bluuebunny/crossref_metadata_2025 huggingface dataset:
Scheduling the Use of Water Power
Authors: Gessford John
Published: November 2008

A particular type of inventory model, a hydroelectric model, with a linear cost structure is studied. The form of the optimal water utilization policy for a hydroelectric installation (at which the assumptions of the model are satisfied) is described. The nature of the optimal policy if the cost function is convex is indicated. The optimal policy if future river flow is known is also indicated.
Discussion—A Note on the Optimal Depletion of Inventory
Authors: Derman C. , Klein M.
Published: November 2008

Authors' further comments and examples following their paper (Derman, C., M. Klein. 1958. Inventory depletion management. Management Sci. 4 (4, July).).
Long-Range Planning—Challenge to Management Science
Authors: Drucker Peter F.
Published: November 2008

This paper attempts to define long-range planning as the organized process of making entrepreneurial decisions. It tries to answer three questions asked by managers and management scientists when they hear the phrase “long-range planning”: What long-range planning is and what it is not; why it is needed; and what is needed to do long-range planning. The paper concludes with a brief statement why long-range planning can be considered a major opportunity for, and challenge to, Management Science.
LIFO and Statistical Sampling—A Case Study
Authors: Davidson H. Justin , Monteverde R. J.
Published: November 2008

A growing number of case studies, describing the increasing number of applications of statistical sampling methods to accounting problems, have appeared in accounting literature. A substantial number, although not all, of these case studies have tended to emphasize the statistical aspects of the particular problem being described, at the neglect of accounting considerations. This is understandable in the sense that statistical techniques are relatively new to the accounting profession and new techniques, rather than the old, require exposition. However, the fruitful use of statistics in accounting requires full consideration of both statistical and accounting aspects of any particular problem. With this point of view, the following case study describing the statistical and accounting problems encountered in an adoption of the LIFO method of valuing inventory is presented.
Rational Systems and Logics of Action: The Factory Situation
Authors: Abruzzi Adam
Published: November 2008

The field of management science has reached a stage of development where it can profit from the enriched collection of empirical information currently available about factory problems. This information can be useful in the process of constructing a unified theory of management science. It can also be useful by showing to what extent rational models need to be elaborated for an optimum result in applications.

The paper shows that rational models intersect in a fundamental way with the value logics of the people affected. The result is that restraints and restrictions arise; these must be taken into account in developing rational techniques for factory activity. Rational techniques, in essence, should supply a framework within which the value logics of the various groups involved can come to equilibrium.

A particular technique with this property is the technique of job evaluation. Within the rational base of a job evaluation system, there exist abundant possibilities for the expression of value logics. A particularly revealing example is the existence of the so-called halo effect; this effect can profitably be exploited for making needed local adjustments, always, of course, with the rational base as framework.

In summary, the Russian factory system is shown to exhibit similar characteristics. Rational techniques there too are constantly interacting with the value logics of the groups affected. This contradicts the original view that the factory system could be run exclusively by rational means.
Some Analysis of Purchasing Policy
Authors: Morris William T.
Published: November 2008

Several well known purchasing policies or “buying strategies” are studied by-means of simple mathematical models. The basic properties of these policies are demonstrated under the assumption that future market prices are viewed as random variables. An optimal policy for forward buying is obtained, and strategies for dollar averaging and speculation are investigated.
A New Approach to the Determination of Replacement Costs
Authors: Olmer Francois J.
Published: November 2008

The time adjusted minimum average costs of an industrial equipment or process are expressed in terms of the logarithmic decrement of its salvage values.

The obsolescence gradient and/or the economic life of the equipment do not enter into the formula of the minimum average costs, which are thus obtained more simply and accurately than through the classical estimation procedures.
Chance-Constrained Programming
Authors: Charnes A. , Cooper W. W.
Published: November 2008

A new conceptual and analytical vehicle for problems of temporal planning under uncertainty, involving determination of optimal (sequential) stochastic decision rules is defined and illustrated by means of a typical industrial example. The paper presents a method of attack which splits the problem into two non-linear (or linear) programming parts, (i) determining optimal probability distributions, (ii) approximating the optimal distributions as closely as possible by decision rules of prescribed form.
Measurement and Misrepresentation
Authors: Chambers R. J.
Published: November 2008

