bluuebunny/crossref_metadata_2025 huggingface dataset:
Computation of (S, s) Ordering Policy Parameters
Authors: Snyder Ralph D.
Published: November 2008

In this paper a periodic review stock system using the so-called (S, s) ordering policy is considered. New and more accurate approximations are found for calculating the optimal values of the reorder point s and the minimum order quantity Δ = S − s. When demands are normally distributed it is shown that the six cost and distribution parameters associated with these approximations can be combined into two effective parameters. This facilitates the derivation of two graphs which can be used with some relatively simple computational procedures to determine approximate optimal values for the reorder point s and minimum order quantity Δ.
Note—A Note on El-Shaieb's New Algorithm for Locating Sources Among Destinations
Authors: Khumawala B. M. , Neebe A. W. , Dannenbring D. G.
Published: November 2008

The objective of this note is (i) to identify and briefly review some references not included in [El-Shaieb, A. M. 1973. A new algorithm for locating sources among destinations. Management Sci. 20 221–231.] as well as more recent additions and (ii) to give computational comparisons of three other solution methods with that of El-Shaieb on his 30-city test data.
Note—A comment on the “Distribution System Simulator”
Authors: Hax Arnoldo C.
Published: November 2008

Connors et al. [Connors, M. M., C. Coray, C. J. Cuccaro, W. K. Green, D. W. Low, H. M. Markowitz. 1972. The distribution system simulator. Management Sci. 18 (8, April).], have developed a Distribution System Simulator (DSS) that produces a customized simulation model for large scale, physical distribution systems. Aggarwal [Aggarwal, S. C. 1973. A critique of the distribution system simulation. Management Sci. 20 (4, December).] provided a critique of specific topics regarding DSS design in order to make it more effective in an operating environment. Rather than dealing with detailed issues, I would like to take an overall look at the approach suggested by Connors et al. to support logistics decisions, emphasising general strengths and limitations to their proposed system, and to recommend some constructive ideas to overcome some of the current DSS weaknesses.
Précis—Assessment of Airframe Production Cost Risk
Authors: Finchum John A.
Published: November 2008

Cost growth of weapon systems is a major concern of the DOD and its contractors. Almost half of the cost overrun on major weapon systems during the late 1960's and early 1970's was due to refinement of original cost estimates for reasons other than changes in performance, economic conditions, engineering and construction scheduling. A fruitful area to which to apply cost risk assessment techniques is the air-frame production cost during the proposal stage of an aircraft.
The Assortment Problem with Probabilistic Demands
Authors: Pentico David W.
Published: November 2008

The early work done on the assortment problem assumed known demands and additive and proportional substitution cost functions for single period problems. The extension of this problem (to consider probabilistic demands and multiple periods) complicates the problem considerably. By making some assumptions about the pattern of demands and the form of a reasonable solution, the problem can be approached by using dynamic programming thus finding the shortest route through a network.
A Statistical Estimator in a Problem of Stochastic Dominance
Authors: Mantell Edmund H.
Published: November 2008

The assumed situation is as follows: two cumulative distribution functions F and G are in constant (unknown) ratio θ, for values of the random variables below t* (assumed known); F and G may behave entirely independently above t*. Observations on a sample from F are then used to obtain unbiased maximum likelihood estimates of and of other unknown parameters of G, denoted by λ. The estimators have application in problems of stochastic dominance in the context of portfolio analysis and in other situations of intertwining cumulative probability distributions.
A Penalty Function Procedure for Sensitivity Analysis of Concave Programs
Authors: Howe Stephen
Published: November 2008

Given a concave program, consider its optimal objective value as a function of the right-hand side. The behavior of this optimal response function reflects the sensitivity of the objective value to changes in the right-hand side. A scheme involving the optimization of a penalty function is developed for determining the value and gradient of the optimal response function at points within a region of interest. This scheme is then applied to a simple example to illustrate its potential usefulness.
Preferred Rules in Continuous Time Markov Decision Processes
Authors: Lembersky Mark R.
Published: November 2008

Motivated by a planning horizon result for continuous time Markov decision chains, we study decision rules, called preferred, which may be used in the initially stationary part of nearly optimal policies. We characterize these rules and then, under conditions involving state recurrence and accessibility, consider finding such rules. We also discuss the connection between preferred rules and certain discounted process decision rules, and the role of preferred rules in optimal policies.
Note—A Counterexample in Continuous Markov Decision Chains
Authors: Lembersky Mark R. , Ott Melvin L.
Published: November 2008

Results in another paper in this issue may raise the question of whether for finite state and action, continuous time parameter Markov decision chains there always exists an initially stationary optimal policy. We give an example in which there is do such policy.
Note—A Dynamic Programming Approach to Capacity Expansion with Specialization
Authors: Erlenkotter Donald
Published: November 2008

