bluuebunny/crossref_metadata_2025 huggingface dataset:
The Crop Planning Decision Problem: A Comment
Authors: Janssen Christian T. L.
Published: November 2008

In the October 1969 issue of Management Science, Professor Warren Hausman presented a framework for analysis of sequential decision problems of a recurring nature (“Sequential Decision Problems: A Model to Exploit Existing Forecasters,” pp. B93-B111). His system consists of a dynamic programming decision model based upon successively revised forecasts of a key unknown variable and on the probability distribution of forecast changes. The decision system is illustrated with an application to a specific crop planning problem faced by a vegetable processor. We focus, in this comment, on the specific crop supply problem used by Hausman to illustrate the applicability of his general framework.

Hausman's assumption that crop adjustment costs are quadratic allows the following simplifications to be demonstrated:

(a) No grid search and no numerical integration is needed to solve the stated crop planning problem; a closed-form analytical solution is possible in this case.

(b) The closed-form solution does not depend on the form of the probability density function for forecast revisions, but only on its first two moments.
Organizational Joint Problem-Solving
Authors: Swinth Robert L.
Published: November 2008

To carry out its day-to-day activities an organization will establish an organizational servomechanism. On the other hand, planning and problem-solving must be dealt with differently. Traditional methods, characterized here as the authority approach and the group incremental approach, have significant limitations. On the other hand organizations can and do effectively solve novel and complex tasks by organisational joint problem-solving. This approach is characterized in this paper by a set of propositions formulated to describe how authority and responsibility are distributed and how search and coordination are facilitated. This is done through: the linkage of a set of organizational centers around a mission assignment, the initial search at the overall task level, the search within task components, the broadcast of actions and task laws to all or many centers, the identification and resolution of inconsistencies between components and the conduct of joint search, and the iteration on these steps until an overall consistent set of actions has been established. Where the conditions (goal orientation, participant skill, communication facilities) for organizational joint problem-solving are not initially met, steps can be taken to aid and encourage the participants to use the procedures.
Subjective Estimates and Scheduling Decisions
Authors: Abernathy William J.
Published: November 2008

Network scheduling models typically assume that estimates of individual activities are stable and are not improved or degraded as progress is made in a project and the time to undertake a particular activity comes near. The formulation of scheduling models is usually compatible with this assumption about estimates and excludes the effect of actions such as rescheduling which might be taken in response to changes in estimation error.

The present paper examines the nature of subjective estimates in an actual development project. Error characteristics as determined from prior estimates and actual outcomes are analyzed using a multiple regression model. Several variables are significant in their association with changes in estimation accuracy as activities are reestimated. Contrary to previously reported results there is a strong learning phenomenon. Implications for future work are discussed.
Infinite-Horizon Optimality in an Equipment Replacement and Capacity Expansion Model
Authors: Hopkins David S. P.
Published: November 2008

The problem faced by a single-product firm that must choose among alternative investments in capital equipment to meet a known demand for capacity in each discrete time period is formulated as a linear program. The formulation explicitly includes a transient set of investment opportunities which are available in early periods, as well as a stationary set which will become available in the near future. Also, no finite time horizon is placed upon the planning process. The approach taken to obtain the optimal solution to the infinite-horizon problem is to solve first a finite-horizon problem that includes a valuation of terminal capital stocks. The optimal solution to this problem is then used to construct a solution to the infinite-horizon problem that is identical to the finite-horizon solution in early periods. This construction is shown to be optimal for the infinite-horizon problem.
Risk Aversion in Chance Constrained Portfolio Selection
Authors: Pyle David H. , Turnovsky Stephen J.
Published: November 2008

In this paper, we discuss the effects of changes in investable wealth on investment behavior when portfolio choices are subject to a chance constraint. Alternative specifications of the chance constraint are shown to imply increasing, decreasing, or constant relative risk aversion with respect to changes in wealth.
The Operation of Academic Departments
Authors: Hobbs Walter C. , Anderson G. Lester
Published: November 2008

An organizational model of academic departments is developed, showing that departments consist of several coexistent structures. Commonly, curricular decisions are made democratically (i.e., by the “collegium”) and professional matters such as tenure are reserved to the senior ranks (an “oligarchy”). The organizational mode for administrative (i.e., implementive) tasks is a division of labor among peers, which varies from minimal to extensive with the degree to which the departmental members engage in service, teaching and/or research activities requiring coordination.

