bluuebunny/crossref_metadata_2025 huggingface dataset:
Branch‐and‐Bound Strategies for the Log Bucking Problem
Authors: Bobrowski Paul M.
Published: June 2007

Tree bucking is the initial production process in converting felled trees into useable wood products. This process has been previously modelled as a dynamic programming problem. Unlike other production problems that have been modelled as dynamic programming problems, there have been no serious attempts to formulate this problem as a branch‐and‐bound model and then examine the model's performance. This research develops the tree bucking problem as a branch‐and‐bound model to be tested by varying several parameters. The testing is performed in two phases: (1) a sensitivity analysis is performed to test two key parameters used by the model, and (2) branching strategies are tested on various problem scenarios. The size of the solution sets searched by the technique vary from as low as 40 to as many as 41,000 possible combinations.
Multi‐Item Grouping Algorithm Yielding Near‐Optimal Logistics Cost
Authors: Buffa Frank P. , Munn Joseph R.
Published: June 2007

This article describes an algorithm used to formulate an inbound consolidation strategy when multi‐items are replenished in groups and when total logistics cost is to be minimized. The importance of this algorithm is threefold (1) no optimal procedure exists for grouping multi‐items when minimizing total logistics cost, (2) a complete enumeration of all possible groups (from which the optimal grouping set can be identified) is impractical due to the combinatorial nature of the grouping problem, and (3) no other heuristics have been developed that adequately reflect shipping cost in the analysis like this one does. We report the experience of using this algorithm to group and reorder 75 selected ensembles containing a total of 517 inventory items of a retail merchandising firm.
Discriminant Analysis Using Least Absolute Deviations
Authors: Lee Chau‐Kwor , Ord J. Keith
Published: June 2007

Several linear programming methods have been suggested as discrimination procedures. A least absolute deviations regression procedure is developed here which is simpler to use and does not suffer from any lack of invariance. A simulation study shows it to be at least as effective as any of the methods previously discussed for normal and heavy‐tailed distributions.
Decision Support for Bus Operations in a Mass Transit System*
Authors: Smith L. Douglas , Nauss Robert M. , Bird David A.
Published: June 2007

A computerized system has been developed for assigning, parking, and dispatching buses so that each operator in the St. Louis metropolitan transit system generally drives the same bus each day. Combinations of optimizing routines, mathematical heuristics, decision rules from experienced personnel, and human intervention are used to manage the bus operations efficiently. This paper describes the tools created for this task and documents significant improvements in maintenance that occurred after the system became operational.
The Integration of Cost and Capacity Considerations in Material Requirements Planning Systems
Authors: Veral Emre A. , LaForge R. Lawrence
Published: June 2007

Within the sequential framework of material requirements planning (MRP), a master production schedule (MPS) of end‐item production is prepared and a bill‐of‐material processor is used to convert the MPS into a plan for needed subassemblies, parts, and materials. This study examines the impact of different procedures for considering inventory‐related costs and capacity limitations in the two phases of planning: master production scheduling and bill‐of‐material (BOM) processing. A total of nine procedures are considered for integrating the two phases of planning. The results indicate that the integrated procedures have a significant effect on the trade‐offs among inventory‐related costs, work load variations, over/under time costs, and excess work loads. Further, the results suggest that the method used to develop the MPS has the primary influence on these trade‐offs, but the method used by the BOM processor can sometimes have a moderating effect.
An Information‐Maximizing Interactive Procedure for Scenario Probability Elicitation
Authors: Mahesh Sathiadev , Moskowitz Herbert
Published: June 2007

Various approaches have been proposed for determining scenario probabilities to facilitate long‐range planning and decision making. These include microlevel approaches based on the analysis of relevant underlying events and their interrelations and direct macrolevel examination of the scenarios. The determination of a unique solution demands excessive consistency and time requirements on the part of the expert and often is not guaranteed by these procedures. We propose an interactive information maximizing scenario probability query procedure (IMQP) that exploits the desirable features of existing methods while circumventing their drawbacks. The approach requires elicitation of cardinal probability assessments and bounds for only marginal and first‐order conditional events, as well as ordinal probability comparisons (probability orderings or rankings) of carefully selected scenario subsets determined using concepts of information theory. Guidelines for implementation based on simulation results are also developed. A goal program for handling inconsistent ordinal probability responses is also integrated into the procedure. The results of behavioral experimentation (which compared our approach to Expert Choice and showed that the IMQP was viable) compared favorably in terms of ease of use and time requirements, and works best for problems with a large number of scenarios. Design modifications to IMQP learned from the experiments, such as incorporating interactive graphics, are also in progress.
Applied Capital Budgeting with Cash Flow Dependencies*
Authors: Norgaard Richard , Killeen Timothy
Published: June 2007

