bluuebunny/crossref_metadata_2025 huggingface dataset:
The Development of a Factory Simulation System Using Actual Operating Data
Authors: LeGrande Earl
Published: November 2008

A Simulation Process was developed at the El Segundo Division of Hughes Aircraft company whereby actual shop operating data contained in an existing data processing system is used as input to an IBM 7090 computer for simulation of the El Segundo Fabrication Shop. The Simulation Process was used as a study tool to evaluate the effects of various management decisions on the operation of the Fabrication Shop.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
The Combination of Alternative Research Techniques in Logistics Systems Analysis
Authors: Geisler Murray A. , Steger Wilbur A.
Published: November 2008

A multiplicity of techniques must be used in systems analysis in order to answer the variety of questions that arise in research on management systems. A research organization devoted to solving management science problems will inevitably use mixtures of these techniques.

The purpose of this paper is to examine the nature of systems analysis, and past experiences with it, to help develop a strategy for selecting appropriate techniques. To facilitate the development of this strategy, several categorizations are developed: (1) of the characteristics of the kinds of systems studied by systems analysts; (2) of the many purposes of systems analysis; and (3) of the attributes of many systems analysis techniques. Then the simulation category is examined further with a more detailed breakdown presented on the spectrum of simulation techniques.

Finally, an illustration is given of the way in which the various systems analysis techniques have been used to evolve a greater understanding of supply and inventory policies and systems. There seems to be a natural way in which the use of the several techniques evolved and were fitted together. It is believed that this pattern has occurred in other large systems studies, and that it would be applicable to those large and complex systems in which there would not be a significant pool of prior research available.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
The Contribution of Systems Research to Long-Range Planning in the Defense Industry
Authors: Tombach Harold
Published: November 2008

Industrial long-range planning requires forecasts of market requirements, business environments and corporate (or divisional) capabilities. This article concerns itself with the problem of forecasting weapon markets. The needs for such forecasts are discussed and it is shown that mere reliance on official military plans, programs, statements, and “requirements” is a poor guide for long-range planning in the defense industry. It is further shown how system research studies can improve the forecasts sought. The proper conduct of such long-range-planning-oriented studies is outlined in some detail.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
Total Systems Concept
Authors: Graham Richard W.
Published: November 2008

There has been much written about “Scientific Management,” and its value and application to business operations. Advances in technology, particularly in the field of electronic computers, have stimulated changes of a significant nature in how data is obtained and processed in a business organization. With the development of more sophisticated machines to manipulate data rapidly and easily, there have been advances made in techniques to analyze and evaluate the data being processed. Various statistical methods and optimization schemes have become common tools to the scientist, market specialist, and financial analyst. The union of such techniques with electronic computers has resulted in the solution to many problems which heretofore were infeasible, if not impossible. The end result is that, today, management has at its disposal the tools and techniques to obtain and evaluate more data than ever before in the history of business. Data of itself, however, is meaningless. It is the combination of data in its various aspects which makes available to management that which it must have to operate effectively—that is, information.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
The Role of Information Systems in Decision Making
Authors: Chambers R. J.
Published: November 2008

The growing literature of decision-making focusses attention on the selection of an optimal course from a series of hypothetical courses. Discovery of the position from which future action is to be taken has received rather less attention. Information systems are considered as means of discovering the facts antecedent to decision and action.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
Second Generation Management Analysis
Authors: Ortner J. L.
Published: November 2008

There has been a steady introduction of new methods and techniques in the management area during recent years, and numerous speakers have made presentations to you in each of these areas. Nevertheless, I have somewhat presumptuously, I must admit, entitled my talk “Second Generation Management Analysis.” This title carries the connotation that all previous developments may be classed as the first generation, and we are now ready to enter the second generation. This connotation is exactly what I wish to portray since I feel it properly reflects where we stand today. My task now is to justify this claim to you.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
Acquisitions Planning Panel
Authors: Dettmer Robert , Bokum William H. , Kirkpatrick Neil , MacKinnon A. M. , Stillman Robert D.
Published: November 2008

Condensed transcripts of the Acquisitions Planning Panel of the TIMS College of Planning, Moderator was Robert Dettmer, panelists were William H. Bokum, Neil Kirkpatrick, A. M. MacKinnon, and Robert D. Stillman.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
Research and Development Planning Panel
Authors: Gross Norman , Barnes Carl B. , Hannock Julius , Hufnagel R. , Rose Robert S.
Published: November 2008