The capacity expansion problem with specialization involves two classes of growing demand and two types of capacity. One type of capacity can supply both demands, while the second can supply only one. The specialization problem is an extreme case of the multilocation capacity expansion problem, and dynamic programming approaches for the multilocation problem can be adapted to solve the specialization problem.
Finding the n Most Vital Nodes in a Flow Network
Authors: Corley H. W. , Chang Han
Published: November 2008

The n most vital nodes in a network are those n nodes whose removal, along with all arcs incident with them, would cause the greatest decrease in maximum flow between a specified node pair. Results are established for this problem that lead to a procedure for determining the n most vital nodes.
Planning Human Capital Structure: A Study of Economic, Demographic and Educational Determinants: Erratum
Authors: Parvin Manoucher
Published: November 2008

Erratum to Management Science, Vol. 20, No. 12 (August 1974) pp. 1543–1553.
The Logarithmic Investor's Decision to Acquire Costly Information
Authors: Morris James R.
Published: November 2008

This paper explores the relationship between the decision to purchase a costly information system and the wealth of an investor with a logarithmic utility function, where the information system may provide information concerning the payoffs from risky investments. It is shown, for the logarithmic investor, that (a) there is a wealth “break-even point” below which it is suboptimal to purchase an information system at a fixed cost, and (b) the amount the investor would be willing to pay for access to the information system is a linearly increasing function of his wealth.
Forecasting for Largest Earthquakes
Authors: Yegulalp Tuncel M.
Published: November 2008

The primary concern of this paper is the establishment of a forecasting procedure for largest earthquake magnitudes of the next n years. It is shown that the use of the third-type asymptotic distribution of the largest values as an approximation to the exact distribution provides for an expression for the expected value and the mode of the largest earthquake magnitude in the next n years. An example of the application of this procedure is given and the results are compared with actual observations.
Multi-Period Stochastic Dominance
Authors: Levy Haim , Paroush Jacob
Published: November 2008

First degree stochastic dominance rules for uncertain options (distributions of returns) have been developed for the following two cases: (a) multi-period additive utility functions, (b) univariate utility functions and compound distributions of returns. In the first case, the suggested rule is a necessary and sufficient criterion for efficiency analysis, while in the second case we provide only sufficiency conditions for dominance.

For the univariate case an efficient set of portfolios can be constructed for investment groups that differ in their investment horizon. Where returns over time are independent, the longer the investment horizon the smaller the efficient set. However, the relationship between the size of the efficient set and the investment horizon is not simple when interdependence of returns is allowed.
Management Control of Blood Through a Short-Term Supply-Demand Forecast System
Authors: Frankfurter George M. , Kendall Kenneth E. , Pegels C. Carl
Published: November 2008

Design, development, implementation and operation of a short-term blood inventory level forecast system is described. The primary purpose of the forecast system is to alert blood center management to the short-term inventory level of blood supplies so that they can take corrective notion to either reduce or increase blood collections. A test is performed on the system, and it is demonstrated that, management took action to reduce collections in response to higher than necessary inventory levels and increased collections during a period when insufficient inventory levels were forecast.
An Input-Output Analysis of the Costs of Air Pollution Control
Authors: Cohen Alan S. , Hurter Arthur P.
Published: November 2008

Pollution control costs ore considered in three categories: (i) costs of control equipment, (ii) costs of switching to cleaner fuels or processes, and (iii) costs to consumers measured by changes in a consumer price index. The sum of type (i) and (ii) are “direct” costs; while (iii) is an “indirect” cost. An input-output model is developed which permits inclusion of both direct and indirect costs in the measure of pollution control costs. It is demonstrated that, when there is at least one firm in the community described by the model required to control its pollution, the prices of all consumer goods will be higher after the imposition of controls than before; and the increase in price will be at least as great as the direct costs of pollution control in the production of each good. If each industry can independently minimize its direct cost of pollution control, then the indirect costs will also be minimized. When shortages of clean fuels are considered, firms and industries cannot all control their emissions optimally. In this case, overall minimization of the direct costs of control will not generally result in minimization of the indirect costs as well. However, a particular kind of weighting of industry by industry direct control costs is developed, such that minimization of this weighted sum results in minimization of indirect costs as well.
Application of Quasi-Integer Programming to the Solution of Menu Planning Problems with Variable Portion Size
Authors: Armstrong Ronald D. , Sinha Prabhakant
Published: November 2008

This paper presents the application of a modified mixed-integer programming algorithm to plan menus in which the portion size of the menu items can vary over a specified positive range. Previous mathematical programming formulations of menu planning problems have either required the variables representing menu items to be bivalent, or have formulated the problem with food groups as decision variables and no integer requirements at all. The former gives rise to a zero-one programming problem and the latter to a “feed-mix” problem. In many instances, a more realistic formulation would require that if a menu item is offered, its portion size must be between a specified upper and lower bound. Although this paper addresses itself chiefly to menu planning, it is readily seen that problems in capital budgeting may be tractable with a similar formulation. It is shown how a branch-and-bound algorithm for mixed-integer programming of the type proposed by Beale and Tomlin can be modified to solve the quasi-integer programming problem resulting from a variable portion size formulation of menu planning problems.
An Optimization Algorithm for a Linear Model of a Simulation System
Authors: Kalymon Basil A.
Published: November 2008

