bluuebunny/crossref_metadata_2025 huggingface dataset:
An Allocation Model for Catalog Space Planning
Authors: Johnson Miki , Zoltners Andris A. , Sinha Prabhakant
Published: November 2008

Deciding which items to include in a sales catalog and how much space should be allocated to each item is a major planning problem facing many large retailers and catalog firms. The steps in the catalog planning process include compiling a list of candidate items, developing one or several ad size “strategies” for each item, estimating the sales and contribution which would be realized as a result of each strategy, and then selecting a set of strategies which effectively allocate the space available in the catalog to some subset of items.

This paper describes the planning process in detail. An integer programming model is presented which incorporates merchandising policy constraints in optimally choosing the items and ad strategies to be included in the catalog. The organizational implications of using such a model are also explored. A simple example of the application of the model to planning the tennis equipment lines of a major mass merchandiser appears as an appendix.
Mathematical Models of Road Travel Distances
Authors: Love Robert F. , Morris James G.
Published: November 2008

Some management science models require estimates of distances between points in a road network based on the point coordinates. This paper evaluates the accuracy of a range of reasonable forms for distance estimating functions using samples of urban and rural road distances. The intent is to derive better distance estimating functions for analyzing systems with distance related performance measures.

Contrary to a standard assumption, the rectangular distance function is inferior to the simple Euclidean metric in the urban samples. More general functions provide still greater improvement over the rectangular metric. Statistical significance accompanies these conclusions. One of the more general functions appears particularly suited to rural distances.
An Application of the Blin-Whinston Algorithm for Resolving Fuzzy Group Preferences
Authors: Steinberg Earle , Rinks Dan
Published: November 2008

Important decisions regarding governmental expenditures for the public welfare require accurate assessment of preferences of the citizenry as one input. Often, strong disagreement exists regarding relative merit of various projects competing for limited resources. This paper proposes a procedure for establishing a complete social preference ordering on the set of alternative projects when the group preference is fuzzy because of individual differences. An extension of current algorithms is developed-and applied to a problem concerning public preferences for expenditures on civic projects in Houston, Texas.

One thousand male and female heads-of-household were interviewed in depth to determine their preferences for investment among forty-one projects in the areas of social services, business and job development, public transportation, arts and leisure, and education. A complete preference order for group decision was obtained for a situation in which significant disagreement exists among group members and where funding is limited.
A Simulation of Multiple Selection Using Nominal Group Procedures
Authors: Willis Raymond E.
Published: November 2008

A common decision problem involves the selection of k alternatives from a larger but finite set. Examples are the selection of personnel for a training program or the funding of research proposals. A related problem is that of screening where a large but finite group of initial candidates is reduced prior to final selection. Choices of this type frequently are made on judgmental grounds by group processes; because of the subjectivity it is difficult to develop objective criteria for choosing one group process over another. In this paper, the comparative effectiveness of three procedures for group opinion summarization: standardized scores, sum of ranks, and zero-one scoring, are studied by means of a simulated nominal group process. The analysis leads to several simple “rules of thumb” which should prove useful to the practicing manager.
The Strategic Role of Information on the Demand Function in an Oligopolistic Market
Authors: Ponssard Jean-Pierre
Published: November 2008

This paper investigates the incentives for cooperation in market surveys among competitive firms. The analysis relies on a game theoretic model. The main conclusion is that the value of information in a competitive market exhibits a sharp decrease as the number of firms that share the information increases. Thus, the advantage obtained through sharing the cost of a market survey may be upset by the loss due to the spreading of information among the competitors. The consumer's point of view is also studied showing that market surveys are advantageous in terms of consumer surplus, a usual indicator of the consumer's satisfaction.
Note—On the Deterministic Demand Multi-Product Single-Machine Lot Scheduling Problem
Authors: Graves Stephen C.
Published: November 2008

This note considers two single-machine multi-product scheduling problems with deterministic demand that have appeared in the management science literature: the economic lot scheduling problem and the joint replenishment problem. These problems are shown to be closely related. In addition, they are shown to be nearly identical to a one-warehouse, several-retailer inventory problem. As a consequence, any algorithm which solves one of the problems also solves the other two problems.
Note—On the Complexity of Facilities Layout Problems
Authors: Block T. E.
Published: November 2008

This note recognizes that not only flow dominance but also the number of facilities are important measures to determine the choice between computer algorithms and visual based methods for obtaining solutions to facilities layout problems. The upper and lower bounds of the value of flow dominance are derived as a function of the number of facilities. A complexity rating that is a function of the flow dominance and the upper and lower bound to the value of flow dominance is defined for facilities layout problems. This complexity rating is shown to provide a better measure of problem complexity than one based on flow dominance alone.
Estimating Service Territory Size
Authors: Smith Stephen A.
Published: November 2008