Condensed transcripts of the Research and Development Planning Panel of the TIMS College of Planning. Moderator was Normal Gross, panelists were Carl B. Barnes, Julius Hannock, R. Hufnagel, Robert S. Rose, Jr.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.
Evolution of a “Science of Managing” in America
Authors: Smiddy Harold F. , Naum Lionel
Published: November 2008

Wherever people have gathered to pursue a common and desired end, there has been an inevitable necessity to organize minds, hands, materials, and the use of time for efficient and contributive work. Man has learned that individual and personal rewards derive largely from an harmonious combination of individual work and teamwork in a soundly organized frame of reference, and thus the core of the history of “Scientific Management” is formed from his search for the techniques of joint but voluntary participation while still preserving individual initiative, creative imagination, and increasingly productive output.

Any historical survey, to be of more than passing interest, and to be more than a simple chronology of dates and names, needs to seek out the philosophical drives which both stimulated and limited the progress of such a scientific approach to more rational conception and performance of managerial work, that is, of securing results through the organized efforts of others.

While it is important to know when things happened, this knowledge only becomes significant and useable when it is understood why things happened. This paper, therefore, is intended to outline the gradual historical development of the search for the basic principles of a “Science of Managing,” and thus of Scientific Management, rather than to be a simple recounting of experiment, methodology, or significant writings in that field.
Computing in Management Science
Authors: Hurd Cuthbert C.
Published: November 2008

First, there will be a general description of the nature of a computing or data processing machine followed by illustrations of how it is that computers can speed the processing of information. Section II discusses the character of scientific method in order to form a basis for the ideas to be described under Sections III, IV, and V. Section III considers linear equations, with examples being given of their application to management problems. Section IV involves the notion of simulation, together with examples of how this idea can be used in management. Section V includes the design of experiments particularly with respect to obtaining better statistics for use in simulation.
The Use of Mathematics in Production and Inventory Control—II (Theory of Scheduling)
Authors: Vazsonyi Andrew
Published: November 2008

In a previous paper (The Use of Mathematics in Production and Inventory Control—I, (Theory of Parts Listing). Paper published in Management Science, vol. 1, no. 1, October 1954. We refer to this report as (I).), the problem of parts requirements was analyzed with the aid of matrix equations. In the present paper, this analysis is extended to include the time dependence of parts requirements. A system of equations is developed which relates to a given shipping schedule the schedule of requirements for each assembly, or subassembly.
Identification of the Liaison Persons of an Organization Using the Structure Matrix
Authors: Ross Ian C. , Harary Frank
Published: November 2008

Linear graphs have been utilized by several authors to provide a geometric depiction of the structure of a group. Graphs will be defined in the next section where it will also be shown that they are in a one-to-one correspondence with certain square matrices whose only elements are 0 and 1. These corresponding matrices have been used as a mathematical model by others. Both viewpoints are combined here to provide a systematic procedure for identifying the liaison persons in an organization.
Comment on “Smooth Patterns of Production”
Authors: Sherman S.
Published: November 2008

A comment on Hoffman, A. J., Walter Jacobs. 1954. Smooth patterns of production. Management Sci. 1 86–91.
The Environment for Effective Operations and Systems Research
Authors: Miser Hugh J.
Published: November 2008

Banquet address delivered at the U. S. Army Operations Research Symposium in Durham, N. C., 27 March 1963; it appears here in slightly revised form.
An Inventory Problem with Discrete Time Review and Replenishment by Batches of Fixed Size
Authors: Resh M. , Naor P.
Published: November 2008

An inventory system under periodic review is considered. If at the time of review the stock has fallen below a given level, L, a fixed quantity, Q, is ordered; otherwise no action is taken. It is assumed that delivery time is negligible. Two costs are considered to be of importance: one proportional to the average overage, the second proportional to the average shortage.

Under exponential demand assumptions optimal values of L and Q are obtained.
Some Tactical Problems in Digital Simulation
Authors: Conway R. W.
Published: November 2008

This paper is concerned with the manner in which an investigation by simulated experimentation is conducted, after the model has been formulated and the computer program completed. It considers the problem of estimating the precision of the results obtained, and methods of improving the precision of results. Alternative procedures are discussed and recommendations are given.
Technical Characteristics of Distribution Simulators
Authors: Gerson Martin L. , Maffei Richard B.
Published: November 2008

The technical characteristics of a procedure to simulate a national distribution system are discussed and compared to linear programming techniques often used in such analyses. The manner in which the cost-generating elements of the system were structured for simulation and the procedure for assigning customers to warehouses are both examined in detail.
The Power of a Coalition
Authors: Maschler Michael
Published: November 2008

If certain information is given about the “psychology” of the players who participate in an n-person cooperative game, concerning their bargaining abilities, their moral codes, their roles in the various coalitions and their a priori expectations, then it is possible to define a measure for the power of each coalition which, perhaps, is a better description of the game than the usual characteristic function.