This paper explores the normative theory of simulation within the context of an optimization algorithm for a linear programming model of the experimental setting. The simulation is viewed as a random generalized mathematical function which provides an uncertain evaluation of any policy within a specified constraint set. A sequential experimental design aimed at identifying the feasible levels of the policy variables which provide the optimal level of expected response is presented and analyzed. The results of numerical tests of the proposed procedure are discussed.
On the Optimality of Myopic Policies in Sequential Decision Problems
Authors: Dirickx Yvo M. I. , Jennergren L. Peter
Published: November 2008

A sufficient condition for the optimality of myopic policies is derived for a class of sequential decision problems. A necessary condition is also derived. The usefulness of the sufficient condition is illustrated in the context of a dynamic portfolio selection problem, a matched sampling problem, and a multi-item inventory model.
Discriminant Functions and Majority Voting
Authors: Blin J. M. , Whinston Andrew B.
Published: November 2008

This paper is based on the notion of discriminatory power of a pattern classifier acting over a feature space. Discriminant functions are normally used to trace out regions of the feature space corresponding to specific pattern classes. Indeterminate cases occur whenever a pattern lies on a class boundary. The number of occurrences of such indeterminacies measures the relative discriminatory power of a family of discriminant functions. In this paper these concepts are applied to majority voting decisions. It is first shown how regular majority voting leads to discriminant functions with insufficient discriminatory power whenever intransitive social ordering occurs. An (improved) family of discriminant functions is proposed to resolve such cases.
Rim Multiparametric Linear Programming
Authors: Gal Tomas
Published: November 2008

The rim multiparametric linear programming problem (RMPLP) is a parametric problem with a vector-parameter in both the right-hand side and objective function (i.e., in the “rim”). The RMPLP determines the region K* ⊂ E* such that the problem, maximize z(λ) = cT(λ)x, subject to Ax = b(λ), x ≧ 0, has a finite optimal solution for all λ ∈ K*.

Let Bi be an optimal basis to the given problem, and let Ri*, be a region assigned to Bi such that for all λ ∈ Ri* the basis Bi is optimal. The goal of the RMPLP problem is to cover K* by the Ri* such that the various Ri* do not overlap.

The purpose of this paper is to present a solution method for finding all regions Ri* that cover K* and do not overlap. This method is based upon an algorithm for a multiparametric problem described in an earlier paper by Gal and Nedoma.
Note on Finite Convergence of Exterior Penalty Functions
Authors: Truemper Klaus
Published: November 2008

It is shown that existence of a saddle point of the Lagrangian function in an optimization problem is sufficient to assure finite convergence of the linear exterior penalty function. Also, an estimate of the penalty weight is given that yields ϵ-convergence for the quadratic exterior penalty function.
Rejoinder to Hsia's “On Rutenberg's Decomposition Method”
Authors: Rutenberg David P.
Published: November 2008

Rejoinder to Hsia's “On Rutenberg's Decomposition Method” (Hsia, Wei Shen. 1974. On Rutenberg's decomposition method. Management Sci. 21 (1) 10–12.).
On the Maximization of the Geometric Mean with Lognormal Return Distribution: Erratum
Authors: Elton Edwin J. , Gruber Martin J.
Published: November 2008

An erratum to “On the maximization of the geometric mean with lognormal return distribution”, Management Science, Vol. 21, No. 4 (December 1974), pp. 489–494.
Virtual Measures: A Variance Reduction Technique for Simulation
Authors: Carter Grace , Ignall Edward J.
Published: November 2008

A variance reduction technique is presented that is effective when the system characteristic to be estimated is strongly influenced by rare events. Applications to simulations of a simple inventory system and of the New York City Fire Department, where the rare events are back orders and serious fires respectively, are described. In these simulations, virtual measures reduced computer time needed to achieve a given statistical reliability to 1/2 to 1/20 of that needed with the usual direct estimators. Relationships to other variance reduction techniques are indicated.
An Alternative to Monte Carlo Sampling in Stochastic Models
Authors: King E. P. , Sampson C. B. , Simms L. L.
Published: November 2008

The computer resource requirements of Monte Carlo sampling are a serious deterrent to its use in some instances. In such applications as large-scale planning systems which must combine forecast information from many products, processes, and markets, the extensive use of random sampling can become the principal roadblock to further expansion, especially if interactive timesharing applications are indicated. In this paper, we present an alternative scheme for approximating the probability distribution of sums, differences, products, and quotients of independent random variables whose 10th, 50th, and 90th percentiles are specified in advance.
A Bayesian Technique to Discriminate between Stochastic Models of Brand Choice
Authors: Blattberg Robert C. , Sen Subrata K.
Published: November 2008

