bluuebunny/crossref_metadata_2025 huggingface dataset:
An Effective Subgradient Procedure for Minimal Cost Multicommodity Flow Problems
Authors: Kennington Jeff , Shalaby Mohamed
Published: November 2008

This paper presents a heuristic technique for obtaining good solutions to large multicommodity network flow problems. The general approach is to allocate the arc capacities among the individual commodities and hence decompose the problem into a set of one-commodity problems. The one-commodity problems are solved and the combined solution is compared to a lower bound. If the solution is within an acceptable deviation from the lower bound, the procedure terminates. Otherwise, the arc capacities are reallocated and the subprograms are resolved. The reallocation is based on a subgradient optimization approach. Hence, the heuristic technique involves no matrix operations which may lead to round-off errors, the storage requirements are modest, and almost all operations are carried out directly on one-commodity networks. The technique has been coded and the initial computational experience is encouraging.
Note—Plant Layout: Computers Versus Humans
Authors: Coleman Denis R.
Published: November 2008

This work offers a critique of the methodology used by Scriabin and Vergin [Scriabin, Michael, Roger C. Vergin. 1975. Comparison of computer algorithms and visual based methods for plant layout. Management Sci. 22 (2, October) 172–181] in their study of computer algorithms versus humans in designing plant layouts. It attempts to show that Scriabin's and Vergin's experiments do not provide a useful comparison of computers and humans, and to point out several experimental procedures that would make comparisons of heuristic computer algorithms and humans more valid.
Communication—The Oskar Morgenstern Distinguished Fellowship at Mathematica
Authors: Fabian Tibor
Published: November 2008

Mathematica, Inc. is pleased to invite applications for and inquiries about the Oskar Morgenstern Distinguished Fellowship at Mathematica for the Academic Year 1987/1979.
A Diffusion Approximation Solution for a Repairman Problem with Two Types of Failure
Authors: Gaver D. P. , Lehoczky J. P.
Published: November 2008

We propose a new type of repairman model in which failures may require multiple repair operations, each done by a specialized repair crew. These repair operations may occur simultaneously. An analysis of the model is carried out using diffusion approximation techniques. The analysis predicts that the number of customers in service will have a steady state normal distribution with specified mean and covariance structure. Numerical studies are presented which substantiate this assertion in the infinite server case. An analysis for the multiple server case is also provided.
Optimization of the Arbitrage Process in Advance Refunding of Municipal Bonds
Authors: Babad Yair M. , Speer Paul D.
Published: November 2008

States, municipalities, and other regional or local public bodies have the authority to issue debt securities, the interest on which is tax exempt under federal regulations. As a consequence, the interest which these entities must pay on their bonds is usually below the rate on U.S. government securities of identical maturity. Arbitrage bonds—issued by a municipality to take advantage of this differential—are not generally permitted, with the exception of Advance Refunding. Advance Refunding is the process by which the proceeds of a municipal bond issue are invested in Treasury securities and these securities placed in a trust fund to pay when due the principal and interest on debt previously outstanding. To limit the arbitrage profit to the municipality engaging in Advance Refunding, the U.S. government has strictly limited the amount of the new issue which may be invested at a yield rate greater than the rate obtained on the new municipal debt. This article, after discussing the appropriate government regulations, provides a simple example of Advance Refunding and a theoretical analysis of a simple refunding scheme. It then describes a two stage optimization procedure which will maximize the savings to the municipality which chooses to Advance Refund its debt. Results of this new procedure, which first minimizes the amount of Treasury securities and then provides an optimal maturity schedule for the new debt, are compared with actual refundings using other programs.
Planning the Process of Improving the Planning Process: A Case Study in Meta-Planning
Authors: Emshoff James R.
Published: November 2008

Most of the published literature on planning is either prescriptive (i.e., what ought to be the way planning is done), or descriptive (i.e., how it is actually carried out). This paper addresses the problem of moving from a relatively ineffective planning process to one that meets the prescriptive characteristics it theoretically ought to contain. The premise of the paper is that the conversion of a planning system needs as much planning as the process being planned. Hence, the short-hand title of “meta-planning.” The argument is made for more research on meta-planning, some initial hypotheses are developed toward a theory of meta-planning, and an extensive case study is presented to show, the credibility of the hypotheses.
On the Hotel Overbooking Problem—An Inventory System with Stochastic Cancellations
Authors: Liberman Varda , Yechiali Uri
Published: November 2008

