bluuebunny/crossref_metadata_2025 huggingface dataset:
A Lock-Box Model
Authors: Stancill James McN.
Published: November 2008

Faced with the problem of trying to reduce investment in accounts receivable, a number of corporate finance managers have directed attention to the problem of undesired “float,” i.e., the dollar amount of checks payable to the subject firm but unavailable for cashing because they are in process of transmittal via the mail system. One of the most direct ways to reduce such undesirable “float” is through the use of what is called a “lock-box” arrangement.

“Lock-box” is the popular term applied to an arrangement whereby a firm in one area directs their customers in another (distant) area to send their checks to a post-office box in the customer's area (city). Arrangements are made with a bank in the selected city to withdraw the checks, cash them and wire-transfer the funds to the firm's principal bank.

This article presents a decision rule model for the establishment of a lock-box. The form of the model is an inequality and delineates the relevant variables. While specific lock-box arrangements with banks vary, the model presents the variables involved in the two most popular arrangements. Use of this model would permit a finance manager to appraise the profitability of possible lock-box installations.
Difference Equations in Forecasting Formulas
Authors: Brenner J. L. , D'Esopo D. A. , Fowler A. G.
Published: November 2008

The deviation of actual sales (or other time-dependent statistics) from a model of sales will give rise to forecasting errors that are enhanced, damped out, or shifted in phase, depending on the particular formulas that are used for forecasting. Following R. G. Brown, P. Winters, and Theil, Nerlove, and Wage, we start from a general set of forecasting formulas, but make fewer assumptions than those authors about deviations from the model, and obtain a more extensive collection of results. In particular, we show how to treat errors not serially uncorrelated, and how to investigate forecasting formulas of order higher than second.
A New Approach to Discrete Mathematical Programming
Authors: Graves G. , Whinston A.
Published: November 2008

This paper presents the theoretical foundations for a new approach to integer programming. On the basis of the theoretical arguments, various specific computational procedures are developed which could be used to solve the integer programming problem. However, definitive computational results are not presented. In future papers we plan to explore the various computational options developed here.
Application of Combinatorial Programming to a Class of All-Zero-One Integer Programming Problems
Authors: Pierce John F.
Published: November 2008

Problem-solving procedures based on the methods of combinatorial programming are presented for solving a class of integer programming problems in which all elements are zero or one. All of the procedures seek first a feasible solution and then successively better and better feasible solutions until ultimately one is discovered which is shown to be optimal. By representing the problem elements in a binary computer as bits in a word and employing logical “and” and “or” operations in the problem-solving process, a number of problems involving several hundred integer variables have been solved in a matter of seconds.
(g, w)—Optima in Markov Renewal Programs
Authors: Fox Bennett
Published: November 2008

Policies nearly optimal for small discount rates (more precisely, (g, w)—optimal policies) are found for completely ergodic Markov Renewal Programs by linear programming.
A Rejoinder and a Generalized Model
Authors: Hamburg Morris , Matlack William F.
Published: November 2008

Author's rejoinder to the comment [Hayes, R. H. 1968. Note on “Maximizing insurance buyers' utility.” Management Sci. 15(4, December) B-208–B-212.] about their earlier paper [Hamburg, M., W. F. Matlack. 1968. Maximizing insurance buyers' utility. Management Sci. 14(6, February) B-294–B-301.].
Monoextremal Representations of a Class of Minimax Problems
Authors: Canon M. D.
Published: November 2008

It is shown that minimax problems with convex-concave payoff and convex inequality constraints can be reduced to solving an equivalent constrained minimization problem. The objective function of the minimization problem is not convex, nor is the set of feasible solutions convex. Nevertheless, it is shown that any point which satisfies the first order necessary conditions for optimality must be a global minimum.
Optimal Continuous Review Policies for Two Product Inventory Systems with Joint Setup Costs
Authors: Ignall Edward
Published: November 2008

Minimum average cost ordering policies for continuously reviewed two product inventory systems with joint setup costs are sought. Disappointly, the optimal policy, even in a simple symmetric case, is not always simple: For some values of cost and demand parameters, a policy that would be difficult to implement is optimal. Markov Renewal Programming is used to find the region in parameter space where a given policy is optimal.
Observations & Opinions—Management Science and the Teaching of Management
Authors: Meinhart Wayne A.
Published: November 2008

How much management science should the curricula in our colleges of business administration contain? The hypothesis is advanced that the concept and content of management science should now receive maximal emphasis, and that non-management science courses which purport to teach “management” should be de-emphasized or eliminated. Such a proposition contains general implications for degree programs, course content, and organization structure within colleges of business administration.
Multi-Product Scheduling in a Chemical Plant
Authors: Eilon Samuel
Published: November 2008

Details are given of a chemical plant consisting of four machines, each capable of producing one of several products at a time. Five products are to be produced, each subject to a normal demand distribution with known parameters. The rates of production, costs, profit margins, setup times and machine capacities are given.