The implications of distortions in one structure induced by the threat or use of power in another, and the implications of issues which fall neither in one area nor another but in the intersection between them, are noted.
A Branch and Bound Algorithm for Minimizing Cost in Project Scheduling
Authors: Mason A. Thomas , Moodie Colin L.
Published: November 2008

This paper presents a “branch and bound” algorithm for the following problem: given a project consisting of a set of activities partially ordered by a set of precedence restrictions, with each activity having a fixed resource requirement over a specified duration, find that set of activity start times which minimizes the combined cost of fluctuations in resource demand and delay of project completion. Cost bounding procedures are augmented by dominance relationships presented as theorems. Initial feasible schedules are generated using a heuristic scheduling rule. Both the heuristic rule and the branch and bound algorithm have been programmed for the computer. Results indicate that while computation time is related to the project network structure, more significant factors are the number of activities and the relative values of the activity parameters, duration and resource requirement. Also, results indicate that the optimal schedule is relatively insensitive to changes in the ratio of the project completion delay cost to the resource level fluctuation cost. Finally, the imposition of an upper limit on resource availability resulted, in most cases, in an increase in the duration and cost of the optimal solution.
Forecasting and Scheduling for Past-Model Replacement Parts
Authors: Moore John R.
Published: November 2008

All-time requirements forecasting and the translation of these forecasts, via a dynamic inventory model, into production schedules are effective tools for controlling manufacturing, inventory and obsolescence costs of past-model replacement parts. Traditional forecasting rules and steady-state EOQ models prove inappropriate for the special problems posed by the demand decay characteristics of all service parts. A new forecasting technique, based on the principle of estimating sales requirements for all-time into the future, is described along with a dynamic inventory model for ordering production runs. Together, these techniques—developed for implementation by an American auto manufacture—provide results superior to those of other, more traditional, procedures. An inventory review system for achieving model implementation is also discussed.
Letter to the Editor—Collective Planning, The French Experience
Authors: Delarue Antoine P.
Published: November 2008

Dr. Branch in [Branch, Melville D., “Delusions and Diffusions of City Planning in the United States,” Management Science, Vol. 16, No. 12 (August 1970).] provided a relatively comprehensive review of city planning in the U.S. Another type of planning not mentioned by Dr. Branch is the “Indicative Planning” which was developed in France. Indicative Planning as a noncoercive but effective approach to national economic planning generated considerable interest. It was thought to provide an answer to the general issue of “Collective Planning” of which city planning and national economic planning are specific examples.
Letter to the Editor—A Note on the Economics of Metallurgical Coke Production
Authors: Nelson Jon P.
Published: November 2008

A process analysis model of the U. S. steel industry recently presented by Tsao and Day [Tsao, C. C., Day, R. H., “A Process Analysis Model of the U. S. Steel Industry,” Management Science, Vol. 17 (June 1971), pp. B-588–B-608.], while accurate in almost every other aspect, is in error in the treatment of coking coal production. This note attempts to remedy this deficiency and presents a corrected matrix for this stage of production.
Preface to Management Science: Marketing Management Models
Authors: Montgomery David B.
Published: November 2008

The papers in this special marketing issue of Management Science relate to three areas of marketing. The first four papers: Multiple-Product Sales Force Allocation Model, CALLPLAN: An Interactive Salesman's Call Planning System, Experience with a Sales Districting Model: Criteria and Implementation, and Allocating Sales Force Effort with Commissions and Quotas address issues arising in the management of a sales force. The next three Optimal Advertising Expenditure, Behavioral Measurement for Marketing Models: Estimating the Effects of Advertising Repetition for Media Planning, and Optimizing Consumer Advertising, Intermediary Advertising and Markup in a Vertical Market Structure deal with advertising decision models. The final two papers A probabilistic Market Model of Purchase Timing and Brand Selection, A Graph Theory Approach to Comparing Consumer Information Processing Models consider models of consumer behavior.
Callplan: An Interactive Salesman's Call Planning System
Authors: Lodish Leonard M.
Published: November 2008

CALLPLAN is an interactive computer system designed to aid salesmen or sales management in allocating sales call time more efficiently. The system increases their capacity to consider the allocation in a logical and consistent manner. CALLPLAN uses as input the salesman's own best estimates of expected contribution of all possible call policies for each account and prospect. The computer can help the estimating procedure by fitting curves through estimated points on a response function or by obtaining expected values from probability estimates. The system solves a mathematical program which determines the best time allocation to maximize contribution according to these estimates. Factors considered by the system include travel time and costs to get to geographical areas within the territory, amount of time required per call on an account within an area, account profitability, and minimum and maximum account call frequency limitations. An efficient incremental analysis routine is discussed as a solution procedure for the mathematical program.

CALLPLAN seems best suited to repetitive selling situations where the amount of time the salesman spends with an account is an important factor in the magnitude of sales generated. Preliminary applications have been made by fourteen salesmen in six sales situations. A transcript of a session at the computer terminal of one application is presented.

