bluuebunny/crossref_metadata_2025 huggingface dataset:
Venture Capitalists' Assessment of New Venture Survival
Authors: Shepherd Dean A.
Published: November 2008

This study investigates whether VCs' assessment policies of new venture survival are consistent with those arising from the strategy literature (using two established strategy perspectives). Strategy scholars suggest the nature of the markets, competition, and decisions made by the management team affect a new venture's survival chances. The findings demonstrate that VCs' assessment policies are predominantly consistent with those proposed by strategy scholars—providing insight into why VCs consider certain criteria in their assessment of new venture survival as well as why some criteria are more important in their assessment than others. Through this increased understanding of venture capitalists' decision making, entrepreneurs seeking capital may be better able to address their requests for funding to those criteria venture capitalists find most critical to the survival of a new venture. Venture capitalists may use these findings to better understand their own decision making process, which, in turn, provides the opportunity to increase evaluation efficiency.
Holistic Customer Requirements and the Design-Select Decision
Authors: Ulrich Karl T. , Ellison David J.
Published: November 2008

When confronted with the task of developing a new product, a firm chooses either to design new components, unique to the product application, or to select components from those offered in the catalogs of suppliers or from those already in use in its other products. We call this the design-selectdecision. The benefits of selecting an existing component include minimizing investment, exploiting economies of scale, and preserving organizational focus. On the other hand, designing product-specific components allows a firm to (a) maximize product performance with respect to holistic customer requirements—those requirements that arise in a complex way from most of the components of a product; (b) minimize the size and mass of a product; and (c) minimize the true variable costs of production. When these benefits exceed those from selecting existing components, firms will tend to design product-specific components. Our approach is to develop this theory by linking concepts from marketing, technological innovation, and engineering design. This theory yields four testable hypotheses. A cross-sectional analysis of 225 products finds substantial support for the theory.
Information Aggregation and Communication in Organizations
Authors: Jehiel Philippe
Published: November 2008

Operating units must communicate their private information regarding decisions to be taken in organizations. This paper characterizes the optimal communication structures assuming that (i) a decision maker is fired whenever he makes a decision that proves wrong ex post relative to the status quo; and (ii) direct communication in a group of kunits may result in the loss of messages with a probability that solely depends on the group size. Several levels of partitioning with direct communication taking place in each group are required. It is shown that there exists a group size that allows communication technology to be exploited optimally: The optimal communication structure is such that it is essentially composed of groups of this size only at every level of partitioning.
Cross-Utilization of Workers Whose Capabilities Differ
Authors: Campbell Gerard M.
Published: November 2008

This paper develops a model for allocating cross-trained workers at the beginning of a shift in a multidepartment service environment. It assumes departments are trying to maximize objective functions that are concave with respect to the number of workers assigned. Worker capabilities are described by parameters that range from zero to one, with fractional values representing workers who are less than fully qualified. The nonlinear programming model presented is a variant of the generalized assignment problem.

The model is used in a series of experiments to investigate the value of cross-utilization as a function of factors such as demand variability and levels of cross-training. Results show that the benefits of cross-utilization can be substantial, and in many cases a small degree of cross-training can capture most of the benefits. Beyond a certain amount additional cross-training adds little additional value, and the preferred amount depends heavily on the level of demand variability.
Variance vs. Standard Deviation: Variability Reduction Through Operations Reversal
Authors: Kapuscinski Roman , Tayur Sridhar
Published: November 2008

We show that if the analysis of the model of Lee and Tang used standard deviation rather than variance, some nonintuitive predictions of their analysis would be eliminated.
Dynamic Pricing for Network Service: Equilibrium and Stability
Authors: Masuda Yasushi , Whang Seungjin
Published: November 2008

Consider a data communication network owned and operated by a single organization. The network has an infinite number of small users and is managed by a system manager (SM) whose objective is to maximize the net value of the system as a whole. The objective of this paper is to study pricing mechanisms that induce the optimal arrival rates when the SM has no full knowledge of the demand in advance. We investigate the system behavior under three alternative dynamic pricing rules and users' expectations models, and characterize the equilibrium and its stability conditions.
Localization of Knowledge and the Mobility of Engineers in Regional Networks
Authors: Almeida Paul , Kogut Bruce
Published: November 2008

