bluuebunny/crossref_metadata_2025 huggingface dataset:
A Geometric Programming Model for Optimal Allocation of Stream Dissolved Oxygen
Authors: Ecker J. G.
Published: November 2008

A nonlinear model is developed for allocating treatment requirements along a stream so as to meet stream dissolved oxygen standards at each point in the stream while minimizing the total annual cost of all discharging activities. An application of the model to several reaches of the Upper Hudson River is considered, and some alternative pollution abatement policies are analyzed.
Achieving Organizational Consensus with Respect to R&D Project Selection Criteria
Authors: Souder William E.
Published: November 2008

An impact method for achieving organizational consensus was used in specifying R&D project selection criteria at four different organizations. The method consists of the repeated use of a paired comparison instrument, with group discussions and member interactions. High levels of shared values, consensus and member satisfactions were achieved at two of the four organizations. Legitimized leadership, a willingness to engage in confrontations and a high awareness of the larger needs of the total organization existed at these two. By contrast, in the other two organizations the absence of a single strong leader and a clear unity of purpose inhibited consensus. It was concluded that the impact method may be generally useful for disclosing hidden value conflicts. However, the achievement of high levels of shared values and decision consensus may be inhibited where either a strong central leader is lacking or where individuals are unclear about the nature of the larger goals of the total organization.
Diffuse Decision-Making in Hierarchical Organizations: An Empirical Examination
Authors: Shumway C. R. , Maher P. M. , Baker M. R. , Souder W. E. , Rubenstein A. H. , Gallant A. R.
Published: November 2008

The applied research resource allocation decision process in a complex, hierarchical federal organization is explored in this paper. This decision process includes the identification of research objectives and the funding of projects selected to achieve the objectives. The hierarchical, geographical, and temporal diffuseness of participation in the decision process is described. Several a priori conjectures are presented concerning how the decision to fund research projects might be made in such a hierarchically and spatially diffused organization. The conjectures are empirically tested using data for 181 projects from the 1970 budget cycle, and their implications are discussed.
Statistical Evaluation of Complex Gaming Performance
Authors: Hand Herbert H. , Sims Henry P.
Published: November 2008

Past practices in measuring performance in complex management games are reviewed. Focus is directed to the controversy of objective measurement of profitability versus decision and analysis input evaluation. As a middle ground between these extremes, a multi-dimensional approach to the evaluation problem was developed for teams competing in a simulation game. Multi-dimensional performance criteria provide a means to increase learning effectiveness by reducing feedback ambiguity and providing a vehicle for the student to understand the cause-effect relationships inherent in the game and the business environment. This paper describes the development and usage of thirteen performance criteria, and also utilizes the technique of path analysis to investigate the relationships among the performance variables. The results of the path analysis indicated both that teams which forecasted accurately were top performers in terms of profitability and that a consistent and logical relationship existed among the performance variables. These findings, though an indirect measure, contribute to confidence in the internal construct validity of the game.
Exceptional Paper—Markov Renewal Theory: A Survey
Authors: Çinlar Erhan
Published: November 2008

The objective is to survey the major results and applications in an informal setting. The exposition is restricted to finite state spaces; some real problems are modelled and the lines of attack are indicated; and an extensive bibliography is provided to get a further glimpse of the variety of applications. Throughout, the parallels with renewal theory are brought out, and the unity of thought afforded by the formalism of Markov renewal equations is stressed.
A Network Approach to a Multi-Facility, Multi-Product Production Scheduling Problem Without Backordering
Authors: Dorsey Robert C. , Hodgson Thom J. , Ratliff H. Donald
Published: November 2008

A multi-product, multi-facility production scheduling problem is considered over a finite planning horizon. The horizon consists of discrete production periods during each of which at most one product can be assigned to each facility. Product demand rates are assumed to be constant over a period but not necessarily identical in all periods. All demands must be met without allowing backorders. The problem objective is to determine an assignment of products to facilities over the horizon which minimizes the sum of production and inventory carrying charges. The problem is formulated as a network flow problem for which efficient solution procedures are known. However, for an important special case a single pass algorithm is given which is more efficient than the standard flow algorithms.
Search and Simulation Selection of a Job-Shop Sequencing Rule
Authors: Hershauer James C. , Ebert Ronald J.
Published: November 2008