The required information, called the standard of fairness of the players is a Thrall partition function which satisfies certain requirements. Its determination is discussed both from an experimental and from a theoretical point of view.

In terms of the power, every game becomes a constant-sum game. Applications to the von Neumann and Morgenstern solutions and to the bargaining set are discussed.
Estimation, Control and Verification Procedures for a Reliability Model Based on Variables Data
Authors: Ehrenfeld Sylvain , DeCicco Henry
Published: November 2008

A technique is discussed for framing a reliability model in terms of variables data rather than attribute data. A particular model is developed in terms of a Gamma process; it is believed that such a model may prove applicable to items undergoing long term storage, especially where continuous observations are not feasible. Estimates of the parameters of the model, along with a discussion of prodcedures for control and verification are included.
The Sequential Unconstrained Minimization Technique for Nonlinear Programing, a Primal-Dual Method
Authors: Fiacco Anthony V. , McCormick Garth P.
Published: November 2008

This article is based on an idea proposed by C. W. Carroll for transforming a mathematical programming problem into a sequence of unconstrained minimization problems. It describes the theoretical validation of Carroll's proposal for the convex programming problem. A number of important new results are derived that were not originally envisaged: The method generates primal-feasible and dual-feasible points, the primal objective is monotonically decreased, and a subproblem of the original programming problem is solved with each unconstrained minimization. Briefly surveyed is computational experience with a newly developed algorithm that makes the technique competitive with known methodology. (A subsequent article describing the computational algorithm is in preparation.)
Effect of Organization Size on Validity of Intelligence Score as a Predictor of Executive Success
Authors: Porter Albert
Published: November 2008

A population of 428 pre-1944 male Stanford Graduate School of Business MBAs was analyzed for association between executive success criteria and pre-MBA-award intelligence score on either the Thorndike Examination for High School Graduates or the Ohio State University Psychological Test, controlling for size of employing organization (large N = 99, medium N = 221, and tiny N = 108). The only significant validity coefficient was −0.30 (1% level) with the criterion “job interest.” The null hypothesis was rejected for that coefficient, but a warning is given against generalizing or inferring practical implications from this or any similar study at today's primitive stage of executive success prediction research. Management philosophy is undergoing a profound transition from folklore to science. Research is needed to test the validity of existing folklore practices and to test the new hypotheses of management-science scholars. Traditional intelligence tests such as the Thorndike or Ohio have not adequately shouldered the burden of proof to justify their use in executive selection, whatever the organization size.
A Note on Economic Lot Sizes for Multi-Purpose Equipment
Authors: Krone L. H.
Published: November 2008

The static deterministic inventory model has been extended to the problem of multi-purpose equipment scheduling. The cycle time which will minimize the sum of inventory, backorder, and setup charges is determined.
A Comparison of Order Quantities Computed Using the Average Annual Cost and the Discounted Cost
Authors: Hadley G.
Published: November 2008

This note compares the optimal order quantities determined by minimizing the average annual cost and by minimizing the discounted cost over all future time for the simplest imaginable type of inventory model in which the demand rate is assumed to be deterministic and no stockouts are allowed. By specific numerical results it is shown that for all values of the parameters that might reasonably be encountered in an inventory problem there is only a negligible if any difference in the order quantities. It is shown, however, that in extreme cases significant differences may be obtained.
Optimum No-Risk Strategy for Win-Place Pari-Mutuel Betting
Authors: Willis Kenneth E.
Published: November 2008

The problem of finding an optimum, no-risk strategy for placing simultaneous win and place pari-mutuel bets is formulated in terms of a linear programming problem. For a basic feasible solution (i.e., a profitable schedule of bets) to exist, it is necessary for the win and place pools to weight the contestants differently. If the stake holder removes a fraction of the pool, then a solution is not guaranteed, but will exist if this difference in win-place weighting is sufficient. A simple example is presented.
Errata
Authors: McCall John J.
Published: November 2008

I have detected the following minor errors in my article, “Operating Characteristics of Opportunistic Replacement and Inspection Policies," Management Science, Vol. 10, No. 1 (October 1963), pp. 85–98, that might possibly cause some confusion. The first five “t's” appearing in the Preliminaries (p. 87), the first five “t's” in the Preliminaries (p. 88) and the first five “t's” in the Preliminaries (p. 90) should all be “X's”.
Performance Evaluation in Marketing Systems
Authors: King William R.
Published: November 2008