M hotel rooms are available at a date n periods from now. Reservations are made by customers for that date, which is at the peak of the high season. Typically, for such a time period, a policy of overbooking is exercised by the hotel management. Customers, however, may cancel their previously confirmed reservations at any time prior to their arrival, with no penalty. On the other hand, new requests for rooms for that particular date are generated anew. At the end of each period the hotel management reviews both the “inventory” level of remaining uncanceled (previously confirmed) reservations and the total number of not-yet-confirmed new requests. At that time a decision is made regarding the inventory level of confirmed reservations with which to start the next period. A decision is one of three actions: (i) to keep the inventory at its present level (i.e., declining all new requests); (ii) to increase the level of overbooking by confirming some of the new requests and, if necessary, by trying to obtain some additional reservations (at some extra cost); (iii) to decrease the level of inventory by canceling some of the previously confirmed reservations (incurring a penalty for each such cancellation). Each occupied room at the target day carries a given profit, while each unhonored reservation at that time incurs a penalty. The problem is to find the optimal over-booking strategy that will maximize net profit.

For both criteria, maximization of the expected total net profit, and maximization of the expected discounted net profit, it is shown that the optimal strategy is a 3-region policy as follows: For each period there exist upper and lower bounds and an intermediate point such that, (a) if the overbooking level at the end of a period is greater than the upper bound, it should be decreased to that bound; (b) if the inventory level is below the lower bound, two cases may occur: (i) if the discrepancy is greater than the number of new requests, all new requests should be confirmed and additional reservations should be acquired such that the inventory level will be equal to the lower bound; and (ii) if the discrepancy is smaller than the number of new requests, some of the new requests are confirmed but the inventory level may not exceed the intermediate point; (c) if the inventory level is between the two bounds there are two possibilities: (i) if it is above the intermediate point none of the new requests are confirmed, but (ii) if it is below that point, some of the new requests should be confirmed provided that the new inventory level will not exceed the intermediate point.
A Minimax Ordering Policy for the Infinite Stage Dynamic Inventory Problem
Authors: Jagannathan R.
Published: November 2008

This paper obtains closed form expressions for minimax ordering decisions in a dynamic inventory problem in which demands in successive periods are independent random variables that have known (finite) mean and variance, but whose distributions are otherwise arbitrary and may change from period to period. We assume zero setup cost, linear holding and backlogging costs, and immediate delivery of orders. The situation of a decision maker facing this unknown sequence of demand distributions can be viewed as a sequential zero-sum game against nature. A minimax ordering policy is one that minimizes the maximum expected discounted cost over the planning horizon, where the maximum is taken over all the probability distributions in the class described. A limiting base stock policy characterizes a minimax ordering policy for the infinite-stage model. We show that the limiting base stock policy is an optimal stationary policy for a finite horizon model if the terminal value function – cx is used. We also obtain conditions under which a myopic minimax ordering policy exists for an inventory model when the class of demand distributions is allowed to be nonstationary.
An Efficient Integer Programming Algorithm with Network Cuts for Solving Resource-Constrained Scheduling Problems
Authors: Talbot F. Brian , Patterson James H.
Published: November 2008

In this paper we describe an integer programming algorithm for allocating limited resources to competing activities (jobs, tasks, etc.) of a project such that the completion time of the project is minimal among all possible completion times. Typical of such problems is the minimization of the completion time of projects of the PERT/CPM variety where limits on resource availability force the postponement of selected activities during project performance. Also included in this class of problems for which our procedure is applicable is the assignment of jobs to machines such that the elapsed time for completing all jobs (makespan) is a minimum over all possible job-machine assignments.

The procedure developed consists of a systematic evaluation (enumeration) of all possible job finish times for each task in the project. To limit the number of task assignments which have to be explicitly evaluated, an artifice called a network cut is developed which removes from consideration the evaluation of job finish times which cannot lead to a reduced project completion time. Results reported demonstrate that the procedure developed is a reliable optimization technique for projects consisting of up to 30–50 jobs and three different resource types. The procedure is particularly applicable in those instances in which computer primary storage is limited. Many of the mini-computers available today are capable of implementing our approach without extensive programming being required for writing to auxiliary storage, making the technique available to the project manager in those environments in which extensive computer resources for scheduling are not readily available.
Note—On “Production Runs for Multiple Products: The Two-Product Heuristic”
Authors: Graves Stephen C. , Haessler Robert W.
Published: November 2008

The recent paper [Saipe, A. L. 1977. Production runs for multiple products: the two-product heuristic. Management Sci. 23 (12, August) 1321–1327.] by Saipe considers the single-machine multi-product lot scheduling problem, this problem is concened with the determination of run sizes for a set of products which are produced on the same machine. In the paper [Saipe, A. L. 1977. Production runs for multiple products: the two-product heuristic. Management Sci. 23 (12, August) 1321–1327.], a heuristic solution procedure, based on a solution procedure for the two-product lot scheduling problem, is proposed for the multi-product problem. The intent of this note is to raise three issues concerning the proposed heuristic procedure: (a) the optimality of the procedure for the two-product problem, (b) the performance of the procedure at full capacity for more than two products, and (c) the effectiveness of the procedure relative to alternative solution procedures.
Communication: Dynamic Data System Modeling—Revisited
Authors: Anderson Oliver D.
Published: November 2008