A standardized approach to selecting a simple sequencing rule for decentralized application throughout a job shop is developed and illustrated. The sequencing rule is a linear combination of decision factors, each of which is initially assigned a relative weighting. The rule is then used to determine the priority of each job in the queues, and resulting shop costs are determined by computer simulation. The coefficients of the priority function are thereafter modified by a patterned search procedure to find priority coefficients that minimize expected cost per order for a specified cost structure. The cost structure is a combination of multiple response measures for the shop. Rather than leading to a “single best rule” for all job shops, the approach is a “method for finding” a sequencing rule that performs well in any specific job shop situation.
The Stochastic Cash Balance Problem with Average Compensating-Balance Requirements
Authors: Hausman Warren H. , Sanchez-Bell Antonio
Published: November 2008

We consider the problem of managing two assets, cash and an earning asset, when net cash flows are stochastic and when there are transfer costs for transferring assets from one form to the other. Previous work on the stochastic cash-balance problem has assumed holding costs for holding excess cash and penalty costs for holding insufficient cash, with these costs assessed per period (the same period in which there is a single decision or transfer opportunity and a single random cash flow). This formulation is appropriate when a firm faces minimum (or zero) compensating-balance requirements, but not when the compensating-balance requirement involves an average deposit balance over a number of decision periods. A dynamic programming model is presented which appropriately represents the relevant cost function for a firm facing an average compensating-balance requirement. The dynamic programming solution to a numerical example is compared to that of a static two-sided (s, S) policy; the optimal dynamic programming solution represents an 18% reduction in relevant costs in the example.
Perceptor: A Model for Product Positioning
Authors: Urban Glen L.
Published: November 2008

A model and measurement methodology is proposed to aid managers in designing new frequently purchased consumer products. The model is structured as a trial and repeat process that produces an estimate of long-run share for a new brand. Physical and psychological product attributes are linked to the trial and repeat probabilities through multidimensional scaling procedures. Perceptual maps of existing brands with ideal brand positionings are derived. The product design determines the new brand's position in the perceptual space, and the distance from the new brand to the ideal brand specifies its probability of purchase.

Measurement and estimation procedures are discussed. Predictive and structural tests of the model are reported, and a process for managerial implementation is presented. The outputs of the model are an understanding of the perception, preference, and purchase process, a framework and procedure for measurement, a structure to use in interpreting experimental results, and a tool for estimating the marketing share for alternate new brand designs.
Stochastic Models of a Price Promotion
Authors: Kinberg Yoram , Rao Ambar G.
Published: November 2008

Stochastic models of a commonly used consumer marketing tool—a price off or price promotion—are developed. Two cases are considered: first, when the duration of the promotion is unknown to customers, and second, when it is known. The optimal duration is derived in both cases as a function of the probability of purchasers of competitive brands switching to the promoted brand, the increased quantity purchased due to the “bargain” and the possible increase in the consumption rate as a consequence. A numerical illustration and a discussion of promotion desirability at different times is presented. Finally, a procedure for estimating model parameters and testing model assumptions is discussed.
A Comparison of Heuristic and Optimum Solutions in Resource-Constrained Project Scheduling
Authors: Davis Edward W. , Patterson James H.
Published: November 2008

The problem addressed is that of scheduling the activities of a project network to minimize project duration under conditions of multiple limited resource requirements and availabilities. Various heuristic sequencing rules have been applied to this problem, and the effectiveness of these rules relative to one another has been previously compared in the literature. However, there have been no previous comparisons of the effectiveness of these rules relative to an optimum solution. This paper makes such a comparison of eight different heuristic scheduling rules, including those found most effective in previous research on this problem. Results are presented for a total of eighty-three different multi-resource problems.
A Graph Theoretic Formula for the Steady State Distribution of Finite Markov Processes
Authors: Solberg James J.
Published: November 2008

This paper presents a formula which expresses the solution to the steady-state equations of a finite irreducible Markov process in terms of subgraphs of the transition diagram of the process. The formula is similar in spirit to well-known flowgraph formulas, but possesses several unique advantages. The formula is the same whether the process is discrete or continuous in time; it is efficient in the sense that no cancellation of terms can occur (it is a simple sum of positive terms); and it is both conceptually and computationally simple. Because these advantages are gained by exploiting properties of Markov processes, the formula is not applicable to linear equations in general, as are the flowgraph methods. The paper states and proves the theorem for both the discrete and continuous cases, gives examples of each, and cites computational experience with the formula.
Optimal Allocation of Resources in a Pari-Mutuel Setting
Authors: Rosner Bernard
Published: November 2008

This article deals with an optimal algorithm for wagering in a pari-mutuel situation given that one is a perfect handicapper. A general rule is given for all pari-mutuel events with mutually exclusive outcomes. The rule has several surprising aspects which differ considerably from previous betting rules. The rule is useful when one's own bet is small relative to the total amount bet by the public. The optimality criterion is that of maximizing the expected log return.
The Value of Sequential Information
Authors: Miller Allen C.
Published: November 2008