The study compares two production scheduling methods, the first (Method I) is based on linear programming (two variants of this method are considered) and the second (Method II) on a multi-product batch scheduling approach.

A simulation of the plant for a variety of demand conditions and for several safety-stock policies was carried out. The results suggest that Method I yields somewhat better plant performance for the case when average demand is below plant capacity, but neither method showed superiority under all conditions, and in many cases the difference between the results for the two methods was only marginal.
Lease-Buy Planning Decisions
Authors: Weekes Paul A. , Chambers John C. , Mullick Satinder K.
Published: November 2008

A company with a long standing practice of leasing equipment may amass, over a period of time, a complicated structure of leasing arrangements, both long-term and short-term. Due to changes in costs of leasing, purchase prices, etc., there should be frequent evaluations of whether the existing strategy is optimal. The usual approach is to perform a “macro-steady-state” analysis, where cash flows and/or return-on-investment calculations are performed. However, some macro-analyses indicate only which choice is preferable and do not take into account either the possibility of a mixed strategy (own some and lease some) or implementation problems and the resulting costs that occur when converting from one system to another. Furthermore, if there is to be a conversion from leased to owned equipment, additional burdens will be placed on the maintenance department.

An overall planning model has been developed which yields an optimum conversion schedule and the cost of conversion. The optimal solution can be updated over time if there are changes in leasing and purchasing costs, taxes, interest rate and maintenance costs. Various assumptions are discussed, along with the inputs, the model structure, and the use of a matrix generator. The specific example considered is the problem relating to leasing or purchasing railroad equipment for transporting finished products to the customer.
Critique of: “Does ‘Good Portfolio Management’ Exist?”
Authors: Gepfert Alan H.
Published: November 2008

Critique of the paper Simon, Julian L. 1969. Does “Good portfolio management” exist? Management Sci. 15(6, February) B-308–B319. In this paper, the author has considered an interesting subject with results, however, that are admittedly inconclusive or even inconsistent. Unfortunately, the cause of such results appears to be due more to problems in research methodology than to unavoidable difficulties inherent in the subject matter.
Communications to the Editor—Competitive Bidding with Disparate Information
Authors: Wilson Robert B.
Published: November 2008

This paper analyses competitive bidding via sealed tenders for the case in which the bidders have different sources and amounts of information available about the value of the prize. The equilibrium pure strategies are characterized and computational methods are derived. A simple example is solved completely.
Static and Dynamic Assignment Models with Multiple Objectives, and Some Remarks on Organization Design
Authors: Charnes A. , Cooper W. W. , Stedry A.
Published: November 2008

The assignment model of linear programming is here extended to allow for vector optimizations and dynamic interactions between assigned personnel and positions in each of which a variety of possible measures and approaches are explored. Formulations involving people-to-people as well as people-to-position matchings are also examined from the standpoint of organizations in which jobs may be fitted to people or vice versa as well as in weighted combinations. Possible uses of such models for dealing with the problems of placing disadvantsged or handicapped persons are noted, but the analysis stops short of the still further possibilities offered by new types of machine-technology and information systems designs.
The Analysis of Uncertainty Resolution in Capital Budgeting for new Products
Authors: Van Horne James C.
Published: November 2008

In this paper, a method is developed for analyzing the resolution of uncertainty over time for the individual new product and for combinations of existing and new products, or the firm's over-all product mix. Probability concepts are employed, and it is shown that new products can be evaluated according to their marginal impact upon the resolution of the uncertainty pattern for the firm's total product mix. The analysis of this dimension is undertaken within a capital-budgeting framework, allowing a GO or NO decision to be reached for the new product under consideration. Information about when uncertainty is expected to be resolved enables management to evaluate more realistically the effect of a new-product decision on the riskiness of the firm's entire product mix. This knowledge is valuable in planning for new products and in balancing the firm's risk over time. As a result, more rational capital budgeting for new products is possible.
Discrete Dynamic Programming and Capital Allocation
Authors: Nemhauser G. L. , Ullmann Z.
Published: November 2008

Dynamic programming algorithms are developed for optimal capital allocation subject to budget constraints. We extend the work of Weingartner [Weingartner, H. M. 1966. Capital budgeting of interrelated projects: Survey and synthesis. Management Sci. 12(7, March) 485–516.] and Weingartner and Ness [Weingartner, H. M., D. N. Ness. 1967. Methods for the solution of the multi-dimensional 0/1 knapsack problem. Oper. Res. 15(1, January–February) 83–108.] by including multilevel projects, reinvesting returns, borrowing and lending, capital deferrals, and project interactions. We are able to handle dynamic programming models with several state variables because the optimal returns are monotone non-decreasing step functions. Computational experience with a variety of problems is reported.
Time Delay in Minimax Optimization of Unimodal Functions of One Variable
Authors: Beamer John H. , Wilde Douglass J.
Published: November 2008

