equitable (CAUSE). Four goals, demonstrate technical and economic feasibility at an early stage, minimize future shock resulting from the confrontation between underwriters and computers, improve control of the process through appropriate changes in underwriting procedures and management monitoring mechanisms, and minimize input prepared manually and minimize computer running costs, were addressed in turn by dedicating one phase of a four-phase prototype approach to each goal. Implementation went as well and as quickly as could reasonably have been expected, supporting the propositions that: Implementation should be the first concern when planning a project and mobilizing resources; implementation discipline is as important as model-building discipline; a four-phase prototype approach is an attractive discipline for addressing implementation goals in the preferred sequence; and, use of the prototype strategy has a significant impact on system architecture and programming tactics.
Note on a Survey on Evaluation of Operations Research Projects
Authors: Daellenbach H. G.
Published: October 2008

The main objective of this sampling survey on the 300 largest U. S. industrials listed in the 1973 Fortune Directory was to find an estimate of the required rate of return on the initial investment in an OR project. This note summarizes the results obtained.
Behavioral Science—Is There a “Radical” Organization Design in the House?
Authors: Braunstein Daniel N.
Published: October 2008

During three magnificent Indian summer days at the University of Illinois this fall, about thirty specialists in organizational behavior gathered for a workshop-conference in “radical approaches to organizational design”. Presiding were, Lou Pondy, current chairman of the TIMS College on Organizations, and Ken Rowland, past president of the Academy of Management. Both Pondy and Rowland are professors in an active organizational behavior graduate program on the Illinois campus. Also represented were a number of other universities, and six different government agencies. A brief overview of some presentations follows.
Applied Optimization—A Survey
Authors: Gray Paul , Cullinan-James C.
Published: October 2008

Although everyone talks about applying optimization, it is conventional wisdom that professional journals never present any examples of applied optimization. It is the purpose of this paper to assess the extent to which optimization applications are being published. To keep this task within bounds, yet provide a meaningful survey, this paper considers: (1) Only work published in the recent MS/OR literature; (2) Work done abroad as well as in the United States; and (3) A variety, but not all optimization techniques.
Star Trek: An Optimum Decision Making Model
Authors: Hesse Rick , Altman Steve
Published: October 2008

Decision making is not only the province of operations research, management science, or decision science, but is something that everyone is interested in. Our profession simply claims that large scale decisions are better made by experts, or that experts can aid the common man in making such decisions. But for each of us, professional or layman, we have a lot to learn from Star Trek as a model for decision making. So let us turn our attention to this paradigm of problem-solving.
The Wizard Who Oversimplified: A Fable
Authors: Peterson Harold
Published: October 2008

An essay reprinted by permission of the Quarterly Journal of Economics, published by Harvard University. Portions of this article were revised for emphasis pertinet to the Interfaces audience of Operations Researchers.
Some Simple-Minded Observations on the Role of Optimization in Public Systems Decision-Making
Authors: Liebman Jon C.
Published: October 2008

Because public systems problems are frequently ill-defined and have fuzzy constraints and vague multiple objectives, their solution by means of formal optimization models is not widely accepted. This paper will explore the modes (both useful and otherwise) in which optimization has been applied to such problems. The need for optimization models which somehow “fit” the decision-makers' methods and backgrounds will be discussed. Several other aspects of public systems optimization will be considered, in a somewhat random fashion. This paper will raise more questions than answers.
The Fifth Column—A Triennial Editorial Policy
Authors: Woolsey Gene
Published: October 2008

Conversations and letters during the first few months of my tenure as editor of Interfaces show me that many people don't seem to know what my editorial position might be. I have assumed that anyone who didn't know by now what my position was has either: (a) Recently returned from a five year sojurn to Kafiristan, bringing stochastic programming to the Borzubi tribesmen, or (b) Doesn't read Interfaces, or (c) Has never caught one of my subtle attacks on theory-masquerading as practice at TIMS/ORSA/AIDS/APICS/ASQC/AIIE/ACM meetings. For these sins of omission and remission, I can only breathe a hearty Mea Culpa and take this chance to lay this question to rest.
Problem and Opportunity Identification in Management Science
Authors: Graham Robert J.
Published: October 2008