The possibility of measuring does not necessarily lead to the presentation of relevant information for decision-making in business. This is demonstrated by reference to accounting methods and to profit computation in particular. Accounting processes have become formalized to the point where they misrepresent financial results and position; the probability that resources will be used efficiently and that equity between parties of interest will be served is materially reduced by lack of care in the definition of significant concepts and the concurrent acceptance of procedures which have directly opposite justifications and consequences. As the speed of information processing increases and computational refinements develop, a corresponding effort is necessary to redefine in operationally relevant terms, or to sharpen the definition of, such key concepts as profit, capital, cost. The history of the development of accounting and auxiliary calculations illustrates the consequences of permitting a measuring and communicating system to become institutionalized. Some suggestions for improving the relevance of accounting and similar information are made.
Control as an Organizational Process
Authors: Haberstroh Chadwick J.
Published: November 2008

The research reported is an attempt to discover to what extent the theory of self-regulating systems applies to human organizations in general and to one industrial plant in particular. Feedbacks of information on performance and objectives were found to have much influence on two types of executive decision processes: programming of routine work and innovation in the organization of executive functions. The control pattern included multiple, decentralized control loops. This combination worked adequately in an area—safety—where the results of decisions could not be forecasted with any accuracy.
Inequalities for Stochastic Linear Programming Problems
Authors: Madansky Albert
Published: November 2008

Consider a linear-programming problem in which the “right-hand side” is a random vector whose expected value is known and where the expected value of the objective function is to be minimized. An approximate solution is often found by replacing the “right-hand side” by its expected value and solving the resulting linear programming problem. In this paper conditions are given for the equality of the expected value of the objective function for the optimal solution and the value of the objective function for the approximate solution; bounds on these values are also given. In addition, the relation between this problem and a related problem, where one makes an observation on the “right-hand side” and solves the (nonstochastic) linear programming problem based on this observation, is discussed.
Component Replacement Liability
Authors: Debeau David , James George , Drozda William
Published: November 2008

This paper reports the results of an analytic problem arising out of a history. Although some of the context and all of the numbers have been changed to protect proprietary information, the following important facet of the original case history remains invariant in the transformation. Management of the sponsoring firm had planned to make a policy decision based on differences between averages of overlapping distributions. After the influence of the probability distributions was evaluated and explained, management reversed its intended policy decision.
Costs of Incorrect Data in Optimal Inventory Computations
Authors: Gluss Brian
Published: November 2008

Consider an infinite-stage inventory process in which the cost of ordering an amount y of stock is ky, and the penalty cost incurred in meeting an excess demand y over the stock on hand is py + q; also, the process assumes that demands at successive stages are random variables drawn from a fixed probability distribution. Then, under conditions described in the paper, the extra costs incurred in using a policy that, instead of minimizing the statistical expectation of the total cost of the process, minimizes that of a process whose parameters are different from those of the process under consideration are determined. That is, in determining the policy, it is incorrectly assumed that (i) the penalty cost is p′y + q, (ii) the penalty cost is py + q', or (iii) the fixed discount ratio per period of time is a′ instead of a.
Relationships Between Organization Size and Efficiency
Authors: Adler F. P.
Published: November 2008

The relation between productivity, efficiency and size of a technical organization as affected by internally generated and circulated paperwork is analyzed. It is shown that there exists an upper bound to total productive output which is independent of the number of employees; and that as the organization size is increased the efficiency generally first rises and then falls off inversely proportionally to the number of employees.
The National Security Dilemma: Challenge to Management Scientists
Authors: Wood Marshall K.
Published: November 2008

This paper was presented as the banquet address at the 7th International Meeting of TIMS in New York City, October 20, 1960. The following paper, by Anatol Rapoport, was also on the program of this meeting. In view of the interest aroused by the contrasting positions taken, the Editor asked each author to submit his paper for publication in Management Science along with comments on the other's paper. The four resulting papers appear together in this issue of Management Science.
Three Modes of Conflict
Authors: Rapoport Anatol
Published: November 2008

It is possible to distinguish three levels of conflict. One level can be exemplified by a “fight,” i.e., a combat motivated only by mutual animosity or mutual fear. In a fight, the opponent is just a noxious stimulus. The actions of the combatants are dominated by an urge to destroy or to drive away this noxious stimulus. The~aggressive acts of each of the opponents stimulate aggressive counter acts of the other. This process, then, is mostly self-perpetuating and automatic. Such are the combats one finds in the sub-human world, combats between enemy species, between rivals for a mate, between competitors for food or living space.
Remarks on Marshall Wood's Paper
Authors: Rapoport Anatol
Published: November 2008