Anticipated sales increases, based on the salesman's judgmental inputs, for the call policy generated by CALLPLAN were between five and twenty-five per cent in the majority of applications.
Optimal Advertising Expenditure
Authors: Sasieni Maurice W.
Published: November 2008

This paper discusses the optimal rate of advertising expenditure given the relationship between the rate of change of sales and the rate of expenditure. It is shown that we may assume that the marginal return of increased expenditure is never increasing. This is because when marginal returns increase there is always a “mixed” pattern in which two levels of expenditure are used, each for infinitesimally short intervals, with the property that the average cost for a given sales change is lower than with a fixed policy, and marginal returns are constant.

If we assume that marginal returns do not increase, then, provided it is profitable to advertise, there exists an over-all optimal sales rate and an expenditure level, just sufficient to maintain it, with the following properties with respect to long-run discounted profits:—

(1) If sales even reach this level it is optimal to keep them there.

(2) Starting from any other level, the optimal policy is to spend in such a way as to drive sales towards this level.

The only requirements for these results are that the cost of achieving a given change in the sales rate be an increasing function of the sales rate and the rate of change of sales rate. It is also shown that the optimal sales rate to be maintained in the long run is not the rate which maximises the rate of gaining profit after advertising, unless the discount rate is zero.

In practice, the mixed policy cannot be followed because discreet changes in expenditure levels cannot be made too frequently. When a mixed policy is optimal the best we can achieve is to use a cyclic policy in which we advertise for short intervals at each of the appropriate levels. A simple example calling for such a policy is when we have an advertising threshold below which expenditure has no effect, together with a relatively small market with low profit margins. Whether or not advertising thresholds exist requires psychological theory or controlled experimentation beyond the scope of this paper.
Optimizing Consumer Advertising, Intermediary Advertising and Markup in a Vertical Market Structure
Authors: Naert Philippe A.
Published: November 2008

Given is a vertical market structure (VMS) which consists of producers, one intermediary level and consumers. In most of the literature on VMS either equilibrium behavior is studied without consideration of objectives or some objective function is being optimized without taking into account behavior of intermediaries. This paper is a modest attempt to bring the two approaches together. The decision variables are consumer advertising, intermediary advertising and markup offered by producers to intermediaries. Behavior of intermediaries is incorporated through the use of a pseudodecision variable, the equilibrium number of middlemen in the VMS.
The Hide and Seek Game of Von Neumann
Authors: Flood Merrill M.
Published: November 2008

A simple method is given for calculating the optimal strategies for both players for the hide and seek game discussed by John von Neumann.
The Efficiency of Computer Algorithms for Plant Layout
Authors: Ritzman Larry P.
Published: November 2008

This paper presents the results of comparing experimentally the performance of four of the more promising computer algorithms for the plant layout problem. CDC 3600 computer programs are tested with twenty-six test problems. The resulting solutions are evaluated in respect to both computer time requirements and objective function values. The experiment shows how these two performance measures vary with the algorithm used and various test problem characteristics. With the exception of two studies [Hillier, F. S., M. N. Connors. 1966. Quadratic assignment problem algorithms and the location of indivisible facilities. Management Sci. 13 (1, September) 42–57; Nugent, C. E., T. E. Vollman, J. Ruml. 1968. An experimental comparison of techniques for the assignment of facilities to locations. Oper. Res. XVI (1, January–February) 150–173.], information on comparative performances of layout algorithms is very limited.
Stochastic Growth Models
Authors: Kaplan Robert S.
Published: November 2008

Growth period models, previously treated in the literature, have assumed that the pattern of value increase of the growth asset is deterministic. In this paper, this assumption is relaxed by considering models in which the increase in value of an asset in a period is a random variable whose distribution is a function of either the value or the age of the asset at the start of the period. The expected increase in value is a decreasing function of the value or age of the asset so that the value of additional maturation time decreases as the asset ages. Dynamic programming is used to compute optimal policies as to when stochastic growth assets should be harvested. The steady state value function is shown to be directly analogous to that obtained when deterministic growth is assumed. Procedures for quickly computing both steady state policies and value functions are developed.
Utility Functions for Multiattributed Consequences
Authors: Keeney Ralph L.
Published: November 2008

One of the important methodological problems concerning the application of decision analysis to complex problems is the restrictiveness of existing techniques for systematically assessing multiattributed utility functions valid for decision making under uncertainty. This is the problem addressed in this paper. Operational assumptions are postulated about the decision maker's preferences for multiattributed consequences, and functional forms of utility functions satisfying these assumptions are derived. The results are a number of representation theorems which simplify the assessment of the utility function provided the requisite assumptions hold. A special case of these results is the well-known additive utility function. A procedure to verify the appropriateness of the necessary assumptions is included.
Equilibria of Polymatrix Games
Authors: Howson Joseph T.
Published: November 2008