The development of OR/MS has been such that much emphasis has been placed on processes for solving problems with little or no regard for processes which identify problems. The field is replete with schemes and algorithms which assume that the problem has been nicely formulated as a mathematical statement. Textbooks abound with examples of these techniques, which usually start with a statement such as “Consider the problem …” But the haunting questions remain to be discussed. How did the analyst come about to consider that problem? How does the analyst know that this problem is the one that the client wants solved? How does the client know that he has a problem in the first place? This area of problem identification has long been ignored in textbooks or pushed aside with such assertions as “problem definition is an art,” implying that one must sit at the feet of a master for several years in order to gain the needed expertise. But when one does that, one finds that the master has certain methods he/she uses to identify and specify problems. I believe that these techniques are not as mystifying as one might think and that they can be discussed and generalized. I propose that this column be a forum for the exposition and generalization of problem identification techniques.
Implementation of OR/MS In Government and Industry: A Behavioral Science Perspective
Authors: Powell Gary N.
Published: October 2008

Little attention has been paid by OR/MS researchers to implementations of findings and to implementation as a research topic in itself. A review of the OR/MS literature shows that the field typically ignores human variables, both as components of models and as they affect the implementation of projects. As a result, the success of OR/MS in organizations has been less than originally anticipated. In comparison, the field of Organization Development (OD) places greater emphasis on human variables and on the relationship between the client and “change agent” and has a greater emphasis on applications. OD is weaker than OR/MS in its systems and interdisciplinary orientation. Both fields take for granted the system structure as it is. The success record of OR/MS will be improved by the field retaining its own strengths in comparison to OD, moving closer to OD in its weak areas, and seeking to be aware of power issues which impact on its efforts.
The Fifth Column—Three Digressions on the Routing of Trucks: Ice & Snow, Garbage & More Garbage
Authors: Woolsey Gene
Published: October 2008

An essay about routing garbage trucks and some other community problems in a town in Colorado.
Application of the Cube-Per-Order Index Rule for Stock Location in a Distribution Warehouse
Authors: Kallina Carl , Lynn Jeffrey
Published: October 2008

Consider a distribution warehouse divided into reserve storage and staging areas. The warehouse stores a variety of items and receives orders for any combination of items. Goods are moved from reserve storage to staging area, where they are selected to fill the given orders. The problem is to locate items in the staging area in order to minimize the expected labor costs of order selection. Several years ago, J. L. Heskett [Heskett, J. L. 1963. Cube-per-order index—A key to warehouse stock location. Transportation and Distribution Management 3 (April) 27–31.] proposed a criterion, called the cube-per-order index (CPO) rule, for solving this problem. The criterion was justified heuristically by means of numerical examples. Recently [Kallina, C. 1976. Optimality of the cube-per-order index rule for stock location in a distribution warehouse. Working paper, American Can Company, March.], one of the authors has shown that the class of problems considered by Heskett can be formulated as a linear program, and that the CPO rule is in fact the optimal solution. In this present paper, we will (1) summarize some basic background material, (2) describe the computational steps for implementation of the CPO rule, and (3) discuss some practical conclusions gathered from experience in actually applying the rule to assist in warehouse layout.
Management Science?
Authors: Sprague Linda G. , Sprague Christopher R.
Published: October 2008

We hold academic appointments at University-based schools of business/management in fields which come under the general description “Management Science.” So, we are subject to review by our departmental, college and university Promotion and Tenure committees. We also work with industrial clients—consulting, teaching, etc.—where our work is subject to such immediate criteria as practicality, applicability and clarity.