Knowledge, once generated, spills only imperfectly among firms and nations. We posit that since institutions and labor networks vary by region, there should be regional variations in the localization of spillovers. We investigate the relationship between the mobility of major patent holders and the localization of technological knowledge through the analysis of patent citations of important semiconductor innovations. We find that knowledge localization is specific to only certain regions (particularly Silicon Valley) and that the degree of localization varies across regions. By analyzing data on the interfirm mobility of patent holders, we empirically show that the interfirm mobility of engineers influences the local transfer of knowledge. The flow of knowledge is embedded in regional labor networks.
Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain
Authors: Cachon Gérard P. , Zipkin Paul H.
Published: November 2008

We investigate a two-stage serial supply chain with stationary stochastic demand and fixed transportation times. Inventory holding costs are charged at each stage, and each stage may incur a consumer backorder penalty cost, e.g. the upper stage (the supplier) may dislike backorders at the lower stage (the retailer). We consider two games. In both, the stages independently choose base stock policies to minimize their costs. The games differ in how the firms track their inventory levels (in one, the firms are committed to tracking echelon inventory; in the other they track local inventory). We compare the policies chosen under this competitive regime to those selected to minimize total supply chain costs, i.e., the optimal solution. We show that the games (nearly always) have a unique Nash equilibrium, and it differs from the optimal solution. Hence, competition reduces efficiency. Furthermore, the two games' equilibria are different, so the tracking method influences strategic behavior. We show that the system optimal solution can be achieved as a Nash equilibrium using simple linear transfer payments. The value of cooperation is context specific: In some settings competition increases total cost by only a fraction of a percent, whereas in other settings the cost increase is enormous. We also discuss Stackelberg equilibria.
Coordinating Investment, Production, and Subcontracting
Authors: Van Mieghem Jan A.
Published: November 2008

We value the option of subcontracting to improve financial performance and system coordination by analyzing a competitive stochastic investment game with recourse. The manufacturer and subcontractor decide separately on their capacity investment levels. Then demand uncertainty is resolved and both parties have the option to subcontract when deciding on their production and sales. We analyze and present outsourcing conditions for three contract types: (1) price-only contractswhere an ex-ante transfer price is set for each unit supplied by the subcontractor; (2) incomplete contracts, where both parties negotiate over the subcontracting transfer; and (3) state-dependentprice-only and incomplete contracts for which we show an equivalence result.

While subcontracting with these three contract types can coordinate productiondecisions in the supply system, only state-dependent contracts can eliminate all decentralization costs and coordinate capacity investmentdecisions. The minimally sufficient price-only contract that coordinates our supply chain specifies transfer prices for a small number (6 in our model) of contingent scenarios. Our game-theoretic model allows the analysis of the role of transfer prices and of the bargaining power of buyer and supplier. We find that sometimes firms may be better off leaving some contract parameters unspecified ex-ante and agreeing to negotiate ex-post. Also, a price-focused strategy for managing subcontractors can backfire because a lower transfer price may decrease the manufacturer's profit. Finally, as with financial options, the option value of subcontracting increases as markets are more volatile or more negatively correlated.
The Use of Information System Technology to Develop Tests on Insider Trading and Asymmetric Information
Authors: Marsden James R. , Tung Y. Alex
Published: November 2008

Issues related to insider trading remain popular research topics. Empirical studies using historical data are limited by two key factors: 1) the inability to identify exactly who possesses inside information, and 2) the inability to identify the accuracy of information possessed. Advances in information system technology enable us to overcome these problems in the laboratory. Using this technology, we create a research shell to conduct experiments where we can identify the exact type and quality of information accessible by each trader. Our system includes the capability to monitor individual activities in accessing inside information. The system can automatically impose a monetary penalty if random monitoring identifies a trader accessing inside information. Our experiments involve traders who receive access to inside information without initial knowledge of the quality of that information. The results indicate that traders were able to outperform the market if penalties for being caught accessing such information were not included. Once penalties were included, however, no significant performance differences were observed. Finally, in a second set of experiments involving a simplified market with infrequent electronic monitoring and low penalty amounts, inside information seemed to be rapidly and effectively disseminated to traders possessing no inside information.
Short- or Long-Duration Coupons: The Effect of the Expiration Date on the Profitability of Coupon Promotions
Authors: Krishna Aradhna , Zhang Z. John
Published: November 2008

United States firms collectively spend over $6.5 billion annually on coupon promotions and are becoming increasingly concerned with their profitability. FSI (free-standing-insert) data show that coupon duration varies across brands. In this paper, we show how coupon duration can affect coupon profitability. We also provide answers for some empirical observations on coupon duration. We explain, for example, why (i) coupon duration will vary across firms, such that large market share firms will give short-duration coupons and small market share firms will give long-duration coupons; (ii) longer coupon duration for one brand will increase redemption for coupons of that brand and of a competing brand; (iii) coupon duration will affect coupon profitability.
Technological Resources and the Direction of Corporate Diversification: Toward an Integration of the Resource-Based View and Transaction Cost Economics
Authors: Silverman Brian S.
Published: November 2008