Author's rejoinder to comments [Steudel, H. J., S. M. Wu. 1978. Communication: Dynamic data system modeling—revisited. Management Sci. 24 (11) 1200–1202.].
Composition vs. Decomposition: Two Approaches to Modeling Organizational Decision Processes
Authors: Sweeney Dennis J. , Winkofsky E. P. , Roy Probir , Baker Norman R.
Published: November 2008

The most popular approach to developing mathematical models of organizational decision processes, the decomposition approach, begins with a mathematical statement of an ideal organizational problem and follows a process of decomposition to derive sub-problems solved by separate units at (possibly) different levels of the organization. Conversely, the composition approach starts with mathematical statements of the subproblems solved by the separate units and proceeds to develop a solution algorithm as a means of coordinating the activities of the separate units. A process of composition must then be followed if one is to discover the derived organizational problem actually solved. This paper offers an operational definition of an organizational decision process and relates this process to the anatomy of mathematical models purported as being representative of it. Implications regarding the potential of the decision process models as tools of organizational design are explored.
A Simultaneous Equation Model of Corporate Strategy
Authors: Schendel Dan , Patton G. Richard
Published: November 2008

Over the past decade strategy has become a concept of value to management as it relates the firm to the threats and opportunities of an increasingly turbulent environment. However, empirical tests of the validity of the strategy construct have been limited, as have been the managerial applications of the models used to test the construct. Early research efforts, both analytical and empirical, have shown that quantitative modeling of strategy could be a tool of value in helping top management achieve the goal is of the firm [Gershefski, George W. 1969. Building a corporate financial model. Harvard Business Rev. (July–August) 61–72; Guth, W. D. 1972. Product differentiation and concentration in the brewing industry. J. Business Policy. 2 (3) 31–36.]. Prior research has been limited to single equation models linking strategy and environment to only one performance goal, profitability. While there is some controversy about it, complex organizations set multiple, and sometimes conflicting goals, creating a need for models that car; encompass more than a single performance goal. Moreover, the interactive effects of strategic variables governing the efficiency of daily operations, suggests that single equation models of strategy cannot capture the complexity of the modern firm.

This research explores the use of a simultaneous equation model of corporate strategy as a means of overcoming the multiple performance goal problem, while capturing the complex patterns of the strategic, operating, and environmental variables that influence goal achievement. The difficulties of estimating the model, including the problems of sample heterogeneity so important to this type of work, are identified and discussed using data and results taken from the U.S. brewing industry.
On a Production Allocation and Distribution Problem
Authors: Mairs Thomas G. , Wakefield Glenn W. , Johnson Ellis L. , Spielberg Kurt
Published: November 2008

We describe a production allocation problem which was worked on at Frito-Lay and an integer programming model formulated for its solution. In connection with model formulation, we discuss estimation and collection of the required cost coefficients. Finally, we report on the use of two different linear programs, representing the same integer problem, which gave dramatically different running times to solve the integer programs. Some reasons for the improved running times are given.
Note—Sensitivity to Distributions in Inventory Systems
Authors: Naddor Eliezer
Published: November 2008

The optimal decisions and costs of several inventory systems with the s, S policy are presented showing how they are affected by different distributions of demand, different shortage costs and different leadtimes. The numerical results seem to imply that in many cases the optimal decisions depend on the means and standard deviations of demand but not on the specific forms of the distributions.
Communication: Reply to Fox and Schruben
Authors: Kleijnen Jack P. C.
Published: November 2008

In the recent issue of Management Science Fox (Fox, B. 1978. Estimation and simulation. Management Sci. 24 (8, April) 860–861.) expressed doubts about the relevance of steady-state behavior. In a reply Schruben (Schruben, L. W. 1978. Reply to Fox. Management Sci. 24 (8, April) 862.) disagreed on this point. With Fox he was in favor of publishing failures of variance reduction techniques (VRT's). I would like to add the following remarks.
Communication—Caveats Concerning Efficiency/Effectiveness Measures of Mass Transit Performance
Authors: Gleason John M. , Barnum Darold T.
Published: November 2008

In a recent article in Management Science, Savas [Savas, E. S. 1978. On equity in providing public services. Management Sci. 24 (8, April) 800–808.] discusses performance measures in the provision of public services, states that it is difficult, but not impossible, to develop measures for efficiency and effectiveness, and discusses some of the measures that have been used in various industries. It should be noted, however, that in some fields the widely used efficiency and effectiveness indicators do not measure what they are intended to, and should be subject to further critical examination.
Analysis of Simulation-Generated Responses using Autoregressive Models
Authors: Hsu D. A. , Hunter J. S.
Published: November 2008