However, as our colleagues know, there is an important unresolved conflict between what is required to advance through the academic ranks and what is required to conduct oneself successfully in the industrial setting. The recent commotion over Machol's letter in OR/MS Today [Machol, Robert E. 1975. Journal readability (Letter). OR/MS Today (November) 6–7.] is one sign of this conflict: there the issue is focused on “Journal Readability.”
Information Systems in Management Science—The Decision to Inquire
Authors: Vazsonyi Andrew
Published: October 2008

I have proposed an approach where the agents of an MIS are modeled by the players of a mathematical game, and where the value of information is computed by developing the optimum strategy within the game theoretical framework. In this column I present a few simple examples to clarify the nature of the proposed calculus of information.
The Practice of Management Science—Introduction
Authors: Garber H. Newton
Published: October 2008

This edition of Interfaces provides the reader with evidence by which he can judge the achievement of the goal to promote practice in 1976. The articles included here are edited versions of the presentations which competed for the prize in 1976. They represent the final selection from a group of abstracts which were submitted in response to the call for entries. Specifically, they describe in each case a completed application of Management Science which has had a significant impact on the organization under study. As a result, they constitute a significant addition to the evidence of the value of Management Science in the real world.
Applying Simulation Techniques to Legislative Analysis: The Veterans and Survivors Pension Reform Act
Authors: Shepherd K. W.
Published: October 2008

The Veterans and Survivors Pension program of the VA has recently been under study by the United States Senate. The Senate Committee on Veterans Affairs has for the last two years been working on a number of proposals to reform completely both the income restrictions and the benefit structure of the pension program. The budget staff of VA has worked closely with the Committee staff to provide the data and analysis necessary for their consideration of this proposal.

Since fairly detailed financial case histories were available on current beneficiaries, simulation was chosen to generate cost estimates and beneficiary impact analyses for the various proposals. A case-by-case model was developed which simulates the two pension programs operating simultaneously for five years. The model uses a data base of 20,000 records, a 1% sample of the cases currently receiving pension. These records contain data on items such as age, number of dependents, amount and type of income received. After aging each case and passing it through a mortality routine, the individual types of income are updated based on various economic indicators; and it is determined which pension program would return the highest payment amount to the beneficiary. The beneficiary and his dependents are then assigned to the pertinent program and recycled until all five years have been completed.

Since the requirements for eligibility are changed by the reform proposal, new cases under reform would not necessarily have the same characteristics as new cases under the existing law. However, as the new requirements are generally more restrictive than current law, the new population of accessions should be a subset of the present population. This assumption is the basis of the procedure used to estimate future new cases in the model.

By using the output from the model, the staff of the Senate Committee was able to analyze the cost-benefit ratio of nearly 50 different proposals in a very short period of time. In the past, such detailed analysis of even one proposal would have been impossible.

The Veterans and Survivors Pension Reform Act was passed by the Senate in December, 1975, and is now under consideration in the House of Representatives.
Application of Linear Programming to Plywood Manufacture
Authors: Kotak Dilip B.
Published: October 2008

A linear programming model was developed in 1967 to determine an optimum balance between the available wood mix and the projected sales requirements for known production constraints. Since 1969 this model has been used to analyze potential opportunities and to produce an annual Operating Plan. This Plan contains operating details for raw materials, production and sales. It also contains contingency analyses for major assumptions, which arc analyzed by using parametric techniques. The Operating Plan also ties in with the financial budget.

The annual Operating Plan is implemented by scheduling and tracking the mill's production on a biweekly basis. This in turn is achieved through daily scheduling and tracking. Wood, production and shipment schedules consider actual and desired inventories, actual order file, and actual operating conditions, in addition to the targets specified in the Operating Plan. Variances are measured in volumes as well as dollars.

A monthly financial variance report analyzes the effect of variances due to price, mix and volume for wood and products on the operating income. Variances due to the mix and volume are emphasized the most and are used to measure the performance of the mill against the Plan, that is the budget. Price variances are mainly controlled by the market forces and hence are reported but not acted upon.

As a result of this program the contribution margin of the Division, which is defined as sales income minus the wood costs, has been increased by an average of one million dollars per year between 1970 and 1975 as compared to the base year, 1969.
National Airlines Fuel Management and Allocation Model
Authors: Darnell D. Wayne , Loflin Carolyn
Published: October 2008

The Fuel Management and Allocation Model determines the optimal strategy for fueling aircraft and can be used to support both short and long-term planning. It has been used operationally by the Fuels Management and Flight Control Departments of National Airlines for over two years, resulting in multi-million dollar savings.