This study considers how a firm's resource base affects the choice of industries into which the firm diversifies. It offers two main extensions of prior research. First, it operationalizes technological resources at a more detailed level than in prior studies, thereby enabling a more stringent analysis of the direction of diversification. This analysis shows that the predictive power of the “resource-based view of the firm” is greatly improved when resources are measured at a finer level. Second, the study integrates principles from transaction cost economics into resource-based predictions concerning diversification. In particular, it tests the common assumption that rent-generating resources are too asset specific to allow contracting. The findings point to circumstances where resources can be and are exploited through contracting rather than through diversification.
Profits and Productivity
Authors: Grifell-Tatjé E. , Lovell C. A. K.
Published: November 2008

In this study we consider the linkage between productivity change and profit change. We develop an analytical framework in which profit change between one period and the next is decomposed into three sources: (i) a productivity change effect (which includes a technical change effect and an operating efficiency effect), (ii) an activity effect (which includes a product mix effect, a resource mix effect, and a scale effect), and (iii) a price effect. We then show how to quantify the contribution of each effect, using only observed prices and quantities of products and resources in the two periods. We illustrate our analytical decomposition of profit change with an empirical application to Spanish banking during the period 1987–1994.
Process Variation as a Determinant of Bank Performance: Evidence from the Retail Banking Study
Authors: Frei Frances X. , Kalakota Ravi , Leone Andrew J. , Marx Leslie M.
Published: November 2008

This paper explores the relation between retail banks' branch-based processes and financial performance. There are 11 processes included in this study, which represent the bulk of the activities performed in a typical retail branch (e.g., opening checking accounts). The first finding of this study is that the financial performance of banks that perform better across these processes tend to be better than that of other banks. In addition to the variation in process performance across banks, there is also substantial variation across processes within banks. That is, banks that performed well in one process often performed quite badly in another. We present an analytical model that shows that improvement in process variation can be more important than improvement in aggregate process performance when dealing with certain customer segments. Empirical evidence from the Wharton Financial Institution Center Retail Banking Study of bank holding companies in the United States provides support.
Operations, Quality, and Profitability in the Provision of Banking Services
Authors: Soteriou Andreas , Zenios Stavros A.
Published: November 2008

We develop a framework for combining strategic benchmarking with efficiency benchmarking of the services offered by bank branches. In particular, a cascade of efficiency benchmarking models is developed guided by the service-profit chain. Three models—based on the nonparametric technique of Data Envelopment Analysis—are developed in order to implement the framework in a practical setting: (i) an operational efficiency model, (ii) a service quality efficiency model, and (iii) a profitability efficiency model. The use of the models is illustrated using data from the branches of a commercial bank. Empirical results indicate that we gain superior insights by analyzing simultaneously the design of operations together with the quality of the provided services and profitability, rather than by benchmarking these three dimensions separately. Relationships are also established between operational efficiency and profitability, and between operational efficiency and service quality.
On the Translocation of Masses
Authors: Kantorovitch L.
Published: November 2008

The following paper is reproduced from a Russian journal of the character of our own Proceedings of the National Academy of Sciences, Comptes Rendus (Doklady) de I'Académie des Sciences de I'URSS, 1942, Volume XXXVII, No. 7–8. The author is one of the most distinguished of Russian mathematicians. He has made very important contributions in pure mathematics in the theory of functional analysis, and has made equally important contributions to applied mathematics in numerical analysis and the theory and practice of computation. Although his exposition in this paper is quite terse and couched in mathematical language which may be difficult for some readers of Management Science to follow, it is thought that this presentation will: (1) make available to American readers generally an important work in the field of linear programming, (2) provide an indication of the type of analytic work which has been done and is being done in connection with rational planning in Russia, (3) through the specific examples mentioned indicate the types of interpretation which the Russians have made of the abstract mathematics (for example, the potential and field interpretations adduced in this country recently by W. Prager were anticipated in this paper).