This article provides decision makers with a method of determining the variability and acceptability of a major capital investment. The model used here differs from previous models in that it does not use simulation, nor does it require a normal distribution for the cash flow component. Further, it has no restrictions on whether cash flows are dependent. An example of the technique is included.
Distribution of Spot and Forward Exchange Rates: Empirical Evidence and Investor Valuation of Skewness and Kurtosis*
Authors: Aggarwal Raj
Published: June 2007

This paper examines the statistical distribution of exchange rates for eight major currencies for the post‐1973 floating rate period. The results show that spot rates, forward rates, and ex‐post risk premia all exhibit significant, persistent, but varying deviations from normality, and that the risk premia in forward rates reflect investor preferences for skewness and investor aversion towards standard deviation and kurtosis. These results imply that foreign currency forecasting and hedging practices, mean‐variance portfolio analysis, pricing of foreign currency options, and other research involving exchange rates should account for these significant deviations from normality.
A Demonstration of Methods for Studying Negotiations Between Physicians and Health Care Managers*
Authors: Alemi Farrokh , Fos Peter , Lacorte William
Published: June 2007

Decision analysis was used to study negotiations in the health care context. This paper found that analytical methods could answer several important questions related to complex negotiations, including whether contracts promote the interest of both parties, whether a decision aid could better meet the priorities of both parties, and whether one negotiator is more successful than the other in repeated negotiations. The paper concluded that micro‐health care negotiations can be traced and studied with existing mathematical theories of negotiation.
Solving Spreadsheet‐Based Integer Programming Models: An Example from International Telecommunications
Authors: Carraway Robert L. , Cummins J. Michael , Freeland James R.
Published: June 2007

Considerable effort has recently been devoted to augmenting existing spreadsheet capabilities with the power of mathematical programming. One way to accomplish this is to design mathematical programming‐based solution methodologies (most likely heuristics) that exploit existing spreadsheet capabilities. We describe how this latter approach was successfully applied to an integer programming model of an international telecommunications network.
The Effect of Cue Categorization and Modeling Technique on the Assessment of Cue Importance*
Authors: Kida Thomas , Cohen Jeffrey , Paquette Laurence
Published: June 2007

A substantial amount of behavioral research in business has attempted to uncover the relative importance decision makers attach to different decision variables (cues) used in their decision processes. This paper reports on two experiments that examine methodological issues concerning the assessment of cue importance. The first experiment examined whether the categorical descriptions given to cues in many modeling studies affect the importance decision makers attach to those cues. Results revealed that the importance attributed was significantly affected by the categories used to define cues. Additionally, because different techniques have been utilized to model cue importance, the second experiment examined the level of agreement between importance measures derived from two commonly used modeling techniques (ANOVA and information boards) under varying levels of task complexity. Results indicated that cue importance measures generally exhibited a moderate level of agreement. However, the use of different modeling techniques appears to affect the importance attributed to cues for some decision makers. In addition, the level of agreement was not affected by changes in task complexity. Implications of these results for future research studies that model decision behavior are discussed.
An Optimal Model for Cell Formation Decisions
Authors: Wei Jerry C. , Gaither Norman
Published: June 2007

This study develops an approach to cell formation decisions for cellular manufacturing layouts in group technology settings. An optimal 0–1 integer programming model is used to provide an analysis for determining which machines and parts should be assigned to cells in cellular manufacturing layouts. This approach minimizes the cost of manufacturing exceptional parts outside the cellular system, subject to machine capacity constraints. Part–machine matrices are partitioned into disconnected cells and use far fewer 0–1 variables than earlier approaches. Formulation of the model is described with a numerical example and computer solutions to realistic problems are obtained. The characteristics of computer run times, model performance, and applications of the model are discussed.
Cognitive Fit: A Theory‐Based Analysis of the Graphs Versus Tables Literature*
Authors: Vessey Iris
Published: June 2007