In decision analysis we normally consider the value of information to be a constant against which the cost of information is compared. However, when it is possible to buy information sequentially, the value of information is not a constant. Rather, it is a function of the prices of the various pieces of information, or “observables.” When we are faced with a decision and learn one observable, this information not only helps us make the original decision, but also helps us decide if we should pay for more observables. For this reason, the first observable has a value above and beyond that which we would assign if there were no possibility of obtaining additional information. To decide whether or not to buy one observable we must know the prices of all the observables.
Perception of Problem Constraints
Authors: Taylor Ronald N.
Published: November 2008

The problem solver's perception of elements in a problem-situation will influence the extent to which he recognizes a problem and the nature of the constraints he associates with the problem. Constraints represent the extent to which the problem is defined or specified and problem formulation takes place as constraints are adjusted. Through such mechanisms as psychological set and functional fixedness, the previous problem-solving experiences of an individual can shape the constraints he perceives for subsequent problems. His prior experiences can either facilitate (positive transfer) or inhibit (negative transfer) problem solving, depending in part on the structure of the problem. The constraints likely to be associated with the problems of varying degrees of structure are examined and suggestions are made for reformulating problems by adjusting these constraints.
Solutions of Constrained Location Problems
Authors: Hurter Arthur P. , Schaefer Margaret K. , Wendell Richard E.
Published: November 2008

In many real world location problems, the solution is constrained to lie within a closed set. In this paper optimal solutions to several types of constrained location problems are characterized.
The Multiperiod Location-Allocation Problem with Relocation of Facilities
Authors: Wesolowsky George O. , Truscott William G.
Published: November 2008

A dynamic or multiperiod location-allocation formulation is developed from the static problem of locating G facilities among M possible sites to serve N demand points. This dynamic model provides a tool for analyzing tradeoffs among present values of static distribution costs in each period and costs of relocating facilities. The objective is to specify the plan for facility locations and relocations and for attendant allocations of demands which minimize these costs. Two methods of solution are presented. First, a mixed-integer programming approach is used to solve sample problems. From computational results reported for structurally-similar problems, it seems that efficient general purpose codes for this method would be capable of solving problems with at least 5 periods, 5 potential sites, and 15 demand points. The second method, dynamic programming, is capable of increasing the size of problems that are computationally feasible. The dynamic programming approach is quite attractive when the relative values of G and M restrict the state space to a manageable size and constraints on the extent of location changes in each period limit the number of alternate decisions. Possible extensions of the model and solution procedures are discussed.
Global Minimization in Nonconvex All-Quadratic Programming
Authors: Reeves Gary R.
Published: November 2008

This paper describes a branch and bound algorithm for the global minimization of a quadratic objective function subject to quadratic constraints over a bounded interval. No assumptions are made regarding the convexity of either the objective or the constraints. The algorithm consists of three basic steps. First, a local minimum is identified. Next, an interval surrounding this point over which the point is global is determined and eliminated. This interval is determined using linear programming techniques. Finally, bounding convex envelope approximating problems are constructed and solved globally over any remaining intervals. Intervals with bounds greater than the best local minimum objective value are eliminated. Successive iterations of the algorithm take place over the current remaining interval with lowest bound. The algorithm terminates when all intervals have been eliminated. Convergence of the algorithm to a global minimum “within ϵ” in a finite number of iterations is demonstrated.

The algorithm has been programmed and tested on a wide range of problems. Computational results have been encouraging. They indicate that for problems tested the algorithm determined a good feasible local minimum rapidly. As problem size increased the majority of time was spent not in determining a local minimum but in verifying that the minimum was global.
Nash Equilibrium Strategies for the Problem of Armament Race and Control
Authors: Simaan M. , Cruz J. B.
Published: November 2008

The problem of modeling and “optimally controlling” an arms race situation between two nations is a very interesting application, of differential game theory. In this pacer, armament, buildup between two nations is modeled as a multistage game problem. The closed-loop Nash, strategy is suggested as a possible solution concept for this problem and it is shown that if the cost functions are quadratic, then the system together with its closed-loop Nash strategies will have the same structure as the well-known Richardson's model of arms race. Consequently, it is suggested that the coefficients in Richardson's model can be determined (or predicted) based on the solution of this multistage discrete game problem. A computational procedure based on the solution of a set of recursive equations is also presented. This type of analysis is not only useful for guiding the armament decision-making process of a nation in an arms race with another nation but also is helpful in assessing economic and military aids by a large nation to smaller nations in an arms race.
Scoring Rules for Continuous Probability Distributions
Authors: Matheson James E. , Winkler Robert L.
Published: November 2008

