bluuebunny/crossref_metadata_2025 huggingface dataset:
The Geometry of Solution Concepts for N-Person Cooperative Games
Authors: Spinetto Richard
Published: November 2008

The closed convex polyhedron consisting of all 0-1 normal n-person games with nonempty core is characterized by naming its extreme points. This characterization establishes a geometric setting, in the game space itself, for such solution concepts as the core and the nucleolus. This geometric setting also suggests new solution concepts. A similar geometric setting is also established for the Shapley value, and core and nucleolus solution concepts can be defined in this geometric setting.
Note—Two Comments on the Deterministic Capacity Problem
Authors: Kalotay A. J.
Published: November 2008

Giglio's paper [Giglio, R. J. 1973. A note on the deterministic capacity problem. Management Sci. 19 (9, May).] on capacity expansion and its primary reference [Srinivasan, T. N. 1967. Geometric rate of growth of demand. A. S. Manne, ed. Investments for Capacity Expansion. MIT Press, 150–156.] overlook a relevant earlier result of Sinden [Sinden, F. W. 1960. The replacement and expansion of durable equipment. J. Soc. Indus. Appl. Math. 8 (September) 466–480.]. All three papers model a situation in which demand g(t) is increasing in t and must, for all t, be accommodated by prior installation(s) of capacity.
Communications to the Editor—Response to Taylor's “Resolution of a Paradox: Mini-Max Rehabilitated
Authors: Maschler Michael , Aumann Robert J.
Published: November 2008

This is a response to “Resolution of a Paradox: Mini-Max Rehabilitation,” by P. T. Taylor, which appeared in Management Science 19 (1972), pp. 466–467, and “Some Further Thoughts on the Minimax Principle,” by Morton Davis, which is appearing in this issue of Management Science.
The Incorporation and Reduction of Value Judgements in Systems
Authors: Mattessich Richard
Published: November 2008

This paper first examines and illustrates the way in which value judgements can be incorporated in a system, and how they can be externalized by changing the system's boundaries. Then some general statements about value judgements and their locations in systems are advanced. The acceptance of these statements enables an extension of the notion of “value judgement” from sentences to systems. Thus criteria are spelled out for attributing the terms “normative” and “positive” to systems. Then the changes are examined which occur when a system undergoes the transfer of a value judgement from its structure to its (external) environment. Furthermore an attempt is made to clarify (by means of this Method of Neutralizing Systems) the longstanding controversy of value neutrality of science and of our own discipline. Finally an analysis is sketched which reveals that the assertion “ought-to-sentences cannot be reduced to is-sentences” need not be tautological if it is meant to hold within a system only. If the pertinent normative remnant lies beyond the system boundaries, a value judgement can indeed be reduced to a factual statement, but merely within this system.
A Note on Hierarchy and Coordination: An Aspect of Decentralization
Authors: Kochen Manfred , Deutsch Karl W.
Published: November 2008

A mathematical expression for the cost of maintaining a client-centered service organisation is derived. It shows the dependency of the total cost on the service-request load, the number of hierarchical levels of the organization, and the administrative costs. The mathematical formulation is based on a model in which the main variables are the times spent on communication between different levels of the organisation and on communication between agents at the same level. The optimum number of levels for minimising cost is derived, and its sentivity to request load is investigated.
The Dual of a Hyperbolic Approximation to the Generalized Constrained Multi-Facility Location Problem with lp, Distances
Authors: Love Robert F.
Published: November 2008

This article develops the dual program corresponding to a hyperbolic approximation, of the constrained multi-facility location model using lp distances. The dual program is original and is a contribution to the theory of facilities location as well as providing a new efficient method of computing optimal facilities location in certain cases where linear constraints are present. Some properties of the dual are developed as the hyperbolic approximation model converges to the actual location model. Computation results using a decomposition programming method are given and discussed.
A Linear Programming Analogue, a Duality Theorem, and a Dynamic Algorithm
Authors: White D. J.
Published: November 2008

This paper considers fluid analogues for the standard linear programming problem and for a separable nonlinear programming problem. In the former case the usual duality results are demonstrated using the principle of minimum potential energy. In addition by examining the dynamics of the system a new method, referred to as the R-method, is derived for solving linear programmes, although it is not demonstrated that this has any computational advantages over the standard simplex method, except that degeneracy causes no problems. In the nonlinear case the weak Lagrangian principle is derived.