A minimax search plan is developed for locating the maximum of a one dimensional unimodal function when a time delay occurs between the placement of an experiment and the result. The optimal search plans, among all the plans which place only one experiment at each unit of time, are determined for time delays of one and two periods. These plans are optimal in the sense that for a required final interval of uncertainty, they have the largest possible starting interval. Discrete variable (lattice) versions of these plans are also given, as well as plans for when the number of experiments is unknown initially. When more than one experiment can be made at each unit of time, a variant of block search is more efficient.
Optimal Inventory Policy with Multiple Set-Up Costs
Authors: Lippman Steven A.
Published: November 2008

We consider a deterministic, single product, discrete review, finite time horizon inventory problem, called the multiple set-up cost problem. The holding cost in each period is a nondecreasing (and sometimes concave) function. The distinguishing feature of our model is the ordering cost function which is neither concave nor convex. The ordering cost is such that a natural interpretation of it consists in assuming that the order in period i is delivered in trucks with capacity Mi and that the cost of delivery for each truck is a nondecreasing concave function of the amount delivered by that truck. We establish the existence of an optimal production schedule such that for each period (1) there are no partially filled trucks in period i if the inventory entering period i is positive and (2) the inventory at the end of period i is less than Mi. Exploiting this information, an efficient algorithm is developed.

In part II, we study the stationary, infinite horizon version of the multiple set-up cost problem. We single out a countable set S of schedules, each of which possess a periodic property in addition to properties (1) and (2) above, and we show that S contains a schedule with minimal cost per unit time. Moreover, if the ratio of demand per period to Mi is rational, then S contains a schedule with minimal discounted cost.
The Economic Assessment of Research and Development
Authors: Libik George
Published: November 2008

This is an informative paper about the position and situation of R & D (applied) in Eastern and Western Europe. Based on different sources the study also shows a part of the growing differences (different opinions) about importance, understanding and methods to evaluate the efficiency of R & D. It also discusses the “double concept” of R & D efficiency, namely as a summary of successful research results and product application with marketing effect.
Artifacts in the Siegel-Fouraker Study of Bargaining and Group Decision Making
Authors: Swinth Robert L.
Published: November 2008

Siegel and Fouraker (1960) hypothesize and purport to show experimentally that players in bilateral monopoly will tend toward contracts at the Paretian optimum quantity (P.O.) under conditions of incomplete information (players know only their own payoff functions), even though the theory implicitly assumes complete information (both players know both functions). Their results contain artifacts which severely limit the generality of any inferences that might be drawn from them.

The theory prediction that players will tend toward P.O. must be based on the explicit, not implicit, assumption of complete information. In this paper it is demonstrated that under conditions of incomplete information it is very likely that players will tend toward contracts at the P.O. only when it can be assumed that they meet the very restrictive condition of behaving like perfect competitors. Also, in an experiment measuring the degree to which players did in fact bid along their marginal functions, some 48% of the variance in behavior was explained by this model.
Letters to the Editor—Concerning Simulation and Sixty Years of Queuing Theory
Authors: Durrer Erwin J.
Published: November 2008

Professor Bhat, in his excellent paper, “Sixty Years of Queuing Theory,” (Management Science, February 1969) stresses the difficulties encountered by “operational people” in applying results of behavioral queuing studies done by “theoreticians.” Everyone having worked in this field who did not have an extensive course on complex variables in school will remember the gruesome feeling when at the end of his derivation, he is faced with the inversion of an untabulated Laplace transform. At this stage most operational people will give up and simulate the queue in order to get an answer, particularly in multi-server problems.
Time—Path Types: From Static to Dynamic Typologies
Authors: Myers John G. , Nicosia Francesco M.
Published: November 2008

Biometrics and psychometrics have developed a variety of methods to derive empirically clusters or types of variables, objects, or subjects. These empirical classificatory methods have been applied to data at one point in time—they have been used for static analyses. An extension is presented to the case of dynamic analyses, that is, the empirical identification of subjects with different time changes in one or more observed characteristics and their grouping based on sufficient similarity of time changes. Two management applications of the extension are given, the first dealing with behavioral, and the second with behavioristic, data.
Elements of Large-Scale Mathematical Programming Part I: Concepts
Authors: Geoffrion Arthur M.
Published: November 2008

A framework of concepts is developed which helps to unify a substantial portion of the literature on large-scale mathematical programming. These concepts fall into two categories. The first category consists of problem manipulations that can be used to derive what are often referred to as “master” problems; the principal manipulations discussed are Projection, Inner Linearization, and Outer Linearization. The second category consists of solution strategies that can be used to solve the master problems, often with the result that “subproblems” arise which can then be solved by specialized algorithms. The Piecewise, Restriction, and Relaxation strategies are the principal ones discussed. Numerous algorithms found in the literature are classified according to the manipulation/strategy pattern they can be viewed as using, and the usefulness of the framework is demonstrated by using it (see Part II of this paper) to rederive a representative selection of algorithms.