Personal, or subjective, probabilities are used as inputs to many inferential and decision-making models, and various procedures have been developed for the elicitation of such probabilities. Included among these elicitation procedures are scoring rules, which involve the computation of a score based on the assessor's stated probabilities and on the event that actually occurs. The development of scoring rules has, in general, been restricted to the elicitation of discrete probability distributions. In this paper, families of scoring rules for the elicitation of continuous probability distributions are developed and discussed.
A New Branch-and-Bound Algorithm for the Fixed-Charge Transportation Problem
Authors: Kennington Jeff , Unger Ed
Published: November 2008

A new branch-and-bound procedure specialized for the fixed-charge transportation problem has been developed. The technique strongly exploits the underlying transportation structure. The relaxed problem assumes this form and simple penalties are easily constructed from the optimal solution of this transportation problem. These penalties are used in the standard branch-and-bound tasks of fathoming and guiding separation. The procedure has been coded, and over sixty test problems have been solved.
The Role of Project Team Collaboration in R&D Performance
Authors: Aram John D. , Morgan Cyril P.
Published: November 2008

Teamwork or collaboration among professionals, an important element of most R&D laboratories, has received little study in relation to technical performance. This study analyzes the relationship between individual perceptions of team collaboration and individual technical performance in a research and development laboratory. Partial correlations are used to evaluate different models of causality between collaboration, individual needs, opportunities, need satisfaction and technical performance. The study concludes that the relationship between perceived team collaboration and technical performance is not direct. Rather, one particular aspect of collaboration, termed knowledge-based risk taking, creates greater opportunities for scientists and engineers to fulfill a variety of personal needs in the job setting, and these greater opportunities lead to higher technical performance. The study suggests R&D managers can promote greater opportunities for individuals to meet job needs and thus achieve greater technical performance by encouraging a risk taking attitude toward innovation and a collaborative team process within technical work groups.
A Numerical Algorithm for Recursively-Defined Convolution Integrals Involving Distribution Functions
Authors: Cleroux Robert , McConalogue Denis J.
Published: November 2008

Reliability studies give rise to families of distribution functions F(n) defined recursively by the repeated convolution of a distribution function F with itself according to the scheme [Formula: see text] where F′ is the derivative of F, and is usually given by a p.d.f. f. In particular, many systems characteristics are defined in terms of integrals of the form ∫0tP(s)(t − x)Q(r)(x) dx where P(s) and Q(r) are the sth and rth members of families generated from distribution functions P and Q, not necessarily distinct.

It is seldom possible or convenient to express the F(n) in analytical form. An algorithm based on cubic spline interpolation is given here for recursively generating continuous numerical approximations to the F(n) in a form which allows them to be convoluted together to provide useful approximation to the second of the above integrals.
Note—On the Optimal Packaging Frequency of Products Jointly Replenished
Authors: Andres Fred M. , Emmons Hamilton
Published: November 2008

Goyal [Goyal, S. K. 1974. Determination of the optimum packaging frequency of items jointly replenished. Management Sci. 21 (4, December) 436–443.] proposes an algorithm for the purposes of determining the optimal packaging frequency of products that may be jointly replenished. Each time a packaging run is made, costs include a fixed setup cost independent of the number of products packaged, plus an extra setup cost for each product packaged. Holding costs are assumed constant per unit of product per unit time, demand per item is constant, and no back-logging is allowed. While Goyal's algorithm probably gives a good solution, we note some shortcomings.
An Extension of the Bierman-Hausman Model for Credit Granting
Authors: Dirickx Yvo M. I. , Wakeman Lee
Published: November 2008

This paper extends the Bierman-Hausman credit-granting model by proving that although the distribution on the probability of collection in the case of failure is no longer a conjugate Beta, it remains tractable; the model therefore need no longer be terminated in the case of failure. Further theorems on the structure of optimal policies, which result in a considerable reduction of the dynamic programming state space, are then presented, and the paper concludes with a discussion of extensions and applications.
A Methodology for Determining the Optimal Design of a Free Standing Abortion Clinic
Authors: Gitlow Howard S.
Published: November 2008

In 1970, abortion on demand was legalized in several sections of the United States. Due to increased demand for abortions, free standing abortion clinics came into existence. This paper develops a methodology for determining the optimal design of a free standing abortion clinic, in order to maximize its profits. An example of a clinic which was actually designed employing the methodology is presented, and the results suggest that the methodology is relevant and useful.
A Forest Management Planning Model Integrating Silvicultural and Transportation Activities
Authors: Weintraub Andres , Navon Daniel
Published: November 2008