The model specifies the best fueling station and vendor for each flight, based on prices, availability, fuel burn, flight data, and cost of tankerage. The model also uses extensive sensitivity analysis techniques to alert management as to when a new policy may be required.
Practice of Management Science—An Integrated Inventory Control System
Authors: Lawrence Michael J.
Published: October 2008

Inventory control is one of the earliest yet consistently fruitful application areas for the techniques of management science. Rarely are the cash benefits exceptional such as one might experience with management science applications in strategic decision-making areas. However, it is also rare if a well developed and properly used statistically based inventory control system does not enable inventories to be significantly reduced while maintaining or improving the level of customer service. This paper presents a case study of the development of an inventory control system designed to serve the needs of a division of a large U.S. based chemical company.
The Use of Computers in Hospitals: An Analysis of Adopters and Nonadopters
Authors: Mahajan Vijay , Schoeman Milton E. F.
Published: October 2008

The introduction of the computer and information management techniques has been considered by many to be a possible solution to some of the major management problems currently facing hospitals. Nevertheless, only 40% of the nonfederal hospitals in the United States were using computers in 1970. It seems relevant to investigate the reasons why some hospitals have adopted computer use and others have not. This paper presents a basic hypothesis of the factors that distinguish adopters from nonadopters. Data from the state of Texas is used to support the hypothesis. Moreover, characteristic profiles of adopters and nonadopters are developed. Some implications of these results, both for those concerned with hospital administration and those concerned with implementation of computer technology, are discussed.
Why Wait for Crises to Reveal the Unusual Opportunities for Management Science Applications in Your Organization?
Authors: Noble Carl E.
Published: October 2008

This paper presents four case studies in which factories were operating in apparently healthy states until crises revealed the inadequacy of their information and control systems. Investigations following each of the crises disclosed that: (1) The efficiencies of these factories, while in apparently healthy states, were well below their potentials, (2) Management was making decisions without meaningful information, on the basis of irrelevant information and/or without knowledge of large variations in their testing and production process and (3) The information and control systems often lacked valid links with either the suppliers or customers. Additionally, these systems often lacked the necessary underlying logic that would permit them to cope with significant changes in raw materials, machinery, personnel, customer requirements, etc.

These four case studies were selected from twenty years of experience in the paper industry, but similar studies could be taken from personal experiences in the apparel, cosmetic, toiletry and electronics industries.
Operations Research in the Far East
Authors: Lasdon Leon S.
Published: October 2008

This paper contains information obtained during my lecture tour of the Far East, June 1–July 15, 1976. The tour was sponsored by the Office of Naval Research, with the objective of information exchange. I visited university and industry personnel in Japan, Taiwan, Hong Kong, the Phillipines, and Singapore, and lectured on a variety of operations research topics, principally optimization applications, algorithms, and software. The presentation is chronological, giving my recollections of each day's discussions at the various institutions visited. Any inaccuracies are due entirely to me. For those seeking additional information, a list of addresses of persons referred to in this paper may be found in Appendix A.
An Application of Interactive Multiobjective Water Resources Planning
Authors: Loucks Daniel P.
Published: October 2008

This paper outlines a study currently in progress involving the application of some dynamic multiobjective models to water resources planning in northern Africa. An iterative process is used that involves the generation of successive solutions that satisfy changing criteria established by decision makers of the host country. This process has enabled government officials to choose what they consider as the best compromise between three conflicting objectives: maximum water yield; maximum yield reliability; and minimum total cost.
An Application of Management Science to Bank Borrowing Strategies
Authors: Crane Dwight B. , Knoop Frederick , Pettigrew William
Published: October 2008

The twelve Federal Land Bank of the Farm Credit System borrow large amounts in the capital markets to provide funds for their farm lending activities. Each year these privately owned banks sell $5 to $6 billion of bonds in a series of quarterly sales to refund maturing bonds and provide new funds for loan growth. The decision problem each quarter is to select maturities for the current sale. This is a complicated decision that must take into account current interest rates for alternative maturities, uncertain costs of future borrowing, perceived marketability of various maturities, and policy quidelines adopted by the Banks.