The use of multiple performance criteria which account for both the static and dynamic aspects of marketing systems is proposed as a necessary step toward scientific marketing analysis. Currently, over-all evaluations using multiple performance measures are difficult to make and even more difficult to interpret meaningfully. Fisher's technique of discriminant functions is utilized to estimate the mathematical relationship between the relevant marketing performance measures which best “matches” subjective classifications agreed upon by a number of business executives. An application of the technique involving the evaluation of a consumer product's performance in various market areas is discussed. The problems of bias and multicollinearity, their relationship to the conceptual approaches, and their effect on the use of the performance measure are also discussed using the particular problems encountered in the application to illustrate the various points.
A Test of a Statistical Method for Computing Selected Inventory Model Characteristics by Simulation
Authors: Geisler Murray A.
Published: November 2008

This article is a companion piece to M. A. Geisler, The Sizes of Simulation Samples Required to Compute Certain Inventory Characteristics with Stated Precision and Confidence, MANAGEMENT SCIENCE, January, 1964. Special statistical methods were used in that article to compute the sample sizes for specified inventory models. In this article, the methods were tested by applying them to particular inventory cases, and determining how well the actual precision and confidence obtained in the estimates agreed with expectation.

We found that the actual precision and confidence obtained for each of the inventory policies and procurement lead-time cases tested did correspond closely with expectation. Thus, it was expected that 95 per cent of the samples of the zero procurement lead-time cases tried would have sample values within 100 per cent of the true mean value. In the shortage calculations, the results ranged from 94.3 to 97.6 per cent, and for the overages, the range was from 95.6 to 99.9 per cent. From this test, we concluded that the statistical procedure given in the prior article is valid, and produces reliable estimates of mean shortages and overages per period.
A Dynamic Programming Algorithm for Embedded Markov Chains when the Planning Horizon is at Infinity
Authors: de Cani John S.
Published: November 2008

This paper presents an algorithm for the solution of dynamic programming problems requiring the determination of optimal policies for the control of a special class of stochastic processes when the time horizon of the planning period is at infinity. These processes can be mathematically described as discrete time parameter Markov chains with a finite number of states which have been “embedded” in continuous time in the sense that the time between transitions is a random variable whose probability distribution depends only on the states between which the transition takes place. Such processes are called Markov-renewal processes. The Markov processes considered by R. A. Howard in [1] are really two special cases of this somewhat wider class of stochastic processes. In these two special cases, the algorithm of this paper is identical with Howard's. In fact, with only slight modification, Howard's algorithm can be extended to this wider class of stochastic processes.
Resource Allocation in a PERT Network Under Continuous Activity Time-Cost Functions
Authors: Berman E. B.
Published: November 2008

This paper describes a conceptual model which allocates resources in a PERT network, the activities of which are subject to continuous concave-upward time-cost functions, in such a way as to achieve a minimum cost solution for a given completion date for the program described by the network. A parametric solution for the minimum cost solution at various total program times is also briefly described. The effect of uncertainty in the time of completion of an activity has also been investigated in a highly simplified model; and a tentative conclusion is presented that such uncertainty tends to divert resources toward the earlier part of the program, as compared to the solution under certainty.
Optimal Policies for a Class of Search and Evaluation Problems
Authors: MacQueen James B.
Published: November 2008

A person searches through a population of possible actions, looking for one with high value. He discovers these actions one after another, paying a certain cost each time. On his first encounter with a possible action, the person obtains some preliminary information about its actual value, and at this point he can take the action, he can continue looking, or, at a certain cost, he can perform a test and obtain some more information about its actual value. If he decides to test, then having obtained the additional information he can again either take the action or continue looking. The problem is to conduct this process in such a manner as to maximize expected net value, that is, the expected value of the action finally taken minus the expected total cost of searching and testing.

This problem is analyzed and optimal policies are given in the case where the possible actions are regarded as independent selections from a large population. The joint distribution in this population of the actual value, the preliminary information, and the additional information gained from testing, is assumed to be known. The situation where many possibilities are to be selected, subject to a budget constraint on total search and testing cost, is also treated. For this problem asymptotically optimal results are given for large budgets.
Estimating Reliability After Corrective Action
Authors: Corcoran W. J. , Weingarten H. , Zehna P. W.
Published: November 2008

A model is defined wherein corrective action may be accounted for in improving the estimation of reliability over the usual nominal success ratio. Probabilities for correcting any one of K failure modes which may arise are assumed known and a multinomial sampling procedure is discussed. Mean reliability is defined as a function of the unknown probabilities attached to the failure modes and the problem of estimating this parameter is posed.