This paper considers the problem of allocating personnel to provide service that involves travel to demand locations distributed over a geographical area. Assuming that each individual server will be responsible for demand in a certain territory on a first come first served basis, formulas are determined for estimating the appropriate area per person. Demands for service are assumed to be Poisson arrivals with their locations distributed uniformly over the territory. Service time consists of travel to the call location plus “on-site” service time, which can be any random variable with known mean and variance. Area per server is determined as a function of call arrival rate, desired average response time, and service time parameters. Appropriate applications for the models are identified and discussed.
Linear Programming and Markov Decision Chains
Authors: Hordijk A. , Kallenberg L. C. M.
Published: November 2008

In this paper we show that for a finite Markov decision process an average optimal policy can be found by solving only one linear programming problem. Also the relation between the set of feasible solutions of the linear program and the set of stationary policies is analyzed.
Two-Segment Separable Programming
Authors: Meyer R. R.
Published: November 2008

New iterative separable programming techniques based on two-segment, piecewise-linear approximations are described for the minimization of convex separable functions over convex sets. These techniques have two advantages over traditional separable programming methods. The first is that they do not require the cumbersome “fine grid” approximations employed to achieve high accuracy in the usual separable programming approach. In addition, the new methods yield feasible solutions with objective values guaranteed to be within any specified tolerance of optimality. In computational tests with real-world problems of up to 500 “nonlinear” variables the approach has exhibited rapid convergence and yielded very close bounds on the optimal value.
Note—Aggregations of Subsidiary Firms for Minimal Unemployment Compensation Payments Via Integer Programming
Authors: Salkin Harvey M. , Lin C. H.
Published: November 2008

In Ohio, as well as several other states, annual unemployment compensation payments paid by a corporation can be minimized by solving a set partitioning problem which has all possible nonzero binary columns. The scenario, along with the model and an illustration are given. Some solution techniques and actual results, taken from a consulting effort, for a few Northeast Ohio corporations are also mentioned.
Advocacy and Objectivity in Science
Authors: Armstrong J. Scott
Published: November 2008

Three strategies for scientific research in management are examined: advocacy, induction, and multiple hypotheses. Advocacy of a single dominant hypothesis is efficient, but biased. Induction is not biased, but it is inefficient The multiple hypotheses strategy seems to be both efficient and unbiased. Despite its apparent lack of objectivity, most management scientists use advocacy. For example, 2/3 of the papers published in a sampling of issues of Management Science (1955–1976) used advocacy. A review of the published empirical evidence indicates that advocacy reduces the objectivity of the scientists. No evidence was found to suggest that this lack of objectivity could be overcome by a “marketplace for ideas” (i.e., publication for peer review). It is recommended that the method of multiple hypotheses be used.
Candidate to Job Allocation Problem with a Lexicographic Objective
Authors: Cramer J. , Pollatschek M. A.
Published: November 2008

Allocation of candidates to jobs is required in a situation where each candidate can only be allocated to certain jobs, and every job's “length” decreases as more candidates are allocated to it. The objective is to minimize the “ranked length vector,” which is derived by arranging the job-lengths in nonincreasing order, in the lexicographic sense. Necessary and sufficient conditions for optimality are derived, and an algorithm for obtaining optimal allocations is presented, along with computational experience.
Simulating Housing Market Processes at the Micro Level
Authors: Ayal Igal , Hempel Donald J.
Published: November 2008

The article describes a simulation of market processes in single-family, owner-occupied housing in a metropolitan market area. The simulation was designed both as a training tool and a decision aid. Model structure is discussed in detail, and data bases for construction are described. The model has substantial face validity (tested with a sizeable number of prominent Realtors), and interesting managerial implications.
Advertising Agency Compensation: A Model for Incentive and Control
Authors: Calantone Roger J. , Drury Donald H.
Published: November 2008

This paper describes a theoretical model for incentive and control within the framework of the advertising agency-client relationship. This particular interorganizational relationship has been characterized by frequent disagreements, discontent and resignation of accounts by both sides. For many years simple commission schemes were the rule. Recently many alternative schemes have been instituted but have either had no effect or overly favored one party or the other and thus exacerbated the historical discontent in the industry.

The problem is identified through an examination of the major client-agency compensation methods currently in use. The article deals first with the effects and drawbacks of making the simple commission rate method more complex by introducing an increasing number of numerical statements of the variables with which the advertisers and agencies must deal. Then four simple compensation methods—the commission basis, the fixed fee method, time-charges and a results incentive program—are analyzed and compared to introduce an alternative, three-stage approach to compensation.