A considerable amount of research has been conducted over a long period of time into the effects of graphical and tabular representations on decision‐making performance. To date, however, the literature appears to have arrived at few conclusions with regard to the performance of the two representations. This paper addresses these issues by presenting a theory, based on information processing theory, to explain under what circumstances one representation outperforms the other. The fundamental aspects of the theory are: (1) although graphical and tabular representations may contain the same information, they present that information in fundamentally different ways; graphical representations emphasize spatial information, while tables emphasize symbolic information; (2) tasks can be divided into two types, spatial and symbolic, based on the type of information that facilitates their solution; (3) performance on a task will be enhanced when there is a cognitive fit (match) between the information emphasized in the representation type and that required by the task type; that is, when graphs support spatial tasks and when tables support symbolic tasks; (4) the processes or strategies problem solvers use are the crucial elements of cognitive fit since they provide the link between representation and task; the processes identified here are perceptual and analytical; (5) so long as there is a complete fit of representation, processes, and task type, each representation will lead to both quicker and more accurate problem solving. The theory is validated by its success in explaining the results of published studies that examine the performance of graphical and tabular representations in decision making.
Choosing the Right Expert System Building Approach
Authors: Nelson Carl W. , Balachandra R.
Published: June 2007

The analytical hierarchy process (AHP) is used to systematically examine the relative appropriateness of contending expert system building approaches—algorithmic programming languages, symbolic programming languages, expert system shells, and knowledge engineering environments based upon characteristics of application domains and development environments. Two expert system projects, Back Expert, and R&D Expert, illustrate the value of this methodology. Domain and development environment characteristics identified in the AHP approach are then used to construct rule‐based and Lotus 1‐2‐3 expert systems for selecting the right expert system building approach.
A Service Quality Process Map for Credit Card Processing
Authors: Collier David A.
Published: June 2007

Evaluating marketing (external) and operations (internal) service quality performance in most organizations is a data‐oriented management task that involves many variables for many different types of services. These two diverse sets of service quality information seldom “match up well” because the marketing and operations functions define and evaluate service quality “their way.” Management's interpretation of what the data “mean” often contributes to extra meetings, unnecessary disagreements within and between functional areas, and poor decision making. This situation can affect the quality and timing of decisions, and ultimately, the organization's profitability and market share.

This paper quantitatively relates the customer's evaluation (perception) of service quality directly to the activities and performance criteria of the service delivery process for a credit card processing center. Basic statistical analyses and a recursive path analysis model define the relationships between marketing‐ and operations‐based service quality information. The idea of a “service quality process map” is introduced. A service quality process map relates a flowchart of the service delivery process to the customer's perception of service using the power of multivariate data analysis. Management insights gained from an analysis of marketing (external) and operations (internal) measures of service quality performance can be used to allocate resources wisely. The objective is to gain the most improvement in the customer's perception of service for the least cost. Service quality with this type of evaluation capability can be used to gain competitive advantage in the marketplace.
On the Creation of Acceptable Conjoint Analysis Experimental Designs
Authors: Steckel Joel H. , DeSarbo Wayne S. , Mahajan Vijay
Published: June 2007

Conjoint analysis studies typically utilize orthogonal fractional factorial experimental designs to construct a set of hypothetical stimuli. Occasionally, these designs include environmentally correlated attributes that can lead to stimulus profiles that are not representative of the subject's environment. To date, no one has proposed a remedy well‐grounded in statistical theory. This note presents a new methodology utilizing combinatorial optimization procedures for creating modified fractional factorial designs that are as “orthogonal” as possible, which do not contain nonrepresentative stimulus profiles.
An Evaluation of Tour Scheduling Heuristics with Differences in Employee Productivity and Cost
Authors: Li Cheng , Robinson E. Powell , Mabert Vincent A.
Published: June 2007

This study focuses on the manpower tour scheduling problem using data from a lockbox system of a commercial bank. The lockbox system uses employees who differ in productivity, hourly cost, number of available working hours per week, and days‐off constraints. These specific problem characteristics require a more general problem formulation and solution procedure for the manpower tour scheduling problem than addressed in previous research. Four heuristic methods for solving the problem (three developed here and a simple round‐up procedure) are tested on a set of forty problems. The results of this study show the effort to develop sophisticated heuristic methods for this class of problems is well justified.
Theoretical Distributions of Optima for Univariate Discrimination of Random Data*
Authors: Yarnold Paul R. , Soltysik Robert C.
Published: June 2007

Optimal linear discriminant models maximize percentage accuracy for dichotomous classifications, but are rarely used because a theoretical framework that allows one to make valid statements about the statistical significance of the outcomes of such analyses does not exist. This paper describes an analytic solution for the theoretical distribution of optimal values for univariate optimal linear discriminant analysis, under the assumption that the data are random and continuous. We also present the theoretical distribution for sample sizes up to N= 30. The discovery of a statistical framework for evaluating the performance of optimal discriminant models should greatly increase their use by scientists in all disciplines.
A Generalization of Wendell's Tolerance Approach to Sensitivity Analysis in Linear Programming
Authors: Wondolowski Frank R.
Published: June 2007