This paper deals with the problem of integrating the analysis of timber management, forest road building and maintenance, and transporting logs. The aim of such analysis is to provide tools for the decisionmaking process in long-range forest planning. A mixed integer linear programming model is developed to maximize discounted revenues from the sale of timber net of road construction and maintenance, timber management, and transport costs. The main complexity of this model, which precludes a straightforward formulation, arises from the need to gain access to an area before it can be managed. Artificial variables and relations are introduced to avoid an unmanageably large number of 0-1 integer variables.
On the Optimality of Structured Policies in Countable Stage Decision Processes
Authors: Porteus Evan L.
Published: November 2008

Multi-stage decision processes are considered, in notation which is an outgrowth of that introduced by Denardo [Denardo, E. 1967. Contraction mappings in the theory underlying dynamic programming. SIAM Rev. 9 165–177.]. Certain Markov decision processes, stochastic games, and risk-sensitive Markov decision processes can be formulated in this notation. We identify conditions sufficient to prove that, in infinite horizon nonstationary processes, the optimal infinite horizon (present) value exists, is uniquely defined, is what is called “structured,” and can be found by solving Bellman's optimality equations: ϵ-optimal strategies exist: an optimal strategy can be found by applying Bellman's optimality criterion; and a specially identified kind of policy, called a “structured” policy is optimal in each stage. A link is thus drawn between (i) studies such as those of Blackwell [Blackwell, D. 1965. Discounted dynamic programming. Ann. Math. Stat. 36 226–235.] and Strauch [Strauch, R. 1966. Negative dynamic programming. Ann. Math. Stat. 37 871–890.], where general policies for general processes are considered, and (ii) other studies, such as those of Scarf [Scarf, H. 1963. The optimality of (S, s) policies in the dynamic inventory problem. H. Scarf, D. Gilford, M. Shelly, eds. Mathematical Methods in the Social Sciences . Stanford University Press, Stanford.] and Derman [Derman, C. 1963. On optimal replacement rules when changes of state are Markovian. R. Bellman, ed. Mathematical Optimization Techniques. University of California Press. Berkeley.] where structured policies for special processes are considered. Those familiar with dynamic programming models (e.g., inventory, queueing optimization, replacement, optimal stopping) will be well acquainted with the use of what we call structured policies and value functions. The infinite stage results are built on finite stage results. Results for the stationary infinite horizon case are also included. For an application, we provide conditions sufficient to prove that an optimal stationary strategy exists in a discounted stationary risk sensitive Markov decision process with constant risk aversion. In Porteus [Porteus, E. On the optimality of structured policies in countable stage decision processes. Research Paper No. 141, Graduate School of Business, Stanford University, 71 pp., 1973, 1974, unabridged version of present paper.], of which this is a condensation, we also (i) show how known conditions under which a Borel measurable policy is optimal in an infinite horizon, nonstationary Markov decision process, fit into our framework, and (ii) provide conditions under which a generalized (s, S) policy [Porteus, E. 1971. On the optimality of generalized (s, S) policies. Management Sci. 17 411–426.] is optimal in an infinite horizon nonstationary inventory process.
Critical Ratio Scheduling: An Experimental Analysis
Authors: Berry William L. , Rao Vittal
Published: November 2008

Critical Ratio scheduling has been implemented in job shops that manufacture component parts for stock replenishment as well as direct customer orders. Proponents of this technique argue that scheduling performance is improved by gathering and processing two different types of operating information on a routine basis for use in making priority scheduling decisions: queue waiting time information for individual machines and stock status information from the shop's inventory system. Simulation experiments are reported here which describe the effect on the performance of a shop and its associated inventor' system when using this type of information with an Order Point inventory control system. The results indicate that the additional information provided by the increased data collection and processing functions does not contribute a statistically significant improvement in the overall performance of the production system.
Utilization of Idle Time in an M/G/1 Queueing System
Authors: Levy Yonatan , Yechiali Uri
Published: November 2008

This paper studies an M/G/1 queue where the idle time of the server is utilized for additional work in a secondary system. As usual, the server is busy as long as there are units in the main system. However, as soon as the server becomes idle he leaves for a “vacation.” The duration of a vacation is a random variable with a known distribution function. Two models are considered. In the first, upon termination of a vacation the server returns to the main queue and begins to serve those units, if any, that have arrived during the vacation. If no units have arrived the server waits for the first arrival when an ordinary M/G/1 busy period is initiated. In the second model if the server finds the system empty at the end of a vacation, he immediately takes another vacation, etc. For both models Laplace-Stieltjes transforms of the occupation period, vacation period and waiting time are derived and generating functions of the number of units in the system are calculated. The two models are then compared to each other, and for some special cases the optimal mean vacation times are found.
Discrete Optimal Control of Production Plans
Authors: Kleindorfer P. R. , Kriebel C. H. , Thompson G. L. , Kleindorfer G. B.
Published: November 2008