In the first or preliminary stage, the agency proposes to the advertiser a tentative target and a tentative compensation which as been determined by means of an equation which guarantees the agency a normal return. In the second or planning phase, the agency has the option of selecting according to a formula a larger or smaller plan target with a correspondingly larger or smaller compensation payment. In the third or implementation phase, when the agency acutally provides the service negotiated in stage two, it actually receives the corresponding agreed-upon compensation appropriate to its inputs and performance.

Thus the model presented provides output performance incentives to both agency and client while providing controls on inputs for both sides. It also explicitly recognizes the planning and negotiation facets of compensation schemes through which the accommodation of each set of organization goals may be achieved.
On the Effectiveness of Common Random Numbers
Authors: Wright R. D. , Ramsay T. E.
Published: November 2008

The common random number (CRN) simulation technique is a variance reduction method in which policy alternatives are tested against the same random input streams. The CRN literature suggests that positively correlated input streams will generate positively correlated policy responses and, therefore, that the variance of CRN estimators of response differences will be smaller than the variance of independent sample estimators. This paper reports simulation experiments with a typical inventory model for which the CRN technique induces negative correlation and thus augments variance. The experiments also show that CRN designs which assign separate random streams to each stochastic input and hold all streams common across policy tests usually, but not necessarily, yield maximum variance reduction.
Multiattribute Utility Functions: Decompositions Using Interpolation
Authors: Bell David E.
Published: November 2008

Methodologies developed in the last several years allow formal inclusion of two sources of complexity in the analysis of a decision problem—uncertainty and multiple conflicting objectives. Uncertainty can be handled by assessing the decision maker's attitude towards risk in the form of a von Neumann-Morgenstern utility function. Conflicting objectives may be handled by making the utility function multidimensional. A problem that then arises is in devising assessment protocols for these multidimensional (multiattribute) functions that make efficient use of the decision maker's time and effort. Mostly, such methods have concentrated on identifying structural properties of the function, such as separability, by asking questions of a general nature about the preferences and tradeoffs of the decision maker. These methods have been applied successfully on such problems as facilities siting, selection of appropriate medical treatment, optimal pest control and the evaluation of R&D proposals. The problem addressed in this paper is that of what to do about the assessment if no useful decomposition of the utility function can be identified. One possiblity is to make use of some of the properties that were most nearly satisfied and then attempt to support the resulting recommendations with a sensitivity analysis.

This paper provides the analyst with an efficient, routine method of approximating the utility function to any degree of accuracy that the decision maker or the problem requires. The idea is to assess the function exactly only on a multidimensional grid and then to interpolate other values of the utility function from those on the grid. Evidently, a finer grid will, in general, provide a better approximation. The resulting utility function is continuous.

It is not anticipated that many of the problems in which conflicting objectives are a factor will need this level of sophistication. But just as there are problems that require a substantial modelling effort to identify feasible consequences so, occasionally, an analysis would benefit from an accurate modelling of the objective function.
Another Analysis of the EEOCC “Four-Fifths” Rule
Authors: Boardman Anthony E.
Published: November 2008

Federal guidelines provide grounds for determining when a racial, ethnic or sex group has experienced discrimination in selection or promotion. This paper assumes that a predetermined number of people are selected or promoted and presents a simple model that computes the exact probabilities of type I and type II errors, that is, concluding adverse impact when none exists and concluding no adverse impact when it does, in fact, exist.
Reliability and Inventory in a Production-Storage System
Authors: Meyer Robert R. , Rothkopf Michael H. , Smith Stephen A.
Published: November 2008

The reliability of a single stage production-storage system in meeting a constant known demand is analyzed. This system consists of a production facility subject to stochastic failure and repair processes and a storage facility of fixed capacity. When operable, the production facility is assumed to produce at a rate greater than the demand until the storage capacity is exhausted and then at the demand rate. Expressions are developed for the fraction of time demand is met and the average inventory level in the storage facility. Two variants of this problem are also solved.
Communication—Algorithms for Car-Pools
Authors: Leff Nathaniel
Published: November 2008

An invitation to readers of Management Science to contribute algorithms for sorting people in car-pools.
An Algorithm for a Nonlinear Discontinuous Knapsack Problem
Authors: Armstrong R. D. , Cook W. D. , Palacios-Gomez F. E.
Published: November 2008