A criticism of linear programming has been that the data which are available in practice are too inexact and unreliable for linear programming to properly work. Managers are therefore concerned with how much actual values may differ from the estimates that were used in the model before the results become irrelevant. Sensitivity analysis emerged to help deal with the uncertainties inherent in the linear programming model. However, the ranges calculated are generally valid only when a single coefficient is varied. An extension of sensitivity analysis, the 100 Percent Rule, allows the simultaneous variation of more than one element in a vector, but does not permit the independent variation of the elements. A tolerance approach to sensitivity analysis enables the consideration of simultaneous and independent change of more than one coefficient. However, the ranges developed are unnecessarily restricted and may be reduced in width to zero when primal or dual degeneracy exists. This paper presents an extension of the tolerance approach which reduces the limitations of both the traditional and tolerance approaches to sensitivity analysis.
Optimal Purchase and Transportation Cost Lot Sizing for a Single Item
Authors: Russell Randolph M. , Krajewski Lee J.
Published: June 2007

A review of the literature indicates that the traditional approach for evaluating quantity discount offerings for purchased items has not adequately considered the effect that transportation costs may have on the optimal order quantity; despite the general fact that purchased materials must bear transportation charges.

The transportation cost structure for less‐than‐truckload (LTL) shipments reflects sizable reductions in freight rates when the shipment size exceeds one of the nominal rate breakpoints. However, the shipper must also be aware of the opportunity to reduce total freight costs by artificially inflating the actual shipping weight to the next rate breakpoint, in order that a lower marginal tariff is achieved for the entire shipment. Such over‐declared shipments result in an effective freight rate schedule that is characterized by constant fixed charge segments in addition to the nominal marginal rates. Over‐declared shipments are economical when the shipment volume is less than the rate breakpoint, but greater than a cost indifference point between the two adjacent marginal rates.

This paper presents a simple analytical procedure for finding the order quantity that minimizes total purchase costs which reflect both transportation economies and quantity discounts. After first solving for the series of indifference points that apply to a particular freight rate schedule, a total purchase cost expression is presented that properly accounts for the actual transportation cost structure. The optimal purchase order quantity will be one of the four following possibilities: (1) the valid economic order quantity (EOQ), QC; (2) a purchase price breakpoint in excess of QC; (3) a transportation rate breakpoint in excess of QC; and (4) a modified EOQ which provides an over‐declared shipment in excess of QC. Finally, an algorithm which systematically explores these four possibilities is presented and illustrated with a numerical example.
Pearson‐Tukey Three‐Point Approximations Versus Monte Carlo Simulation
Authors: Pfeifer Phillip E. , Bodily Samuel E. , Frey Sherwood C.
Published: June 2007

Accuracy of the Pearson‐Tukey three‐point approximation is measured in units of standard deviation and compared with that of Monte Carlo simulation. Using a variety of well‐known distributions, comparisons are made for the mean of a random variable and for common functions of one and two random variables. Comparisons are also made for the mean of an assortment of risk‐analysis (Monte Carlo) models drawn from the literature. The results suggest that the Pearson‐Tukey approximation is a useful alternative to simulation in risk‐analysis situations.
A Probabilistic Dealing Strategy
Authors: Fraser Cynthia , Ginter James
Published: June 2007

A probabilistic dealing strategy is proposed which allows all premium brands in an established market to earn nonnegative profits without cooperation. Following the strategy, brands take turns attracting deal‐responsive customers. Relative to a reactive competitive strategy, the proposed strategy improves the positions of all premium brands. With use of the strategy, average deal sizes are positively related to a brand's market share, the proportion of quality conscious customers, the proportion of informed customers, the span of regular prices in a market, and the range of customers' acceptable prices.
Optimal Work‐Rest Schedules with a Set of Fixed‐Duration Rest Periods
Authors: Bechtold Stephen E.
Published: June 2007

This paper demonstrates that the problem of optimizing the work output of an individual employee, subject to a set of fixed‐duration rest periods over a continuous time horizon, can be modeled with a quadratic programming formulation. Exogenous determination of break period durations may result from union contracts, management policies, or necessary lower bounds on break time due to transportation or other requirements. Although the new formulation is more complex than that required for previous models, an efficient solution procedure is presented which avoids the complexities of nonlinear programming. The number of iterations required for convergence is bounded from above by the number of rest periods to be scheduled and all computations are simple. An illustration of the procedure demonstrates that it may be effectively used without computer support. While this research was motivated by the fact that previous work‐rest models were not applicable to work horizons which contained a fixed‐duration meal break, the procedure can be used to obtain optimal placement for a set of fixed‐duration rest periods which may or may not include a meal break. The characteristics of optimal strategies for a set of fixed‐duration breaks proofs are shown to have implications for the design of shifts which are potentially more attractive and productive than shifts based upon typical practice. These characteristics are also compared to the general characteristics of optimal policies associated with endogenously determined break durations. This comparison provides insight into the possible consequences of exogenous determination of break durations. This paper concludes with suggestions for additional research.
Extending Financial Portfolio Theory for Product Management*
Authors: Leong Siew Meng , Lim Kian Guan
Published: June 2007