Assuming all the factual information and all the logistic estimates presented by Mr. Wood (Wood, M. K. 1961. The national security dilemma: Challenge to management scientists. Management Sci. 7 (3) 195–209.) to be correct, I fail to see how his nine conclusions follow as logical consequences, unless some additional assumptions are made. Had these assumptions been made explicitly, we could quickly discover the real roots of our disagreement. As it is, I can do no more than treat Mr. Wood's nine propositions as opinions instead of conclusions, declare which of these opinions I share, and which I do not, and indicate my reasons for rejecting some of them.
The Use of Heuristic Programming in Management Science—A Survey of the Literature
Authors: Tonge Fred M.
Published: November 2008

Intelligent problem-solving, whether by man or by machine, implies selective rather than just rapid behavior. Humans achieve this selectivity through heuristics—principles that, on the average, contribute to reduction of search in problem-solving. Heuristic programming is the construction of computer problem-solving programs whose behavior is similarly organized. This paper surveys the present and potential use of heuristic programming in management science.
Two Experiments on Bias and Conflict in Organizational Estimation
Authors: Cyert Richard M. , March James G. , Starbuck William H.
Published: November 2008

In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the bias in information to the final decision have been proposed. In this paper we discuss two laboratory experiments which were designed to test two such hypotheses. The first experiment tests the hypothesis that cost and sales estimations are made with the implicit assumption that a biased pay-off structure exists. The second experiment tests explicitly the effects of biased and unbiased pay-off structures on estimation within an organization. An analysis of the data for the two experiments is made and some implications for further research are drawn from the results.
On Scheduling Tasks with Associated Linear Loss Functions
Authors: Schild Albert , Fredman Irwin J.
Published: November 2008

In a recent paper in Management Science, Robert McNaughton has discussed certain problems encountered in scheduling tasks on one or more processors when penalties are imposed if the tasks are finished after their respective deadlines. In this paper, the general problem of scheduling the tasks on one processor in order to minimize the total loss is solved, and McNaughton's results are generalized.
Translator's Note on “Mathematical Methods in Economics”
Authors: Kircher Paul
Published: November 2008

A short explanation of the significance of the article Dadayan, V., Yu. Chernyak. 1961. Mathematical methods in economics. Management Sci. 7(4) 323–334 prepared at the request of the editors of Management Science.
A Linear Programming Model for Long Range Capacity Planning
Authors: Fetter Robert B.
Published: November 2008

In comparing long- and short-term commitments to fulfill demand for some kind of capacity, a linear formulation of the problem may prove useful. The general capacity-planning problem treated here is that in which the demand for capacity may be met by ownership, leases of various terms, or spot contracts. Certain kinds of machine capacity, tankers, or trucks might be examples. Variations in demand and prices for the various alternatives give rise to a computational problem of considerable proportions and in addition one must account for the firm's time preference for money. A linear model is presented to aid in developing answers to such questions as the following: (1) What effect will any given demand forecast have on capacity plans, (2) what will be the effect of an expected change in ownership costs, (3) if prices for leased capacity increase by some given amount, how will plans and costs be affected, (4) what is the sensitivity of decisions and costs to forecast error? Computation of an optimal plan under various assumed conditions should provide (1) the best policy for the expected future and (2) those changes in policy which ought to follow from changed conditions.
A Nonlinear Programming Technique for the Optimization of Continuous Processing Systems
Authors: Griffith R. E. , Stewart R. A.
Published: November 2008

A description is given of a method for solving some nonlinear programming problems. The mathematics of this method are quite simple and are easy to apply to electronic computation. A numerical example, a model construction example, and a description of a particular existing computer system are included in order to clarify the mode of operation of the method.
Inter-Temporal Analysis and Optimization of Bank Portfolios
Authors: Chambers D. , Charnes A.
Published: November 2008

This paper is concerned with formulating, exploring and interpreting the uses and constructs which may be derived from a mathematical model of programming type which expresses more realistically than past efforts the actual conditions of current operations. It is an attempt to provide a means of attaining thereby an objective understanding of the implications of actual Federal Reserve liquidity policy on the actions and opportunities of banking institutions.

The model presented corresponds to the problem of determining an optimal portfolio for an individual bank over several time periods in accordance with requirements laid down by bank examiners which are interpreted as defining limits within which the level of risk associated with the return on the portfolio is an acceptable one. The problem is transformed into an equivalent one offering advantages of analysis and of computation. Some methods of effective computation are explored.
Administration of Safety in the Steel Industry
Authors: Haberstroh Chadwick J.
Published: November 2008

Research in a single steel company highlighted the existence of autonomous safety goals and the importance of innovative activity in their realization. A key communications function in the process of innovation is performed by means of an industry-wide organization of staff specialists. Some confirmation of the relevance and effectiveness of this system is given by an analysis of plant injury rates for the steel industry as a whole.
On an Industrial Programming Problem of Kantorovich
Authors: Isbell J. R. , Marlow W. H.
Published: November 2008