This paper presents a solution procedure for a class of discontinuous nonlinear knapsack problems. These problems have a single linear constraint and a restriction that each variable must be either zero or take on a value within a specified interval. The objective function is separable and each term is concave within the interval. Problems of this type arise in capital budgeting and a particular application in the scheduling of pavement maintenance is given. The branch-and-bound algorithm developed to solve the problem considers an approximation-relaxation at each step. Computational experience with the algorithm and a brief overview of applications of the model are given.
A Generalization of the Nerlove-Arrow Model to Multi-Firms Advertising under Uncertainty
Authors: Tapiero Charles S.
Published: November 2008

This paper considers a multi-firms advertising model under uncertainty of the Nerlove-Arrow type. It is shown (under a Markovian assumption of the advertising process) that the probability of sales for a firm in a multi-firms setting is given by a Poisson distribution with a parameter given by its market share at a given time. Using the multi-firms model developed in this paper, advertising differential games are resolved. In particular, a two-firms advertising model with concave advertising costs is used to obtain optimum advertising budgets for competitive firms.
Note—Managing Sickle Cell Anemia in Zaire
Authors: Lemaire Jean
Published: November 2008

This paper analyzes the long term effects of various genetic policies that could be applied at a national level in Zaire to fight sickle cell anemia: the prohibition of marriages between individuals with the sickle cell trait, increased efficacy of the medical cure of sickle cell anemia, selective birth control, and eradication of malaria. We show that combined application of the last two policies would lead to progressive disappearance of the disease. The first two policies lead to disastrous effects in the long run, since the proportion of those who have the sickle cell trait would increase from the present 25%. Due to major differences between Zaire and the United States, the results differ markedly from those of Meredith (Meredith, J. 1977. Managing the incidence of sickle cell Anemia through genetic counseling. Management Sci. 23 1261–1272.) who presented the results of a similar study in the United States in a previous article in Management Science.
R&D Project Planning with Q-GERT Network Modeling and Simulation
Authors: Taylor Bernard W. , Moore Laurence J.
Published: November 2008

This paper describes a simulation study of two cases of research and development planning. The first case is for a series of R&D projects analyzed sequentially by a single R&D team, while the second case is for a series of R&D projects analyzed sequentially and concurrently by two teams. Q-GERT, a network technique, was employed for the modeling and simulation effort. This technique includes numerous network modeling capabilities which make it more applicable to R&D project planning than traditional network techniques such as CPM and PERT. The simulation results for each case in terms of project duration statistics and outcome probabilities are presented in detail. The trade-offs between the two cases (i.e., single team versus multiple team analysis) are discussed.
A Quasi-Empirical Mapping of Optimal Scale of Enterprise
Authors: Sutherland John W.
Published: November 2008

There is a substantial empirical data base suggesting that increases in organizational size and complexity tend to be accompanied by decreases in strict economic efficiency. There has, however, been no attempt to provide a generalized explanation for these results, or to asses their macroeconomic implications. Here we attempt to do this, focussing initially on the limited bounds of rationality the management sciences can currently make available. When these are considered, the efficiency disadvantages of large-scale, highly diversified firms become intelligible as follows: When an organization enlarges itself primarily through diversification, it becomes increasingly susceptible to certain administrative diseconomies; beyond some point, these more than offset efficiencies available through size-related economies of scale. There is, in effect, some optimal scale of enterprise, violations of which force a firm to disserve its customers, investors or the general economic welfare.
Sample vs. Population Mean-Variance Efficient Portfolios
Authors: Levy Haim , Kroll Yoram
Published: November 2008

It is common to use historical data in calculating the rates of return of risky options, and these data are used to calculate the mean and the variance, which are employed in the (MV) preference ranking.

In this paper we study the effect of possible sampling error on the portfolio ranking. It is shown that in order to keep the error at a reasonable level (5 percent), one needs 50–100 observations, a number that is rarely used in the (MV) comparison of portfolios. The results are almost independent of the correlation between the portfolios.
Formulating Blood Rotation Policies with Multiple Objectives
Authors: Kendall Kenneth E. , Lee Sang M.
Published: November 2008

Human blood is perishable. Therefore it must be systematically redistributed to hospital blood banks where it will have a high probability of transfusion. Ideally this redistribution, referred to as blood rotation, should be performed in such a manner as to minimze the outdating and improve the quality of blood while keeping the frequency of blood shortages and regional operating costs at reasonable levels. Priorities for attaining these multiple objectives are different in every blood region. Consequently, in this paper, a goal programming model is developed to attain multiple goals as identified by the administrator of a regional blood center. Included in the model are goal constraints related to inventory levels, the availability of fresh blood, blood outdating, the age of the blood, and the cost of collecting it. The paper reports the results of applying the methodology in a large urban-rural blood region in the midwest. Use of the model demonstrated that: the percentage of blood collected for use within the region but not used could be reduced from 14.9% to 9.2% without increasing the frequncy of shortages; overstocking of hospital blood banks would be eliminated; sufficient fresh blood could be made available to meet the needs of special surgery; the amount of blood needed to be collected for use within the region could be reduced by over 5%, saving approximately $115,000 per year.
Automatic Identification of Generalized Upper Bounds in Large-Scale Optimization Models
Authors: Brown Gerald G. , Thomen David S.
Published: November 2008