The material presented is listed in the following order: The first section is introductory in nature, and discusses types of large-scale problems, the scope of discussion and the literature, and the notation used. The second section, entitled “Problem Manipulations: Source of ‘Master’ Problems” covers the subjects of projection, inner linearization and outer linearization. The third section, “Solution Strategies: Source of ‘Subproblems’,” discusses piecewise strategy, restriction and relaxation. The fourth section is entitled “Synthesizing Known Algorithms from Manipulations and Strategies,” and is followed by a concluding section and an extensive bibliography.
An Experimental Investigation and Comparative Evaluation of Production Line Balancing Techniques
Authors: Mastor Anthony A.
Published: November 2008

Although computationally feasible optimizing algorithms for solving the production line balancing problem have not been found, a number of computational techniques have been devised and used to obtain solutions which are not necessarily optimal solutions but are hoped to be good solutions. In the study the most prominent of these techniques are examined and compared by applying them to a sample of production line balancing problems. The maximum output rate attained for a specified line length is used as the measure of effectiveness and the computing time required to make line balancing calculations for a specified output rate is used as the measure of cost.

The central results of the study show that there are significant differences among the effectiveness results achieved by the line balancing techniques. Although the differences are not large, there are few changes in the relative effectiveness of the computing techniques over the range of line lengths, partial ordering strengths, and problem sizes that were investigated. For the larger problems the computing time differences are significant and in some instances are a more important consideration in the relative evaluation of the computing techniques than are the effectiveness results.
Response to “A New Approach to an Urban Information Process”
Authors: Collins John F.
Published: November 2008

Response to Eastman, C., N. J. Johnson, K. Kortanek. 1970. A new approach: to an urban information process. Management Sci. 16(12, August) B-733–B-748.
Urban Statistics and Their Treatment and Use for Decision-Makers
Authors: Carr Frank J.
Published: November 2008

While population growth and urbanization are the source of the problems of our cities, hoped for solutions lie in the management of our urban systems. Urban statistics are not only observations of the urban culture but the data used by decision-makers who cope with the individual problems of traffic, pollution, crime and education. The urban information system is characterized by many subsystems having functional and jurisdictional boundaries which defy integration in the commonly understood sense of the word as used in information systems parlance. However, integration of subsystems, in effect, if not in form, can be achieved through the appropriate design of interfaces among the subsystems and with the user.

This paper describes such a network design for a national system. The approach outlined and the techniques described would in principle be equally applicable to systems at the state or local level.
Modeling School Facility Requirements in New Communities
Authors: Eastman Charles M. , Kortanek Kenneth O.
Published: November 2008

This is an exploratory paper developing new formulations for modeling selected social and economic phenomena in a new or existing community. The demand for educational facilities is shown to be dependent on the mix of housing designs and their sequence of construction. A Markov model, cast in a linear programming format, is developed that explores the relation between alternative growth curves of the student population and the housing mix and construction sequence. Objective functions and constraints are formulated that allow for a wide variety of school planning objectives to be related to the housing mix and schedule as defined by market, social, economic or administrative constraints. The use of linear programming models to facilitate the analysis of complex social phenomena is detailed.
Applying Linear Programming to the Design of Ultimate Pit Limits
Authors: Meyer Manfred
Published: November 2008

The purpose of this paper is to demonstrate the use of a Linear Programming model in open pit mine evaluation. The primary conditions to be incorporated into the model are the course and the inclination of the ore vein, and, during the whole life of the mine, safe slope angles to be maintained. Subject to this the objective of running a mine is assumed to be maximizing the direct operating profits which consist of proceeds from the sale of ore minus direct operating cost of extraction, transportation, and upgrading. First the Linear Programming model is developed, and subsequently some computational aspects are treated.
Numerical Operators for Statistical PERT Critical Path Analysis
Authors: Ringer Larry J.
Published: November 2008

This paper extends the algorithm developed by Hartley and Wortham [2] for the calculation of the c.d.f. of the critical time in a PERT network. Additional first order crossed networks and their operators are given. In addition, a technique for developing an integral operator for any PERT network is presented.
Plant Location with Generalized Search Origin
Authors: Spielberg Kurt
Published: November 2008