This paper describes a Bayesian model-discrimination procedure which determines for each consumer the stochastic model of brand choice which is best supported by his purchasing behavior. The Bayesian technique is illustrated by means of two Markov models and two Bernoulli models. We first discuss in some detail how we set priors for the four models. Then we use simulated consumer panel data to demonstrate that the Bayesian technique is a good discriminator among the four models. The technique is then applied to some actual aluminum foil purchase data. We provide estimates of the proportion of aluminum foil consumers in each of the four model segments and the degree to which the size of each segment changes over time. We also show that model discrimination at the individual consumer level has important implications for market segmentation, pricing, and promotion.
Retaining Productive Units: A Dynamic Programming Model with a Steady State Solution
Authors: Flynn James
Published: November 2008

We consider a system consisting of productive units which age (the units could be men). As these units age, they tend to leave the system and must be replaced. We can retard this by spending more money on them. The system is required to maintain a constant production rate. The latter is a linear function of the number of units in the different age groups. The desideratum is an optimal retention policy. We formulate an infinite-horizon deterministic dynamic programming model and find a steady state policy (a policy under which the system moves directly to a target state) whose cost differs from the optimal cost by an amount whose bound is independent of the interest rate. We also find optimal policies for some special cases.
Supply and Redistribution Rules for Two-Location Inventory Systems: One-Period Analysis
Authors: Das Chandrasekhar
Published: November 2008

This paper considers a two-location stochastic inventory problem with periodic review. It is assumed that replenishment may be ordered only at times of periodic review but a provision is made for transfer of stock between the locations at predetermined times within the replenishment cycle. Problems of determining jointly optimal stockage and transfer rules according to the expected total cost criterion are investigated. Under certain regularity conditions, the optimality of a simple class of Base Stock Conserving (BSC) transfer rules is first established. The related optimal stockage rule is then characterized for the single period model of captive sales.
Production, Inventory and Capacity Expansion Scheduling with Integer Variables
Authors: Barchi R. H. , Sparrow F. T. , Vemuganti R. R.
Published: November 2008

The combined production-inventory and capacity expansion problem is modeled as a linear, integer program. The model assumes constant returns to scale in the production function of a firm which must meet, at minimum cost, deterministic demands for a single product over N periods with no backordering.

A linear transformation is used to obtain an equivalent form of the model which is then decomposed into fixed cost and variable cost parts. A global optimum is obtained by enumerating on the fixed cost variables and solving transportation sub-problems with the remaining variables. Special demand and cost structures and extensions are discussed, and computational experience presented.
Performance and the Use of an Information System
Authors: Lucas Henry C.
Published: November 2008

The purpose of this paper is to explore the contributions of information systems to the organization. A descriptive model is presented which identifies (1) expected predictors of performance and the use of an information system and (2) the relationship between the use of a system and performance. The results of a study of sales force performance and the use of a sales information system are presented to provide empirical evidence to support the model. The results confirm the general relationships among classes of variables in the model, but specific relations among variables are complex and depend heavily on the environment of the organization.
An Optimal Commission Plan for Salesmen's Control Over Price
Authors: Weinberg Charles B.
Published: November 2008

If marginal costs are constant, salesman who are paid a commission based on gross margin and who are given control over price will set prices so as to maximize simultaneously their own income and the company's profits. The result holds even if a salesman can only make a probabilistic estimate of sales.
The Science-Technology-Utilization Relationship in Management
Authors: Gruber William H. , Niles John S.
Published: November 2008

The transfer of management science into management practice is examined. Starting with the TIMS definition of management science, we delineate three fundamental classes of activity and associated personnel: (1) management science and scientists, (2) management technology and technologists, (3) management practice and managers. The inter-group communication flows which are necessary for the transfer of management science into management practice are then developed.

The examination of management science utilization problems leads us to the hypothesis that management scientists have only commented upon, rather than studied, the process of management science application. Here a structure for such a study is developed.
A Node Method for Multiparametric Linear Programming
Authors: Van De Panne C.
Published: November 2008

A method is presented for the generation of extreme points of regions in the parameter space for which a certain basic solution is optimal. It is shown that for any extreme point the inequalities which determine the adjacent regions are easily generated. A numerical example is worked out in detail.
Multi-Item Production Smoothing Models with Almost Closed Form Solutions
Authors: Welam Ulf Peter
Published: November 2008

Computational efficiency in solving large-scale multi-item production smoothing models with quadratic costs is the chief concern of this paper. We consider two multi-item versions of the HMMS model and show that their optimal solutions can be obtained in “almost” closed form. Numerical inversion of large matrices is therefore not necessary and considerable savings in terms of storage requirements are also possible. The existence of unique optimal solutions depends in a very simple way on the model parameters.
Relevant Policies for Markovian Queueing Systems with Many Types of Service
Authors: Beja Avraham , Teller Ariela
Published: November 2008