To solve contemporary large-scale linear, integer and mixed integer programming problems, it is often necessary to exploit intrinsic special structure in the model at hand. One commonly used technique is to identify and then to exploit in a basis factorization algorithm a generalized upper bound (GUB) structure. This report compares several existing methods for identifying GUB structure. Computer programs have been written to permit comparison of computational efficiency. The GUB programs have been incorporated in an existing optimization system of advanced design and have been tested on a variety of large-scale real-life optimization problems. The identification of GUB sets of maximum size is shown to be among the class of NP-complete problems; these problems are widely conjectured to be intractable in that no polynomial-time algorithm has been demonstrated for solving them. All the methods discussed in this report are polynomial-time heuristic algorithms that attempt to find, but do not guarantee, GUB sets of maximum size. Bounds for the maximum size of GUB sets are developed in order to evaluate the effectiveness of the heuristic algorithms.
Note—On “A New Look at Production Switching Heuristics for the Aggregate Planning Problem”
Authors: Vergin Roger C.
Published: November 2008

Several papers have been published which present simplified models for the aggregate planning problem which do not yield optimal schedules. They are typically supported with computations that suggest that the resulting schedules produce costs within a few percent of optimum. This note suggests that those cost comparisons have been made against inappropriate base costs which include a large fixed cost element. When these models are compared using only the controllable variable costs, costs that appeared to be only one or two percent over minimum turn out to be as much as twenty to thirty percent over the costs resulting from optimal solutions.
Evaluating and Improving Resource Allocation for Navy Recruiting
Authors: Morey Richard C. , McCann John M.
Published: November 2008

The recruitment of enlisted men and officers under the All-Volunteer Force concept costs approximately $620 million per year; of this amount approximately $100 million are in advertising expenditures. However, recently Congress and the General Accounting Office have expressed considerable concern over the lack of justification for such expenditures. The issue is further complicated by the recent recruiting shortfalls by all the services and the debate surrounding registration and a possible return to the draft. Finally, results of most profit-oriented sales research are difficult to apply to improving military recruiting efficiency due to the difference in the levels of rapport and credibility necessary to convince a potential recruit to invest several years of his life.

This paper reports on modeling and implementation experience geared towards determining the proper allocation of resources between advertising and recruiters. This mix is especially crucial since Congress does not permit funds appropriated for advertising to be used for manpower or vice versa. The study consists of two parts: generation of response functions to estimate the number and mix of enlistments over time and geographically as a function of the various demographics, advertising expenditures and the number of recruiters; a nonlinear programming resource allocation model to improve the budget generation and budget execution capabilities in meeting and assessing the impact of the various multi-faceted quantity and quality goals. The basic model, with updating of the response function parameters, is being used by the Navy to aid in the generation and defense of its annual budget appropriations. Numerical results are given which are compared to the past allocations of the Navy and to results observed in industrial product marketing.
On the Design of Incentives in Business Firms—A Survey of Some Research
Authors: Jennergren L. Peter
Published: November 2008

Quantitative approaches to the design of incentives in business firms are surveyed by drawing on writings from management science, finance, decision analysis, and mathematical economics. Two general incentive design situations are considered: How should incentives for the company president be designed, so that he or she will be induced to act in the interest of the ownership group or some other controlling syndicate? And how should incentives for divisions be designed, so that they will be induced to act in accordance with the interest of the whole firm? With respect to the first question, the following topics are discussed: the construction of an objective function for the firm derived through die stock market or directly from the preferences of the members of the controlling syndicate, the principal-agent situation, and the moral hazard situation. With respect to the second question, two topics are treated: the Soviet incentive scheme, and resource allocation.
A Lagrangean Relaxation Algorithm for the Two Duty Period Scheduling Problem
Authors: Shepardson Fred , Marsten Roy E.
Published: November 2008

The two duty period scheduling problem is an integer programming problem with 0-1 constraint coefficients. It is recognized that the problem can be reformulated as a one duty period problem with side constraints. Since the one duty period problem can be solved as a minimal cost network flow problem, we dualize with respect to the side constraints, forming a Lagrangean relaxation which is easily solved. Subgradient optimization is used to maximize the Lagrangean. Computational results are reported for several large problems.
An Implicit Enumeration Algorithm for Quadratic Integer Programming
Authors: McBride R. D. , Yormark J. S.
Published: November 2008