Two procedures which have been typically used in the past are discussed and some obvious weaknesses are pointed out. We then proceed to investigate several new estimators which we propose for the problem. No attempt is made to optimize with regard to a choice of estimators but properties of each of them are discussed which point to their limitations as well as usefulness in a given problem.

Finally, we discuss some of the implications of the model we have assumed and propose other models that might be worthy of merit. Recommendations are made for further research in this timely and important area of investigation.
Capacity Investment Under Postponement Strategies, Market Competition, and Demand Uncertainty
Authors: Anupindi Ravi , Jiang Li
Published: November 2008

We consider duopoly models where firms make decisions on capacity, production, and price under demand uncertainty. Capacity and price decisions are made, respectively, ex ante and ex post demand realizations. The interplay between the timings of demand realization and production decision endows firms with different capabilities. Flexible firms can postpone production decisions until the actual demand curve is observed, but inflexible firms cannot. Under general demand structures and cost functions, we characterize the equilibrium for a symmetric duopoly and establish the strategic equivalence of price and quantity competitions when firms are flexible. We investigate the stochastic order properties of capacity and profit and show that they both increase for a flexible firm when the market is more volatile. We find that flexibility allows a firm to increase investment in capacity and earn a higher profit while benefiting customers by keeping the price in a narrower range; strategic equivalence implies that these properties are robust to market conjectures. We also show that flexibility plays an important role in mitigating the destructive effect of competition when the demand shock is additive; the destructive effect is nonexistent for firms facing multiplicative demand shock. When flexibility decision is endogenous, a firm's strategic flexibility choice depends on the cost of technology as well as the nature of demand shock. In particular, faced with a multiplicative demand shock, firms always choose to be inflexible, whereas all the possible equilibria are observed under additive demand shocks.
Decomposition, Pricing for Decentralization and External Economies
Authors: Baumol William J. , Fabian Tibor
Published: November 2008

The decomposition procedure for the solution of large scale linear programs is described in an elementary manner with illustrative calculations. Its economic interpretation as a procedure for decentralized decision by the multi-division firm or the multi-sector economy is explained in detail. Decomposition is shown to provide internal prices for decentralized decision making in the presence of external economies or diseconomies. However, it is demonstrated that in many cases there exist no prices which will lead divisions to make independent decisions that are optimal from the point of view of the company (or the economy) as a whole.
Economic Effects of Technological Innovations
Authors: Gold Bela
Published: November 2008

This paper reports on research which is both historical and analytical. The historical aspect of this study comprehends the years 1899-1939 and reports on the behavior of costs, wages, output and related physical measures in 5 basic industries plus “all manufacturing.” Generally speaking the ratios of labor and capital inputs to total output during this period do not show the kinds of “substitution effects” that might have been expected during the period covered. The data indicate that technological innovation and investment were, in fact, neutral in terms of labor-capital ratios which prevailed during this period. These are, of course, only long-run phenomena. Transient patterns generally produce changes in the physical ratios which, however, are subsequently offset in value terms. Furthermore only industry aggregates are examined. Evidently, then, any individual firm may find itself out of line with these ratios at any moment of time depending on its status as an innovator, follower, etc.

Flow models are developed to interpret and explain these results. In these models the physical substitutions are depicted as being subsequently counterbalanced by market price reactions flowing from these (or other) investment decisions. These models are, of course, not restricted to the period under consideration and can therefore be used to guide analyses and investigations for subsequent periods. Thus, for instance, consider the investment decisions of management in the period under review—i.e., 1899-1939. These decisions were based on piecemeal analyses and rule-of-thumb guides. Is it the case that more sophisticated techniques—such as those which accompany operations research developments—will produce a difference in the observed ratios of labor to capital inputs in these (or other) industries? The models and the results presented in this study raise this question in a way that may prove helpful in a subsequent analysis designed to test the effects of operations research—or other factors—on the investment decisions now being undertaken. Alternatively, these models and results may provide helpful guidance in particular applications. Thus, for instance, if persistence is assumed for the phenomena we note, then issues of short- vs. long-run strategy become of major importance for possible consideration and incorporation in any operations research models used to guide investment decisions.
A Study of Management Behavior by Use of Competitive Business Games
Authors: Symonds Gifford H.
Published: November 2008