A single station service system with bounded queue capacity operates in discrete time, and at each period, one out of K possible service rates is used. A subclass of the stationary nonrandomized policies—termed relevant—which uses only a subset of the available service rates, is proved optimal for the average cost criterion. If there is some type of service whereby the expected cost per served customer is no more than the expense of losing him, the service rate in all relevant policies increases with the number of customers observed in the system; if there is no such type of service, the service rate in all relevant policies decreases with the number of observed customers.
Note—Optimal Heuristic Decisions for the s, S Inventory Policy
Authors: Naddor Eliezer
Published: November 2008

Heuristic decision rules for the s, S policy in probabilistic inventory systems are proposed. The rules require only the knowledge of the mean and standard deviation of demand, probability of no demand, carrying and replenishing costs, desired availability, and leadtime. Numerical results are given to illustrate the application of the rules.
Optimal Control of Sales Force Effort in Time
Authors: Tapiero Charles S. , Farley John U.
Published: November 2008

This paper examines the temporal effects of alternative procedures for controlling sales force effort, particularly when the effect of such effort is felt in both current and future periods. Related informational requirements for both firm and salesmen are also discussed in terms of nonzero sum differential games, and implications for the temporal management of selling effort are derived.
The Warehouse Location Formulation as a Special Type of Inspection Problem
Authors: Trippi R. R.
Published: November 2008

This note presents a model for allocation of inspection resources to points within a discrete manufacturing process at minimum cost. An integer programming formulation is developed having identical structure to a warehouse (factory) location problem which has been the focus of a number of investigations.
Characterising the Finite Capacity GI/M/1 Queue with Renewal Output
Authors: Laslett G. M.
Published: November 2008

This note proves that the only stationary GI/M/1/N queueing systems (i.e., systems having fixed waiting room capacity N(0 ≦ N ≦ ∞)) with renewal output are the M/M/1/0 and stable (traffic intensity < 1) M/M/1/∞ systems.
Examining the Pattern of Response Behavior in a Media Model
Authors: Zufryden Fred S.
Published: November 2008

A note submitted to Management Science by Lodish [Lodish, L. M. 1975. A note on modelling the relationship of diminishing returns to media overlap for the media planning problem. Management Sci. 22 (1, September) 111–116.] comments on a media model previously published in this journal [Zufryden, F. S. 1973. Media scheduling: a stochastic dynamic model approach. Management Sci. 19 (16, August) 1305–1406.]. Here, in turn, comments are made on the Lodish note. Also, in contradiction to implications of the note, empirical examples based upon both hypothetical and actual media exposure data are given. These illustrate that the media model may in fact approximate aggregate response behavior quite well for the purpose of practical applications even though it does not explicitly consider individual audience overlap patterns.
Multivariate Risk Aversion, Utility Independence and Separable Utility Functions
Authors: Richard Scott F.
Published: November 2008

This paper concerns utility functions for more than one attribute. A new type of risk aversion found only in muitivariate utility functions is defined. Certain behavioral assumptions, which are necessary and sufficient for one of three forms of separable utility functions including the well-known additive form, are given. It is shown that only one of these separable forms, the “negative multiplicative form,” possesses this new type of risk aversion and in particular that the additive form does not.
Efficient Estimators for Simulated Queueing Systems
Authors: Law Averill M.
Published: November 2008

In this paper we consider efficient estimators for simulated queueing systems. It is shown to be more efficient to estimate all of the usual first moment measures of performance from an estimate of mean delay in queue than to estimate them directly.

For single-server queues an estimator is introduced which is more efficient than the normal estimator of mean delay in queue.
An Efficient One Dimensional Search Procedure
Authors: Fox R. L. , Lasdon L. S. , Tamir Arie , Ratner Margery
Published: November 2008

Many nonlinear programming algorithms utilize a one-dimensional search along directions generated by the algorithm. This paper describes a method for performing this search. The method finds 3 points which bracket the minimum, fits a quadratic through them to yield a fourth point, then fits successive cubics through 4 points, discarding one each time, until certain stop criteria are met. No gradient evaluations are required. Detailed flow charts of this procedure are given, and its performance is compared with that of 2 other algorithms. Eight test problems are used in this comparison, each solved using both exterior and interior penalty functions. The Davidon-Fleteher-Powell method is used to generate the search directions. Results show that the proposed procedure requires about 1/2 to 3/4 to the computer time of its nearest competitor, a procedure designed to be especially efficient when applied to penalty functions, and about 1/3 the time of the other competitor, the 2 point cubic search using derivatives.
Optimal Portfolios with One Safe and One Risky Asset: Effects of Changes in Rate of Return and Risk
Authors: Fishburn Peter C. , Burr Porter R.
Published: November 2008