This discussion demonstrates the application of discrete optimal control theory to production planning problems. In particular we show that most of the previous models which have appeared in the literature on production planning (scheduling, smoothing and work force balancing) can be characterized as special cases of the control theory problem formulation. This more general model relaxes a number of the assumptions required by other formulations in capturing a wide spectrum of production planning policies. Computational aspects of the control theory approach are discussed and solution results included for numerical examples.
The Design of Management Information Systems an Information Analysis Approach
Authors: King William R. , Cleland David I.
Published: November 2008

This paper describes a methodology for management information systems design which employs a formalized framework for significantly involving manager-users in the design process. The process seeks to develop a system design on the basis of a criterion which considers both technical cost-benefit considerations and the manager's perception of the potential utility of the system. A key element of the methodology is the development of descriptive and normative system models which are based on the concept of a “linear responsibility chart.” These models serve as the basis for the negotiated development of a consensus system model which defines the framework for the decision-oriented analysis of information requirement. The process of information analysis involves joint manager-analyst activities which are aimed at the explication of the implicit decision models which are used for decision making.
Manufacturing Cycle Time Determination for a Multi-Stage Economic Production Quantity Model
Authors: Szendrovits Andrew Z.
Published: November 2008

This paper presents a model which treats the manufacturing cycle time as a function of the lot size in a multi-stage production system. Using this functional relationship to determine the magnitude of the work-in-process inventory, a model is developed to calculate the economic production quantity (EPQ). The model assumes that a uniform lot size is manufactured through several operations, with only one set-up at each stage, and that transportation of sub-batches allows an overlap between operations to reduce the manufacturing cycle time. Constant fixed costs per lot, linear inventory holding costs and a constant and continuous demand of finished products are assumed over an infinite horizon. The lot size is considered “economic” when the sum of the fixed costs per lot and the inventory holding costs of both the work-in-process and finished product inventories is minimized. The model is a valid alternative to the conventional production lot size (ELQ) model which only accounts for the finished product inventory. A cost sensitivity analysis reveals the large potential savings from using the suggested EPQ model instead of the conventional ELQ model in multi-stage production systems.
Sales Territory Design: An Integrated Approach
Authors: Shanker Roy J. , Turner Ronald E. , Zoltners Andris A.
Published: November 2008

A sales territory design procedure should solve the dual problems of boundary definition and call frequency. Furthermore, it should be possible to base the design on several workload and potential criteria. A procedure is presented which meets this specification. It employs recent developments in set-partitioning and includes a computer code which makes it possible to handle design problems of realistic proportions. The outcome of the design procedure, termed the market matrix, is a schedule which specifies which salesman calls on each customer, and the sales call frequencies which maximize the total sales from all territories. A case example illustrates how the procedure is applied.
Capacity Expansion with Two Producing Regions and Concave Costs
Authors: Fong C. O. , Rao M. R.
Published: November 2008

A deterministic capacity expansion and shipment planning problem is considered for a single commodity that can be produced in two regions. Demand in each region is nondecreasing over a finite time horizon. Demand in a region in a time period must be satisfied, either by the current production capacity there or by a shipment from the other region. Capacity expansion and shipment costs are assumed to be concave and no inventory of stock is allowed. The problem is to find a schedule of capacity expansion in each region and a schedule of shipment between the two regions, such that the total cost over the time horizon is minimized. To solve this problem a dynamic programming algorithm is devised that is more efficient than known conventional procedures.
Exceptional Paper—Probability Encoding in Decision Analysis
Authors: Spetzler Carl S. , Staël Von Holstein Carl-Axel S.
Published: November 2008

This paper presents the present philosophy and practice used in probability encoding by the Decision Analysis Group at Stanford Research Institute. Probability encoding, the process of extracting and quantifying individual judgment about uncertain quantities, is one of the major functions required in the performance of decision analysis. The paper discusses the setting of the encoding process, including the use of sensitivity analyses to identify crucial state variables for which extensive encoding procedures are appropriate. The importance of balancing modeling and encoding techniques is emphasized and examples of biases and unconscious modes of judgment are reviewed. A variety of encoding methods are presented and their applicability is discussed. The authors recommend and describe a structured interview process that utilizes a trained interviewer and a number of techniques designed to reduce biases and aid in the quantification of judgment.
Information and Decision Systems for Production Planning
Authors: Moskowitz Herbert , Miller Jeffrey G.
Published: November 2008