Insights concerning a system are often provided by comparisons of historical versus simulated data. Such insights offer valuable assistance in the evolution of the simulation modeling process. In this article, a testing procedure is suggested for comparing historical time series records against responses generated by a simulation model. Time series models are identified and their parameters estimated for both the historical and simulated data using the techniques outlined by Box and Jenkins. The models are then tested for differences in their means, autoregressive parameters, and residual variances employing Bayesian arguments. The procedure suggested is emphasized as a diagnostic instrument useful for validation, and for suggesting iterative modifications of a simulation model. Applications of the procedure are illustrated by an example involving air traffic control communications.
Probabilistic Weights in the One-Dimensional Facility Location Problem
Authors: Wesolowsky George O.
Published: November 2008

This note deals with the one-dimensional facility location model in which the weights, which can represent either demand volumes or demands and costs combined, are known only probabilistically. The demand points themselves, or at least the “feeder” routes to the demand points, for the facility are located on a straight line which represents a road or some other transportation route. It is assumed that the weights of the demand points have a multivariate normal distribution. The probability of the facility being optimally located at any point on the route is derived; it is shown that only the demand points have non-zero probabilities. In addition, the expected value of perfect information (EVPI) is found. In this problem, the EVPI is the expected difference in costs between the actual best location and the optimum location obtained by using expected weights. The EVPI, therefore, is the maximum amount the decision maker should pay for information about weights if expected values are acceptable as a decision criterion.
Note—A Note on “Comparison of Computer Algorithms and Visual Based Methods for Plant Layout” by M. Scriabin and R. C. Vergin
Authors: Block T. E.
Published: November 2008

This note recommends the use of flow dominance as a measure to determine the choice between computer algorithms and visual based methods for plant layout. It is suggested that plant layout problems with flow dominance close to or greater than 200% should be solved by visual based methods rather than computer algorithms. For the plant layout problems used by Scriabin and Vergin with a flow dominance greater than 200% visual based methods are superior to computer algorithms. It is shown by an experiment that for plant layout problems with a flow dominance less than 200% computer algorithms are superior to visual based methods.
Planning and Dynamic Control of Projects under Uncertainty
Authors: Burt John M.
Published: November 2008

This paper addresses the problem of planning and controlling (through resource allocation decisions) projects under conditions of uncertainty. Particular attention is given to the dynamic reallocation of resources over the duration of projects as information about actual activity times becomes known. The effect of resource allocations on an activity is represented, by modifications in the probability function of the time to process that activity. Analytic procedures such as dynamic programming and distribution analysis, which might lead to optimal dynamic decision rules, are shown to be computationally intractable even for very small problems. For a set of project networks of relatively simple structure, the efficacy of several heuristic decision rules is tested via simulation. The results of these simulation studies indicate some general concepts that should be applicable to the management of larger, more realistic, projects.
Multi-Attribute Investment Decisions: A Study of R&D Project Selection
Authors: Schwartz S. L. , Vertinsky I.
Published: November 2008

In evaluating R&D opportunities executives make tradeoffs among three classes of attributes: commitment of resources, expected payoff, and risk. The focus of this study of Canadian top executives and R&D managers is the investigation of these tradeoffs and how they differ among executives and industries. On the basis of judgments of sixty hypothetical projects, alternative individual and group models were estimated using regression and discriminant analysis procedures. The results indicate that linear models provide good fit with observations of R&D investment judgments and that differences in tradeoffs between risk and rates of return can be related to the characteristics of the executives and their work environments. This information is useful for predicting R&D investment portfolios in an environment of changing opportunities.
Assessing the Impact of Market Disturbances Using Intervention Analysis
Authors: Wichern Dean W. , Jones Richard H.
Published: November 2008

A recurring problem confronting marketing operatives at all levels is assessing the impact of market disturbances. The disturbances may be caused by marketing mix manipulations of the firm itself, by its competitors or by fundamental external changes in the environment in which the firm operates. This article discusses a technique, intervention analysis, by which the impact of such disturbances can be assessed. The technique is used to examine the effects of Proctor and Gamble's promotion of the American Dental Association endorsement of Crest on the market shares of Crest and Colgate dentifrice during the years 1958–1963.
Facility Location with Price-Sensitive Demands: Private, Public, and Quasi-Public
Authors: Erlenkotter Donald
Published: November 2008

We formulate a general model for an uncapacitated facility location problem in which demands are related to the prices established at the various locations. Pricing decisions and location decisions are determined simultaneously in this model, in contrast to traditional location models that assume fixed demands and prices. We show that a transformation of the general model is equivalent to the fixed-demand location model of Efroymson and Ray, and thus may be solved by any of the exact or heuristic methods available for that model.