This paper examines changes in the optimal proportions of investment capital placed in a safe asset and in a risky asset by an expected utility maximizing risk averse investor. If the return for the safe asset increases and the risky asset distribution remains fixed, the optimal proportion invested in the safe asset will increase provided that the investor's absolute risk aversion is nondecreasing or his proportional risk aversion never exceeds unity. Otherwise, it can be optimal to decrease holdings in the safe asset when its return increases. If the return for the safe asset remains fixed and the risky distribution improves by a first degree stochastic dominance change, the optimal proportion invested in the risky asset will increase (or not decrease) provided that proportional risk aversion never exceeds one plus the product of the gross return for the safe asset times absolute risk aversion. Otherwise, it may be optimal to decrease holdings in the risky asset when its distribution improves in the indicated manner.
A Preference Order Dynamic Program for Stochastic Assembly Line Balancing
Authors: Kao Edward P. C.
Published: November 2008

Consider an assembly line balancing problem with stochastic task times. Our objective is to find a grouping of tasks into stations that satisfies all precedence relations and minimizes the number of stations, subject to the constraint that the probability that the resulting station work content at each station is no more than the given cycle time is bounded by a given value. Similar to Held and Karp's approach, we formulate the problem in dynamic programming. The solution procedure is based on Mitten's preference order dynamic programming
An Algorithm for Nonlinear Knapsack Problems
Authors: Morin Thomas L. , Marsten Roy E.
Published: November 2008

An algorithm which recursively generates the complete family of undominated feasible solutions to separable nonlinear multidimensional knapsack problems is developed by exploiting discontinuity preserving properties of the maximal convolution. The “curse of dimensionality,” which is usually associated with dynamic programming algorithms, is successfully mitigated by reducing an M-dimensional dynamic program to a 1-dimensional dynamic program through the use of the imbedded state space approach. Computational experience with the algorithm on problems with as many as 10 state variables is also reported and several interesting extensions are discussed.
Note—Comments on “Shortest Route Models for Allocation of Inspection Effort on a Production Line” by Leon S. White
Authors: Kao Edward P. C.
Published: November 2008

This note points out an omission in L. S. White [White, L. S. 1969. Shortest route models for allocation of inspection effort on a production line. Management Sci. 15 249–259.]. It also suggests a modification in the problem formulation.
Note—A Note on Jauch and Glueck, “Evaluation of University Professors' Research Performance”
Authors: Jauch Lawrence R. , Ettlie John
Published: November 2008

A Note on Jauch and Glueck, “Evaluation of University Professors' Research Performance” (Jauch, L. R., W. F. Glueck. 1976. Evaluation of university professors' research performance. Management Sci. 22 (1) 66–75.).
“Policy Making Under Discontinuous Change: The Situational Normativism Approach”: Erratum
Authors: Shakun Melvin F.
Published: November 2008

In the paper, “Policy Making Under Discontinuous Change: The Situational Normativism Approach,” by Melvin F. Shakun, Management Science, Vol. 22, No. 2, October 1975, reference 26 should read Policy Sciences. Vol. 7, No. 1, March 1976, and the publication date for reference 27 should be 1976.
The Disaggregation of Aggregate Manpower Plans
Authors: Ritzman Larry P. , Krajewski LeRoy J. , Showalter Michael J.
Published: November 2008

Aggregate manpower plans can be made operational only if they are translatable into shorter range assignments of personnel to specific work groups, operations, and products or services. This paper describes a combined heuristic programming and simulation algorithm amenable to this process of decomposition. Due to the complexity of the problem and the multiplicity of objectives, optimization techniques are only of academic interest. The algorithm is adapted to a particular environment, namely the construction of tour assignments in a post office. A “tour assignment” specifies simultaneously the exact timing (days and hours) of the work week (shift or tour) as well as the particular job assignment for each employee in the workforce. After describing the problem structure, the algorithm's logic is explained along with the interactive nature of the man-machine approach. Several options can be exercised to combine the power of a computer model with the judgment of the decision maker. The application of this methodology is illustrated with representative data, showing how the search and decision process can be conducted.
A Network Flow Model for Allocation of Land Uses to Sectors
Authors: Bagby Gordon , Thesen Arne
Published: November 2008

An efficient approach to the problem of minimizing total construction and utility distribution network costs in a region while still meeting projected land use demands is presented. The region is modelled as a directed network with land represented by nodes and utility links by branches. When bounds and costs are placed on levels of land uses and on utility flows in links, the problem becomes a linear programming problem with a special structure. An application of this approach for three utilities and eighty zones is presented together with a discussion on the validity of many assumptions.
A Bayesian Algorithm for Determining Optimal Single Sample Acceptance Plans for Product Attributes
Authors: Moskowitz Herbert , Berry William L.
Published: November 2008