The purpose of the paper is to demonstrate that analogue methods, while being impracticable as a physical method of solving optimisation problems, may give some insight into computational algorithms via dual energy concepts and/or dynamic behaviour.
Optimal Sequential Assignments with Random Arrival Times
Authors: Albright S. Christian
Published: November 2008

A problem is considered where jobs arrive at random times and assume random values, or importance. These must be assigned to a fixed set of men whose qualities are different but known. As each job arrives, its value is observed and the decision-maker must decide which man, if any, to assign to this job. If a job arrives at time t and its value is observed to be x, then by assigning man i with quality pi, a reward r(t)pix is received, where r(t) is a discount function. The object is to find an assignment policy which maximizes the expected reward from the available men. The problem is analyzed for different arrival distributions and for different discount functions, but in all cases, the optimal policies are shown to have fairly simple forms, independent of the actual qualities of the men, the pi's. Other interpretations of the model, besides the men and jobs interpretation, are also given. The paper concludes with a similar model which does not, however, include time as an explicit parameter.
The Evaluation of Risky Investments with Random Timing of Cash Returns
Authors: Perrakis Stylianos , Henin Claude
Published: November 2008

This paper provides a computational technique for the evaluation of the distribution of the net present value (NPV) of an investment, in which the cash inflows occur at random time points, as in the case of venture capital. The initial cash outlay is deterministic and the magnitudes of the cash inflows are nonnegative, random variables with known distributions. The lengths of the intervals between successive cash inflows are independently distributed and independent of the magnitude of the inflows. The Laplace transforms and the first two moments of the distribution are computed for both independent and perfectly correlated inflows. It is shown that the use of constant time intervals when the timing of the inflows is random underestimates the variance of the distribution of the NPV.
Individual Decisions Concerning the Allocation of Resources for Projects with Uncertain Consequences
Authors: Berg Claus C.
Published: November 2008

Individual decision making behavior under uncertainty is queried by experiments. The subject's task is to allocate resources for projects with transformation results about which only uncertain expectations exist. The purpose is to get some insight into the information processing which determines the choice of an allocation rate. The data contradict any predictions based on a SEU model of decision making behavior under uncertainty. An heuristic information processing model is built which possesses better empirical validity than the SEU model. The model provides an alternative to Atkinson's theory, for it is demonstrated that individuals show both typical and atypical reactions in dynamic interaction. The variable ‘situation of an individual’ is defined which provides a mechanism to explain the observable switch in the priority ordering of needs.
Multi-Item Lot Size Scheduling by Heuristic Part I: With Fixed Resources
Authors: Newson E. F. Peter
Published: November 2008

The multi-item lot size problem has been a formal management issue for some decades. The lot size decision of how much to produce (and when) usually considers the trade-off between lost productivity from frequent set-ups and short runs and the higher inventory costs arising from longer runs. When the decision must also consider shared limited production resources, the problem becomes complex.

The paper is presented in two parts. Part I outlines a heuristic for solving the multi-item lot size problem given fixed production resources. The problem is initially structured as a network of unlimited capacity. An arc-cutting criterion is suggested, successively paring the unconstrained lot size optimum in low-cost increments until a feasible integer solution occurs.

In Part II of this 2 part paper, the heuristic is extended to include variable capacity constraints. Computational results for both the fixed and variable capacity configurations and the bibliography conclude the presentation.
A Model of a Distribution Network Aggregate Performance
Authors: Naert Philippe A. , Bultez Alain V.
Published: November 2008

A model to evaluate distribution network performance is developed extending earlier work by Hartung and Fisher [Hartung, P. H., Fisher, J. L. 1965. Brand switching and mathematical programming in market expansion. Management Sci. 11 (10, August) 231–243.]. Our model differs on two counts: (1) it explicitly considers market dynamics and (2) the transition probability functions are robust. It is applied to describe the competitive position of a brand of gasoline on the Italian retail market.
Solution of the Multi-Asset Finite Horizon Investment Renewal Problem
Authors: Trippi Robert R. , Khumawala Basheer M.
Published: November 2008

The multi-asset investment renewal problem is characterized by two types of costs: transaction costs incurred when any renewal takes place at a point in time, and investment costs which are associated with renewing individual assets. A discrete-time version of this renewal scheduling problem is formulated as an integer program that, due to its structure, admits to an efficient branch and bound approach to solution. Computational experience with the solution algorithm is presented.
Comment on “Solving the ‘Marketing Mix’ Problem using Geometric Programming”
Authors: Balachandran V.
Published: November 2008

Comment on “Solving the ‘Marketing Mix’ Problem using Geometric Programming” (Management Sci., Vol. 21, No. 2, October 1974, pp. 160–171.).
Note—A Dominance Relation in Dynamic Lot Sizing
Authors: Williams Robert F.
Published: November 2008

A computationally efficient forward algorithm for the Economic Lot Size Model is developed. It uses a Dominance Relation and the Ordering Cost to limit the solution space. The Dominance Relation developed includes the standard planning horizon theorem. Extensions for price breaks and monotonically nonincreasing production costs are presented.
Simulating Stable Stochastic Systems, IV: Approximation Techniques
Authors: Crane Michael A. , Iglehart Donald L.
Published: November 2008