To help in the maturity selection, we developed a linear programming model that has been used as part of the quarterly decision-making process since mid-1974. We also developed a procedure for using the model so that it helps evaluate borrowing strategies in an uncertain interest rate environment. Keys to the success of the procedure are management's involvement in helping to specify possible future interest rate scenarios and in identifying specific borrowing strategies that are both practical and potentially desirable, given the range of possible rate environments. The model is used at an early stage to identify borrowing strategies appropriate to each interest rate scenario and later to evaluate the externally specified strategies across rate environments. From this analysis we are able to recommend bond maturities that provide a good balance between the objectives of keeping current costs low and limiting risks associated with uncertain future interest rates.
On Management Science Process
Authors: Graham Robert J.
Published: October 2008

With the designation of the new logo shown above, a new column is instituted which will hopefully become a permanent and central part of the Interfaces journal and mission. The objective of the column is a modest one of revolutionizing the study and practice of management science. I believe we can attain this objective only through the combined efforts of both practitioners and theoreticans, not exactly a novel idea. I hope, however, to use the column as a vehicle for uniting the practitioner and the scholar in a novel endeavor aimed at exploring and refining those steps deemed necessary for successful implementation of management science efforts, and then logically combining those steps into something called management science process. In this paper I will attempt to explain the concept of this proposed endeavor, give some examples of results that can be expected from the effort and, hopefully, convince the reader to contribute ideas, suggestions and articles for the column.
The Value of Queueing Theory
Authors: Byrd Jack
Published: October 2008

Queueing theory is one of those subjects most frequently taught in beginning operations research/management science courses. However, practitioners of OR/MS may question the practicality of teaching queueing theory, given the sparsity of articles showing actual applications. While numerous articles on queueing developments have appeared in the literature, and a few articles showing “alleged” applications have surfaced, the number of articles showing true implementations with documented savings are few if not nonexistent.

Why are there so few implementations of queueing theory? The following short case studies may provide an answer. Each of the studies is based upon true facts, although some studies are actually anthologies of several analytical efforts. What follows takes the form of a story involving a project that I assigned to a group of students: they were to apply one of the queueing models they studied to some real-world system. The following sections outline the experiences of each of these students and highlight a class review session that was designed to answer the students' questions arising from their experiences.
OR/MS: Dead or Dying? RX for Survival
Authors: Hall John R. , Hess Sidney W.
Published: October 2008

An essay about the status of OR/MS in business and academia. Considerations about decreased visibility, disappearance of well-structured problems, and third-generation faculty concerned more with the publishability of results than resolving practical problems are expressed. Some practical steps towards improvement are suggested.
Perspectives on MS Applications—All Around the Model
Authors: Shycon Harvey N.
Published: October 2008

The lengthy discussions that occurred ten or more years ago concerning whether the science which we practice should be called “Management Science,” or whether the original term “Operations Research” ought to be used, are long behind us, as they should be. Nevertheless while most of us prefer the term Management Science, we should not forget the descriptive significance of the older term. “Research before design and implementation” ought to be an important guideline for all of us. Two recent cases noteworthy of illustrating this point are presented.
Perspectives on MS Applications—All Around the Model
Authors: Shycon Harvey N.
Published: October 2008

Over the past several years I have perceived a trend in Operations Research/Management Science (OR/MS) groups within industrial and commercial business organizations. First came the era of the strong central organization, frequently located at the corporate level and reporting to a top corporate officer. Then gradually smaller applications groups formed within operating divisions. Finally there occurred a shrinking and in some cases disappearing of the central group as specifically designated for application of OR/MS techniques.