We present an implicit enumeration algorithm for a nonseparable quadratic integer programming problem. We utilize fathoming criteria derived from Lemke's complementary pivot algorithm, and compare the use of pseudo-costs versus generalized penalties as a guide to branching. Computational experience is provided.
Utility Functions for Equity and Public Risk
Authors: Keeney Ralph L.
Published: November 2008

With many large-scale projects, such as power plants, some members of the public will necessarily incur a risk. Public fatalities may result from either normal operations (e.g., via pollution) or accidents. Often in such cases, a small group of the public incur the risks, whereas a different group of the public receives the benefits from the project. In these circumstances, a major issue concerns the equity or fairness afforded members of the public. This paper develops the concept of an equitable distribution of risk to address this issue. Utility functions are found which are consistent with various basic value attitudes involving risk equity.
The Efficiency of the Price, Budget, and Mixed Approaches Under Varying a Priori Information Levels for Decentralized Planning
Authors: Burton Richard M. , Obel Börge
Published: November 2008

Organizations have a choice of information and planning procedures to use for a coordinated plan. In this paper, we investigate the efficacy of price and/or budget planning approaches, where the first proposal can be determined from a combination of historical plans, external prices, rules of thumb, and other data. The problem is to consider which planning approach and information structure are best.

The experimental approach is to simulate the behavior of the planning approaches for a coordinated decentralized organization using decomposed mathematical programming models. The model is adapted from a Danish slaughterhouse. Many organizations use budgets and/or transfer prices to set coordinated plans. But optimization as defined mathematically is not a major concern. Organizations do consider a few alternative plans in an iterative process. We investigate the efficiency of the decomposition models as organizational analogues during the first five iterations to simulate organizational planning cycles. A changing environment for prices and availabilities is generated experimentally by perturbing these environmental parameters. A random number generator is used to yield the statistical sample. The experimental results are compared in terms of relative profitability for the organization. A nonparametric statistical test is used to analyze the experimental data.

The results, are, in part, surprising. For a changing environment, historical information, (i.e., a past solution) is generally inferior to a combination of less precise information on current transfer prices, reasonable rules of thumb, and capacity constraints. However, more current information on prices and budgets yields better plans. Further, we found the transfer price approach yields more nearly optimal plans in the first few iterations than a combination of prices and budgets which in turn, is more efficient than budgets only.
Car Pool Systems
Authors: Robinson Stephen L.
Published: November 2008

Comments about the letter from Professor Leff (Management Sci., Vol. 25, No. 8 (1979), p. 810).
Erratum to “On a Production Allocation and Distribution Problem”
Authors: Mairs Thomas G. , Wakefield Glenn W. , Johnson Ellis L. , Spielberg Kurt
Published: November 2008

Erratum to Mairs, Thomas G., Glenn W. Wakefield, Ellis L. Johnson, Kurt Spielberg. 1978. On a production allocation and distribution problem. Management Sci. 24 (November).
Testing for Vision Loss in Glaucoma Suspects
Authors: Kolesar Peter
Published: November 2008

The problem of decreasing the amount of testing for vision loss in persons susceptible to glaucoma is formulated as an integer optimization problem. Nonlinear and linear versions of the problem formulation are given, and both heuristic and exact algorithms are proposed. Testing with retrospective clinical data indicates that the suggested procedures can yield substantial improvement in testing time. The relation of the glaucoma testing problem to classical problems in search theory is briefly discussed.
Are Multi-Echelon Inventory Methods Worth Implementing in Systems with Low-Demand-Rate Items?
Authors: Muckstadt John A. , Thomas L. Joseph
Published: November 2008

In practice, most multi-echelon inventory systems are managed using adaptations of single location methods. This paper shows that such methods can be dramatically inferior to methods designed to take advantage of a system's structure. This is especially true in repair parts inventory systems where most items have low demand rates.

In this paper we describe a multi-echelon method adapted to a particular situation. Data taken from a large (over $100 million investment) industrial inventory system are used to provide comparative results on overall inventory required to meet a given service level. The multi-echelon method used involves an (s − 1, s) ordering policy and Poisson demand, both of which are appropriate for low demand items; this method requires much lower total investment than the single-location method requires to achieve the same average level of performance. Thus it appears that multi-echelon methods are worthwhile in many situations.
A Mathematical Programming Approach to Beef Feedlot Optimization
Authors: Glen John J.
Published: November 2008