There exists computational experience to the effect that search algorithms of the type introduced by Balas are frequently ineffective because of being tied to a rigid “natural” search origin. In this paper the dynamic relocation of the search origin to possibly more appropriate points is advocated. Details of such a procedure are given for the Simple Plant Location Problem. Computational improvements of, sometimes, a striking nature are presented.
Preferences, Summation, and Social Welfare Functions
Authors: Fishburn Peter C.
Published: November 2008

This paper gives a necessary and sufficient condition for the following proposition, in which ⪯ and ⪯i for i = 1,…, n are weak orders on a finite set X. There are real-valued functions f1, f2,…, fn on X such that, for all x and y in X and i in {1,…,n}x⪯i y if and only if fi(x) ≤ fi(y), and x ⪯ y if and only if fl(x) + ⋯ + fn(x) ≤ fl(y) + ⋯ + fn(y). The condition can be viewed as an extension of a simple unanimity or dominance condition.
Minimum Variance and Optimal Asymptotic Portfolios
Authors: Bickel Samuel H.
Published: November 2008

By taking the goal of optimal portfolio management as long term maximization of wealth, whether it be via long or short term gains, portfolio selection can be based upon objective criteria instead of risk preference. In this paper we wish to relate these optimum long run or asymptotic portfolios to the set of efficient portfolios. The case of statistically identical securities is presented in detail with attention given to the effect of mutual correlation on the optimal size of the portfolio. Circumstances are discussed for which such popular policies as short term trend following and intermediate term dollar averaging are optimal in the long run. Since portfolio management can be interpreted as a problem within the framework of multistage decision process of stochastic type, further insight into optimal policies could be developed from examination of dynamic programming theory.
Probability Bounds in Replacement Policies for Markov Systems
Authors: Beja Avraham
Published: November 2008

The precise costs of operating a stationary finite Markov system are assumed undefined. It is only known that the cost of failure is orders of magnitude higher than the cost of replacement, and that all other costs are relatively negligible. The problem considered is the maximisation of the expected length of time between replacements subject to bounds on the average hazard throughout the remaining part of the replacement cycle whenever the system is not replaced. The solution is shown to be a unique pure strategy, and a computation algorithm is presented which constitutes an extension of Howard's policy iteration principle to considerations of feasibility. A sensitivity analysis indicates the range of the cost parameters under which the same solution would be optimal for a standard minimum-cost problem. The two approaches thus appear to be essentially equivalent.
Free For All
Authors: Starr Martin K.
Published: November 2008

—Editorial by Martin K. Starr, Columbia University
A Performer-Oriented Approach to Systems Quality
Authors: Lessing Ronald
Published: November 2008

The objective of this paper is to present a means of modeling the quality characteristics of a large class of systems. The proposed models depend upon the use of a state variable to describe the quality level at various points in the system and upon, transition matrices to describe the error-producing and error-detecting characteristics of the individual servers and machines that compose the system. Applications of the model to linear, cyclic, and branching systems are developed in detail. Ultimately the model may be used to optimize the number, type, and location of quality control components or to optimize the performance of systems operating under risk.
The Influence of Setup Time on Job Shop Performance
Authors: Wilbrecht Jon K. , Prescott William B.
Published: November 2008

A job shop was simulated in order to determine the effect of different job priority rules involving setup times on shop performance. The seven priority rules tested were chosen on the basis that they could be implemented by job shop foremen. Assumptions in the simulation model were based on experience with an electronics company and published literature. The study indicates that, for a fully loaded shop, giving priority to be the job with the shortest actual setup time, regardless of its run time, gives the best overall performance result.
Integer Programming Via Modular Representations
Authors: Wilson Robert
Published: November 2008

Modular representations of the integers are used to identify the successive integer grid points encountered as one varies the objective value of an all-integer programming problem. One can, therefore, proceed from a noninteger solution to an integer solution by monotonic variation of the objective value. Ordinarily, it is necessary to perturb the objective function of a problem to fit the prescribed format for the algorithm: although this is easily done for small problems, the limited number of digits carried by most computing machines prevents it for problems with many variables. The features of the algorithm are virtually independent of the number and the linearity (or nonlinearity) of the constraints, provided the variables are constrained to be nonnegative and bounded above.
Employment Smoothing (Capital Accumulation) with Production for Stochastic Demand
Authors: Sobel Matthew J.
Published: November 2008

We consider the problem of periodically choosing production quantity and manufacturing capacity with the latter constraining the former. It is assumed that capacity can be altered at a cost that is proportional to the amount of change and that other capacity costs are proportional to the capacity. Other manufacturing costs are assumed to be proportional to the quantity manufactured. We summarise inventory costs with a convex expected holding and penalty cost function; excess demand is backlogged. The model includes a (possibly) random change in capacity (labor force attrition or depreciation of capital) each period. We characterize optimal policies when the criterion is the minimization of expected discounted costs. The characterizations also apply when the unit costs of capacity change are stochastic with a known distribution that may be correlated in any period with the demand in the preceding period.
A Class of Inside-Out Algorithms for General Programs
Authors: Gould F. J.
Published: November 2008