Specifying either a private sector objective of maximizing profits or a public sector objective of maximizing net social benefits provides a particular case of the general model. A third plausible objective is the “quasi-public” one of maximizing net social benefits subject to a constraint that ensures sufficient revenues to cover costs. A Lagrangian relaxation of this constraint, which yields another case of the general model, is used to develop a solution procedure for the quasi-public objective. Details of the solution approach are given for quadratic revenue functions, and an example illustrates the procedure.
Deterministic Multi-Item Inventory Systems with Limited Capacity
Authors: Zoller Klaus
Published: November 2008

Available storage space frequently limits the aggregate stock level carried in multi-item inventory systems. In the deterministic case, the economic impact of storage capacity constraints may be reduced, and the utilization of the available facilities increased, by replenishment policies which include delivery schedules designed to avoid unnecessary clustering of order arrivals in the course of time. Under the assumption of a pure cycle reordering mode, simple expressions are derived for minimum storage space requirements and the associated optimal delivery schedules.
Finding Minimal Center-Median Convex Combination (Cent-Dian) of a Graph
Authors: Halpern Jonathan
Published: November 2008

The graph median and center problems are well known with numerous possible applications. The first is suitable for locating a facility providing a routine service, by means of minimizing the average distance of customers to it. The second is appropriate for emergency services where the objective is to have the furthest customer as near as possible to the center. In reality a combination of both, usually antagonistic, goals is common. This paper presents a procedure to locate a facility on a graph, such that a convex combination of the median and the center objective functions is minimized. The term “cent-dian” is coined for this point of the graph. Since it is usually difficult to assign precise weights to the two objectives, when they are convexly combined, the procedure generates the cent-dians for all possible combinations. Finally, an equivalent median problem on an expanded graph is presented.
Note—On “A Renewal Decision Problem”
Authors: Smith Donald R.
Published: November 2008

In this issue of the journal, Derman, Lieberman and Ross treat a replacement problem where several types (grades) of components are available. They conjecture than any component type that is more expensive to both purchase and to run than some other component type will never be used in an optimal replacement policy. We prove a theorem that, together with their results, proves this conjecture.
Note—A Note on Dynamic Programming with Unbounded Rewards
Authors: van Nunen J. A. E. E. , Wessels J.
Published: November 2008

In a recent paper, Lippman presents sufficient conditions for Denardo's N-stage contraction in discounted semi-Markov decision processes with unbounded rewards. In this note it is demonstrated that Lippman's conditions may be replaced by weaker conditions which even imply 1-stage contraction. The verification of the conditions of this note is somewhat easier.
Note—More on Planning for Freedom
Authors: Singhal K. , Vyasulu V.
Published: November 2008

The aim of this note is to add objectivity to the article by Van Gigch (Van Gigch, J. P. 1976. Planning for freedom. Management Sci. 22 (9, May).). The main points are that the four models of Van Gigch are historical stages of development, not options at a given point of time; and that the role of the elite is not an impartial one.
A Spatial Equilibrium Model for Evaluating Alternative Policies for Controlling Sediment from Agriculture
Authors: Wade James C. , Heady Earl O.
Published: November 2008

A model for evaluating alternative sediment control policies in agriculture is formulated such that changes in the production of agricultural commodities among and within 105 agricultural production areas can be analyzed. The model combines the elements of spatial economic equilibrium with physical and technical aspects of cropland agriculture. Five alternative sediment control policies as might be formulated by national environment planning agencies are analyzed. The analysis of the alternative policies do not give a definitive solution to sediment water quality problems but rather provide significant information on technical, regional and cost distributions of agricultural production to help decision makers formulate national sediment control policies.
Transfer of Emergency Service Deployment Models to Operating Agencies
Authors: Chaiken Jan M.
Published: November 2008

Six deployment models for emergency service agencies were developed, field-tested, and documented during a two-year period ending October 1975. During the following eighteen months, records were kept of the extent to which the models were acquired by operating agencies and actually used for making deployment changes. The number of acquisitions ranged from zero for one model to 39 for another. Over half of those who acquire these models actually use them, and, except for one model, nearly all users made operational changes based on the output. Differences among the models illuminate the implementation process.
Solving the Pipe Network Analysis Problem Using Optimization Techniques
Authors: Collins M. , Cooper L. , Helgason R. , Kennington J. , LeBlanc L.
Published: November 2008