The previous papers in this series developed a methodology for obtaining from certain simulations confidence intervals for parameters associated with the steady-state distribution. This methodology required the simulations to contain an embedded renewal process at whose epochs the simulation started from scratch. The present paper contains four approximation techniques for obtaining confidence intervals when the simulation does not contain the required renewal process.
On Dynamic Programming with Unbounded Rewards
Authors: Lippman Steven A.
Published: November 2008

Using the technique employed by the author in an earlier paper, the existence of an optimal stationary policy that can be obtained from the usual functional equation is again established in the presence of a bound (not necessarily polynomial) on the one-period reward of a semi-Markov decision process. This is done for both the discounted and the average cost case. In addition to allowing an uncountable state space, the law of motion of the system is rather general in that we permit any state to be reached in a single transition. There is, however, a bound on a weighted moment of the next state reached. Finally, we indicate the applicability of these results.
Optimal Multi-Product Production Scheduling and Employment Smoothing with Deterministic Demands
Authors: Yuan John S. C. , Horen Jeffrey H. , Wagner Harvey M.
Published: November 2008

This paper considers the properties of an optimal production schedule for a multi-product firm, where the economics of production include employment smoothing costs. The results extend the findings of [Lippman, Steven A., Alan J. Rolfe, Harvey M. Wagner, John S. C. Yuan. 1967. Optimal production scheduling and employment smoothing with deterministic demands. Management Sci. 14 127–158.], which treated only a single product. The analysis establishes bounds on optimal production schedules for both individual products and aggregate work force. The paper also relates monotonicity in each product's demand with monotonicity of production for each item in an optimal schedule.
An Informal Look at the Principle of Optimality
Authors: Porteus Evan
Published: November 2008

The Principle of Optimality is examined informally in the context of discounted Markov decision processes. Our purpose is to illustrate that one should be invoking the optimality equations and/or the optimality criterion, rather than the Principle of Optimality in analyzing dynamic models. A counterexample to one interpretation of the Principle is given. It involves a foolish action at the second stage from a state that can be reached, but with probability zero. Redefining optimality as in Hinderer [Hinderer, K. 1970. Foundations of Non-stationary Dynamic Programming with Discrete Time Parameter. Springer-Verlag, New York.], restores the Principle, at the cost of a weaker notion of optimality.
Mathematical Models for Optimal Timing of Drilling on Multilayer Oil and Gas Fields
Authors: Babayev Djangir A.
Published: November 2008

The following problem of optimal control of multilayer gas and oil fields is formulated: for a given planning horizon find an optimal number of wells to be drilled on each layer and to be transferred between layers as a function of time to meet technological constraints and requirements, and to provide minimum total reduced cost per unit output. The optimal control problem is presented in the form of a mathematical programming problem with a nonlinear fractional objective function containing separable concave functions, and with separable concave constraints. Constraints describing specific features of gas and oil fields are considered. Solution procedures and applications are discussed.
Analyzing Multi-Commodity Distribution Networks Having Milling-in-Transit Features
Authors: Markland Robert E.
Published: November 2008

This paper summarizes the development and implementation of a model which uses the transportation method of linear programming to analyze multi-commodity networks having milling-in-transit features. The milling-in-transit privilege, which is granted by common carriers on many bulk raw materials, functionally relates the inbound raw materials with the outbound finished goods produced at a given manufacturing facility. The proposed model is developed under general assumptions, and is used to determine raw material sources and associated purchasing quantities, and to apply transit billing to outbound end product shipments. Implementation and utilization of the model by a major American food processor is described, and results from the model's application are presented and discussed.
Note—A Note on Cord's Method of Allocating Funds to Investment Projects
Authors: Galai D.
Published: November 2008

In this note, we redefine and reinterpret Cord's risk constraint that will be used in selecting the optimal portfolio of investment projects. A sensitivity analysis is carried out via derivation of efficient sets of portfolios for different levels of investment. Also the theoretical foundations of the model are discussed.
Inspection Procedures for Markov Chains
Authors: Sackrowitz Harold , Samuel-Cahn Ester
Published: November 2008

Consider a production process where the categories of successive units form a Markov chain with known transition matrix. Whenever a unit is produced, we may, at a fixed cost, inspect it. If its value is less than maximal, we may replace it with a perfect (maximal value) unit. We obtain optimal inspection procedures (procedures for which the value of the outgoing units is high and which keep the cost of inspection down).
Stochastic Programming and Decision Analysis: An Apparent Dilemma
Authors: Blau Roger A.
Published: November 2008

An example is given which demonstrates that using a decision theory analysis for the basic chance-constrained model of stochastic linear programming may lead to an apparent dilemma, namely, 0 > EVSI > EVPI. The problem is discussed and a resolution suggested.
Expected Objective Value of a Stochastic Linear Program and the Degree of Uncertainty of Parameters
Authors: Itami Hiroyuki
Published: November 2008