Bowman [Bowman, E. H. 1963. Consistency and optimality in Managerial decision making. Management Sci. 9 (2) 310–322.] and others have proposed that regression models derived from a manager's past behavior can serve as a basis for future managerial decisions. This paper is concerned with a comparison of this approach to more traditional modes of decision making (intuition and mathematical optimization models) in an aggregate production scheduling context under various forecast error and forecast horizon environments. The regression models developed were also used to test Bowman's “Management Coefficients” theory at the axiomatic level, as well as to examine intuitive decision processes. To do this required verification that the regression models accurately specified an individual's decision process. A verification procedure, based on the concept of predictive testing, was used conjointly with statistical goodness of fit and cross validation to validate the regression models. The experimental results (1) supported Bowman's hypotheses, and (2) indicated the effects of forecast error and horizon length on the performance of the three decision making modes and on the formation of intuitive scheduling strategies. The theoretical and practical implications of the results are discussed.
Optimal Maintenance Policy for a Fleet of Vehicles
Authors: Brosh I. , Shlifer E. , Zeira Y.
Published: November 2008

The optimal maintenance and replacement policy for a fleet of vehicles is discussed in this paper that reflects a research effort of three years. The tasks that faced the research team were to list feasible policies, formulate their stochastic behaviour and recommend solution techniques on the strength of the available data.
Group Decision Making Using Cardinal Social Welfare Functions
Authors: Keeney Ralph L. , Kirkwood Craig W.
Published: November 2008

This paper addresses the problem of constructing a group cardinal social welfare function whose arguments are the individual utility functions of group members. Representation theorems are given which show that the social welfare function is restricted to special forms if certain “reasonable” conditions hold. The appropriateness of these conditions for different types of group decision problems is discussed.
Improved Linear Integer Programming Formulations of Nonlinear Integer Problems
Authors: Glover Fred
Published: November 2008

A variety of combinatorial problems (e.g., in capital budgeting, scheduling, allocation) can be expressed as a linear integer programming problem. However, the standard devices for doing this often produce an inordinate number of variables and constraints, putting the problem beyond the practical reach of available integer programming methods.

This paper presents new formulation techniques for capturing the essential nonlinearities of the problem of interest, while producing a significantly smaller problem size than the standard techniques.
Duels with Continuous Firing
Authors: Lang John Patrick , Kimeldorf George
Published: November 2008

A game-theoretic model is proposed for the generalization of a discrete-fire silent duel to a silent duel with continuous firing. This zero-sum two-person game is solved in the symmetric case. It is shown that pure optimal strategies exist and hence also solve a noisy duel with continuous firing. A solution for the general nonsymmetric duel is conjectured.
Note—A Note on First-Degree Stochastic Dominance and Portfolio Composition
Authors: Rentz William F. , Westin Richard B.
Published: November 2008

Suppose an investor is faced with two assets with stochastic rates of return such that in an either-or choice situation the investor can express a preference over the marginal probability distributions of the rates of returns of the assets. If the investor is able to form a portfolio containing both assets, does the fact that he can express a preference over the marginal distributions of the rates of return of the assets allow us to state qualitative restrictions on the composition of his optimal portfolio?
A Balance Model for Evaluating Subsets of Multiattributed Items
Authors: Farquhar Peter H. , Rao Vithala R.
Published: November 2008

There are numerous situations in management and elsewhere in which an individual decision maker chooses subsets of multiattributed items. The specification of a measure of goodness for selecting subsets may differ from one situation to the next. In this paper, a model is developed for evaluating subsets where the choice criterion is one of balance among the attributes of items in the subset chosen. A method for determining the parameters of the model from a small number of judgments on subsets using linear programming is discussed. The model is applied to the problem of evaluating subsets of television shows and of choosing the most balanced subset of shows. Several extensions of the model and potential applications are also given.
A Heuristic Adjacent Extreme Point Algorithm for the Fixed Charge Problem
Authors: Walker Warren E.
Published: November 2008

An algorithm with three variations is presented for the approximate solution of fixed charge problems. Computational experience shows it to be extremely fast and to yield very good solutions.

The basic approach is (1) to obtain a local optimum by using the simplex method with a modification of the rule for selection of the variable to enter the basic solution, and (2) once at a local optimum, to search for a better extreme point by jumping over adjacent extreme points to resume iterating two or three extreme points away. This basic approach is the same as that used by Steinberg [Steinberg, D. I. 1970. The fixed charge problem. Naval Res. Log. Quart. 17 217–236.], Cooper [Cooper, L. 1975. The fixed charge problem—I: A new heuristic method. Comp. & Maths, with Appls. 1 89–95.], and Denzler [Denzler, D. R. 1969. An approximate algorithm for the fixed charge problem. Naval Res. Log. Quart. 16 411–416.] in their algorithms, but is an extension and improvement of all three.