This paper attempts to modify financial portfolio theory for application in product portfolio decisions. The proposed multiperiod portfolio framework should help marketers in allocating scarce corporate resources to various competing products as well as contribute to developing a body of theory to solve an important problem in marketing management. Managerial and theoretical implications are discussed.
Construct Measurement in Information Systems Research: An Illustration in Strategic Systems
Authors: Sethi Vijay , King William R.
Published: June 2007

This study seeks to highlight construct measurement issues in information systems (IS) research. It describes the normative process of construct measurement and identifies the difficult problems involved in measurement and some ways in which these difficulties may be overcome. An illustrative construct‐operationalization study in the area of strategic systems outlines how the normative guidelines may be applied to IS. Some specific recommendations for IS include developing a preliminary model of the construct even if there is little previous measurement research, devoting greater attention to predictive validity because a lack of theories in IS precludes the examination of nomological validity, verifying the assumptions underlying the computation of an overall index, and examining the measurement properties of the index.
Multiechelon (R, S) Inventory Model*
Authors: Sinha Diptendu , Matta Khalil F.
Published: June 2007

Most studies in multiechelon inventory systems have concentrated on understanding the specific aspects of a system's behavior. The problem of optimal policy computation has largely been ignored. In this paper, we investigate a two‐echelon inventory system experiencing stochastic demand and a pull system of inventory allocation. Both echelons use an order‐up‐to‐level type control policy. A mathematical model is developed to determine the optimal order level at all echelons and validated through simulation. Two simple algorithms to locate the optimum solution are presented. The use of graphical tools in optimal policy calculation is also discussed.
A Study of Labor Allocation Strategies in Cellular Manufacturing
Authors: Russell Roberta S. , Huang Philip Y. , Leu Yow‐yuh
Published: June 2007

Current research studies in cellular manufacturing have considered environments constrained only by the machine resource, when in fact the flexibility of manufacturing cells is derived mainly from its allocation of the labor resource. This research specifically examines the labor resource in cellular manufacturing, also known as group technology (GT), through a series of simulation experiments on a hypothetical GT shop and recommends conditions under which different labor allocation strategies may be appropriate. The effects of various product routings and scheduling policies on labor allocation are also examined.
Review of Empirical Studies in Multiobjective Mathematical Programming: Subject Reflection of Nonlinear Utility and Learning
Authors: Olson David L.
Published: June 2007

Multiple objective programming provides a means of aiding decision makers facing complex decisions where trade‐offs among conflicting objectives must be reconciled. Interactive multiobjective programming provides a means for decision makers to learn what these trade‐offs involve, while the mathematical program generates solutions that seek improvement of the implied utility of the decision maker. A variety of multiobjective programming techniques have been presented in the multicriteria decision‐making literature. This study reviews published studies with human subjects where some of these techniques were applied. While all of the techniques have the ability to support decision makers under conditions of multiple objectives, a number of features in applying these systems have been tested by these studies. A general evolution of techniques is traced, starting with methods relying upon linear combinations of value, to more recent methods capable of reflecting nonlinear trade‐offs of value. Support of nonlinear utility and enhancing decision‐maker learning are considered.
Linking Product Planning and Process Design Decisions
Authors: Kim Jay S. , Ritzman Larry P. , Benton W. C. , Snyder David L.
Published: June 2007

Manufacturing strategy reflects the goals of the business strategy and directs the manufacturing function in achieving them. In this study, we focus on two decision areas with crucial implications for manufacturing strategy: product planning and process design. Using mathematical programming models as a research tool, we test several conjectures in the manufacturing strategy literature regarding linkages between the two decisions.

Our results show that a close integration between these decisions helps control the product offerings, stabilize process requirements, improve process technology choices, and increase net cash flows over time. Using the concept of environmental clusters, we found that a close linkage is more critical when the environment is more complex, less uncertain, and tighter. Based on these findings, we present some managerial implications and suggestions for future research.
Evaluating and Refining Expert Critiquing Systems: A Methodology*
Authors: Silverman Barry G.
Published: June 2007

Expert critiquing systems are a rapidly growing class of intelligent decision support systems that apply artificial intelligence techniques to criticize a user's proposed solution to a problem. Critic programs now exist in the medical, engineering, programming, knowledge acquisition, word processing, and other domains.