This paper is a presentation of a maximization problem treated by L. V. Kantorovich [Kantorovich, L. V. 1957. On methods of analysis of some extremal problems in planning production. Doklady Akademii Nauk SSSR 115 441–444. (Russian) In translation: Rand Corporation T-86 dated 15 April 1958]. The problem concerns a linear model for industrial production, but the objective is to maximize a non-linear function of the output. Specifically, a certain composition or package of final products is ordered, and the size of this output of predetermined composition is to be as large as possible.
A Model of Multi-Period Investment under Uncertainty
Authors: Naslund Bertil , Whinston Andrew
Published: November 2008

This paper explores rational decision making for investment in the stock market. The first part is concerned with problems of a methodological nature, mainly dealing with the relationship between normative models and operations research. The major part explores a particular model and the various features the model possesses. The interpretation and use of a dual prices in a stochastic programming model is discussed. The final part will suggest various possible extensions into other areas.
A Queueing Model for Business Students
Authors: De Cani John S.
Published: November 2008

In this paper we develop an N-server queueing model which overcomes some of the objections usually raised by business students when they are confronted with the discussion of queues in standard management science texts. The model permits a solution in terms of expected profit maximization rather than in terms of expected cost minimization. That is, the optimum number of servers can be determined by equating marginal cost to marginal revenue. The model has the property that the longer the waiting line the less likely it is that a new arrival will join the queue. Because of this property, the model could be called a “balking” model in the sense of Haight, (Haight, Frank A. 1957. Queueing with Balking. Biometrika 44 (3) and 4 (3) 60–369 (December); Haight, Frank A. 1960. Queueing with Balking, II. Biometrika 47 (3) and 4 285–296 (December).); would-be arrivals balk at long waiting lines. This balking has the effect of bounding the expected length of the queue so long as there are one or more servers in attendance. Finally, with this model it is possible to derive an implicit relationship between the average expenditure per customer and the value of customer waiting time.
Simultaneous Processing of Jobs on an Electronic Computer
Authors: McKenney James L.
Published: November 2008

The purpose of this study was to investigate the control implications of simultaneously processing several different programs on an electronic computer. This paper reports on the advantages of prescribing computer programs such that they have no arbitrary sequence constraints and can be segmented into independent subjobs which can be processed by one component of a computer, for example, an input device. Combining several programs writtern in this fashion would create a macro-program composed of a hierarchy of subjobs. Such a prescription method would allow a properly constituted automatic dispatching component to recursively subdivide this macro-program into subjobs that are performable by an independent component of the computer. The purpose of creating programs so they can automatically be combined and segmented is to provide a queue of work for each available operating component of a computer. This study attempts to demonstrate the advantage of this approach as a method of obtaining more capacity with developed equipments. The results give some evidence for a change in programming methods and a need to devote more resources to improving control procedures to allow simultaneous processing of many jobs.
How Rational Should a Manager be?
Authors: Good I. J.
Published: November 2008

It is often rightly stressed that research workers should learn how to sell their work to managers, by avoiding technical jargon, and by otherwise acquiring skill in exposition. But managers often take a step towards the research men by learning a little science. I wish to advocate that managers should learn to use a little of the language of the theory of rationality, to make judgments of inequalities between probabilities and between utilities, and to understand what it means to be reasonably consistent. In my opinion the consequences would be a great increase in the value of operational research.

A brief description of what I mean by rationality is followed by a tentative definition of “degrees of rationality.” Here it seems to be necessary to make use of the notion of rationality of “types I and II.” The remainder of Section 3 is concerned with an elaboration of some aspects of rationality that seem to me to be important, and either somewhat novel or not often enough emphasized in print. In Sections 4 and 5 some of the benefits and difficulties associated with the use of the theory are mentioned.
Constrained Inventory Rules for Production Smoothing
Authors: Winters Peter R.
Published: November 2008

Production smoothing (or production planning) methods are used to decide on aggregate production levels for a factory, without specifying what individual products should be produced, or when, or how much. Inventory control of finished goods inventory makes these latter decisions, but does so for each product, independently, without regard for the aggregate effect on the factory. This paper discusses several (unsatisfactory) attempts to make these two sets of decisions consistent, and then presents several ways of making trigger and lot-size inventory decisions (production decisions for individual products) that aim at minimizing total inventory costs while yielding a desired level of aggregate factory production.
Optimum Bond Portfolio Selections
Authors: Cheng Pao Lun
Published: November 2008

This paper is concerned with adapting Dr. Harry M. Markowitz's work on optimum portfolio selection of equity issues to portfolio selection of debt issues for achieving optimum maturity distribution. In establishing the optimum, investor's “tactics” take place of individual securities in Markowitz's analysis. An investor can choose from sets of efficient tactics either to minimize the variance of portfolio return or to maximize expected portfolio return.