In this paper, we characterize the relationship between the expected optimal value of a stochastic linear program and a stochastic program with recourse and the degree of uncertainty in the objective function coefficients c and the stipulation vector b. It is shown that under certain conditions the expected objective value is nondecreasing as the degree of uncertainty in c increases and the opposite is true for the case of b. The degree of uncertainty of a random vector is defined in terms of a covariance matrix. Some managerial interpretations are also given.
Bayesian Equilibria of Finite Two-Person Games with Incomplete Information
Authors: Howson Joseph T. , Rosenthal Robert W.
Published: November 2008

The equivalence of Bayesian equilibria of two-person games with incomplete information and Nash equilibria of certain n-person polymatrix games is demonstrated by means of a specific “Selten model.” As a byproduct, constructions recently developed for polymatrix games are available for Bayesian equilibria.
Computational Delays
Authors: Deshmukh S. D.
Published: November 2008

Decision-making processes usually involve time-consuming and costly operations of observation and communication of the state of the environment and generation and implementation of appropriate actions. Collectively these activities may be called computational and the procedure required to carry them out may be called an algorithm. If the environment is changing stochastically the fixed computational delay involved in operating the algorithm yields obsolete actions resulting in reduced expected return. The loss as a function of delay is a measure of efficiency of the algorithm which depends upon the stochastic properties of the environment. If it is possible to reduce the loss by employing a faster algorithm at a higher cost, the algorithm may be optimally designed and selected from a given family.
On Management Myth-Information Systems
Authors: Mitroff Ian I. , Nelson John , Mason Richard O.
Published: November 2008

This paper describes some key defining characteristics of a special class of information systems known as Management Myth-Information Systems (MMIS) or story-telling information systems. MMIS are information systems [Mason, Richard O., Ian I. Mitroff. 1973. A program for research on management information systems. Management Sci. 19 (5, January) 475–487.] which present information to a decision-maker by means of stories. In an MMIS, a scientific datum by itself is not information. In an MMIS, information is information if and only if it is tied to an appropriate story or myth that has meaning to the individual who needs the information, the organization in which he is located, and the type of problem that he faces. This defines the key variables underlying an MMIS. As such, the study of the critical literature dealing with the nature and function of mythology becomes central to the design of MMIS. One of the key purposes of this paper is to suggest how the literature of mythology and the phenomenon of story-telling can be used in the design of MMIS if not for information systems in general.

An experiment dealing with some central features of MMIS is described. The experiment involved playing a series of games under the twin conditions of (1) uncertainty and (2) dialectical advice. Experimental subjects were exposed to the advice of two radically opposing “experts of the game” who were designed to present two radically opposing views (“stories”) of the game situation. Finally, a program of research on MMIS is proposed.
Heuristics and Optimizing Techniques Applied to Long Range Facility Planning for Hospital Ancillary Departments
Authors: Vora Jay A.
Published: November 2008

A conceptual framework for long range facility planning of ancillary departments in hospitals is proposed and successfully applied to a radiology department. The framework involves the interactions of optimizing techniques with heuristics for effective and efficient achievement of an organizational objective. It uses outputs from ad optimizing technique as inputs to a heuristic, and vice versa. This approach does not guarantee an absolute optimal plan, but it does provide the best plan relative to the alternatives developed by following a systematic search within the framework.

The proposed framework is adaptable to the organizational needs of health centers, hospitals and other service organizations. It should enhance the understanding of complex planning processes by managers through providing means to separate vital from trivial policy inputs.
Optimal Funding Paths for a Class of Risky R&D Projects
Authors: Aldrich Carole , Morton Thomas E.
Published: November 2008

The problem of financing risky R&D projects over time has been stated as an optimal control problem by Hess [Hess, S. W. 1962. A dynamic approach to R&D budgeting and project selection. IRE Transactions on Engineering Management EM-9 (December) 170–178.], Lucas [Lucas, Robert E. 1971. Optimal management of a research and development project. Management Sci. 17 (11, July) 679–697.], and Kamien and Schwartz [Kamien, M. I., N. L. Schwartz. 1971. Expenditure patterns for risky R&D projects. J. Appl. Probab. VIII (1, March) 60–72.]. In this paper, the model is extended to allow the possibility of time dependent returns. The authors restate the problem as a finite horizon continuous time dynamic programming problem, and demonstrate uniform convergence to a unique, autonomous (infinite horizon) solution for the present value of the project and optimal spending rate as a function of expended effort. Further conclusions are shown for the time dependent model with exponential completion probability and for the time independent model.
Effects of Shop Size and Labor Flexibility in Labor and Machine Limited Production Systems
Authors: Fryer John S.
Published: November 2008

This paper describes a simulation study that examines the influence of system size and labor flexibility on the performance effects of dispatching and labor control decision rules in labor and machine limited production systems. Four production systems are used—a small job shop, a medium job shop, a large job shop in which workers may be transferred between major organizational divisions, and a large job shop in which workers cannot be transferred between divisions. For each system the decision rules for dispatching and labor control are varied. Comparisons are made of the relative effects of the decision rules, for the different systems, on mean flow-time, flow-time variance and number of worker transfers.