Two recent experiences point up what I perceive is a trend among in-house management science groups, regardless of what they are called. Each of these illustrates a somewhat different kind of corporate situation which gave rise to essentially the same conclusion: it was better to purchase outside skills and techniques than to attempt them in-house.
Information Systems in Management Science—Decision Support Systems: The New Technology of Decision Making?
Authors: Vazsonyi Andrew
Published: October 2008

One of the most important limitations—or perhaps the most important limitation—of OR/MS is that it takes too long to complete an OR/MS study. Many managerial situations are such that a quick response is mandatory; if we cannot provide a fast answer, management will proceed without us. This is well known; but it was Franz Edelman [Edelman, Franz. 1977. They went thataway. Interfaces 7 (3, May) 39–43.] who, in the May 1977 issue of Interfaces in his article “They Went Thataway,” rang the alarm bell on this shortcoming of OR/MS. He not only gave us warning, but proposed a solution to our problem via Decision Support Systems. In fact, TIMS College on the Practice of Management Science (CPMS) went so far as to adopt the following resolution: “… formulate a set of strategies to deal with the relationship between Management Science and the Information Systems disciplines to maximize the effectiveness of Management Science.” Decision Support Systems are a type of information system; both Edelman's proposition and this resolution fall within my bailiwick and therefore I made it my business to inquire into the nature of Decision Support Systems. Here I share with you the summary of my findings.
Short Cases for Teaching Management Science: Their Role in Closing the Gap Between Theory and Practice
Authors: Aggarwal Raj , Khera Inder
Published: October 2008

In this paper we describe some of the advantages of using cases in teaching introductory management science courses. We start by describing what we have found to be the advantages of the case method, followed by a description of what kind of cases we found to be best for use in introduction management science courses and examples of our experience in encouraging the actual use of management science techniques by our students. We conclude with a description of some guidelines we have found useful for our students and some comments about the future of case analysis in management science courses.
Computer Models Employed in University Administration: The Stanford Experience
Authors: Hopkins David S. P.
Published: October 2008

Management science techniques have only lately come to be applied to university planning. This paper describes the use of models to assist in long-range planning at Stanford University. The three areas of application discussed are: (1) faculty tenure analysis; (2) long-range financial planning; and (3) trade-off analysis involving important budget variables. The factors that seem to have contributed to successful implementation also are noted.
Evaluation of the Maintenance Management Information Systems of the United States Postal Service
Authors: Wildermuth Blair L. , Foote B. L.
Published: October 2008

The methodology used in evaluating a maintenance information system for the United States Postal Service is described. Maintenance inspectors filled out the forms and gathered the data while performing their normal maintenance and inspection duties. This combination of duties consumed 100 man-years. The study verified that the use of the computerized information system had exposed 19 million dollars in excess inventory. Corrections made in the system as a result of the study developed an audited savings by postal authorities of 4.2 million dollars (versus a total study cost of 1.6 million dollars).
Development of a Comprehensive Land Use Plan by Means of a Multiple Objective Mathematical Programming Model
Authors: Bammi Deepak , Bammi Dalip
Published: October 2008

An optimization model was developed which enabled Du Page County Planners to prepare a comprehensive land use plan that considers several objectives simultaneously and also satisfies constraints on desired growth patterns. The plan has been endorsed by several Homeowners Associations, interested citizens groups, and by the various municipalities which have jurisdiction over their individual cities. Thirty-one of the thirty-two municipalities have accepted the County's plan (revisions were asked on only 0.5 percent of the acreage). The County's plan reduced, by 50 percent, the unrealistic high acreages demanded by the communities plan for land uses which generate large net tax revenues.

If the communities' plan were to be implemented it would cost an additional 414 million dollars in developmental and energy costs. Of course, it is possible that the communities would become aware of the needs of the citizenry and could change their plans as time progressed and thus the difference in costs would become smaller. On the other hand, many of these developmental costs are irreversible and money once spent on them cannot be recovered.

The optimizing function was obtained by weighting the following objectives: minimize “conflict” between adjacent land uses, minimize travel time, minimize tax costs, minimize adverse environmental impact, and minimize costs of community facilities.

The land use plan was also used to predict population and employment in various years. The land use plan and the transportation study interacted several times to consider how the results of one affected the other. Thus, this model provided a new framework for the decision-makers to evaluate their existing and proposed programs and policies.
A Planning System for Facilities and Resources in Distribution Networks
Authors: Harrison H.
Published: October 2008

A system for planning facilities and resources in distribution networks is presented. It was applied at Cahill May Roberts, one of Ireland's largest pharmaceutical companies, having a turnover of $35 million and employing over 300 people.