In this paper the Fiacco-McCormick SUMT technique is embedded in a class of inside-out algorithms. Convergence is demonstrated for the nonlinear programming problem under fairly general conditions and the algorithms are interpreted in a geometric structure.
Generalized Networks, Generalized Upper Bounding and Decomposition of the Convex Simplex Method
Authors: Rutenberg David P.
Published: November 2008

If the constraint matrix of a linear program has special structure it may be possible to speed computation. Techniques have been developed to take advantage of such special structures as generalized networks, generalized upper bounding, and decomposition. For these matrix structures, it is shown in this paper how to extend the techniques to Zangwill's mathematical programming algorithm, the convex simplex method.
Précis—“Linear” Programming with Absolute Value Functionals
Authors: Shanno David F. , Well Roman L.
Published: November 2008

Comments about a problem that appeared in George Hadley's text Linear Programming (Addison-Wesley, 1962, p. 172).
Letter to the Editor—A Model of Business-Society
Authors: Moran William T.
Published: November 2008

A business enterprise in a microcosmic society—and a good enough model for experiments in operating society. It must maintain a fine balance between (A) stable and efficient operation within the present rules of the game and (B) exploration, change and growth—the anticipation or creation of tomorrow's rules.
Work Flow Structure: An Analysis for Planning and Control
Authors: Holstein William K. , Berry William L.
Published: November 2008

This paper has two purposes: (1) to propose a new way of conceptualizing job-shop-like manufacturing systems and (2) to suggest how this conceptualization might be applied in the development of planning and control procedures. The concept of “work flow structure” is developed and methods for determining this structure from a sample of job routings or a routing transition matrix are described. Two key notions used to define work flow structure are “paths” of work flow and the relative activity levels or throughput volumes of processing units in the system. Sample results are presented from the application of these methods to data from a large machine shop. The final section of the paper suggests a number of ways in which work flow structure information might be used in procedures for production planning and control. The application areas discussed include product mix planning, capacity planning, personnel assignment, work releasing and dispatching.
A Controlled Transportation Queueing Process
Authors: Bhat U. Narayan
Published: November 2008

A transportation queueing process in which taxis arrive in a Poisson process and customers arrive as a renewal process independent of taxi-arrival process is controlled by calling extra taxis whenever the total number of customers lost to the system reaches a certain predetermined number. Transient and steady state behavior of this process is studied using renewal theoretic arguments. The optimum value of the control variable is also obtained so as to minimize the total cost to the system due to the waiting taxis and lost customers.
The Stochastic Cash Balance Problem with Fixed Costs for Increases and Decreases
Authors: Neave Edwin H.
Published: November 2008

The stochastic cash balance problem is an inventory problem in which the stochastic cash (or inventory) change can either be positive or nonpositive, and in which decisions to increase or decrease the inventory are permitted at the beginning of each time period. The paper studies problems in which both fixed and proportional costs can be incurred whenever the inventory is changed in either direction. An example is used to demonstrate that when these costs are positive and the loss function is convex, a simple policy (analogous to a two-sided (s, S) policy) is not generally optimal. The example is also used to display the relations between the cash balance problem and inventory problems previously studied by Scarf and Veinott. When proportional costs of changing the inventory are zero, the two fixed costs are equal, the loss function is symmetric quasi-convex, and the problem's probability densities are quasi-concave a simple policy is shown to be optimal. For the cases in which simple policies are not optimal, the paper develops a technique which employs convex upper and lower bounds on the (nonconvex) cost functions partially to describe the optimal policy. It is suggested that this convex bounding technique may provide an approach to studying the cost implications of following simple, nonoptimal policies in inventory problems for which the optimal policy is complex.
A Note on the Queue M/Ek/r
Authors: Mayhugh J. O.
Published: November 2008

The steady state solution of the queue M/Ek/r presented in a previous article [2] is amended. A simpler method of finding the basis set of state probabilities and a simpler form of the generating function for the state probabilities are derived.
Free For All—Guest Editorial: L'Histoire de Grandeur et de la Dćadence de la Méthode PERT
Authors: Vazsonyi Andrew
Published: November 2008

A humorous account of the birth, the rise, the summit, the decline, and the fall of PERT.
Optimal Inventory Policies in Perturbed Demand Models
Authors: Schwartz B. L.
Published: November 2008

Investigation is continued of inventory models in which customer good will is lost when stockout occurs. Several models are formulated and optimal policies for the firm are derived conceptually (i.e., algebraic equations satisfied by the optimal parameter values are determined). Both constant and distributed demand are considered, and it is shown that the same formulation applies to both.
Adaptive Limits in Inventory Control
Authors: Eilon Samuel , Elmaleh Joseph
Published: November 2008

In conventional reorder policies for inventory control, stocks are allowed to fluctuate between two prescribed limits: a lower limit corresponding to a safety stock to guard against runouts, and an upper limit to which the stock is replenished from time to time. Methods have been suggested for computing optimal upper and lower limits for the case of stationary demand patterns.