A constructive existence proof is given for equilibria of polymatrix games. The construction is based on a generalization of the almost-complementary paths used for the linear complementarity problem.
Notes—Note on “Markovian Decision Models for Reject Allowance Problems”
Authors: Awate Prakash G.
Published: November 2008

This note makes two contributions to M. Klein's formulation of the multiperiod reject allowance problem. First, a decomposition algorithm involving both linear and dynamic programming is proposed, and its computational savings over the straight simplex method are demonstrated. Second, in Klein's formulation where termination of production is allowed before reaching the set of terminal states, a lacuna is corrected by means of an enlargement of the state space.
Multilinear Extensions of Games
Authors: Owen Guillermo
Published: November 2008

The multilinear extension of an n-person game v is a function defined on the n-cube IN which is linear in each variable and which coincides with v at the conrners of the cube, satisfying f(x) = v({i ∣ xi = 1}). Multilinear extensions are useful as a help in computing the values of large games, and give a generalization of the Shapley value.
OR/MS Implementation in Valle, Colombia, S. A.: A Profile of a Developing Region
Authors: Vertinsky Ilan
Published: November 2008

The purpose of the study was to explore the processes of diffusion of management science and operation research managerial technologies into industrial organizations in a developing region. The study focused mainly on the impact of cultural and environmental variables on the process of diffusion.

Two complementary strategies of research were employed: (1) A community study of organizations in the region, and (2) A longitudinal case study of implementations of OR/MS. The paper presents a profile of OR/MS implementation and managerial innovation in the region. The implications of environmental and organizational infra-structures as well as profiles of attitudes toward the formation of possible implementation and diffusion strategies are analyzed. In addition an inventory of propositions are offered to form a base for future cross-cultural analysis of implementation processes of managerial innovation.
Précis—Stability of the Dual Cutting-Plane Algorithm for Concave Programming
Authors: Fox B. L.
Published: November 2008

In the column generating approach to concave programming, alias the dual cutting-plane algorithm (Zangwill), Lagrangians are maximized to generate columns. Often this cannot be done in a finite number of steps. We show what to do.
Note—On the Sequencing of n Jobs on One Machine to Minimize the Number of Jobs Late
Authors: Elmaghraby Salah E.
Published: November 2008

In a recent paper [Moore, J. M. 1968. An n job, one machine sequencing algorithm for minimizing the number of late jobs. Management Sci. 15(1, September).] Moore addressed himself to the problem of the title, and devised a rather simple algorithm for its solution. He also mentions a somewhat simpler algorithm suggested by Hodgson. The proof of both algorithms is rather involved. The following is a more direct, and hopefully simpler, proof.
Redundant Constraints and Extraneous Variables in Integer Programs
Authors: Rubin David S.
Published: November 2008

Integer programs may have constraints which are redundant or else nonbinding. They may also have variables which are extraneous in the sense that there is some optimal program in which they are nonpositive. Thompson, Tonge and Zionts [Thompson, G. L., F. M. Tonge, S. Zionts. 1966. Techniques for removing nonbinding constraints and extraneous variables from linear programming problems. Management Sci. 12(7, March) 588–608.] have discussed the topics of redundant constraints and extraneous variables in linear programs. This paper extends their results to integer programs, and provides new proofs of the original results.
On the Loading Problem—A Comment
Authors: Lev Benjamin
Published: November 2008

Eilon and Christofides (E & C), in their paper on “The Loading Problem” [Eilon, S., N. Christofides. 1971. The loading problem. Management Sci. 17(5, January) 259–268.], suggest a solution using a heuristic algorithm. In this note we would like to present a simpler heuristic algorithm which is easier to solve, has less computations and reaches an optimal solution as often as E & C's reaches in the same number of cases.
On the Loading Problem—A Rejoinder
Authors: Eilon Samuel , Christofides Nicos
Published: November 2008

Lev's claim [Lev, B. 1972. On the loading problem—A comment. Management Sci. 18(7) 428–431.] that his modification to the E & C heuristic (as he calls it) is a significant improvement is highly exaggerated.
Insurance Contracts, As Two-Person Games
Authors: Miller Robert B.
Published: November 2008

In this paper, the problem of completing a contract between a buyer and a seller of insurance is presented as a two-person, zero-sum game, and previous results concerning optimal insurance contracts are reviewed from the viewpoint of game theory. While this point of view seems unrealistic, it is seen to lead to theorems which involve contracts actually encountered in the real world. It is shown that an insurance agreement which splits each loss proportionately between the insurer and the insured is optimal from the viewpoint of a risk averting insurance company that seeks to maximize its expected utility when the net insurance premium is fixed.
A Note on the Centre of Gravity in Depot Location
Authors: Watson-Gandy C. D. T.
Published: November 2008