The Bayesian algorithm presented in this paper provides a generalized procedure for determining the minimum cost sample size (n*) and acceptance number (c*) for single sample attribute acceptance plans. The algorithm is applicable to a broad range of acceptance sampling problems, assuming only that the distributions of product quality are discrete, and that the sampling cost is either a linear or strictly convex function of the sample size. Experimental results are presented that compare the solution quality and the computational requirements of this algorithm with three types of previously reported procedures: (1) Bayesian decision tree methods, (2) analytic approximation methods, and (3) direct search techniques. The results indicate that the algorithm produces the optimal solution with minimal computational requirements over a wide range of acceptance sampling problem types.
Multi-Period Consumption Decision under Conditions of Uncertainty
Authors: Levy Haim
Published: November 2008

An investor is faced with several investment alternatives. Any investment plan induces a vector of consumption where the consumption in each period is a random variable. Obviously, the optimal vector of consumption is determined by the multi-period utility function. However, in most cases we have no information on the investor's preference, and hence we cannot choose the optimal consumption strategy.

Assuming that the multi-period utility function is nondecreasing we establish a decision rule which divides the feasible set of consumption strategies into two sets: the “efficient set” and the “inefficient set.” Thus, in the second step each investor selects the optimal consumption strategy from the efficient set according to his preference.
Maximal Closure of a Graph and Applications to Combinatorial Problems
Authors: Picard Jean-Claude
Published: November 2008

This paper generalizes the selection problem discussed by J. M. Rhys [Rhys, J. M. W. 1970. Shared fixed cost and network flows. Management Sci. 17 (3, November).], J. D. Murchland [Murchland, J. D. 1968. Rhys's combinatorial station selection problem. London Graduate School of Business Studies, Transport Network Theory Unit, Report LBS-TNT-68, June 10.], M. L. Balinski [Balinski, M. L. 1970. On a selection problem. Management Sci. 17 (3, November).] and P. Hansen [Hansen, P. 1974. Quelques approches de la programmation non lineaire en variables 0-1. Conference on Mathematical Programming, Bruxelles, May.]. Given a directed graph G, a closure of G is defined as a subset of nodes such that if a node belongs to the closure all its successors also belong to the set. If a real number is associated to each node of G a maximal closure is defined as a closure of maximal value.
The Time Domain Implications of Phase Angles and Tau
Authors: Hilliard Jimmy E. , Barksdale Hiram C.
Published: November 2008

In cross-spectral analysis, the tau statistic is used to infer lead-lag relationships between series in the time domain. Unfortunately, it is frequently inferred that tau is meaningful only when the phase diagram is linear. In this paper it is shown that tau is far more robust than is generally recognized. By appeal to the Cramer Decomposition Theorem, the time-domain interpretation of tau is developed and shown to possess optimum mean square properties. While some of the theoretical background is expository, its inclusion facilitates an intuitive analysis of a number of models. We focus in particular on a model that generates a phase reversal similar to that often found in the spectral analysis of aggregate economic series.
Communication to the Editor—The Dangers of Research Based on One Telephone Call to Dallas
Authors: Stimson David H.
Published: November 2008

I welcome the opportunity to respond to Mr. Cooper's comments [Cooper, W. W. 1976. The cluster plan for desegregating public schools or a little less Weltanschauung, please, for some more adequate description. Management Sci. 22 (11, July).] about the paper that Mr. Thompson and I wrote on operations research and school busing [Stimson, D. H., R. P. Thompson. 1975. The importance of ‘Weltanschauung’ in Operations Research: The case of the school busing problem. Management Sci. 21 (June) 1123–1132.] and to present some aspects of a legal case to overturn the dual school system in Oklahoma City.
A Problem in Single-Machine Sequencing with Nonlinear Delay Costs
Authors: Henderson Peter B. , Steiglitz Kenneth
Published: November 2008

We examine a class of single-machine sequencing problems which originate from scheduling considerations for a single-server queueing system with nonlinear costs of delay. Associated with each request awaiting service (sequencing) are a known service time, a known arrival time, and a nondecreasing cost function which is identical for each request. Two sequencing problems are considered; a request incurs cost from its arrival time to the time when it (1) commences service or (2) completes service. Our objective is a sequence which minimizes the total incurred cost.