The planning system, a three stage stochastic programming model, is capable of evaluating alternative management strategies in the face of fluctuating costs and population movements over an extended time horizon. Apart from defining unique territories for the company's distribution centres and optimal customer servicing schedules within those territories, the planning system evaluated alternative locations for distribution centres under the twin uncertain ties of cost and demand.

The planning model contained approximately 2,000 variables and 300 equations, whilst the undecomposed route planning model encompassed approximately 300 towns/villages and 1,200 customers Both models, therefore required substantial data inputs as successive management objectives and assumptions were examined. To facilitate this data preparation and to achieve solutions in a realistic time, a special matrix generator was developed which had the capability of producing data in the required format and inputing directly into both planning models. The generator controls the entire optimizing process and permits a three hundred-told reduction in data preparation. In effect the generator permits an optimization procedure to be used in a simulation mode.

The model achieved savings in delivery and transport costs of 23.3% and 20% respectively, and increased customer service levels by 60%.
Planning Callout Reserves for Aircraft Delays
Authors: Gaballa Adel
Published: October 2008

The problem dealt with in this paper is that of the number of reserve crews required for aircraft delays callout. The objective to be achieved in this respect is the minimization of the total costs of both the reserve crews and overnight delays. The two costs are inversely related, i.e., as the number of reserve crews is increased, the likely overnight delays and costs are decreased, but the cost of the crews staying idle increases. A good compromise between the two kinds of costs will be that which produces the minimum total costs. The analytical techniques used are those of conditional probabilities. They take into consideration the type of aircraft, union regulations, cabin crew patterns, and the future flying programme. The paper explains the steps of the analysis of the problem, the various reserve policy options and conclusions.

The recommendations arising from this paper have been accepted and implemented by management in the financial year 1976/77. This resulted in a total savings of about AUST. $600,000. The method developed in this paper to determine reserve crew level has also been accepted as the planning procedure to be used in future cabin crew budget planning.
Applications Reviews
Authors: Millen Roger N. , Hall John R.
Published: October 2008

An overview of latest results published elsewhere:

—Decision Sciences (AIDS), Vol. 9, No. 4, October 1978;

—Management Science (TIMS), Vol. 24, No. 11, July 1978;

—Management Science, Vol. 24, No. 12, August 1978;

—Management Science, Vol. 24, No. 13, September 1978;

—MIS Quarterly (SMIS), Vol. 2, No. 3, September 1978;

—Operations Research, Vol. 26, No. 5, September–October 1978;

—Policy Analysis, Vol. 4, No. 4, Fall 1978.
Is Implementation Research Relevant for the OR/MS Practitioner?
Authors: Anderson John C. , Chervany Norman L. , Narasimhan Ram
Published: October 2008

The last decade has seen an increasing awareness of and concern for the problems associated with the successful implementation of OR/MS methods. This growing awareness has produced two results in the “publishing sector” of the OR/MS profession. With some trepidation [White, Charles H. 1977. Applications publication: An experience. Interfaces 7 (August) 125–126.], practitioners of OR/MS have started to publish the results of actual OR/MS projects. The value of these reports for increasing the chance of more successful implementations of OR/MS efforts is summarized in [Woolsey, Gene. 1976. A triennial editorial policy. Interfaces 6 (August) 3–4.].

This article is designed: (1) to examine the relevancy of OR/MS implementation research for practicing OR/MS managers, and (2) to provide some guidelines for improving this relevancy.
A Sample Survey of Corporate Operations Research
Authors: Thomas George , DaCosta Jo-Anne
Published: October 2008

This paper describes and discusses the results of a 1977 national survey covering Operations Research/Management Science (OR/MS) in major U.S. corporations. The major points are organizational location of OR activities in the corporation, academic background of OR personnel, measures of effectiveness for OR activities, frequency of utilization of various OR techniques, areas of application, and problems of implementation.