For more than forty years, approximate solutions for the classical pipe network analysis problem have been obtained by direct solution of the nonlinear stationary point conditions. We propose a revolutionary new approach involving optimization techniques for solving this well-known engineering problem. It is shown that the pipe network analysis problem may be described mathematically in terms of a nonlinear convex cost network flow problem. Three mathematical programming algorithms for solving this problem have been coded and are computationally compared with a code using the traditional Newton-Raphson technique. The computational experience demonstrates that this new approach provides an attractive alternative for solving this important problem.
Designing Scientific Journals: Issues and Survey Results
Authors: King William R. , Kilmann Ralph H. , Sochats Kenneth
Published: November 2008

The design parameters of scientific journals are important policy choices for journal editors as well as for the professional areas which they represent. The editorial structure of a journal presents a set of choices which importantly affect the variety of papers which are published, those that are submitted, and to some degree, the nature of future research in an area. These elements, in turn, affect reader satisfaction, journal subscriptions, and the future viability of sponsoring professional societies. This paper presents a conceptual structure for the journal-design problem and a set of survey results which should aid in addressing journal design issues and policy questions. The purpose of the paper is to define the issues and to present data in a manner that will stimulate discussion and further analyses.
Errata to “A Survey of Multiattribute Utility Theory and Applications”
Authors: Farquhar Peter H.
Published: November 2008

List of typographical errors that appeared in my paper “A Survey of Multiattribute Utility Theory and Applications” in M. K. Starr and M. Zeleny (eds.), Multiple Criteria Decision Making, TIMS Studies in the Management Sciences, vol. 6, North-Holland, Amsterdam, 1977, pp. 59–89.
On Equity in Providing Public Services
Authors: Savas E. S.
Published: November 2008

The performance of public services is determined to a large extent by the spatial distribution of facilities and resources that provide the service. Three measures of performance are discussed: efficiency, effectiveness, and equity. The last of these, equity, is recognized as being of growing importance, but has been generally neglected by management scientists.

Different equitable formulas can be used for the spatial distribution of public services within a community. They are based on four general principles: equal payments, equal outputs, equal inputs, and equal satisfaction of demand. The application of these principles is illustrated by reference to municipal services. Mutual inconsistency among these formulas is evident, and is shown caused by the different values which underlie the choice of formulas. The choosing of values is, ultimately, a political process.
Testing Bowman's Managerial Coefficient Theory Using a Competitive Gaming Environment
Authors: Remus William Edward
Published: November 2008

In this paper Bowman's managerial coefficient theory is evaluated in a competitive environment, the Executive Game. The literature on Bowman's theory is surveyed and a review is made to justify using games to test decision theories. The experimental data reveal that decision rules fit the data well. Erratic and biased decision making is found to be a linear function of rank. Learning consistent with oligopolistic theory is found to occur. The applicability of Bowman's theory in competitive environment is established and the theory extended.
Reply to Aucamp
Authors: Weide James H. Vander , Peterson David W. , Maier Steven F.
Published: November 2008

A reply to Aucamp, Donald C. 1978. Communications—A comment on geometric mean portfolios. Management Sci. 24(8, April) 859.
Note—A Comment on “Optimal and System Myopic Policies for Multi-Echelon Production/Inventory Assembly Systems
Authors: Szendrovits Andrew Z.
Published: November 2008

A comment on Schwarz, Leroy B., Linus Schrage. 1975. Optimal and system myopic policies for multi-echelon production/inventory assembly systems. Management Sci. 21(11, July) 1285–1294.
Price Sensitive Consumer Demands in Energy Modeling—A Quadratic Programming Approach to the Analysis of Some Federal Energy Agency Policies
Authors: Glassey C. Roger
Published: November 2008

A 21 sector input-output model of the 1972 U.S. economy is extended to include consumer demands, imports, and exports as endogenous variables, and used to analyze some consequences of the price control policy adopted to mitigate the impact of the quadrupling of world crude oil prices in 1973–1974. It is assumed that household consumption of goods is linearly related to prices. An equilibrium of the model economy is then computed by solving a quadratic program. It is shown that the price control policy is equivalent to subsidizing imported oil with revenues from a tax on domestic crude production. Equilibria are computed under this policy and in its absence. The comparison indicates the policy was effective in reducing the price index increase and GNP reduction that would otherwise have occurred, but at the cost of adversely affecting the balance of payments.
Note—Optimal Recruitment Advertising
Authors: Chappell David , Peel David A.
Published: November 2008

The optimal rules for the allocation of advertising expenditure when that expenditure affects the demand function facing the firm have been derived for a variety of processes and are relatively well known. The purpose of this paper is to extend the analysis of advertising to include recruitment advertising. We study the optimal rules for the cases where recruitment advertising acts as a current or capital input and finally in a diffusion model where advertising influences the rate at which potential recruits become aware of the firm.
Note—On “An Efficient Algorithm for the 0-1 Knapsack Problem, by Robert M. Nauss”
Authors: Fayard D. , Plateau G.
Published: November 2008