A general model has been developed for a class of business games to represent the activities of individual firms in a hypothetical oligopolistic industry. Although hypothetical, the games allow the players to transfer mentally to the real business world. The players who act as competitors build and operate their individual plants with specified technology to produce a single homogeneous product. The product is sold competitively to households, and labor supplied by the households is employed in the industry through competitive bidding of the competitors. Thus, there are two competitive markets established, with the firms competing for a limited supply of labor on the one hand, and competing for a limited sales fund on the other hand. Managerial decisions for each firm include labor employment offerings and wage rate, product sales offerings and product prices, production and inventory, plant expansion, money borrowing, sales credit, and dividends paid to stockholders. In some cases there is a market for “efficiency units” used to improve technology. The competitors may select wage rates and product prices freely, since there are no internal relationships in the model. Aggressive competition for labor results in increasing wage rates and aggressive competition for the sales fund results in low product profit. Various regulations are introduced concerning monopoly, taxation, credit, and bankruptcy. The general results of this study show that managerial behavior in an oligopoly exhibits varying strength of agressive competition producing the usual business cycle, and further that competitors will act to “stabilize” the industry by self-regulation of speculative activities. An examination of the technological input to these business games shows that competitors will invest funds to improve efficiency only when their marginal utility of money is well below that represented by the fixed interest rate.
The Generalized Stepping Stone Method for the Machine Loading Model
Authors: Eisemann Kurt
Published: November 2008

This paper gives a detailed description of an algorithm for the solution of a specialized Linear Programming model, to be called the Machine Loading model. It is a generalization of the Transportation Problem, in that weighting factors are applied to the individual elements which form the row and column sums.

For the Machine Loading model, the simplex method reduces to a specialized algorithm which generalizes the stepping stone method of the Transportation Problem [2], [3]. With the resulting generalized stepping stone method, it becomes practicable to solve many large-scale problems for which the direct application of the simplex method would be impracticable.

The present paper is restricted to a discussion of the following topics: (i) the general characteristics of the model and its topological features; (ii) a detailed solution algorithm, including a consideration of degenerate cases and the use of a computer; (iii) a more restrictive capacitated model and the corresponding modifications to the solution algorithm; and (iv) the complete illustrative solution of a numerical example. The purpose is to aid interested readers in gaining familiarity with the algorithm and facility in the solution of numerical problems. No derivations or proofs will be included.
Topology and Computation of the Generalized Transportation Problem
Authors: Lourie Janice R.
Published: November 2008

The topology of the Generalized Transportation Problem, at the end of each iteration of the stepping-stone method, is characterized by a variable number of loops to which are attached multiple branched side chains or trees. An efficient computer representation of this structure and methods for updating it are described in this paper.
On the Generalized Transportation Problem
Authors: Balas E. , Ivanescu P. L.
Published: November 2008

The purpose of the present paper is to extend the loop-technique of the stepping-stone algorithm to the generalized transportation problem. The main result (Theorem and Corollary of §6) is, that passing from a basic feasible solution to another one may always be carried out by constructing a simple symmetrical or a double loop (as defined in §2) and computing new values for the variables only along this path. The amount of computations needed for this turns out to be substantially reduced as compared to the usual way of solving the system of equations relating the new basis to the old one.
Dynamic Modeling of Inventories Subject to Obsolescence
Authors: Brown George W. , Lu John Y. , Wolfson Robert J.
Published: November 2008

A class of models for optimizing inventory costs is presented which takes account of stochastic obsolescence of an inventory item. Obsolescence is defined as a demand state, in such a fashion as to permit appraisal, ex ante, of the probability of arrival of obsolescence at future times, under the assumption that there are many possible states of demand. Response to obsolescence is introduced by means of a Bayesian procedure. In the most complete model this is done by modification of the state probability vector of a Markov process. Optimization is accomplished by means of a dynamic program.
Allocation of Research and Development Resources in U.S. and Israel Industry
Authors: Dean Burton V.
Published: November 2008

This paper considers the allocation of national technological resources to different sectors of the economy. The impact of economic investments in technology is related to national, industry, and company growth. In some sectors of the economy investments in research and development (R and D) are well below the saturation level, where increasing the investment level and fraction of scientific and engineering manpower devoted to R and D may be expected to yield increased economic growth. A comparison is made of the sources and consumers of R and D funds in the U.S. and Israel, particularly as related to size of firms. Conclusions are obtained in the form of magnitude and allocation of R and D investments and utilization of scientific and engineering manpower for industrial R and D in Israel.
Brand Switching and Mathematical Programming in Market Expansion
Authors: Hartung Philip H. , Fisher James L.
Published: November 2008