Results indicate that the effects of dispatching and labor control decision rules on flow-time measures are consistent for different size and labor flexibility combinations. With one exception, the effects on labor transfer measures are also consistent. Consistency here means that the directions of change in performance measures are the same for the different systems. The magnitudes of both actual and percentage changes do vary for the different systems.
Finding the n Most Vital Links in Flow Networks
Authors: Ratliff H. Donald , Sicilia G. Thomas , Lubore S. H.
Published: November 2008

The n most vital links of a flow network are defined as those n arcs whose simultaneous removal from the network causes the greatest decrease in the throughput capability of the remaining system between a specified pair of nodes. These n arcs are shown to be the n largest capacity arcs in a particular cut. A solution procedure is developed which involves sequentially modifying the network so as to make this cut eventually become the cut with smallest capacity. An algorithm with computational results is presented.
Predicting Changes in Nasa Satellite Contracts
Authors: Stevenson William J. , Berra P. Bruce
Published: November 2008

Six National Aeronautics and Space Administration (NASA) satellite projects containing twenty-one contracts with approximately 1,000 changes were investigated for the purpose of developing predictive models of contract change incidence which could be used for budgetary and control purposes. Of particular interest were the number, timing, and dollar amounts of changes that can be expected to occur on future contracts.

The research indicated that (1) change costs on satellite contracts have negative exponential frequency distributions, (2) contracts within the same project have the same average change costs, (3) the expected number of changes on a satellite contract is a function of the dollar size of the contract and the average project cost/change, and (4) change timing is influenced by many factors which tend to have a confounding effect on changes.

A procedure for collecting and analyzing change data and for developing suitable models is outlined. The primary limitations of the models relate to the fact that only NASA satellite contracts were involved and to the availability of a small data base for modeling.
An Optimal Inventory Model for the Intermediate Echelon When Repair is Possible
Authors: Haber Sheldon E. , Sitgreaves Rosedith
Published: November 2008

The basic contribution of the paper is the development of a probabilistic model for computing the optimal purchase, i.e., stockage quantity of an item at an intermediate echelon of supply when repair of the item is possible. For commonly assumed probability distributions of the failure and repair process, it is found that the optimal stockage quantity depends to a large extent on the failure rate and is relatively insensitive to the repair rate. The model is then applied to the problem of determining the extent to which repair is economical at the intermediate echelon. It is concluded that for systems where most items deemed repairable have a low failure rate, the effectiveness of the intermediate echelon may be larger when its primary function is storage rather than repair.
Waiting Time Distribution in a Poisson Queue with a General Bulk Service Rule
Authors: Medhi J.
Published: November 2008

This paper relates to a queueing system with Poisson input and exponential service time, service taking place in batches under a “general bulk service rule.” (A batch will contain no fewer than “a” and no more than “b” units.) The object of this paper is to study the waiting time distribution of such a bulk service system under steady state and also to indicate how the moments of the distribution can be obtained.
A Semi-Infinite Game
Authors: Soyster A. L.
Published: November 2008

The ordinary finite, two-person, zero-sum game is completely defined by specifying an m × n game matrix A. The optimal strategies for both players, and the value of the game, can be obtained by solving a dual pair of linear programming problems. In this paper a semi-infinite game is defined; a semi-infinite game matrix has an infinite number of columns, i.e., the game is specified by a sequence of vectors {Pj} ∈ Rm. Optimal strategies and game values are shown to exist for the semi-infinite game by exploiting the relationship between these games and linear programming over cones.
Optimal Theoretic Advertising Stock Models: A Generalization Incorporating the Effects of Delayed Response from Promotional Expenditure
Authors: Mann Don H.
Published: November 2008

Econometric models of advertising effects incorporating the concept of advertising stock adopt the premise that prior as well as current advertising expenditure affect current sales. In general, stock may be viewed as an intangible demand-generating variable representing an accumulated effect of prior advertising expenditure.

One of the weaker assumptions inherent to stock models to date is the specification of the distributed time lag governing the rate at which expenditure flow is manifested into advertising stock: advertising expenditure is assumed to generate maximum response immediately, then decay exponentially over time. This is not only theoretically unappealing, but also empirically dubious as well. Results from recent studies support the more general hypothesis that some time will elapse before the maximum response from advertising expenditure is realized.