This note reports some experiments relating to the centre of gravity in distribution problems. It is shown that under certain conditions very substantial errors can be incurred if the centre of gravity is used as the depot location instead of other measures.
Extreme Point Mathematical Programming
Authors: Kirby M. J. L. , Love H. R. , Swarup Kanti
Published: November 2008

The paper considers a class of optimization problems. The problems are linear programming problems: maximize cx subject to Ax = b with the additional constraint that x must also be an extreme point of a second convex polyhedron Dx = d, x ≧ 0. A cutting-plane algorithm for solving such problems is presented. Two numerical examples are also included.
Optimal Screening Plans for Nonserial Production Systems
Authors: Britney Robert R.
Published: November 2008

Quality control screening programs are defined and evaluated for the general n-stage nonserial production process. A total expected cost criterion, developed as a function of the screening applied at each inspection station, embraces the various costs of inspection, defect repair and defects passing through the process undetected. Absorbing Markov chains aid in the identification of probabilistic flows of defective materials through the production network.

Minimum cost screening programs are developed, giving the optimal level of screening at every potential inspection station. For a quasi-concave cost structure, it is shown that the optimal screening program will employ either zero or 100 percent effective screening throughout. A standard branch and bound “backtrack” strategy readily identifies optimal screening programs for the unconstrained (0, 1) nonlinear integer programming problem. An illustrative problem is presented.
Optimal Scheduiing of Two Consecutive Idle Periods
Authors: Tibrewala R. , Philippe D. , Browne J.
Published: November 2008

It is shown that a simple algorithm provides optimal solutions to problems of scheduling men or equipment to meet cyclic requirements over periods where each man or machine must be idle for two consecutive periods per cycle. An example illustrates the application to scheduling to meet seven distinct daily requirements per week using employees for five consecutive work days.
Preface to Management Science, Ecology and the Quality of Life
Authors: Charnes A. , Cooper W. W. , Kozmetsky G.
Published: November 2008

Most of the articles that follow are the papers that formed the Distinguished Lecturer Series—i.e., the invited, thematic series—at the XIX International Meetings of The Institute of Management Sciences in Houston, Texas, on April 4–8,1972. There are two exceptions: (1) “The ORSA New Orleans Address on ‘Compact City’” by G. B. Dantzig and (2) “A Model to Study Revenue Sharing and Account for Regionalized Economic Activity and Social Goals” by A. Charnes, C. Colantoni, W. W. Cooper and K. O. Kortanek. The former, as its title suggests, was the basis of Dr. Dantzig's plenary lecture on April 27, 1972, to the 41st National Meeting of the Operations Research Society of America in New Orleans—to which he has added “An Agenda for Research on Urban Development”. The latter paper is intended to complement “Measuring, Monitoring and Modeling Quality of Life” which was presented by A. Charnes, W. W. Cooper and G. Kozmetsky, as the final Distinguished Lecture in the TIMS series at Houston.
Management Science, Economics and Environmental Science
Authors: Kneese Allen V.
Published: November 2008

Microeconomics and management science are close relatives in terms of the tools they use. Economics differs primarily in that it studies the performance of entire economic systems and major subsystems. Management science models can be expanded to examine environmental policy and the design of institutions for environmental management. This is illustrated by a quantitative model developed at Resources for the Future which incorporates as submodels natural atmospheric and ecological systems and the political structure of alternative forms of representative government.
Organization for Environmental Management—National and Transnational
Authors: Jacoby Neil H.
Published: November 2008

Environmental quality is the new social priority. Like previous major shifts in public values, it calls for changes in economic functions and resource allocations, and it requires new institutions for decision making and action. Criteria are proposed for choosing optimal governmental units to manage the principal environmental variables. Major gaps exist. At the Federal level, the Environmental Protection Agency should be supplemented by a new policy-oriented Institute for Environmental Studies and by programs of public education. State governments need executive agencies with integrated control over all variables. Metropolitan and regional authorities should be created to control land use planning and development. Environmental variables transcending national boundaries are now only partly managed by means of international treaties. A new World Oceanic and Atmospheric Regime is proposed to supply flexible and integrated control. The quality of environmental decisions would be raised greatly if decision-makers had available a socioeconomic model system of the United States.
Measuring, Monitoring and Modeling Quality of Life
Authors: Charnes A. , Cooper W. W. , Kozmetsky G.
Published: November 2008