The algorithm is being used by the U.S Environmental Protection Agency's Office of Solid Waste Management Programs to decide on the number, type, size, and location of the disposal facilities to operate in a region, and how to allocate the region's wastes to these facilities.
Optimal Storage Assignment in Automatic Warehousing Systems
Authors: Hausman Warren H. , Schwarz Leroy B. , Graves Stephen C.
Published: November 2008

In the past few years, increasing numbers of automatic warehousing systems using computer-controlled stacker cranes have been installed. Our research concerns the scientific scheduling and design of these systems. There are three elements to scheduling: the assignment of multiple items to the same pallet (Pallet Assignment); the assignment of pallet loads to storage locations (Storage Assignment); and rules for sequencing storage and retrieve requests (Interleaving). This paper deals with optimal storage assignment. Results are obtained which compare the operating performance of three storage assignment rules: random assignment, which is similar to the closest-open-location rule used by many currently operating systems; full turnover-based assignment: and class-based turnover assignment. It is shown that significant reductions in crane travel time (and distance) are obtainable from turnover-based rules. These improvements can, under certain circumstances, be directly translated into increased throughput capacity for existing systems, and may be used to alter the design (e.g., size and number of racks, speed of cranes, etc.) of proposed systems in order to achieve a more desirable system balance between throughput and storage capacity.
Note—A Mathematical Programming Formulation of Estimation Problems Related to Contingency Tables
Authors: Melnick Edward L. , Yechiali Uri
Published: November 2008

Presented here is a reformulation of the problem as an integer transportation problem with a convex separable cost function. This representation demonstrates the relationships between some statistical optimization problems and mathematical programming procedures.
Note—Comments on Goal Programming for Aggregate Planning
Authors: Welam Ulf Peter
Published: November 2008

A recently proposed goal programming approach to aggregate planning of production rates and work force levels is reviewed and it is pointed out that there is very little difference between the “new approach” and the earlier Hansemann and Hess linear programming formulation. It is noted that the HMMS model used as a test vehicle in the original article can also be viewed as a goal programming formulation. Some more general opinions on the role of modelling in decision making are also included.
On the Concept of the Value of Information in Competitive Situations
Authors: Ponssard Jean-Pierre
Published: November 2008

In this paper a game theoretic model is used to extend information value theory, as developed in decision analysis, to competitive situations. One of the main differences between competitive and noncompetitive situations is that part of the environment (namely the competitors) may be modified as a result of experimentation in another part of the environment (nature). Hence, states of the world and actions may no more be independent. Nevertheless, we shall show how the classical concept may be generalized to cover competitive situations.
An Improved Long-Run Model for Multiple Warehouse Location
Authors: Sweeney Dennis J. , Tatham Ronad L.
Published: November 2008

This paper proposes an improved model for solving the long-run multiple warehouse location problem. The approach used provides a synthesis of a mixed integer programming formulation for the single-period warehouse location model with a dynamic programming procedure for finding the optimal sequence of configurations over multiple periods. We show that only the Rt, best rank order solutions in any single period need be considered as candidates for inclusion in the optimal multi-period solution. Thus the computational feasibility of the dynamic programming procedure is enhanced by restricting the state space to these Rt best solutions. Computational results on the ranking procedure are presented, and a problem involving two plants, five warehouses, 15 customer zones, and five periods is solved to illustrate the application of the method.
Some Easy Postoptimality Analysis for Zero-One Programming
Authors: Piper Christopher J. , Zoltners Andris A.
Published: November 2008

Some easy postoptimality analysis for zero-one programming is developed. First, a procedure is presented for obtaining a set K of 0-1 solutions whose objective function values are within a specified tolerance of the optimum. Then sufficiency conditions for K to contain the optimum of a revised problem are derived. Computational experience with a number of test problems indicates that K can be economically obtained and that the sufficiency tests provide a significant postoptimization capability.
A Generalized Model for Automating Judgmental Decisions
Authors: Parks Michael S. , Siemens Nicolai , Watson Hugh J.
Published: November 2008

This paper presents a model that develops a concise representation of a decision making task with a fixed number of alternatives. The methodology relies upon a conceptual information processing system analogous to that employed by a novice decision maker during the evolution of his decision paradigms. The model requires only the specification of relevant input stimuli and a sample of stimuli-response relationships in order to develop a representation of the task. The resulting representation is in a form which allows a predicted decision to be made given only the relevant stimuli. A mechanism is presented for efficiently operationalizing the task representation. An empirical study is presented which demonstrates the learning and performance capabilities of the model in the confines of an overdraft processing task.