This paper offers three optimal theoretic models based on modal-delayed or “inverted V” distributed lag functions governing the time relationship between advertising expenditure and sales response. These theoretical models illustrate the implications of a delayed response to advertising expenditure. In particular it is shown that less general models (of the Nerlove-Arrow/Koyck type) overvalue the marginal physical product of advertising, thereby overspecifying the optimal level of advertising stock.
Communication to the Editor—A Note on the E-Model of Chance-Constrained Programming with Random b-Vector
Authors: Gochet Willy
Published: November 2008

In an article of this journal [Eisner, Mark J., Robert S. Kaplan, Johh V. Soden. 1971. Admissible decision rules for the E-model of chance-constrained programming. Management Sci. 17 (5) 337–353.], Eisner, Kaplan, and Soden proposed or extended several approaches to the triangular multistage E-model of chance constrained programs with a random b-vector. On of these approaches is called the “safety-first” approach because only decisions are allowed at any stage i which allow to take a feasible decision at any later stage.
Effective Performance Behaviors in a Simulated Policy and Decision Making Environment
Authors: Wolfe Joseph
Published: November 2008

Management games and teaching simulations have obtained widespread adoption in business schools and management development programs. While a number of summary evaluations have demonstrated the efficacy of the management game as a learning environment, little is known about what behavior players exercise within the game situation. Using the critical incident technique, the author collected 1,453 behavior citations of effective and ineffective performance by 211 students playing one of two different management games. The reported behaviors fell into seven broad performance groupings covering the students' pregame preparation, their company's personality and operating characteristics, Board meeting atmosphere and interpersonal climate, the team's use of forecasting, analytical, and planning techniques, and their decision making mechanics. It was found that the management games rewarded rational policy and decision making practices and that chance played no consistent part in company success. As a teaching device, the management game appears to provide many of the elements needed for education in business policy and decision making.
Feasibility of Rent and Tax Incentives for Renovation in Older Residential Neighborhoods
Authors: Curry Clarence F. , Gensch Dennis H.
Published: November 2008

Can city governments take meaningful actions to relieve the growing shortage of rental housing units for low income families without heavy reliance on state or federal support?

To answer this question a net present value model is developed from the viewpoint of the existing landlords. Using this model the municipal policies which optimize the objective function of providing the maximum renovated housing units subject to budgetary constraints are identified by a convex programming algorithm.

The empirical application of this approach to a Pittsburgh neighborhood indicates that it is possible to increase the quality and quantity of the rental housing stock while actually increasing the municipal net revenue.
Resource Planning for Randomly Arriving Stochastic Jobs
Authors: Lyons Norman R.
Published: November 2008

This paper presents a method for planning resources across a finite time horizon when the demands on resources arrive in a Poisson fashion and are stochastic. The approach used is a chance-constrained programming model whose parameters are estimated using an Edgeworth approximation technique.
Hierarchical Decomposition in Linear Economic Models
Authors: Kydland Finn
Published: November 2008

In decomposed linear programming models it is generally not possible to decentralize by prices alone. The Dantzig-Wolfe procedure, for instance, delegates weights on basic solutions in addition to the equilibrium prices. In this paper we present a decomposition procedure for linear models where we in addition to prices delegate a hierarchical ordering. In many problems this ordering makes the assignment of weights unnecessary, and gives the divisions more autonomy in their decision making. An operational condition is found for determining if, for any given problem, the new decomposition procedure will achieve coherent decentralization.
A Multiproduct Inventory System with Interactive Set-Up Costs
Authors: Andres Fred , Emmons Hamilton
Published: November 2008

We present a branch and bound algorithm for finding the optimal ordering policy for a multiproduct inventory system with deterministic demand, infinite horizon, and no backlogging. Ordering costs are assumed to include a separate set-up cost for each product ordered, but with a fixed savings each time all products are simultaneously ordered. Holding costs accrue at a constant rate per unit of each product.

We first restrict our search to policies of a certain type, and then prove several theorems which lead to an efficient algorithm. For the two-product case, a special algorithm is developed to give more precise results than earlier authors.
Sequencing for Assembly Lines with Integer Task Times
Authors: Gehrlein William V. , Patterson James H.
Published: November 2008

Two heuristic assembly line balancing procedures (the precedence matrix, enumeration method of Hoffman [Hoffman, Thomas R. 1963. Assembly line balancing with a precedence matrix. Management Sci. 9 (4, July).] and the biased sampling procedure of Arcus [Arcus, Alpert L. 1966. COMSOAL: A computer method for sequencing operations for assembly lines. E. S. Buffa, ed. Readings in Production and Operations Management. John Wiley, New York.]) are compared on the balances obtained and the computation time required to solve ALB problems. The use of Hoffman's technique with integer task times and a modified trial cycle time selection generally produces improved balances in less computation time for the problems examined. A modification to Hoffman's procedure for smoothing balance delay is also reported.
Comment on “Representational Systems Theory” by Betz and Mitroff
Authors: Berhold Marvin
Published: November 2008