Issues addressed include use of multi-dimensional vs. single scalar approaches to measuring quality of life. The former seems preferable to the latter. This is illustrated by reference to examples from the national accounts systems approach, using objective data only, as proposed by Nestor Terleckyj, and the local use of questionnaires and interviews to deal with subjective feelings and reactions as reported in the citizen-type panel arrangements suggested by Norman Johnson and Edward Ward. Ways of allowing for trends and dynamic changes are examined and, inter alia, audits and other devices are suggested for detecting emerging needs for new roles and social-institutional arrangements. Areas that may lie beyond any such measurement and detection systems are also examined.
A Model to Study Revenue Sharing and Account for Regionalized Economic Activity and Social Goals
Authors: Charnes A. , Colantoni C. , Cooper W. W. , Kortanek K. O.
Published: November 2008

The objective of this paper is to provide a model to deal with multi-dimensional social goals on a regionalized (as well as national) basis and to relate these to each other in the context of a national economic system. Input-Output (Interindustry) Analysis is therefore regionalized and reformulated in a way that connects it to national economic policy variables in a Keynsian framework. Possible multiple objectives and controls are examined and their possible further developments are also sketched in a context of regionalized and social goals that differ from region to region and also from time to time. Various proposals for revenue sharing are exhibited and interpreted in the light of the possibilities this model admits. Special attention is given to the Nixon (President Nixon) and ACIR (Advisory Commission on Intergovernmental Relations) plans in contrast to a multi-goal dynamic and adaptive control-incentive scheme with “saturating” indices of goal attainment. The latter, suggested at the end of this paper, is designed so that it can permit variation between regions while maintaining minimum levels of comparable attainment on goals that are common to more than one region.
Evaluating Market Segmentation Studies: The Properties of R2
Authors: Morrison Donald G.
Published: November 2008

Virtually all of the empirical studies on market segmentation can be characterized as unsuccessful in terms of R2. That is, the set of independent variables used have not explained much of the variance in purchasing behavior. R2's of 0.01 and 0,02 are not uncommon. In this article we show that R2 is an inappropriate statistic to use in evaluating most of these studies. We show that good models with good sets of variables can yield low (and even zero!) R2's. In this context “good” variables are ones that explain the average purchasing behavior of a family. The previous studies on market segmentation should be re-evaluated in light of the results presented here.
A Characterization of M/G/1 Queues with Renewal Departure Processes
Authors: Disney Ralph L. , Farrell Robert L. , De Morais Paulo Renato
Published: November 2008

Burke [Burke, P. J. 1956. The output of a queueing system. Oper. Res. 4 699–704.] showed that the departure process from an M/M/1 queue with infinite capacity was in fact a Poisson process. Using methods from semi-Markov process theory, this paper extends this result by determining that the departure process from an M/G/1 queue is a renewal process if and only if the queue is in steady state and one of the following four conditions holds: (1) the queue is the null queue—the service times are all 0; (2) the queue has capacity (excluding the server) 0; (3) the queue has capacity 1 and the service times are constant (deterministic); or (4) the queue has infinite capacity and the service times are negatively exponentially distributed (M/M/1/∞ queue).
Quadratic Inventory Cost Approximations and the Aggregation of Individual Products
Authors: Krajewski L. J. , Mabert V. A. , Thompson H. E.
Published: November 2008

The purpose of this paper is to place into focus a whole class of problems that have not yet received the attention they deserve. The problem studied, although seemingly narrow in scope, reflects a much broader class of problems relating aggregate and disaggregate cost functions. It raises questions relating to the efficacy of constructing aggregate cost functions that adequately represent the “true” costs and, at the same time, are easy to manipulate in decision models. It also questions whether seemingly optimal aggregate decisions will lead to serious suboptimalities when they are broken down to the level of disaggregation necessary for implementation. The questions are raised in the context of the aggregate inventory cost function of HMMS as well as their suggested procedure for using disaggregate data to estimate the parameters of the aggregate cost function. It is found that, under conditions of varying demand, the parameters of the aggregate cost function ordinarily thought to be independent of demand are in fact highly related to demand. Approximate cost functions designed to hold in certain ranges of the decision variables may fit poorly in other ranges and may therefore be unreasonable for developing decision rules for respond-to rather wide variations in demand.
Economically Optimum Design of Cusum Charts
Authors: Goel Amrit L. , Wu S. M.
Published: November 2008

We present a procedure for the economic design of Cusum charts to control the mean of a process with a normally distributed quality characteristic. A model is derived which gives the long-ran average cost as a function of both the design parameters of the chart and the cost and risk factors associated with the process. The “pattern-search” technique is employed to determine the optimum values of the sample size, the sampling interval and the decision limit. The cost surfaces are investigated, numerically, to study the effects of changes in the design parameters and in some of the cost and risk factors.
An Optimal Stopping Problem of a Growing Inventory
Authors: Hochman Eithan
Published: November 2008

This paper deals with the problem of explaining the behavior of a producer entering the period with growing inventory, while the current price and a stochastic distribution of prices for the following period are given. The conceptual framework is one of searching for an optimal stopping rule for this problem. It is shown that the optimal policy consists of finding a unique cutoff price function, which is non-increasing with respect to the age of the stock.
Optimal Issuing Policies
Authors: Brown Mark , Ross Sheldon M.
Published: November 2008

Consider a stockpile consisting of n items where the ith item has a rating ri, i = 1, …, n. An item with rating r, if kept in stockpile until time t and then released to the field, will have a field life of rd(t). Thus it is assumed that for any t, the field life for issuance at time t is proportional to the time 0 field life.