The efficient operation of a beef cattle feedlot is governed by the purchase and selling weights and prices of the animals and by the feeding system used. The optimal feeding system will involve feeding least cost rations to animals at every stage in the production process. A method is described for determining optimal feeding systems which meet the nutrient standards recommended by the US National Research Council. The approach involves first using linear programming (LP) to determine least cost rations to produce specified liveweight gains in animals of known liveweight. Dynamic programming (DP) is then used to determine the optimal sequence of rations to feed in order to produce animals of specified liveweight from animals of known initial weight at minimum cost, using the least cost rations determined from the LP model. The results from this new DP model can then be used to determine the optimal combination of purchase weight, selling weight and feeding system. It is shown that in order to use the DP model, the LP model must be solved a large number of times and a new method is developed to produce these solutions more efficiently. The approach is applied to a representative problem and the computational experience is presented.
Humans vs. Computer Algorithms for the Plant Layout Problem
Authors: Trybus Thomas W. , Hopkins Lewis D.
Published: November 2008

An experiment with plant layout formulated as a quadratic assignment problem gave the following results: (1) The CRAFT algorithm does as well as human subjects in solving the plant layout problem; (2) CRAFT does better as problem size increases if the human subjects have no prior knowledge of the computer solution values; (3) there is no breakpoint in relative problem solving ability between humans and computers at 200% flow dominance (the coefficient of variation of the flow matrix expressed as a percent); (4) the point at which the computer becomes better, as opposed to equally good, is more clearly indicated by problem size than by flow dominance; (5) humans can solve problems with high flow dominance and problems with near-zero flow dominance better than they can solve problems with low flow dominance, though the computer is still at least as good across all levels of flow dominance.
The Relationship between Attributes, Brand Preference, and Choice: A Stochastic View
Authors: Blin Jean-Marie , Dodson Joe A.
Published: November 2008

This paper draws from two separate research traditions in marketing theories of consumer behavior: multiattribute expectancy-value models and stochastic choice models. A behavioral basis for the observed brand-switching phenomenon is found in the multiattributed evaluation of alternatives and the uncertainty surrounding such evaluation. A model is proposed to deal with this phenomenon and is fitted against a comprehensive data set. The model is found to compare favorably in predictive value with other models.
A Decision Analysis Model for a Serious Medical Problem
Authors: Peña Sanchez de Rivera Daniel
Published: November 2008

This paper presents a decision model for a serious medical problem: the diagnosis and treatment of undifferentiated liver disease with jaundice. The model formalizes the use of information before a treatment is chosen, taking account of prior information collected by the doctor from laboratory and clinical exploration. Then the model chooses the best treatment according to the patient's preference structure.

Since the best treatment in each case depends on the patient's preference for consequences, this aspect is central to the application of such models. Thus a main objective is to find a suitable criterion to measure the consequences in order that each patient's attitude can be taken into account. Our model was computerized and tested with fifty patients: the program duplicated in forty-four cases the decisions of expert doctors.

The model overcomes some of the difficulties observed in the manipulation of probabilities by clinicians. The results suggest that a Decision Analysis model may be a useful way to clarify the decision process of expert clinicians and to help in the education of new doctors. Finally, this kind of program can play a role in automating medical decision-making in such a way that the knowledge of the best experts can be made widely available.
A Boolean Approach to Interactive Program Planning
Authors: Abonyi George , Howard Nigel
Published: November 2008

Program planning refers to the process of selecting an integrated set of projects for implementation. Ultimately, decisions tend to be “political” in the sense that they involve compromises and tradeoffs among different interests, though the arguments may be couched in technical terms. Program planning may be structured as a multi-stage process. One stage involves the assessment of various alternatives for the project components of the program. A second stage then involves the selection of the required program, i.e., a specific combination of project designs. This paper presents a Boolean method called Interactive Program Planning (IPP) for structuring the assessment process at the project level. The method may be used in an interactive procedure that finds which project alternatives are acceptable to different interest groups. An algorithm that identifies crucial points of disagreement between groups may then be used to help reduce disagreements, thus enlarging the set of acceptable programs. Although the focus here is on program planning, the method is of general relevance to complex issues involving collective decisions. Further, IPP implies the view that optimization methods requiring (a perhaps implicit) consensus on general objectives are of limited value as general frameworks for program planning. Instead (or in addition) the program planning process should be supported by interactive methods that can assist in achieving the widespread acceptance of specific alternatives which meet a variety of perhaps conflicting interests.
A Goal Programming Model for Planning Officer Accessions
Authors: Bres E. S. , Burns D. , Charnes A. , Cooper W. W.
Published: November 2008