In this paper, Robert M. Nauss [Nauss, R. M. 1976. An efficient algorithm for the 0-1 knapsack problem. Management Sci. 23 (1, September) 27–31.] presents an algorithm for the 0-1 knapsack problem—denoted by Algorithm A—about which we would like to provide several remarks.
Note—A Simple Edge Elimination Criterion in a Search for the Center of a Graph
Authors: Halpern Jonathan
Published: November 2008

This note proposes a new edge elimination criterion in an algorithm whose purpose is to locate the center of a graph. The new criterion requites the same amount of information and computation but generates a stronger lower bound. It therefore reduces substantially the number of edges that have to be checked thoroughly, at a high computational cost, for a possible center point along them.
Communication—A Unified Approach to Urban Modeling
Authors: Brotchie J. F. , Lesse P. F.
Published: November 2008

This is a report of progress in the development of a new generation of urban land use-transport models which represent an approach to a unified theory of urban land use and transport decisions. They have a common basis of economic-utility theory and entropy-information theory.
A Hazardous-Inspection Model
Authors: Butler David A.
Published: November 2008

This paper deals with the determination of optimal inspection policies when inspections have the potential of being harmful to the device under consideration. The device operates throughout a number of periods and in each period is subject to failure. Failure of the device is directly observable. Prior to failure the device enters a state in which it is functioning, but in an impaired manner. This state can be detected only by performing an inspection. Once the device is known to be in die impaired state, appropriate action may be taken to prolong its remaining life. In this respect inspection is valuable. However the act of inspecting die device when it is not~impaired may itself cause it to become impaired. In this respect inspection is hazardous. This paper determines inspection policies which maximize the expected lifetime of the device. The optimal inspection policies are shown to generally be of only two possible forms, the choice of which depends upon the model parameters.
Infinite Horizon Investment—Consumption Policies
Authors: Abrams Robert A. , Karmarkar Uday S.
Published: November 2008

We consider an infinite horizon investment-consumption problem in which the objective is to mmimize the discounted sum of the one period utilities. The one period utility function is assumed to be concave but may be unbounded. Both the state and action spaces are uncountable. If the average growth rate of assets is less than the reciprocal of the discount rate and if a weak regularity condition is satisfied an optimal stationary policy is shown to exist. Also the optimal return function satisfies the functional equation of dynamic programming and inherits several properties of the one period utility function.
Note—On Total Sojourn Time in Networks of Queues
Authors: Lemoine Austin J.
Published: November 2008

A note and correction of the author's paper (Lemoine, A. J. 1977. Networks of queues—a survey of equilibrium analysis. Management Sci. 24 (4) 464–481.).
Generating Pallet Loading Patterns: A Special Case of the Two-Dimensional Cutting Stock Problem
Authors: Steudel Harold J.
Published: November 2008

A heuristic algorithm employing dynamic programming is presented for solving the two-dimensional cutting stock problem where all the small rectangles are of the same dimensions, but without the usual restriction that the cutting be done with “guillotine” cuts, i.e., cut which must be made in stages from one edge to the opposite edge of the large rectangle being cut. The objective of the algorithm is to determine a cutting or layout pattern for which the ratio of the unused area to the total area of the large rectangle tends to be small. To demonstrate the method, the common problem of establishing standardized loading patterns for rectangular items on pallets is examined in detail. The algorithm is described with a minimum of mathematics through the use of several pictorial displays and a simple example. The efficiency of the heuristic is then evaluated by comparing computer generated loading patterns for 182 different size items to the loading patterns recommended by the U.S. Navy, and shown to be 10.4 percent more efficient for 64 out of 182 cases when the number of items per layer were not identical. The algorithm is also shown to be an effective aid to management both in establishing standardized loading patterns and procedures, and in communicating these loading standards to production personnel via computer generated “shop paper.” This type of computer design flexibility and control is a valuable management tool not only for standardizing pallet arrangements, but for carton design and consolidation, warehouse design and layout, bin and shelf stocking, designing tapes for numerically controlled gas cutting machines, and numerous other industrial problems involved with the efficient layout of rectangular objects.
ISMS: Computer-Aided Analysis for Design of Decision-Support Systems
Authors: Hansen James V. , McKell Lynn J. , Heitger Lester E.
Published: November 2008

This paper demonstrates concepts, collectively termed interpretive structural modeling, which can aid in the development of decision-support systems through: (1) creating a structure which helps identify the presence or absence of information necessary for decision-making; (2) providing a convenient framework for evaluating control subsystems; (3) defining levels in the system hierarchy; (4) specifying subsystems at each level, and (5) facilitating user participation in the design process.