In a number of industries, product is sold through individual outlets under control of a company through lease or franchise. If these individual outlets are independent, in that sales in one have no influence on another, then the decision to add or subtract an outlet in a marketing area rests solely on investment and cost considerations. If, on the other hand, one outlet has an influence on another in terms of sales, then the decision to expand must take this influence into account. This paper suggests a method for planning expansion systematically and consistently when this influence, which is called market share, is present. The approach taken is that of mathematical programming where the objective function is nonlinear. The solution suggested here is one of iteration which has worked well for problems studied by the authors. A theoretical model, based on brand switching, is validated by experimental evidence and these results are then employed in the development of a long-term planning model.
Forest Management and Operational Research: A Linear Programming Study
Authors: Wardle P. A.
Published: November 2008

In this note the technique known as linear programming is applied to a problem of allocation which involves interaction between particular choices. Many management problems are further complicated by being dynamic—that is involving interaction through time as well as between variables—or they involve uncertainty. Such problems also lend themselves to numerical analysis. Through the description of an example it is hoped to demonstrate that the information available to management is both improved and extended by such analysis.
The Potential for Office Automation in Department Stores
Authors: Kwo T. T.
Published: November 2008

Potential for office automation in department stores is explored by sales volume class. This is done in terms of the present-day expenses in the clerical work area and the inventory management area typical of the stores in each volume class. Some characteristics of the “typical” stores are also briefly reviewed. The data used are those given in the Harvard Business School Survey conducted in 1963 [McNair, M. P. 1962. Operating Results of Department and Specialty Stores in 1962. Graduate School of Business Administration, Harvard University, Boston, Massachusetts.].
Mobilizing Management Science Resources
Authors: Hertz David B.
Published: November 2008

As you know, the objectives of The Institute of Management Sciences are to identify, unify, and extend scientific knowledge that contributes to the understanding and improvement of management practice. Any one of us, I am sure, would like to be able to look back and feel that during these formative years we had used our resources wisely and effectively to work toward an understanding of the management process. Any of us would hope that we had indeed added to the extension and unification of knowledge with the spirit if not the genius of Galileo, as he exemplified those qualities perhaps best of all in his last work, Dialogues on the Two New Sciences. But winning acceptance of truly significant scientific ideas is hardly less difficult in our own time than it was in his. And while we like to think that our enlightened modern contemporaries move in a smooth and continuous transition in adopting major scientific advances, our experience shows repeatedly that they do not.
Scheduling with Random Arrivals and Linear Loss Functions
Authors: Fife Dennis W.
Published: November 2008

The problem under consideration involves scheduling of the processing of an initial queue of jobs and subsequent Poisson arrivals on a single processor. Each job to be processed incurs a loss which increases linearly with its waiting time. The scheduling algorithm is sought which minimizes the average rate of expected loss over infinite time. It is shown that if statistical equilibrium exists for the total loss of an individual arrival, the optimal schedule minimizes the expected total loss of a single arrival, and is given by the scheduling rule which applies when there are no additional arrivals.
Decomposition of Project Networks
Authors: Parikh Shailendra C. , Jewell William S.
Published: November 2008

This paper considers “critical path” networks which are used for the planning and scheduling of projects that consist of well defined sequences of individual activities. When the number of activities is large, it becomes difficult to prepare a network for the project as one unit, and it may also be difficult to store the network in the high speed memory of a digital computer. Also, in the cases where there are two or more independent projects, which are weakly inter-related by common activities, the problem of efficient scheduling of all the projects becomes quite difficult.

This paper presents a method to “tear” or “decompose” a project network into several subnetworks, schedule the subnetworks and then to put the subnetworks back together. A computational algorithm is first given for time-only networks; then two computational formulations are given for cost-time network of project subnetworks. The latter essentially generalize the algorithm due to Fulkerson, in order to handle piecewise linear, convex, cost-time curves for some or all of the activities.
Critical Comments on “Technical Characteristics of Distribution Simulators” By Gerson and Maffei
Authors: Glassey C. Roger
Published: November 2008