A goal programming model for planning officer accessions to the U.S. Navy from various commissioning sources is developed and described. Present and future requirements for different career specialty areas in the Navy are considered in terms of years of commissioned service and related to various “choke points” where inventories fall short of requirements in officer force structure. An illustration of the use of this model is provided which involves assessments of the effects of phasing out one comissioning source. Other uses and possible further extensions are also indicated for this model, which now forms a part of the Navy's manpower planning procedures.
Accounting Applications—Introduction
Authors: Ronen Joshua
Published: November 2008

Introduction to special issue on accounting applications. By publishing these papers together in one issue of Management Science we wish to accomplish the dual purpose of exposing management scientists to the application of their discipline to important accounting problems and of allowing management scientists and accountants to interact in areas of research and problem-solving, thus stimulating the interest of readers who are concerned with the problems of accounting.
Management Science Update Column—“Multicommodity Distribution System Design by Benders Decomposition”
Authors: Geoffrion A. M. , Graves G. W.
Published: November 2008

TIMS President-Elect Arthur Geoffrion sent in a bundle of update material on the article he coauthored in the January 1974 issue of Management Science. As the Hollywood promoters might say, this is a story so big it takes two issues to hold it. Therefore, this edition of Update covers a public sector application, and the next edition covers a private sector application.
Note—Simple Inequalities for Multiserver Queues
Authors: Sobel Matthew J.
Published: November 2008

Simple inequalities are obtained for some operating characteristics of multiserver queueing models. “Loss system” and “delay system” results are presented.
Note—Comments on a Queueing Inequality
Authors: Heyman Daniel P.
Published: November 2008

In a G/G/c/N system (a queue with general distributions of inter-arrival and service time, c servers and N − c ≥ 0 queueing positions), let B be the steady-state probability that an arriving customer finds all queue positions filled and p be the time average probability that all queue positions are filled. By assuming p = B, Matthew Sobel proved [Formula: see text] where p is the traffic intensity. He also showed, by numerical examples, that the lower bound is a good approximation when p ≥ 1.5 and c ≥ 2.

In this paper, we show that the lower bound does not require the assumption p = B to hold, and that it follows from the conservation of load. This derivation also explains why the bound does not depend on N and is a good approximation in heavy traffic. We also show that the upper bound depends critically on the assumption that p = B.
Note—On the Cyert-Davidson-Thompson Doubtful Accounts Model
Authors: van Kuelen Jos A. M. , Spronk Jaap , Corcoran A. Wayne
Published: November 2008

The results of the classical Cyert, Davidson, and Thompson (CDT) model for estimating the allowance for doubtful accounts could be made more valuable by correcting one flaw. The CDT model rests on the total balance method of aging dollars and, as presented, its answers cannot wisely be applied to estimate real dollar amounts. Notably, the steady state distributions derived by the model tend to underestimate actually paid dollar amounts.
Comparing Operating Characteristics of Queues in Which Customers Require a Random Number of Servers
Authors: Green Linda
Published: November 2008

We examine the relative effects of several service order disciplines on important operating characteristics of queues in which customers request a random number of servers. This class of queues is characterized by customers who cannot begin service until all required servers are available. We show that for many systems in this class, it is possible to define a new service order discipline which is more efficient than FIFO with respect to one or more measures such as expected waiting time, probability of delay, etc.
Expected-Utility-Maximizing Price Search with Learning
Authors: Harstad Ronald M. , Postlewaite Andrew
Published: November 2008

We consider a model of search when the distribution of prices (wages) is unknown. The effect of changing the objective function from minimizing expected cost to maximizing expected utility is examined.
Algorithms for the State Probabilities in a General Class of Single Server Queueing Systems with Group Arrivals
Authors: van Hoorn M. H.
Published: November 2008

Single server queues with batch arrivals are useful in the modeling of computer and communication systems amongst others. In this paper we give for a wide class of single server queues with batch arrivals a stable recursive method to compute state probabilities both at arrival and at arbitrary epochs. This class includes finite capacity models with state dependent Markovian input in which batches could be totally or partially rejected. The customers of a batch are served individually and the service time has a general distribution function. In particular, we discuss as application the computation of operating characteristics, such as rejection probability and probability of server idleness, for a finite capacity M/G/1 queue for which arriving customers are rejected if their waiting plus service times exceed the capacity of the system.
A Diffusion Approximation for Bulk Queues
Authors: Chiamsiri Singha , Leonard Michael S.
Published: November 2008

In this paper the steady-state queue size behavior of single-server queues with bulk-arrival and batch-service, referred to as bulk queues, is approximated by a diffusion process using the instantaneous return approach. Diffusion approximation solutions for various queue size statistics are developed and evaluated for a number of special “Markovian-like” bulk queues. The approximate solutions are found to be robust for queues under heavy traffic, and in certain cases, under other traffic conditions.