Items are to be issued one by one from the stockpile to the field until the stockpile is depleted. The ith issued item is placed in the field immediately upon the death in the field of the (i − 1)st issued item. Conditions for LIFO and FIFO optimality are obtained.
A Class of Deterministic Production Planning Problems
Authors: Jagannathan R. , Rao M. R.
Published: November 2008

A deterministic production planning problem with limited backlogging, inventory and production capacity constraints is considered. The model also includes a certain type of production cost function which is neither convex nor concave. A characterization of the extreme points is provided and an algorithm is suggested for the problem with equal production capacities. It is also shown how initial inventory can easily be incorporated into the model.
Note—A Note on “The Influence of Setup Time on Job Shop Performance” by Wilbrecht and Prescott
Authors: Aggarwal Sumer C.
Published: November 2008

Comments and clarifications about paper [Wilbrecht, J. K., W. B. Prescott. 1969. The influence of setup time on job shop performance. Management Sci. 16 (4, December).].
Distributional Constraints in Public Expenditure Planning
Authors: Feldstein Martin , Luft Harold
Published: November 2008

Distributional aspects are of primary importance in the design of many of our largest public programs. National health insurance, low-income housing subsidies, grants for higher education and payments for income maintenance all emphasize the use of public expenditure to alter the distribution of real resources among income classes. The traditional cost-benefit approach, with its focus on the efficiency of resource use, is inadequate for dealing with such programs. Moreover, the basic problem of choice in these programs is not the selection of one of several mutually exclusive projects but the design of optimal income-related schedules of benefits and charges.

The current paper defines this problem more specifically and suggests a linear programming formulation for its solution. An application to the design of a national health insurance program is then presented.
A Simple Style Goods Inventory Model
Authors: Hartung Philip H.
Published: November 2008

A Style Goods Inventory Model is presented as a dynamic inventory problem with unknown demand. Assumptions are introduced which allow the model to be solved as a dynamic programming problem with one state variable instead of two. Application of the model is made through the development of a particular empirical demand estimating process. Further, the model is defined such that the results can be applied to a class of items with dissimilar costs and demand levels.
A System of Promotional Models
Authors: Rao Ambar G. , Lilien Gary
Published: November 2008

A system of promotional-effect models developed from certain behavioral assumptions about consumer buying habits is described. The same basic model structure is shown to be applicable to several types of gasoline marketing promotions and to various nongasoline promotions as well. Parameter estimation procedures and methods for calculating the effect of simultaneous promotions are discussed. The models were developed to be used with a computerized MIS for market planning and sales forecasting and are validated using actual sales data. Included are insights into the customer buying process that were revealed during the parameter estimation and updating procedures.
Summary of a Simple Model of Mode Choice
Authors: Eatherly Billy J.
Published: November 2008

This note summarizes a simple model of mode choice which considers such choice as depending only upon time and money costs of travel. Distance boundaries for modes and expressions for the proportion of trips by abstract modes are presented and discussed briefly. The effects of variation in time value are briefly discussed in the context of the model.
Further Improvements in the Polynomial Zero-One Algorithm
Authors: Taha Hamdy A.
Published: November 2008

Enhancements and errata to the author's paper “A Balasian-Based Algorithm for Zero-One Polynomial Programming,” Management Science, Vol. 18, No. 6 (February 1972), pp. B-328–B-343.
Précis—A Brief Note on the Dimensionality of the Supervisory Inventory on Human Relations
Authors: Khan S. B. , Morgan George
Published: November 2008

The Supervisory Inventory on Human Relations (SIHR) was developed by Kirkpatrick and Planty [Kirkpatrick, D. L., E. Planty. 1965. Supervisory Inventory on Human Relations. Dr. D. L. Kirkpatrick, Brookfield, Wisconsin.] for use in the evaluation of supervisory performance, diagnosis, on-the-job coaching, and as a device for conference discussions during training and selection of supervisors. The purpose of the present study was to investigate if items can be meaningfully grouped on an empirical basis as a first step toward the use of subscales and profiles.
Equivalent Formulations of the Stochastic Cash Balance Problem
Authors: Porteus Evan L.
Published: November 2008