The adoption of two rigid limits for controlling inventories for nonstationary demand patterns, which include trends and seasonal fluctuations, is clearly not satisfactory. Published papers in inventory control rarely devote enough attention to the need for a link between forecasting and a reorder policy.

A method is suggested in this paper for computing adaptive control limits based on a forecasting procedure that takes account of seasonal fluctuations and trends. The method has been simulated for inventory models with varying parameters. Invariably it has yielded results which were equal to and usually better than those obtained by the optimal “fixed-limits” method. For example, in the case of a normal demand distribution, and a given level of satisfying demand, the reduction in costs resulting from the adaptive control procedure was found to be well over 30%.
On Terminating Stochastic Games
Authors: Mine H. , Yamada K. , Osaki S.
Published: November 2008

This paper describes a stochastic game in which the play terminates in a finite number of steps with probability 1. The game is called a terminating stochastic game. When the play terminates at any step, the play is regarded to reach to an absorbing state in the Markov chain under consideration. Hence, the terminating stochastic game is a nonstationary Markov chain with rewards in which our concern is the transient behavior before absorption. In particular, when one of the players is a dummy, the stochastic game reduces to a Markovian decision process of special type. This paper discusses such games. We introduce a new concept of rewards and formulate three problems arising in the games by linear programming. Finally, numerical examples are presented.
Blocking and Delays in M(x)/M/c Bulk Arrival Queueing Systems
Authors: Kabak Irwin W.
Published: November 2008

This paper presents results for queueing systems that are characterized by poisson arrival epochs with x (a random variable) arrivals at each epoch, exponential service times and c servers. The steady state probabilities, the probability of blocking (not being served immediately) for both loss and delay systems are investigated. In addition, the average delay, the variance of the delay and the delay distribution for first-come-served by batches and arbitrary order of service within batches are presented.
A Simple Optimality Proof of Moore's Sequencing Algorithm
Authors: Sturm L. B. J. M.
Published: November 2008

In a recent article J. M. Moore [Moore, J. M. 1968. An n job, one machine sequencing algorithm for minimizing the number of late jobs. Management Sci. 14(1, September) 102–109.] gave an algorithm for minimizing the number of late jobs in a one machine sequencing problem. As indicated by the author, T. J. Hodgson has proposed a simpler version of this algorithm, for which version the proof of optimality is similar to the proof given by the author for the original algorithm. In this note a simpler proof of optimality, based on the inductive principle, will be presented for Hodgson's algorithm. As Moore's algorithm only differs on minor points, this proof covers it as well.
Chance Constrained Programming of the Machine Loading Problem with Stochastic Processing Times
Authors: Resh M.
Published: November 2008

The statistical model of a chance constrained variable which is the sum of stochastically independent random variables is considered, using the machine loading problem as an expository case. The resulting chance constrained statement, Pr {∑ni=1∑xik=0aik ≥ H} ≤ β, is shown to be different in substance from the classical case, Pr{∑ni=1 a′ixi ≤ H} ≥ β, where xi denotes the variable of the program and aik and a′i denote the random variables. A formal mathematical analysis is carried out on the deterministic equivalent nonlinear problem with solutions over a set that may be nonconvex. The mathematical results are then used in stating and evaluating a linear approximation, thus enabling one to state the problem using a generalized transportation problem formulation.
A Simplex Method for a Class of Nonconvex Separable Problems
Authors: Alloin Guy
Published: November 2008

In this paper we present an extension of the simplex procedure to deal with separable programming problems where the objective is composed of functions which are either convex or concave and where the feasible solution set is convex.
Information Systems and Public Planning
Authors: Hoos Ida R.
Published: November 2008

Persuaded that management information systems will help them achieve efficiency of operation and attain organizational goals, public planners, like those in the private sector, are eagerly embarking on ambitious feasibility studies and contracting for elaborate hardware and software systems. Since this effort is being undertaken in the service of the public, it is important to assess the social costs and benefits.