Since this paper by Gerson and Maffei (Gerson, M. L., R. B. Maffei. 1963. Technical characteristics of distribution simulators. Management Sci. 11 (3, October) 62–69.) was selected for publication to appeal to those of practical inclination who, like myself, favor the inclusion of applied papers amongst the theoretical ones, it is open to criticism on practical as well as theoretical grounds. My main criticism is directed at the emphasis they placed on the size and complexity of their computer program that allegedly solved this admittedly large and complex problem.
Advertising Expenditures in Coupled Markets— A Game-Theory Approach
Authors: Shakun Melvin F.
Published: November 2008

A game-theory approach to advertising expenditures is developed for a situation in which the markets for different products are coupled. By coupling we mean that advertising dollars spent in generating sales for one product have an influence on the sales of another product. Non-cooperative equilibrium solutions are obtained for the case of two competing companies each selling two products in coupled markets. An idealized example might be the case of two automobile manufacturers each of whom sells a low-priced and a high-priced car. Some special cases of the model are developed and extensions indicated.
Electronics in Management
Authors: Hertz David B.
Published: November 2008

Since the end of World War II, the single most outstanding development in the world of business has been the economic renaissance of the Free World. From the devastation and dislocation left by 6 years of war, the Western business community has rebuilt and redirected itself in two decades of unparalleled growth and prosperity. The postwar prophets of gloom, who prognosticated postwar collapse and stagnation as in the Great Depression of the 1930s have long since been routed. And a serious economic setback appears now to be less likely than ever. Certainly the business manager of today can look back proudly on a job well done. Clearly this period has been a triumph for the free enterprise system and the traditional concepts and techniques of management.

Nevertheless, the business managers of today cannot rest on these accomplishments. For change is in the air, and the traditional concepts of management cannot fully meet the challenge that it brings. These established concepts, of course, themselves originally evolved as new responses to new business challenges. And it is worth remembering that many of the familiar management techniques of today were not traditional concepts 20 years ago. The manager of 1946 would be very uncomfortable and unsure of himself in the sophisticated management world of today. New tools and techniques of management are taken for granted by today's manager. And the search for newer and better techniques presses on.
Operations Research in the USSR as Education and Research Work
Authors: Siroyezhin Ivan M.
Published: November 2008

This paper presents a general discussion of operations research education with special attention to the program of the Department of Mathematical Economics1 at Leningrad University. The influence of the dual aims of providing students with knowledge and professional skills and developing desirable social objectives on curricular development are traced. Some comparisons between OR educational program in the U.S.S.R. and elsewhere are made. The flavor of the program is somewhat indicated by descriptions of student research projects.
PARM—An Economic Programming Model
Authors: Wood Marshall K.
Published: November 2008

PARM is an acronym for Program Analysis for Resource Management. It is a general-purpose system for preparing feasible schedules for large, complex systems of interdependent activities to support specified objectives subject to resource constraints. The procedure provides for an iterative process alternating between human decision-making and machine computation in which the goal is achievement of a feasible and acceptable program. Feasibility is objectively determined, but acceptability is subjectively determined. No overall optimizing criterion is assumed to be definable; but many optimizing procedures of limited scope are included.
Bimatrix Equilibrium Points and Mathematical Programming
Authors: Lemke C. E.
Published: November 2008

Some simple constructive proofs are given of solutions to the matric system Mz − ω = q; z ≧ 0; ω ≧ 0; and zT ω = 0, for various kinds of data M, q, which embrace the quadratic programming problem and the problem of finding equilibrium points of bimatrix games. The general scheme is, assuming non-degeneracy, to generate an adjacent extreme point path leading to a solution. The scheme does not require that some functional be reduced.
A Dynamic Model of the Firm
Authors: Chu Kong , Naylor Thomas H.
Published: November 2008

In this paper we utilize traditional microeconomic theory and elementary queuing theory to develop a computer simulation model of a single-product, multi-process firm. One of our objectives is to demonstrate that the body of economic theory known as the “theory of the firm” may be used to provide a convenient frame of reference in applying some of the more recently developed analytical tools of operations research and computer technology to the analysis of the behavior of the firm. The static equilibrium model of the firm presented in Value and Capital by J. R. Hicks is taken as a point of departure in constructing a simulation model in which (1) the time interval between the arrival of orders at the firm is a stochastic variate with a known probability distribution, (2) each order which the firm receives must pass through n processes before it is transformed into a single unit of output, and (3) the time interval which an order spends at the jth process (j = 1,…, n) is a stochastic variate with a known probability distribution.
Comments on a Paper By Schild and Fredman
Authors: Eastman Willard L.
Published: November 2008

A comment on Schild, A., I. Fredman. 1961. On scheduling tasks with associated linear loss functions. Management Sci. 7 (3, April) 280–285.