The model requires similar computational methods advanced by Markowitz himself and by others. It presents an exploration of techniques needed to optimize bond portfolio of financial firms in a way which will allow funds to be re-invested at minimum opportunity loss.
A Generalized Model for Analyzing Management Information Systems
Authors: Homer Eugene D.
Published: November 2008

This paper points out that, in spite of the potential power of the Lieberman model for integrated business systems, (Lieberman, I. J. 1956. A mathematical model for integrated business systems. Management Sci. 2(4) 327–336) its application to practical cases is hampered by the fact that most systems can be described only in a series of matrices which are not compatible for multiplication. Two methods of finding the “product” in such cases are described. The second method offers the advantages that only one matrix need be constructed to describe the entire system, that only elementary column operations are required to yield a solution, that the ordering of the system components need not be considered, and that components which are system inputs, system outputs, and those which are outside the scope of the study are immediately identified. A proof of the mathematical validity of the second method is given.
The New Approach to Management in the U.S. Defense Department
Authors: Hitch Charles J.
Published: November 2008

I am delighted to have this opportunity to visit Toronto and join with you in this joint meeting of the Canadian Operational Research Society (CORS) and The Institute of Management Sciences (TIMS). As many of you may know, I have for many years been keenly interested in the development of operations research, particularly its application to defense problems. Now I find myself as Comptroller of the U. S. Defense Department, busily engaged in trying to build a bridge between financial management and military planning to facilitate the application of operations research or systems analysis to military problems.
A Random Walk Production-Inventory Policy: Rationale and Implementation
Authors: Orr Daniel
Published: November 2008

The smoothing of fluctuations in production and inventory has been handled successfully as a problem in servomechanisms: an optimal linear filter (production scheduling policy) balances costs of inventory fluctuation and costs of production fluctuation. This approach requires the system to respond (by making production rate changes) either continuously or at regular intervals: the usual assumption is that the cost of responding is proportional to the size of the response. This paper explores some reasons why the frequency of production changes may have to be controlled, and offers a new class of policies, called random walk policies, to accomplish this. One of these, the (a, b, c) policy, is investigated for stationary operating characteristics, and a specific example is provided to illustrate the technique of finding optimal values for policy parameters. Some of the characteristics of systems in which random walk inventory policies may be useful are discussed; and more general techniques for identifying the form of the optimal control policy are mentioned.
Rationality Postulates for Bargaining Solutions in Cooperative and in Non-Cooperative Games
Authors: Harsanyi John C.
Published: November 2008

The von Neumann-Morgenstern theory yields a determinate solution (a unique payoff vector) only for the two-person zero-sum game and some other special cases. But if we adopt a small number of additional rationality postulates we obtain determinate solutions for all known classes of games. The rationality postulates needed include the expected-utility maximization postulate; postulates involving payoff-dominance concepts; and postulates imposing certain consistency requirements on the expectations that rational players can entertain about each other's strategies. For some games the solution can be defined essentially in terms of payoff-dominance concepts. But more generally the solutions depend on the analysis of bargaining among the players.
A General Algorithm for the Optimal Distribution of Effort
Authors: Karush William
Published: November 2008

The problem of distribution of effort is that of the optimal allocation of a given resource among various activities, that is, maximize ∑i=1n fi(xi) subject to ∑i=1n xi = w, xi ≥ 0. This paper presents an algorithm for obtaining the optimal allocation as a function of w, when the fi are arbitrary piecewise-linear, continuous functions. The method is recursive and appropriate for hand or machine computation. It is an extension of the well-known technique of ordering the segments of all the fi according to decreasing slope which applies in the special case when each fi has decreasing slopes (that is, is marginally decreasing).
Scheduling Tasks with Deadlines and Non-Linear Loss Functions
Authors: Schild Albert , Fredman Irwin J.
Published: November 2008

The problem of scheduling tasks with deadlines and linear loss functions was discussed in some detail in two papers [McNaughton, R. Scheduling with deadlines and loss functions. Management Sci. 6(1) 1–12; Schild, A., I. J. Fredman. On scheduling tasks with associated linear loss functions. Management Sci. 7(3) 280–285] by Robert McNaughton and the authors. In this paper, the problem of scheduling with nonlinear loss functions is attacked. In particular, certain criteria will be established for quadratic loss functions and an algorithm is proposed which will yield an optimal scheduling—i.e., a minimal total loss—for nonlinear loss functions in general.
Organization Size and Efficiency: The Choice Between Reading and Writing
Authors: Theil H.
Published: November 2008