The research focus of the work on which this paper is based is on information systems as entities in themselves and as components of a larger systems design. After analyzing the three discretely defined but operationally joined concepts, information, system, and the information system, we examine the four assumptions underlying the general acceptance of the information system as a management tool: (1) that more information leads to better plans or decisions; (2) that more and faster-moving information necessarily enhances “efficiency” of operation; (3) that greater “efficiency” is identical with better public service; and (4) that information systems are best conceived, designed, and controlled by “information experts,” whose talents are movable and ubiquitous.

Information systems in public welfare, criminal justice, and land use are reviewed as cases in point, and the conclusion drawn that while there is no gainsaying the fact that in each area a body of organized information is essential to systematic analysis and planning, there exists considerable confusion between quantity and quality, between the necessary and the busy. So far, there is a lack of clarification not only as to the proper constitution of the information system but also about the qualifications of the “experts” designing them.

Unfortunate as these matters are in raising the costs and lowering the benefits (economic and social, as well), they have ominous implications when viewed in the light of the many-fronted encroachments by computerized information systems on individuals' right to privacy. The data bank and the dossier may be rationalized as means to efficiency, but they cannot be reconciled with democratic process and freedom from cradle-to-grave surveillance.
Finding the K Shortest Loopless Paths in a Network
Authors: Yen Jin Y.
Published: November 2008

This paper presents an algorithm for finding the K loopless paths that have the shortest lengths from one node to another node in a network. The significance of the new algorithm is that its computational upper bound increases only linearly with the value of K. Consequently, in general, the new algorithm is extremely efficient as compared with the algorithms proposed by Bock, Kantner, and Haynes [2], Pollack [7], [8], Clarke, Krikorian, and Rausan [3], Sakarovitch [9] and others. This paper first reviews the algorithms presently available for finding the K shortest loopless paths in terms of the computational effort and memory addresses they require. This is followed by the presentation of the new algorithm and its justification. Finally, the efficiency of the new algorithm is examined and compared with that of other algorithms.
Production Smoothing with Stochastic Demand II: Infinite Horizon Case
Authors: Sobel Matthew J.
Published: November 2008

In an earlier paper [5], we generalized and extended Beckmann'a results [1] for a production and inventory problem with proportional smoothing costs and demands being random variables. Our previous results concerned the finite horizon nonstationary case. Here we consider the infinite horizon stationary case. Two curves in the plane determine an optimal policy. They are shown to have slopes between minus one and zero, to be differentiable, and to be bounded by two straight lines with a slope of minus one. These results are used (a) to accelerate each iteration of a successive approximations algorithm and (b) to formulate a linear programming problem from whose solution an optimal policy can be determined.
Constructing Sets of Uniformly Tighter Linear Approximations for a Chance Constraint
Authors: Seppälä Yrjö
Published: November 2008

The aim of this paper is to construct sets of uniformly tighter linear constraints to replace a chance constraint, in order to be able to solve the chance-constrained programming problem by the simplex method. The chance constraints are first diagonalized by a linear orthonormal transformation. Uniformly tighter linear constraints can then be formed to replace the chance constraint. The developed multistage linear programming problem can also be solved using the Dantzig-Wolfe decomposition technique. Approximation errors of our method and one of Hillier's [8] are compared.
A Note on the Bergstrom-Smith Multi-Item Production Planning Model
Authors: Hausman Warren H. , McClain John O.
Published: November 2008

This note demonstrates that the model proposed by Bergstrom and Smith (B & S) for deterministic multi-item production planning can, with some reinterpretation, be used to solve two related stochastic multi-item production planning problems. Specifically, the benefits of individual item-by-item treatment and diminishing marginal revenue contained in the B & S model can be obtained when future sales are (i) stochastic and uncontrollable, or (ii) stochastic but with the mean value under the control of the firm. We demonstrate that under both of these situations the certainty-equivalence property holds, thereby reducing the two stochastic problems to two related deterministic problems.
A Language for Organization Design: Part I
Authors: Ansoff H. I. , Brandenburg R. G.
Published: November 2008

This paper develops a language for designing the structure of a purposive organization so as to maximize organizational performance potential for achieving given objectives. Four categories of performance attributes are specified, each contributing to the particular objectives an organization pursues in seeking maximum return from the resources it employs: steady-state efficiency, operating responsiveness, strategic responsiveness, structural responsiveness.

A fifth category, decision and information quality criteria, further contributes to organizational success. These five types of criteria, combined with tests of economic and human resource feasibility, are used to select and tailor one of several basic organizational forms to meet the particular needs of a firm.

Basic organizational forms, observable in business practice, analyzed with respect to the above performance attributes, include: centralized functional form, decentralized divisional form, project management form, innovative form.

Several variations on these forms, which have been used in business, are listed along with conditions for the applicability of each, reflecting the need for individual firms to adapt basic structures to suit their distinctive requirements.

Major steps in the logic of the overall design process are specified.