This paper shows that the widely appearing “marginal cost” formulations of the dynamic, periodic review, stochastic cash balance problem are equivalent to a “total cost” formulation, as long as the holding, shortage cost, and “closing of account” functions are constructed correctly.
Mathematical Programming Methods of Pattern Classification
Authors: Grinold Richard C.
Published: November 2008

This survey examines eight mathematical programming models of pattern classification. The paper determines the range of applicability and computational merits of each model. The flexibility and large sample properties of the models are also discussed. We find that six of the models produce decision rules that maximize a function we call the quality of a decision rule. The remaining two models minimize a weighted sum of errors.
Portfolio Models with Stochastic Cash Demands
Authors: Chen Andrew H. Y. , Jen Prank C. , Zionts Stanley
Published: November 2008

The problem of unifying portfolio planning and transaction demands for cash in a single model is considered. We distinguish between portfolio selection and portfolio revision problems. Each problem is formulated as a single-period model allowing exogenous stochastic cash demands and:

(1) deterministic returns on the earning assets,

(2) stochastic returns on the earning assets.

Thus, four single-period models are presented. An analytic solution for one of the models is derived, and numerical examples given. The other models are nonlinear programming problems, two of which are computationally tractable. Implication's of the models are discussed.
Notes—On the Efficiency of a Direct Search Method to Locate Negative Cycles in a Network
Authors: Yen Jin Y.
Published: November 2008

The purpose of this note is to examine the efficiency of Direct Search Method (DSM) in terms of its computational upper bound. Comparisons of the efficiencies of DSM and other efficient algorithms (in terms of their computational upper bounds) are also presented.
Communications to the Editor—The Status of Nonserial Dynamic Programming
Authors: Esogbue Augustine O. , Marks Barry Randall
Published: November 2008

A brief overview with an extensive references list.
Communication to the Editor—On Rearranging Matrices to Block Angular Form
Authors: Hartman James K.
Published: November 2008

A modification of Hartman, J. K., L. S. Lasdon. 1970. A generalized upper bounding method for doubly coupled linear programs. Naval Res. Logist. Quart. 17 (4, December) to rearrange matrices into a form useful for linear programming.
Notes—Note on “Municipal Bond Coupon Schedules with Limitations on the Number of Coupons”
Authors: Freimer Marshall , Rao Mendu R. , Weingartner H. Martin
Published: November 2008

The optimal coupon schedule for municipal bonds with limits on the number of distinct coupons is formulated in terms of two different dynamic programming models which, in contrast to the companion paper, do guarantee an optimal solution, although at the cost of additional computational difficulty.
Constrained Markov Decision Chains
Authors: Derman Cyrus , Veinott Arthur F.
Published: November 2008

We consider finite state and action discrete time parameter Markov decision chains. The objective is to provide an algorithm for finding a policy that minimizes the long-run expected average cost when there are linear side conditions on the limit points of the expected state-action frequencies. This problem has been solved previously only for the case where every deterministic stationary policy has at most one ergodic class. This note removes that restriction by applying the Dantzig-Wolfe decomposition principle.
Production-Line Balances for Mixed-Model Lines
Authors: Macaskill J. L. C.
Published: November 2008

This paper considers the problem of mixed-model assembly-line balancing. First, the balance problem is formulated, and some of the difficulties of achieving effective balances in practice are noted. Next, balance procedures designed to obtain expeditious computer solutions of large-scale mixed-model balances are presented, and results obtained for a small-scale balance by a program incorporating these procedures are discussed. Effect on line performance is considered, and an estimate is made of the computer effort required to achieve a balance for a large-scale assembly operation. Finally some general conclusions are presented.
Environmental Structure and Programmed Decision Effectiveness
Authors: Ebert Ronald J.
Published: November 2008

In this study, intuitive aggregate production scheduling performance under various environmental conditions is related to Bowman’s theory of managerial coefficients. Controlled decision environments were established in four hypothetical companies to isolate the effects of differences in information relevance and planning activities. Results illustrate the effects of environmental differences on the formation of intuitive scheduling rules.
Critical Path Problems with Concave Cost-Time Curves
Authors: Falk James E. , Horowitz Joel L.
Published: November 2008

This paper presents an algorithm for determining the minimum cost schedule of tasks in a critical path network in which task cost-time curves may be concave. A computer program for the case of cost-time curves that are piecewise linear in two segments is described, and a numerical example is presented.
Introduction to Urban Issues II
Authors: Cooper W. W.
Published: November 2008

This is the sequel to Urban Issues I, the special issue which was edited by this Department and published in Management Science, Vol. 16, No. 12 (August 1970). Like its predecessor the present collection has been pointed toward delineating new possibilities for management science approaches to urban problems. Also like its predecessor, the present compilation is drawn from a variety of sources which include papers presented at scientific-professional society meetings, papers selected from the normal flow of mss. into this department and papers obtained by special invitation.