It is to be noted, however, that the problem of determining an effective method of actually acquiring the solution to a specific problem is not solved in this paper. In the category of development of such methods we seem to be, currently, ahead of the Russians.—A. Charnes, Northwestern Technological Institute and The Transportation Center.
LIFO vs FIFO in Inventory Depletion Management
Authors: Lieberman Gerald J.
Published: November 2008

In their paper (Derman, C., M. Klein. Inventory depletion management. Technical Report No. 2, Oct. 1957, Statistical Engineering Group, Columbia University.), Derman and Klein present sufficient conditions on the field life of an item function under which a LIFO policy is optimal. This paper presents an alternate set of sufficient conditions under which a LIFO policy is optimal.
A Theory of Conveyors
Authors: Kwo T. T.
Published: November 2008

The common loop overhead conveyor linking two manufacturing process areas is studied as a mechanism for transforming the output flow of one area into the input flow of the other. The variables relevant to a smooth transformation of flows and their inter-relationships are explored. Findings are formulated into three principles. On the conveyor operation problem, distinguished from the design problem, two methods of simulation are developed and practical suggestions advanced for use in feasibility and optimality considerations. A fundamental observation is that a conveyor is part of a dynamic system, hence information on the connected areas is essential to its smooth operation.
A Suggested Computation for Maximal Multi-Commodity Network Flows
Authors: Ford L. R. , Fulkerson D. R.
Published: November 2008

A simplex computation for an arc-chain formulation of the maximal multi-commodity network flow problem is proposed. Since the number of variables in this formulation is too large to be dealt with explicitly, the computation treats non-basic variables implicitly by replacing the usual method of determining a vector to enter the basis with several applications of a combinatorial algorithm for finding a shortest chain joining a pair of points in a network.
Game Theory and Cumulative Voting for Corporate Directors
Authors: Glasser Gerald J.
Published: November 2008

Game theory may be used to describe and to analyze corporate elections which are based upon a system of cumulative voting. In these games a strategy is a partition of one's votes among a slate of candidates. A minimax strategy is such a partition which guarantees a voter a certain security level in terms of the number of directorships he can win irrespective of how his opponents vote. These minimax strategies, although not so called, are equivalent to decision rules on how to vote found throughout the literature of business organization.
Welfare Pricing and Transport Costs
Authors: Tyndall D. G.
Published: November 2008

This paper attacks the problem of setting prices and outputs in a set of plants producing a given commodity but having differing cost-output functions, where producing and consuming locations are separated geographically so that transport cost in some (or all) cases are significantly greater than zero. We seek an optimal allocation of resources within the framework of orthodox welfare assumptions. Where Marginal Cost functions are non-decreasing, optimality is achieved at the classical competitive equilibrium point. Our problem is to determine this point. Given cost and demand functions of simple types, a solution can be obtained by programming methods, e.g., the Simplex method. However, where the number of significant producing and consuming locations is small, a simple iterative procedure can be applied even though the cost and demand functions be quite complex.
A Model for Personnel Recruiting and Selection
Authors: Kao Richard C. , Rowan Thomas C.
Published: November 2008

This paper presents a mathematical model for determining a minimum cost strategy for the following personnel recruiting and selection situation. A quota is set for the minimum number of good employees to be added each period, and selection is done on the basis of a test having a known correlation with the given criterion of job success. There is a total cost for all individuals recruited and a loss attached to each person hired who turns out to be unsatisfactory. The problem is to determine a minimum acceptable score on the selection test and the number of persons to be recruited which will yield a minimum cost, including loss, as well as satisfy the prescribed quota at a given probability level.
The Systems Research Laboratory's Air Defense Experiments
Authors: Chapman Robert L. , Kennedy John L. , Newell Allen , Biel William C.
Published: November 2008

The “off-the-top” findings of the air-defense experiments conducted in RAND's Systems Research Laboratory between 1952 and 1954 were the training principles that are the basis of the system training program being implemented by the System Development Corporation.

There are, however, other theoretical and methodological implications.

The desired performance of complex systems can be realized only through designing and managing them for operational flexibility. This can be done by harnessing the learning ability of men in organizations. Conditions for encouraging men to adapt system's resources to most efficient use follow from the organism analogy—a key notion for explaining the behavior of the four crews studied.

In addition, the simulation techniques developed in the course of the research provide a means for continued “head-on” attacks on a crucial problem of the present day—that of better understanding the adaptation process in organizations, so that it can be used and controlled.