Critic refinement is a nontrivial activity that, even when done well, consumes a sizable fraction of the complete effort to build and deploy a critiquing system. To ease that effort, it is important to adopt a rigorous approach that allows one to reproducibly measure the degree of success of the current critic version and to predict which refinements will improve the critic further. The current article presents one such approach with actual case studies that illustrate its usage and elaborate selected aspects of the refinement process.
A Hierarchical Production Planning and Scheduling Model
Authors: Bowers Melissa R. , Jarvis James P.
Published: June 2007

A hierarchical production planning and scheduling system is developed that integrates planning decisions into a unified and consistent framework. A three‐tiered approach is used to address long‐term inventory control, short‐term production planning, and daily scheduling tasks. A product grouping scheme introduces uniformity into the solution process and simplifies overall model complexity. Results of the model implementation are reported.
A Comparison of Reorder Point and Material Requirements Planning Inventory Control Logic*
Authors: Jacobs F. Robert , Whybark D. Clay
Published: June 2007

This paper reports the results of simulation experiments that compared the inventory efficiency (i.e., the customer service level provided by a given level of inventory) for two different inventory policies. One of these policies uses time‐phased information on future demands like that found in material requirements planning (MRP) systems, while the other (the reorder point or ROP policy) relies on forecasts implicitly based on average past demands. After establishing that the MRP policies dominate for reasonable conditions, the uncertainty of the forecasts was manipulated until the policy preference was reversed. It requires a very perverse relationship between the forecast and actual demand before ROP beats MRP on inventory efficiency.
Risk Attitude, Ambiguity Intolerance and Decision Making: An Exploratory Investigation*
Authors: Ghosh Dipankar , Ray Manash R.
Published: June 2007

Although recent research has identified attitudes towards ambiguity and risk to be important determinants of choice behavior [8] [18], no prior work jointly assessed the roles of both attitudes. We conducted a laboratory experiment using a real decision scenario and conducted exploratory analyses of the relationship between attitudes towards risk and ambiguity and the decision taken by the subjects. The results support the prediction that attitudes towards both risk and ambiguity affect choice behavior. Our exploratory analyses indicate interesting avenues for future research, including an examination of the decision process itself.
Interactive Multiple Objective Decision Support for Sales Force Sizing and Deployment*
Authors: Stam Antonie , Joachimsthaler Erich A. , Gardiner Lorraine R.
Published: June 2007

An interactive decision aid is introduced for the deployment of two sales resources: salespeople and sales support staff. The aid consists of a normative sales resource allocation model with five objectives and an interactive multiple objective programming solution procedure. The specific decision problem addressed involves the assignment of salespeople and sales support people to customer accounts and the allocation of the time they spend on these accounts. The authors contribute to the existing sales resource modeling literature by dealing with the deployment of two sales resources and interactively solving this problem with respect to five short‐run and long‐run objectives of the firm. This approach differs from existing sales force modeling efforts in which the solution is found noninteractively by optimizing a single sales resource model with respect to a single objective, often short‐run sales. An application of the decision aid to the deployment problem of an industrial sales force manager is presented. Furthermore, useful extensions of the basic sales resource allocation model are discussed.
A Rejoinder to Forman on AHP, with Emphasis on the Requirements of Composite Ratio Scales*
Authors: Schoner Bertram , Wedley William C. , Choo Eng Ung
Published: June 2007

In an earlier paper [11], the problems of rank reversals and invalid composite priorities in AHP were addressed by modifications to the AHP procedure. That solution was subsequently criticized [5]. In this paper, we rebut these criticisms, and we show how rank reversals in AHP can arise merely from the process of normalizing local priorities.
On Comparing Alternative Advertising Policies of Pulsation*
Authors: Mesak Hani I. , Darrat Ali F.
Published: June 2007

In this paper, five alternative advertising policies that belong to the advertising pulsation class are compared analytically for linear and concave response functions using a modified version of the Vidale‐Wolfe model. The results of the research show that (1) For both linear and concave response functions, advertising pulsing/maintenance policy dominates advertising pulsing policy but is dominated by the Uniform Advertising Policy. For convex response functions, the order of dominance is reversed. (2) For linear response functions, uniform advertising policy dominates the impulse advertising policy but is dominated by the chattering advertising policy. (3) For concave response functions, uniform advertising policy dominates both the impulse advertising policy and the chattering advertising policy. (4) For convex response functions, chattering advertising policy dominates both the advertising pulsing policy and the impulse advertising policy.