In a recent article in Management Science, F. P. Adler [Adler, F. P. 1960. Relationships between organization size and efficiency. Management Sci. 7 (1, October) 80–84.] developed a simple model to analyze the implications of a growing research organization and the resulting increase of internal mail on the creative productivity of the individual worker of that organization. His approach involves the assumption of a constant fraction of the total written output being read by each individual, and this leads to the interesting conclusion that this total output approaches a finite upper limit when the size of the organization grows indefinitely. In plain terms, this means that when the organization is big enough, everyone devotes his time essentially to reading reports written by others.

In this paper an attempt is made to formulate a simple mathematical model which concentrates on the individual's creative output (Section 2); Section 3 contains some brief hints on how to apply it in the framework of an organization.
Optimality of (s, S) Policies in the Infinite Horizon Dynamic Inventory Problem
Authors: Iglehart Donald L.
Published: November 2008

The optimal ordering policy for a n-period dynamic inventory problem in which the ordering cost is linear plus a fixed reorder cost and the other one-period costs are convex is characterized by a pair of critical numbers, (sn, Sn); see Scarf, [4]. In this paper we give bounds for the sequences {sn} and {Sn} and discuss their limiting behavior. The limiting (s, S) policy characterizes the optimal ordering policy for the infinite horizon problem. Similar results are obtained if there is a time-lag in delivery.
Comparative Evaluation of Performance Using Multiple Criteria
Authors: Terry Herbert
Published: November 2008

Comparative evaluation of performance, whether of personnel, products, or projects, may be necessary for purposes of selection, assignment, or improvement. Where multiple criteria are involved, it is useful to derive a single measure which will meaningfully distinguish among the competing items. In deriving such a measure, three factors are significant:

1) The specific purpose of the measure.

2) Type and amount of information available.

3) Relationship between various criteria.

Neglect of these factors results in needlessly complicated “scoring” systems or in misleading results.

The utility of various techniques is reviewed, and application of a Game Theory approach is discussed in detail.
An Experimental Application of the DELPHI Method to the Use of Experts
Authors: Dalkey Norman , Helmer Olaf
Published: November 2008

This paper gives an account of an experiment in the use of the so-called DELPHI method, which was devised in order to obtain the most reliable opinion consensus of a group of experts by subjecting them to a series of questionnaires in depth interspersed with controlled opinion feedback.
On the Equivalence of Some Inventory Systems
Authors: Naddor Eliezer
Published: November 2008

In an earlier paper (“Some Models of Inventory and an Application”, Management Science, Vol. 2, No. 4, July, 1956) the author analyzed four inventory systems which were referred to as Models I, II, III, IV. In the present paper the notion of equivalence of inventory systems is introduced and it is shown that Models I and II are equivalent and so are models III and IV. The results are also extended to systems with non-zero leadtime. In all cases considered it is shown that the total expected costs of the systems (with or without leadtime) can be expressed in the form [Formula: see text]
Communication to the Editor
Authors: Sharpe William F.
Published: November 2008

Author's comment about routines for quadratic programming given in his article “A Simplified Model for Portfolio Analysis,” (Management Science, January 1963, pp. 277–293).
Optimal Allocation of Leased Communication Lines
Authors: Hosford John E.
Published: November 2008

Many large companies and governmental agencies transmit a large quantity of long distance communications between facilities. Most of these organizations reduce the expense of transmitting these communications by leasing private telephone lines instead of using commercial long distance. The monthly expense of leasing telephone lines between two facilities depends upon the number of lines leased and the air miles between facilities; it is independent of usage. For this analysis, the number of lines leased between two facilities is called a link, and the aggregate of all the links leased by an organization is called a network. This paper presents a technique to determine the optimal number of lines to be leased on each link, subject to a limit on the network expense. The technique was developed for Lockheed Missiles & Space Company at Sunnyvale, California, and its implementation has provided management with a more efficient means of controlling the leased line network.
Obsolescence of Commodities which are Subject to Deterioration in Store
Authors: Eilon Samuel
Published: November 2008

When the useful life of a commodity in the field (“the field life”) is affected by the time the commodity spends in store prior to issue (“the store-age”), it is necessary to assess under what conditions goods become obsolete in the store before they are issued. Other problems of interest are: What is the total useful field life expected from a given stock-pile and what is the optimal quantity of goods that should be ordered? These problems are discussed for three cases:

1. A stock-pile of identical units

2. A stock-pile of non-identical units

3. A stock-pile of several batches of components.

It is further shown that the last case is a general model, from which the first two and several other special cases may be derived.
Remarks on the Kuehn-Hamburger Paper
Authors: Shycon Harvey N. , Maffei Richard B.
Published: November 2008

The general conclusion of our examination of the work of the Messrs. Kuehn and Hamburger [Kuehn, A. A., M. J. Hamburger. 1963. A heuristic program for locating warehouses. Management Sci. 9(4) 643–666.] is that they have made available an important tool for the study of the warehouse location problem. At present it appears to have significant limitations, but it is likely that further work can make it more useful. Ultimately some combination of these methods as a first approximation, and then the use of simulation techniques may provide the answer.
The Use of Regression Equations to Predict Manpower Requirements
Authors: Drui Albert B.
Published: November 2008

Hundreds and perhaps thousands of decisions are made each day that a company operates and none is more complex than the effective reduction of manpower. These reductions must be accomplished on a selective basis so that the functional areas of the company may remain in balance as business conditions change. An objective analysis of the nature of the manpower reduction problem may be made through the use of regression equations. Results should be tempered through good business judgement, with “complexity factors” introduced to temper the decisions made. The technique is illustrated with an actual case study in order to make a more realistic presentation.
Errata
Authors: Stoller David S.
Published: November 2008

Alterations that should be made to the text of the author's article “On the Determination of Occupational Categories in an Organization,” Management Science, Vol. 9, No. 2 (January 1963), pp. 337–340.
New Mathematical Methods in Operations Research
Authors: Koopman Bernard O.
Published: November 2008

On the somewhat infrequent occasions when a mathematician looks at the practical problems of operations research, his first impression is apt to be that only known and elementary parts of mathematics are needed. But if he dwells with the subject longer, his reaction tends to be quite the opposite: he begins to realize that, when rightly conceived and formulated, these practical problems often turn on mathematical questions deep enough to go beyond existing knowledge and to require for their answer research into new mathematical fields.

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.
The Reliability of Airborne Radar Equipment
Authors: Boodman David M.
Published: November 2008

One of the current aims in the design of electronic machines is the development of higher performance equipment utilizing, where possible, automatic control, guidance, and computing features. The incorporation of these features generally results in more complex and, hence, less reliable equipment. Since many situations requiring highly complex machinery also require a high degree of reliability, designers and users alike are confronted with the problems of deciding what degree of reliability in a given operation is acceptable and of determining the degree of complexity in a machine that will decrease the reliability beyond this acceptable value. The present paper examines these questions as they pertain to airborne radar equipment, whose growth in complexity in recent years has paralleled that of Naval electronics in general.

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.
A Comparison of Stochastic and Direct Methods for the Solution of Some Special Problems
Authors: Thomas L. H.
Published: November 2008

The amount of computing work required to reach a given precision by stochastic and by various direct methods is estimated for certain special problems. These comprise the evaluation of the definite integrals of functions of various types over multidimensional domains, the solution of partial differential equations over various domains, and problems of multiple scattering. The conclusion is reached that, although stochastic methods may be useful for rough surveys, precise results will usually require much less work by direct methods.

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.
Application of Operations-Research Techniques to Airborne Weapon System Planning
Authors: Bailey Robert A.
Published: November 2008

It is believed that the extension and application of operations research techniques to systems analysis can improve the basis for decisions on new airborne weapon systems. Although the surface has only been scratched in this field and many things are yet to be learned, experience to date has provided reason for confidence that these methods will prove to be reliable and useful tools for the executive over the years. As experience and know-how increase, and sufficient groups of qualified personnel become available in both industry and the military, such analyses should become recognized as matters of good business procedure. It is to be hoped that in the future standard practice both in industry and in the Department of Defense will require that systems analyses be performed in advance of all basic planning decisions for design and production of future weapon systems.

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.
Letters to the Editor—Letter from the Acting Editor
Authors: Shortley George
Published: November 2008

No abstract available.

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.
Sampling Methods in Railroad Accounting
Authors: Van Voorhis W. R.
Published: November 2008

When a package is shipped by rail from one point to another, a waybill is prepared at the originating freight office. This document shows, among other things, the total freight amount of the shipment. When a less-than-carload (lcl) shipment involves more than one railroad, the revenue from the shipment is apportioned (at the end of each month) among the participating carriers. Theoretically, it would be possible to compute for each individual waybill the required divisions of the revenue, in accordance with existing rate tables, ICC regulations, agreements, routing charts, etc., but, because of the tremendous number of lcl shipments, a monthly ‘100 per cent count’ would be prohibitive from the standpoint of cost and because of the lack of trained personnel. Consequently, railroads have agreed on a ‘percentage plan’ for making lcl ‘interline settlements.’