The procedures described operate without the requirement of an a priori knowledge of system structure. This feature and the programmability of the approach (ISMS) help analysts and users think and communicate effectively about complex design issues.
Fire Loss Reduction: Fire Detectors vs. Fire Stations
Authors: Halpern Jonathan
Published: November 2008

This paper develops a method for comparing the cost effectiveness of two ways of improving the fire protection in a community: the installation of detection-alarm systems (DAS) in dwellings and the addition of fire companies. The method is developed from a number of relatively simple models and assumptions. One is a relationship that predicts average travel time from the number of “covered” fire stations and the size of the area being served. A second is a set of regressions of the percentage of the property value destroyed vs. response time for five classes of fires in one- and two-family homes. And a third is the effect of installing detection-alarm systems on the distribution of fires among the five classes at the time of detection.

Adding fire companies increases the number of covered stations, thus reducing response time, and thence expected loss. Installing detectors increases the proportion of fires in the less serious classes, thus reducing expected loss.

The method was applied to data from Calgary, Canada. The results for this case show that, from a base case with no DAS and 16 fire stations, adding detectors would be more cost effective than adding fire stations to reduce fire losses if a DAS for a one- or two-family home costs less than $2500 to install and $1700 a year to maintain (or the equivalent cost mix using present values).

The methodology can be extended to other types of occupancies (e.g., high-rise buildings and commercial properties), and to other types of losses (e.g., indirect and life). It could then become a useful tool in helping to choose fire protection levels for a community, as well as determining how to allocate a given amount of resources among different means of fire protection.
Multiperiod Consumption and Investment Behavior with Convex Transactions Costs
Authors: Constantinides George M.
Published: November 2008

The effect of convex transactions costs on consumers' derived utility functions and on optimal consumption and investment decisions is examined in a general multiperiod framework. The extent to which multiperiod consumption-investment behavior and capital market equilibrium may be studied in a single period framework is discussed. Optimal investment policy, in terms of a region of no transactions, is shown to be of a particularly simple form.
Extended Pattern Search with Transformations for the Three-Parameter Weibull MLE Problem
Authors: Zanakis Stelios H.
Published: November 2008

The Weibull distribution has found extensive applications in a variety of engineering, science and business problems. A journal survey indicated that it is the third most often used distribution in the statistical literature. To use it, one must best estimate its parameters from a given sample. Maximum likelihood estimates (MLE) of the three Weibull parameters are usually desirable due to their nice asymptotic properties, but several computational difficulties arise during the solution of this bounded-variable nonlinear optimization problem.

This paper extends a method (pattern search) which was successfully used by the author for obtaining joint MLE of all three Weibull parameters. Fifteen different transformations (to eliminate bounds) and three search direction approaches (derivative-free, exact and numerical gradient) of a revised unconstrained pattern search are evaluated on a set of randomly generated realistic test problems. Performance criteria include computation speed, accuracy of estimators (relatively to the true parameters and true MLEs), log-likelihood value achieved, and goodness of fit of the estimated distribution (to the sample or generating population).

The results are analyzed statistically and successful (unsuccessful) transformation/direction options are identified for each criterion. User interest in different performance criteria and the flatness of the log-likelihood function prevent identification of a single “overall best” option. Simple percentile estimators, used as search starting points, proved to be superior to MLE in problems with a small shape parameter value.

The search procedures examined in this paper may also be used for solving other types of nonlinear optimization problems with bounded variables. They are attractive to practitioners because they are easily programmed and understood; they run fast but they do not guarantee optimality.
Server Transfer Delays in a Dual Resource Constrained Parallel Queueing System
Authors: Gunther Richard E.
Published: November 2008

Simulation is used to evaluate a number of server assignment prodecures within a system of parallel queues. There are less servers than parallel single-channel service facilities and server transfer between facilities is allowed. Server transfer involves a deterministic time delay. Job interarrival times and service times follow the negative exponential distribution. Evaluated assignment procedures include, (1) rules incorporating parametrically weighted transfer times, and (2) rules permitting transfer only when a fixed minimum amount of time has elapsed. These rules have the effect of delaying server assignment. Three conclusions of interest to the practicing manager are the primary result of the simulation: (1) Increasing server transfer time increases mean flow time, flow time variance, and the percent of time the server spends transferring. (2) Using rules to delay server assignment reduces these criteria when compared with rules which do not delay assignment. A manager should consider delaying assignment when server transfer time becomes greater than zero. (3) Delaying server assignment appears to have a-greater affect on mean flow time than choosing a particular assignment rule.