Comments on Betz, F., Mitroff, I. 1974. Representational systems theory. Management Sci. 20 (9, May) 1242–1252.
Note—A Note on Modeling the Relationship of Diminishing Returns to Media Overlap for the Media Planning Problem
Authors: Lodish Leonard M.
Published: November 2008

A recent article in Management Science by Zufryden [Zufryden, F. S. 1973. Media scheduling: A stochastic dynamic model approach. Management Sci. 19 (12, August) 1395–1406.] describes a media selection and scheduling model which neglects to consider diminishing returns to repeated exposures at the individual level. This note illustrates the problem by example and cautions potential users to inaccuracies that would occur if the model were to be used in practice.
Evaluation of University Professors' Research Performance
Authors: Jauch Lawrence R. , Glueck William F.
Published: November 2008

The goal of this study was to compare systematically the multiple measures of research output, both objectively and subjectively, in order to identify those which are effective for evaluation of research professors. The study took place at the University of Missouri where a sample of 86 “hard” science professors pursuing funded research in 23 departments were evaluated.

The major conclusion of this research is that effectiveness can be measured by a simple count of the number of publications in respectable journals. But because the researchers and their department chairmen do not believe simple counts to be effective, this should be supplemented by weighting the publications with a journal quality index.
Equilibrium Stochastic Choice and Market Penetration Theories: Derivations and Comparisons
Authors: Bass Frank M. , Jeuland Abel , Wright Gordon P.
Published: November 2008

We show in this paper the formal connection between brand switching models and multiperiod analysis of brand choice behavior. A formal, well-defined stochastic process is developed from stochastic choice premises which permits analysis of any event or combination of events in terms of subsets of the market. The formal connection between single-brand analysis and multi-brand analysis is demonstrated. The parameters of the stochastic process involve the market shares and a measure of the heterogeneity of the population. This information is sufficient to permit the estimation of aggregate brand switching on adjacent trials or brand penetration and multiple brand purchasing over sequences of purchase occasions.
A Data Collection Strategy for Estimation of Cost Coefficients of a Linear Programming Model
Authors: Cunningham A. A. , Frances D. M.
Published: November 2008

The problem considered is one of selecting from a number of alternative sources of information for the refinement of estimates of objective function coefficients of a linear programming model. The approach used is that of Bayesian decision theory. A sequential scheme for the computing of bounds on the value of information is devised. Using these bounds the information of greatest value may be identified.
The Cost Assignment of the Cooperative Water Resource Development: A Game Theoretical Approach
Authors: Suzuki Mitsuo , Nakayama Mikio
Published: November 2008

As the demand for natural resources intensifies so too the costs of further exploitation of these resources become enormous. These enormous costs in turn require the development of a given resource to be a cooperative venture among several participants, each of whom must be assured that the costs and benefits of the venture will be “fairly” distributed among them. It is at this point that the theory of cooperative games may offer guidelines as to what is fair or not fair to each participant or player in a given cost allocation. To illustrate an application of cooperative game theory in assigning “fair” costs and benefits to the participants in a cooperative venture we will consider a problem in water resource development.
The Generalized Market Area Problem
Authors: Lowe Timothy J. , Hurter Arthur P.
Published: November 2008

This paper considers the production-transportation problem of a firm with a finite number of production (supply) facilities of known location, facing demand distributed over a subset (market region) of K-dimensional Euclidean space. The demand for a single good is described by a demand density function which is continuous almost everywhere on the market region.

Production cost functions exist at each production facility and transport cost functions refer to delivering the good from the production facility to the consumer. The objective is to set production at each production facility and to select a supply policy such that total production and transportation costs are minimized.

The problem is formulated in its entirety and later simplified through suboptimization. Necessary conditions for an optimal solution are derived and economic interpretations are provided.
Note—The Precarious Boundary Problem
Authors: Mattheiss T. H.
Published: November 2008

In certain classes of managerial situations violation of “fuzzy” constraints may have very serious consequences. Facing a precarious boundary, a retreat into the interior of the feasible region may seem wise. In this note we suggest a means of accomplishing this using known techniques to (i) identify the center of the feasible region, (ii) find all solutions which are within some proportion of the optimum, (iii) perform a triage on the constraints, and (iv) identify alternate operating plans based on arbitrary constraint weighting schemes.
Optimal TIC Bids on Serial Bond Issues
Authors: Bierwag G. O.
Published: November 2008