The paper is in the form of a report of a scientific search. The story of experimental mistakes, modifications in method, and successive insights is presented to convey the essence of an ambitious investigation at the frontier of knowledge where the terrain is not well-mapped and the research tools are being developed as needed.
Sequencing n Jobs on Two Machines with Arbitrary Time Lags
Authors: Mitten L. G.
Published: November 2008

Each of n jobs must be run first on machine I and then on machine I. Running times for each job on each machine are given. Also specified are arbitrary time lags which prescribe that a job may not be started (completed) on machine II until at least a certain time has elapsed since starting (completing) the job on machine I. A rule is given for determining the sequence in which jobs are to be run on the machines—using the same sequence for both machines—in order to minimize the time between the start of production of the first job on machine I and the completion of production of the last job on machine II.
Discussion: Sequencing n Jobs on Two Machines with Arbitrary Time Lags
Authors: Johnson S. M.
Published: November 2008

This note presents an alternate proof of a result of L. G. Mitten, solving the problem of sequencing n jobs through two machines with arbitrary time lags when the job sequences are the same for both machines. The more difficult general problem is also discussed and partially solved.
Graph Theoretic Methods in the Management Sciences
Authors: Harary Frank
Published: November 2008

The purpose of this paper is to illustrate the potential utility of graph theoretical methods for the management sciences. In a series of joint papers (16, 17, 18,19, 20) with I. C. Ross, we have combined a graph theoretical approach with matrix theory and set theory to handle problems concerning redundancies, liaison persons, cliques, and strengthening and weakening members of a group. The correspondence between these organizational concepts and ideas from graph theory (to be explained below) is as follows. A redundancy is analogous to a directed path which passes through the same point more than once. A liaison person in an organization has the role of a cut point of a connected graph. A clique is taken as a maximal complete subgraph. A strengthening member of a group is one whose presence causes the graph of a group to be more highly connected that the graph obtained when he is absent.
Production Lines and Internal Storage—A Review
Authors: Koenigsberg Ernest
Published: November 2008

An analysis and review of the basic problems associated with the efficient operation of production and assembly lines, and the evaluation of the effectiveness of internal storage. Three basic approaches are discussed: loss transfer (fractions of losses due to stoppage are transferred to succeeding stages) stochastic (distribution of durations of working and down states of each stage leading to determination of state probabilities) queue (treating production lines or queue systems with limitations on size of queue between stages) The concept of the cyclic queue is reviewed and discussed in production line terms (i.e., following a frame or jig through its cycles). The approaches are compared and industrial illustrations are given. The methods discussed apply to problems which, in physical appearance, are different from production lines; among these are chemical production, overhaul and repair systems, etc. A review of the field indicates that considerably more research and analysis is required.
Scheduling with Deadlines and Loss Functions
Authors: McNaughton Robert
Published: November 2008

The problem of this paper is that of scheduling several one-stage tasks on several processors, which are capable of handling the tasks with varying degrees of efficiency, to minimize the total loss, which is a sum of losses associated with the individual tasks.

Each task has a deadline; the individual loss associated with it is a function of amount of time between the deadline and the time of completion if the former precedes the latter, and zero otherwise.
A Few Remarks on the Assortment Problem
Authors: Sadowski Wieslaw
Published: November 2008

The paper deals with the assortment problem in a particular case—that of structural steel beams. Using the dynamic programming technique we show that this assortment problem is equivalent to the economic lot size problem and also to the routing problem.
On the Epistemology of the Inexact Sciences
Authors: Helmer Olaf , Rescher Nicholas
Published: November 2008

This is a new epistemological approach to the inexact sciences. The purpose of all science is to explain and predict in an objective manner. While in the exact sciences explanation and prediction have the same logical structure, this is not so in the inexact sciences. This permits various methodological innovations in the inexact sciences, e.g., expert judgment and simulation.
The Truck Dispatching Problem
Authors: Dantzig G. B. , Ramser J. H.
Published: November 2008

The paper is concerned with the optimum routing of a fleet of gasoline delivery trucks between a bulk terminal and a large number of service stations supplied by the terminal. The shortest routes between any two points in the system are given and a demand for one or several products is specified for a number of stations within the distribution system. It is desired to find a way to assign stations to trucks in such a manner that station demands are satisfied and total mileage covered by the fleet is a minimum A procedure based on a linear programming formulation is given for obtaining a near optimal solution. The calculations may be readily performed by hand or by an automatic digital computing machine. No practical applications of the method have been made as yet. A number of trial problems have been calculated, however.
The Optimum Reject Allowance Problem
Authors: Levitan R. E.
Published: November 2008

The problem of specifying an allowance for defects in a production lot is that of balancing the cost of producing too many items against the risk of not having enough to meet requirements. A model of these costs is here proposed.