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.
Methods of Reducing Sample Size in Monte Carlo Computations
Authors: Kahn H. , Marshall A. W.
Published: November 2008

This paper deals with the problem of increasing the efficiency of Monte Carlo calculations. The methods of doing so permit one to reduce the sample size required to produce estimates of a fixed level of accuracy or, alternatively, to increase the accuracy of the estimates for a fixed cost of computation. Few theorems are known with regard to optimal sampling schemes, but several helpful ideas of very general applicability are available for use in designing Monte Carlo sampling schemes. Three of these ideas are discussed and illustrated in simple cases. These ideas are (1) correlation of samples, (2) importance sampling, and (3) statistical estimation.

Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.
Operations Analysis of Locating High-Speed Runway Exits
Authors: Read R. R. , Yoshikawa T.
Published: November 2008

The purpose of high-speed runway exits is to increase the capacity of a runway. This can be accomplished if the exits are properly located along the runway and other operational conditions are met. These conditions are discussed and runway operation is described. A probabilistic model describing the landing of aircraft is developed and used to locate the exits optimally. Benefits from the use of high-speed exits are presented in terms of increased landing capacity, decreased service time, and decreased delay.
Queuing for Gaps in High Flow Traffic Streams
Authors: Oliver R. M. , Bisbee E. F.
Published: November 2008

In this paper the authors study the queues that build up in a minor stream of traffic waiting to cross or merge with a major stream. The criterion for joining or crossing is that a gap between vehicles in the major stream be greater than or equal to some constant value. Several authors have studied the case where bulk service is provided for the minor stream queue with the appearance of each gap, in this paper the authors emphasize the higher flow rate situations where one car in the minor stream queue is released in a first-come first-serve fashion with the appearance of a gap. It is assumed that the minor stream is Poisson-fed while the intervehicle headways in the major stream are arbitrary but identically and independently distributed random variables.
The Dynamics of Brand Loyalty: A Markovian Approach
Authors: Harary Frank , Lipstein Benjamin
Published: November 2008

Our purpose is to attempt to apply the probabilistic methods of Markov chains to a systematic study of the phenomena of brand switching and brand loyalty. After summarizing the traditional basic concepts of Markov chains, we introduce concepts from the theory of directed graphs in order to provide a geometric and intuitive point of view. We then demonstrate that the set of all brands of a particular product category can be validly regarded as a concrete case of an abstract Markov chain. The implications of this approach for marketing strategy are also indicated. A simplified situation is employed to indicate various applications. This is followed by a discussion of real applications.
An Experimental Disposition of Alternative Bilateral Monopoly Models Under Conditions of Price Leadership
Authors: Fouraker L. E. , Siegel S. , Harnett D. L.
Published: November 2008

A controlled laboratory experiment was conducted to test human decision processes in an economic context. The economic model was bilateral monopoly, where one buyer is confronted by one seller. We employed the price leadership version, where one participant has an advantage over his adversary. The equilibrium solution (developed by Cournot and, later, by Bowley) for this situation is not Pareto optimal. This prediction is at variance with the observed central tendency of contracts negotiated under equal strength bilateral monopoly, so an established alternative hypothesis is available. The results, in general, support the Cournot-Bowley equilibrium solution. However, it is possible to shift the central tendency of contracts to the mid point of the Paretian optima by appropriate experimental controls.
Queuing With Fixed and Variable Channels
Authors: Moder Joseph J. , Phillips Cecil R.
Published: November 2008

The process treated in this paper is one in which the number of service channels is limited and the queue is unlimited. Arrivals and services are under steady-state conditions and exponentially distributed. Arrivals form in a single queue under strict queue discipline. The number of manned channels increases from a fixed minimum number, σ, when the queue reaches a given length N. When the maximum number of channels S, (S > σ) are operating, no further increases are possible and the queue is unbounded. Channels are cancelled when the number of units in the queue drops to v(O ≦ v ≦ N − 2) and a service is completed. Seven model equations describing the process are solved, giving explicit expressions for the state probabilities. The usual measures of effectiveness are developed, together with a new measure appropriate to this model, i.e., the mean number of channel starts per unit time. Sample computations are made on the measures of effectiveness, indicating their sensitivity to the parameters and their application to various problems.