Most serial bond issues are sold competitively on an NIC (net interest cost) basis. The municipality awards the issue to the bidder submitting the lowest NIC. Although it is often acknowledged that NIC is a defective measure of the interest cost and sometimes a costly one to the issuer, an alternative measure, the TIC (true interest cost, effective interest cost, interest cost according to the Canadian method, or the internal rate of return) is often regarded as too computationally difficult to employ. State and local governments are becoming increasingly aware of the internal rate of return or TIC as a measure of interest expense. The use of TIC as a method of awarding bond issues to underwriters is growing very rapidly. This paper contains a simple computer algorithm for calculating optimal bids on a TIC basis.
Consistent Recruitment in a Graded Manpower System
Authors: Davies G. S.
Published: November 2008

A manpower system is examined in which the members are organized according to rules frequently met in graded firms and industries. We determine the manpower structures possible under such conditions and specify the form of the recruitment distribution, given an initial structure.
Communication to the Editor—The Cluster Plan for Desegregating Public Schools, or a Little Less Weltanschauung, Please, for Some More Adequate Descriptions
Authors: Cooper W. W.
Published: November 2008

It may not be possible to be wholly objective, as Messrs. Stimson and Thompson (among others) assert (see [Stimson, D. H., R. P. Thompson. 1975. The importance of ‘Weltanschauung’ in Operations Research: The case of the school busing problem. Management Sci. 21 (10, June) 1123–1132.]). Nevertheless, one should be as objective as possible in OR, or any other science, and this carries with it the concomitant duty of accurate and adequate descriptions—including descriptions of work by others to the extent that it may be pertinent.
Allocating Building Inspection Manpower for Fire Prevention
Authors: Miller David M. , Fyffe David E.
Published: November 2008

This paper concerns the analysis of two basic planning problems inherent in the building inspection operations of municipal fire prevention bureas. These problems are (1) how often to inspect each type occupancy in each area of the city, and (2) how to divide the city into “area-of-responsibility” districts, with one district for each inspector. The problems are interrelated and are represented in one model. Formulation of the model is based on the operations of the Atlanta, Georgia, Fire Prevention Bureau. The model constitutes a “controllable” analogue to the political redistricting problem. A solution procedure is presented which is a modification of the Hess and Weaver redistricting algorithm. Application of the model and solution procedure to Atlanta is given. Preliminary results indicate an improvement in districting over current practices.
A Simulation Study of Operating Policies in a Hypothetical Dual-Constrained Job Shop
Authors: Weeks James K. , Fryer John S.
Published: November 2008

This paper describes a simulation study of the relative impact of due-date assignment, dispatching and labor assignment decision rules on the performance of a hypothetical dual-constrained job shop. Six criteria are used to measure the performance of the decision rules. They are mean flow-time, variance of flow-time, mean lateness, variance of lateness, proportion of jobs late, and total labor transfers.

Multiple regression is the principal method of analysis of the results of the experiments. This technique provides regression coefficients and analysis of variance statistics for the decision rules for the various performance measures. Since the objective of this study is to go beyond simple statements of the significance of the various decision rules, the multiple regression results are used with analysis of variance statistics to indicate the relative impact of the decision rules. The regression coefficients and the omega squared (ω2) indices [Hays, W. L. 1962. Statistics. Holt, Rinehart and Winston, New York, 406–408.] indicate that the relative importance of the due-date assignment, dispatching and labor assignment decision rules is dependent upon the measure of performance considered. In addition, the relative importance and optimality of the dispatching rules is dependent upon the due-date tightness for selected performance measures.
Optimal Price and Protection Period Decisions for a Product Under Warranty
Authors: Glickman Theodore S. , Berger Paul D.
Published: November 2008

This paper proposes and analyzes a model for maximizing the profit of a product sold under warranty. The decision variables assumed in the model are the price of the product and the length of the period throughout which the manufacturer is responsible for service. The paper focuses on the dependence of optimal profit on price and protection period for a realistic and general description of a warrantied product. Failures are stochastic and repairs are of constant cost. Demand depends exponentially on price and warranty duration.

After an introduction and literature review, the basic model is presented and assumptions are made about the particular probability law governing product failures. The optimization procedure is then illustrated for certain values of input parameters. Finally, an extensive economic analysis of the sensitivity of the optimal solution to variations in input parameters is provided.
Outdoor Recreation Areas: Capacity and the Formulation of Use Policy
Authors: Penz Alton J.
Published: November 2008

The demand for outdoor recreation areas, such as national parks and forests, is growing. With this growth has come the realization that the administration of parks must maximize visitors' benefits from areas with limited visitor capacity. Visitor traffic has strained both man-made facilities as well as natural or ecological limits. Although individual locations within a park pose capacity restrictions, park capacity for visitors is a function also of visitor movement behavior among the locations. Solution of a linear programming model which represents visitor movement via transition matrices can help identify park capacity for visitors seeking various recreational experiences. The constraints of the model express capacities for both man-made facilities and ecological criteria as a function of visitor requirements. Program objectives derive from park policy about visitor use and benefits. Solutions to the program indicate appropriate long-range visitor admittance policy as well as provide insights for internal park control which is supportive of park objectives.