Sufficient conditions are developed on the probability distribution of defectives for total cost to have a single minimum with respect to the allowance. A sequential algorithm is investigated and shown to produce an optimum allowance if certain further conditions on the probability are met. Next, it is shown for a special class of probability distributions that the above conditions are satisfied. This class is that for which the probability of an item being defective is independent of previous defects in the lot, and includes the binomial distribution. Finally some computational aspects of this algorithm are discussed, and an easily computable starting value is given.
Dynamic Inventory Policy with Varying Stochastic Demands
Authors: Karlin Samuel
Published: November 2008

A dynamic inventory model is formulated in which the demand distributions may change from period to period. The optimal policy at each stage is characterized by a single critical number which also could vary in successive periods. The dependence of the critical numbers as a function of stochastic ordering amongst distributions is developed under various conditions. Most of the studies are conducted under the assumption of linear purchasing cost. In §3 the possibility of convex purchasing cost is allowed.
Linear Programming and Sequential Decisions
Authors: Manne Alan S.
Published: November 2008

Using an illustration drawn from the area of inventory control, this paper demonstrates how a typical sequential probabilistic model may be formulated in terms of (a) an initial decision rule and (b) a Markov process, and then optimized by means of linear programming. This linear programming technique may turn out to be an efficient alternative to the functional equation approach in the numerical analysis of such problems. Regardless of computational significance, however, it is of interest that there should be such a close relationship between the two traditionally distinct areas of dynamic programming and linear programming.
Allocation under Uncertainty when the Demand has Continuous D.F.
Authors: Elmaghraby Salah E.
Published: November 2008

The problem of allocation under uncertain demand, when the latter has a continuous distribution function, is treated. A necessary and sufficient condition for optimality is given, and a numerical example is solved. This solution is compared with the L.P. solutions obtained under the assumptions of constant demand and demand with discrete d.f. It is seen that considerable savings can be realized by considering d.f.'s as continuous if they so occur in nature.
Forecasting Sales by Exponentially Weighted Moving Averages
Authors: Winters Peter R.
Published: November 2008

The growing use of computers for mechanized inventory control and production planning has brought with it the need for explicit forecasts of sales and usage for individual products and materials. These forecasts must be made on a routine basis for thousands of products, so that they must be made quickly, and, both in terms of computing time and information storage, cheaply; they should be responsive to changing conditions. The paper presents a method of forecasting sales which has these desirable characteristics, and which in terms of ability to forecast compares favorably with other, more traditional methods. Several models of the exponential forecasting system are presented, along with several examples of application.
A Note About Kantorovich's Paper, “Mathematical Methods of Organizing and Planning Production”
Authors: Koopmans Tjalling C.
Published: November 2008

Discussion on two early papers of Professor Kantorovich, from 1939 and 1949, that proved to be remarkable documents in the history of management science, of linear programming, and of economic theory in general. The 1949 paper discusses transportation models for a single commodity and for many commodities (including empty vehicles), and a single-commodity model for a capacitated network, with applications to sections of the Russian railroad network. All problems considered in the 1939 paper reprinted in this issue are what would now be called linear programming problems. The coefficient matrices of the problems labeled “A” and “B” exhibit special structures somewhat similar to that of the transportation problem matrix. Problem “C,” while appearing still to have a somewhat special structure, is in fact equivalent to the general linear programming problem.
Mathematical Methods of Organizing and Planning Production
Authors: Kantorovich L. V.
Published: November 2008

The author of the work “Mathematical Methods of Organizing and Planning Production”, Professor L. V. Kantorovich, is an eminent authority in the field of mathematics. This work is interesting from a purely mathematical point of view since it presents an original method, going beyond the limits of classical mathematical analysis, for solving extremal problems. On the other hand, this work also provides an application of mathematical methods to questions of organizing production which merits the serious attention of workers in different branches of industry.

This is the English translation of the famous 1939 article by L. V. Kantorovich, originally published in Russian.
Logistics Research and Management Science
Authors: Geisler Murray A.
Published: November 2008

The complexities of the Air Force pose a very hard challenge for the development and application of management science. At the same time, they provide a wide range of problems to study. RAND has been engaged in logistics research for the Air Force since 1953. This paper discusses the variety of subjects studied: demand prediction, inventory control, procurement and other decision rules, management control systems, etc. These have made use of many traditional tools of analysis and management science. In addition, simulation techniques have been found particularly useful in fitting together pieces of separate research into a systems context for feasibility and consistency tests.
Summary of a Heuristic Line Balancing Procedure
Authors: Tonge Fred M.
Published: November 2008

This paper presents a heuristic procedure for balancing production assembly lines and a computer program for carrying out that procedure. This research was undertaken to investigate the application of complex information processing techniques (as used in producing the Chess Machine and Logic Theorist) to a typical industrial problem.

The assembly line balancing problem is stated as:

Given an assembly process made up of elemental tasks, each with a time required per unit of product and an ordering with other tasks, what is the least number of work stations needed to attain a desired production rate?