The Vidale‐Wolfe model is estimated using the well‐known Lydia Pinkham data. Optimality analysis shows that the company was overadvertising about half of the time studied. Overadvertising seems to have produced appreciable gain in sales and created significant barriers to competitive entry at a little cost in terms of foregone profits.
Assigning Students to Groups: A Multi‐Criteria Decision Support System Approach*
Authors: Weitz Rob R. , Jelassi M. Tawfik
Published: June 2007

MCADSS is a multi‐criteria allocation decision support system for assisting in the task of allocating students to groups. Based on multiple criteria, MCADSS's goal is to maximize the diversity of members within groups, while minimizing the average differences between groups. The project may be viewed from several perspectives: as a multi‐criteria decision‐making problem, as a “reverse'’clustering problem, or as a personnel assignment problem. The system is currently being used to allocate M.B.A. students into sections and study teams at The European Institute of Business Administration (INSEAD). This paper describes the rationale for MCADSS, design criteria, system methodology, and application results. It also suggests how this approach could be used for further applications.
The Interpretation of Coefficients in Models with Qualitative Dependent Variables*
Authors: LeClere Marc J.
Published: June 2007

A substantial body of empirical accounting, finance, management, and marketing research utilizes single equation models with discrete dependent variables. Generally, the interpretation of the coefficients of the exogenous variables is limited to the sign and relative magnitude. This paper presents three methods of interpreting the coefficients in these models. The first method interprets the coefficients as marginal probabilities and the second method interprets the coefficients as elasticities of probability. The third method utilizes sensitivity analysis and examines the effect of hypothetical changes in exogenous variables on the probability of choice. This paper applies these methods to a published research study.
The Individually Responsible and Rational Decision Approach to Economic Lot Sizes for One Vendor and Many Purchasers: A Comment*
Authors: Goyal S. K. , Srinivasan G.
Published: June 2007

Joglekar and Tharthare [6] presented an alternate approach for minimizing total inventory carrying and ordering costs of a vendor and the purchaser(s). This approach permits the vendor and the purchaser(s) to rationally select their operating policies. Joglekar and Tharthare claimed that their approach is more economical than the joint lot‐size approach. In this note we identify some conceptual issues in their approach and demonstrate the superiority of the joint lot‐size approach with the help of an example.
A Learning Curve Analysis of Expert System Use*
Authors: Fedorowicz Jane , Oz Effy , Berger Paul D.
Published: June 2007

In this article, we study how an expert system affects novice problem solving in a financial risk analysis domain. We demonstrate that novice performance is improved after exposure to an expert system. Further, we show that novice performance continues to improve when the system is withdrawn. By comparing learning curves for people with exposure to those without, we can assess how much the system has benefitted its users. We demonstrate a quantitative methodology to measure the increment of learning due to the use of an information technology. We also explore the issue of how expertise is transferred from the system to the user.
Task‐Structure Relationship of Information Systems Development Subunit: A Congruence Perspective*
Authors: Umanath Narayan S. , Kim K. Kyu
Published: June 2007

Several studies have examined the influence of organizational context (e.g., organization size, environment, strategy) on information systems (IS) performance/success. But very few studies have examined IS structure, and those studies have focused on a particular element of IS structure (e.g., decentralization). Thus, the multidimensional structural configuration of IS as an organizational subunit has escaped research attention. Further, the nature of the task to be performed by the IS subunit as a contextual factor has been virtually ignored in the IS research literature.

In this paper, we first develop a congruence model for the task‐structure relationship in an information systems development (ISD) subunit setting. Then we test this model as a multivariate relationship followed by subordinate bivariate analyses. Analysis of data from 41 hospitals’ ISD subunits reveals that a congruence relationship between task context and the structure of an ISD subunit is present. Our findings also show that an exclusive association exists between uncertainty in the task environment and the decision‐making structure. Likewise, the association between equivocality of task content and the control structure of the ISD subunit is also exclusive. Implications of these findings for decision makers and researchers are discussed.
A Model for Master Production Scheduling in Uncertain Environments
Authors: Lin Neng‐Pai , Krajewski Lee
Published: June 2007

In uncertain environments, the master production schedule (MPS) is usually developed using a rolling schedule. When utilizing a rolling schedule, the MPS is replanned periodically and a portion of the MPS is frozen in each planning cycle. The cost performance of a rolling schedule depends on three decisions: the choice of the replanning interval (R), which determines how often the MPS should be replanned; the choice of the frozen interval (F), which determines how many periods the MPS should be frozen in each planning cycle; and the choice of the forecast window (T), which is the time interval over which the MPS is determined using newly updated forecast data.