Necessary conditions for the optimal sequencing of requests are given for convex nondecreasing and quadratic cost functions. These conditions and a new lower bound function are used in a branch-and-bound algorithm to obtain computational results.
Heuristic Methods for Telephone Operator Shift Scheduling: An Experimental Analysis
Authors: Henderson Willie B. , Berry William L.
Published: November 2008

Heuristic methods are presented for scheduling telephone traffic exchange operators to meet demand that varies over a 24-hour operating period. Two types of heuristics are described (1) for determining the work shift types to be considered in preparing an operator shift schedule and (2) for constructing an operator shift schedule from a given set of work shift types. These heuristics are evaluated both in terms of solution quality and computational efficiency, using actual operating data.
Note—Comments On Amato and Anderson's Paper, “Determination of Warranty Reserves: An Extension”
Authors: Menke W. W.
Published: November 2008

Comments about Amato, H. N., E. E. Anderson. 1976. Note—Determination of warranty reserves: an extension. Management Sci. 22 (12) 1391–1394.
A Dynamic Programming Solution to Cost-Time Tradeoff for CPM
Authors: Robinson Don R.
Published: November 2008

To solve the problem of time-cost tradeoff in project management with available models, a choice must be made between heuristic approaches and algorithms based upon restrictive assumptions about the shape of the cost-time functions of the activities. The algorithm presented in this article involves a dynamic-programming approach to determine the allocation which minimizes the duration of the project (critical path). The main advantage of this model is its ability to determine the optimum allocation among activities with arbitrary cost-time functions. Also, computational shortcuts for functions with special properties can be used to increase the efficiency of the model.

Objective functions of networks with special structures decompose into sequences of one-dimensional optimization problems. Although some complex networks have objective functions which cannot be fully decomposed, the dimensions of these functions are considerably less than the number of activities involved.

If the activities have nonincreasing cost-time functions, an optimal policy can be used to eliminate the usual search procedure for one-dimensional problems which involve minimizing the maximum of stage returns.
Comparison of Computer Algorithms and Visual Based Methods for Plant Layout
Authors: Scriabin Michael , Vergin Roger C.
Published: November 2008

Increasing emphasis on the reduction of materials handling costs in the modern plant has led to research into new methods of planning the process type layout in such a way as to minimize these costs.

This project compares the performances of three highly rated computer algorithms prescribed for the solution of the plant layout problem with the performances of selected human subjects using the manual and visual methods still used and recommended by industrial engineers for plant layout design. The objective of this comparison is to determine whether there is in fact an advantage to using one of the available computer programs to solve the problem, instead of designing the layout by traditional visual-based methods.

These tests, performed under the control of a computer system which accurately recorded the solutions achieved by each subject, show not only that the computer algorithms do not perform better than selected human subjects in the design of plant layouts, but that the human subjects, without the benefit of any prescriptive help from a computer, actually achieve layouts which are stochastically better than those produced by the computer programs.
Optimal Portfolio Decision Making Where the Horizon is Infinite
Authors: Miller Bruce L.
Published: November 2008

We consider a portfolio model with an infinite planning horizon. It is shown that the investment policy of maximizing the expected log each period is optimal when the utility function depends only on the tail of the sequence representing the capital at each period.
Capacity Planning for Large Multilocation Systems: Approximate and Incomplete Dynamic Programming Approaches
Authors: Erlenkotter Donald
Published: November 2008

Methods for planning capacity expansion typically have been restricted to problems with many locations in a static environment or a few locations in a dynamic environment. Two approaches are developed here for dynamic capacity planning problems with many locations. The first is an approximate approach based on an equivalent annual cost measure, and the second is a procedure for systematic improvement of the approximate solution. The method for improvement is called “incomplete dynamic programming” since it consists of an approximation to the first cycle of the dynamic programming policy iteration approach. Computational results are reported for tests of the methods against dynamic programming solutions for small problems. Applications are made to two versions of a large-scale problem of planning capacity expansion for India's nitrogenous fertilizer industry, and results are compared with those for other approaches.
Effective Comparison of Unconstrained Optimization Techniques
Authors: Shanno D. F. , Phua K. H.
Published: November 2008

The paper presents a means of attempting to account for overhead, as well as function evaluations, in evaluating unconstrained optimization techniques. Criteria are established which compare techniques on classes of algorithms. While not completely machine independent, and certainly not programmer independent, the new method eliminates much of the machine dependency of earlier criteria. The criteria are applied to three known and one new quasi-Newton algorithm, with interesting results.
A Markovian Analysis of a Single Conveyor System
Authors: Gregory G. , Litton C. D.
Published: November 2008

An approach is presented for the solution of the discrete conveyor model for service time distributions which are general but bounded and where there is no storage at work stations and no recirculation. The model is described by states with the Markovian property and solutions may be derived for moderately sized numbers of operatives.
Note—Note on “Determination of Optimum Packaging Frequency of Items Jointly Replenished”
Authors: Goyal S. K.
Published: November 2008

In my paper [Goyal, S. K. 1974. Determination of optimum packaging frequency of items jointly replenished. Management Sci. 21 (4, December) 436–443.], an algorithm is given for determining the optimum packaging frequency of jointly replenished items. Essentially the procedure involves determining the lower bound and upper bound for the frequency of manufacturing set-ups and then choosing the optimum policy which provide minimum cost from a limited number of policies within the lower bound and upper bound of the manufacturing frequency. The effectiveness of the algorithm can be improved by redefining the upper bound of the manufacturing frequency and modifying a step of the original algorithm.