The heuristic procedure for assembly line balancing consists of three phases: repeated simplification of the initial problem by grouping adjacent elemental tasks into compound tasks; solution of the simpler problems thus created by assigning tasks to work stations at the least complex level possible, breaking up the compound tasks into their elements only when necessary for a solution; smoothing the resulting balance by transferring tasks among work stations until the distribution of assigned time is as even as possible. The heuristics used in each phase are considered in some detail. Appropriate means for mechanizing such a procedure are discussed, and operating results of the program on actual problems are presented.
A Note on the Optimal Range
Authors: Eilon Samuel
Published: November 2008

With reference to previous publications on the advisability of defining an economic production range in case of batch production, it is pointed out that many industrial problems which involve optimization, may be characteristically similar. It is therefore desirable to study the sesitivity of the function to be optimized by computing an optimal range, for which a general approximation is suggested.
The Role of Management Games in Education and Research
Authors: Cohen Kalman J. , Rhenman Eric
Published: November 2008

This paper is intended to be a broad survey of both the present and the potential role of management games in education and research. Against a background of the history of business games, we first try to characterize the present development of these games. A few management games are described in some detail, and a number of others are mentioned only briefly. The differences between general and functional business games are discussed. Present uses of management games as a teaching device are surveyed and evaluated. Some hypotheses regarding the relations between the design and administrative characteristics of a business game and its educational properties are also formulated. What might be a major improvement over existing management games, here named the “game case,” is then suggested. In the concluding portion of this paper, the potential use of management games as a laboratory for business and social science research is surveyed. Some methodological problems which would arise from research uses of business games are also discussed.
A Network Flow Computation for Project Cost Curves
Authors: Fulkerson D. R.
Published: November 2008

A network flow method is outlined for solving the linear programming problem of computing the least cost curve for a project composed of many individual jobs, where it is assumed that certain jobs must be finished before others can be started. Each job has an associated crash completion time and normal completion time, and the cost of doing the job varies linearly between these extreme times. Given that the entire project must be completed in a prescribed time interval, it is desired to find job times that minimize the total project cost. The~method solves this problem for all feasible time intervals.
An Optimal Final Inventory Model
Authors: Hadley G. , Whitin T. M.
Published: November 2008

A model is developed which allows the determination of the optimal inventory level for an item at any time if no additional procurements are to be made. It is assumed that the item has a known date of obsolescence and that the demand is Poisson distributed with a fixed mean over the useful life of the tem. The model constitutes an extension of other life-of-type models in that both costs which are incurred at a fixed point in time (liquidation losses) and other costs which are a function of time (carrying charges and stock-out costs) are included. In many operational situations both of these types of costs are relevant.
Characteristics of Optimal Maintenance Policies
Authors: Bovaird Robert L.
Published: November 2008

This paper presents an approach to maintenance planning which utilizes mathematics and economic theory to help select an optimal maintenance condition. The maintenance problem is discussed first with respect to short run (daily) routine operating decisions, and then with respect to long run decisions as they relate to equipment design and to maintenance facilities. The maintenance problem is then stated in mathematical terms.

A cost minimizing maintenance model is described which takes account of such factors as deterioration and failure probabilities, manhours for preventive inspection and preventive repair, elapsed time for emergency diagnosis and repair, cost of setting up for periodic maintenance, cost of maintenance men, and cost of system downtime. A numerical example illustrates how the model can be used to determine the least cost combination of time between periodic maintenance, the number of maintenance men, and the number of periodics between inspections of each item for a required level of system operation.
Development of an Efficient Account-Numbering Method
Authors: Trueman Richard E.
Published: November 2008

The desirability of maintaining customer accounts in both alphabetic and numeric sequence is discussed. An~account-numbering method is described which provides almost exact alphabetic and numeric sequencing even though the original file may grow by several hundred percent. The mathematical basis for the method is developed and an illustrative example shows how the method would be applied to the design of a particular account system.
On Production Smoothing
Authors: Klein Morton
Published: November 2008

The production planning model of Modigliani and Hohn and the smoothing model of Hoffman and Jacobs are combined. The most interesting result is that the horizon planning properties of the individual models are retained in the combined model. Methods are also given for the computation of optimal production schedules for certain kinds of requirements schedules.
A Family of Inventory Models
Authors: Hadley G. , Whitin T. M.
Published: November 2008