This paper uses an analytical approach to study the master production scheduling process in uncertain environments without capacity constraints, where the MPS is developed using a rolling schedule. It focuses on the choices of F, R, and T for the MPS. A conceptual framework that includes all important MPS time intervals is described. The effects of F, R, and T on system costs, which include the forecast error, MPS change, setup, and inventory holding costs, are also explored. Finally, a mathematical model for the MPS is presented. This model approximates the average system cost as a function of F, R, T, and several environmental factors. It can be used to estimate the associated system costs for any combination of F, R, and T.
Understanding Patterns of Publishing Activity in Academic Research Occupations*
Authors: Rebne Douglas S. , Davidson Naomi Berger
Published: June 2007

While it is widely understood that faculty in various disciplines tend to publish at different rates and in different forms, knowledge of these differences is too limited to facilitate systematically differentiated performance appraisal and reward systems. In this study, theory concerning knowledge production system characteristics as influences on individual performance is applied to academic research occupations using a classification scheme developed by Biglan [4]. Regression analysis is applied to a general (industry‐wide) sample of United States faculty, with publishing patterns as performance measures. Each dimension of the classification scheme is found to have predictive validity. Output patterns are consistent with a conceptualization of research occupations in terms of (1) transformational/technological processes, (2) research mission, and (3) input/subject matter characteristics. The results offer a basis for generating disciplinary publishing norms and differentiated reward systems.
Auditors' Assessment of Management's Disposition: An Attributional Analysis*
Authors: Reckers Philip M. J. , Wong‐On‐Wing Bernard , Krull George W.
Published: June 2007

Auditors' assessment of management's dispositions presumably affects their subsequent judgments. However, little is known about the process by which auditors infer characteristics of management. This paper proposes the theory of correspondent inferences [25] as a framework for examining auditors' assessment of management's dispositions; the model is tested in a laboratory experiment using experienced audit managers. The results are consistent with the proposed theoretical framework. Implications for future research are discussed.
An Analysis of Pedagogical Effects of Alternative Teaching Approaches of Goal Programming
Authors: Lee Sang M. , Kim Eyong B.
Published: June 2007

Lee, Shim, and Lee [12] suggested the superiority of the signal flow graph (SFG) method over the modified simplex method in enhancing students' learning of goal programming (GP). The present study empirically investigated this claim by analyzing the effect of the SFG method of GP on students' learning. In the process, this study also developed an effective tool for measuring GP knowledge. The findings showed that students who learned the SFG method understood GP better and more easily than those who learned the concept through the modified simplex method. The students who learned the SFG method of GP were also less dependent on rules or formulas than the students who learned the modified simplex method.
Risk Averse Decisions in Business Planning
Authors: Dillinger Anne M. , Stein William E. , Mizzi Philip J.
Published: June 2007

Second‐order stochastic dominance is used to determine preferences among various investments for any risk‐averse decision maker. On the other hand, when faced with choosing between different insurance policies or disaster plans, a risk‐averse decision maker should use a type of stochastic dominance called variability ordering. In this situation, second‐order stochastic dominance has been used in previous research and is incorrect.
Modelling Resource Allocation in a Decentralized Organization with an AI‐Based, Goal‐Directive Model*
Authors: Leu Yow‐Yuh , Rakes Terry R. , Rees Loren Paul , Ceccucci Wendy A.
Published: June 2007

Modelling the resource allocation decision process in a decentralized organization using mathematical programming decomposition approaches has proven intractable for all but the smallest of problems. In this paper three artificial intelligence (AI) techniques are integrated to model the resource allocation decision process, and the solution for a three‐level decentralized organization is illustrated. The techniques are (1) the filtered beam search, which selects a list of potential projects at the subordinate level, (2) the world model, which describes the ordinate and superordinate's worlds and their decision‐making processes, and (3) the blackboard model, which allows for global, but selective, storage of information. Benefits of the new approach include: several different mechanisms of managerial control may be modelled, the true information flow in an organization is more closely mirrored, and problems of a more realistic size are now viable. There are three primary ways in which the new model could be useful to management: The desirability and effects of different organizational structures can be modeled, the efficacy of various coordination mechanisms along the organizational structure can be examined, and a subset of projects from a wider list of possibilities can be selected. Also, an example is given showing how the model may be extended to scenarios with asymetric information and divergence of preferences, whereby subordinates have different objectives than their managers and where there is no way for managers to verify the truthfulness of their subordinates' responses.