An inventory control model in which the state of the system is reviewed only at discrete, equally spaced time intervals is studied. A procurement is made if at the review period the inventory position of the system is less than or equal to a number k. The quantity procured is an integral multiple of a number Q. The total expected cost of review, procurement, holding inventory, and stockouts is determined under the assumption that all demands are ultimately met. The cost of a stockout is taken to consist of a fixed cost per unit out of stock plus a variable cost which is proportional to the time out of stock. Specific expressions for all the cost expressions are found for the case of (1) Poisson demands and fixed lead times, and (2) Poisson demands and gamma lead times. It is shown that many of the inventory models discussed in the literature are special cases of the model here described.
Reactions to Intergroup Competition Under Win-Lose Conditions
Authors: Blake Robert R. , Mouton Jane Srygley
Published: November 2008

Findings from investigations concerning the dynamics of intergroup competition under win-lose conditions are summarized first. The second step is to demonstrate, by presenting a synopsis of a real case, how these findings can be applied in converting a situation of management-union conflict into one of collaboration. The conclusion is that the industrial ethic which causes groups to interact with one another on a competitive win-lose basis, must and can be replaced by the new ethic which makes it possible for groups to approach their differences in points of view from a problem-solving orientation based on openness and reinforced by mutual respect and trust.
Queues with Dynamic Priority Discipline
Authors: Jackson James R.
Published: November 2008

A report on the writer's computer simulation studies of queues in which service order is governed by due-date-like priorities. The main results are in the form of conjectures about the upper tails of the waiting-time distributions. Pertinent mathematical research is mentioned.
Inventory Valuations—An Analytic Technique
Authors: Mills Harlan D.
Published: November 2008

Recursive inventory decision processes, when formulated as dynamic programs, lead to functional equations. The unknown functions in these equations have arguments which range over the set of possible inventory conditions in the process, and values which represent the minimum possible expected present value of the costs of operating the process through the indefinite future. We call these functions “inventory valuations.”

The realism of such formulations and the difficulties of solving for the implicitly defined functions lead to an alternative proposal: that approximate inventory valuations be induced more directly from the context of the recursive inventory process. Methods of developing such valuations are illustrated in sample analyses.
A Redistribution Model with Set-Up Charge
Authors: Allen S. G.
Published: November 2008

This paper considers the problem of redistributing stock among several user activities within the period between regular deliveries of new supplies to the system. The cost of redistribution is assumed to be proportional to the number of shipments among the activities. A procedure based on minimizing total redistribution and shortage costs within the period is given for determining the amounts (if any) to be shipped among activities.
Some Experimental Non-Zero Sum Games with Lack of Information About the Rules
Authors: Shubik Martin
Published: November 2008

A discussion of the relationship between the theory of games and experimental gaming is presented. This includes comments on games of indefinite length and lack of knowledge concerning the rules. Six simple games are constructed and examined in the light of four different solution concepts. These games were used in an experiment with a class of Yale seniors as the subjects. The results of these experiments are discussed. They appear to lend weight to the non-cooperative equilibrium concept of solution.
On Some Works of Kantorovich, Koopmans and Others
Authors: Charnes A. , Cooper W. W.
Published: November 2008

The July, I960, issue of Management Science contains an English translation of an important original article by L. V. Kantorovich [Kantorovich, L. V. Mathematical Methods of Organizing and Planning Production. Leningrad University, 1939, with a Foreword by A. R. Marchenko (Russian). An English translation, prepared by R. W. Campbell and W. H. Marlow, appears under this same title in Management Science Vol. 6, No. 4, (July, 1960), pp. 366–422.] and an introductory note by T. C. Koopmans [Koopmans, T. C. 1960. A note about Kantorovich's paper, ‘Mathematical Methods of Organizing and Planning Production'. Management Sci. 6 (4, July) 363–365.] which is both evaluative and explanatory. In his penultimate paragraph, Professor Koopmans accords a tribute to this writing of Kantorovich which is at least partly deserved, although it is also paid for, we think, at too high a price in modesty for Professor Koopman's own work as well as the work of others. There is a certain lack of precision at critical points in the Kantorovich article which may tend to compound this price if allowed to stand through time. Professor Koopmans does not take adequate account of this lack of precision—e.g., in his discussion of the computing methods—perhaps because he restricted himself to a very short preface. Also, he runs together various major ideas (resolving multipliers, duality and efficiency prices) which need to be separated for more careful examination. Finally, the discussion is so cryptic as to raise some questions as to what Koopmans had in mind in his closing references wherein he compares Kantorovich's accomplishments (in the instant article) to those of von Neumann, Dantzig, et al.

In this paper we shall examine some of these ideas at greater length than Koopmans permitted himself but without necessarily confining ourselves to the instant article by Kantorovich or to its preface by Koopmans.