bluuebunny/crossref_metadata_2025 huggingface dataset:
Television and Efficiency in Higher Education
Authors: Jamison Dean T. , Lumsden Keith G.
Published: November 2008

ITV has long been heralded as providing the potential for substantial improvements in the quality, or reductions in the cost, of higher education. Yet there exist no analytical models that would allow a quantitative expression of the extent to which ITV could, in fact, improve educational efficiency. Our purpose in this paper has been to develop such a model. The model is developed in terms of efficiency improvement in a 2 year professional school; it generalizes readily, however, to any institution of higher learning that has a substantial number of multi-section courses.

In addition to development of a theoretical model we experimentally tested our proposed approach in an introductory microeconomics course at the Stanford University Graduate School of Business. Our results reconfirmed the well established result that substituting ITV for live instruction has insignificant impact on student learning, and our detailed analysis of student attitudes (expressed in part as willingness to pay) gives confidence that ITV (combined with small group discussion) can be an acceptable substitute for lecture instruction in higher education. Given this high degree of substitutibility, application of our quantitative model indicates substantial efficiency improvements to be possible in higher education through relatively limited use of ITV.
A Deterministic Multi-Period Production Planning Model with Piecewise Concave Production and Holding-Backorder Costs
Authors: Swoveland Cary
Published: November 2008

A single product, finite horizon production planning model with known requirements is considered. Production and holding-backorder cost functions are assumed to be piecewise concave, thereby allowing an arbitrarily close approximation to a wide range of cost functions which one might encounter in practice. In each period production, inventories and backlogged orders may not exceed prescribed levels.

Production (inventory) breakpoints are the endpoints of the intervals over which the production (holding-backorder) cost functions are concave. It is shown that there is an optimal production schedule which has the property that between successive periods in which ending inventories are at inventory breakpoint levels there is at most one period in which production is not at a production breakpoint level. This property, which is an extension of recent results obtained by Florian and Klein [Florian, Michael, Morton Klein. 1971. Deterministic production planning with concave costs and capacity constraints. Management Sci. 18 (1, September) 12–20.] and Love [Love, Steven F. 1973. Bounded production and inventory models with piecewise concave costs. Management Sci. 20 (3, November) 313–318.], suggests a straight-forward dynamic programming algorithm for obtaining an optimal solution.
Betz and Mitroff Respond to Berhold
Authors: Mitroff Ian I. , Betz Frederick
Published: November 2008

Response of the Ian Mitroff and Frederick Betz (Betz, F., Mitroff, I. 1974. Representational systems theory. Management Sci. 20 (9, May) 1242–1252.) to the comment (Berhold, M. 1975. Comment on “Representational systems theory” by Betz and Mitroff. Management Sci. 21 (9) 1077–1078.).
Ordinal Dynamic Programming
Authors: Sobel Matthew J.
Published: November 2008

Numerically valued reward processes are found in most dynamic programming models. Mitten, however, recently formulated finite horizon sequential decision processes in which a real-valued reward need not be earned at each stage. Instead of the cardinality assumption implicit in past models, Mitten assumes that a decision maker has a preference order over a general collection of outcomes (which need not be numerically valued). This paper investigates infinite horizon ordinal dynamic programming models. Both deterministic and stochastic models are considered. It is shown that an optimal policy exists if and only if some stationary policy is optimal. Moreover, “policy improvement” leads to better policies using either Howard-Blackwell or Eaton-Zadeh procedures. The results illuminate the roles played by various sets of assumptions in the literature on Markovian decision processes.
Sequencing Two-Machine Flow-Shops with Finite Intermediate Storage
Authors: Dutta Sujit K. , Cunningham Andrew A.
Published: November 2008

The deterministic N-job two-machine flow-shop sequencing problem with finite intermediate storage is considered with the objective of minimizing the total processing time. A dynamic programming procedure is presented whereby an optimal solution to the problem may be obtained. Since the storage and computation time requirements for the solution of this model are large, it is modified so as to give a suboptimal recursive procedure which yields good solutions with much less computational effort. A further approximate method based on the technique of successive approximations is shown to provide an alternative means for tackling large problems. In addition, several new results are derived for the particular case where the buffer capacity is zero.
A Primal-Dual Traffic Assignment Algorithm
Authors: Petersen E. R.
Published: November 2008

A new algorithm for solving the traffic assignment problem is presented. This is a primal-dual algorithm which utilizes a flow augmentation primal and a shortest path dual procedure. At each iteration a feasible solution is known together with a measure of “goodness” of the solution.

It is shown that the algorithm converges to an optimal solution. Experience with the algorithm suggests that this convergence is very rapid.
Heuristics for Scheduling Resource-Constrained Projects: An Experimental Investigation
Authors: Cooper Dale F.
Published: November 2008

This paper considers the project scheduling problem with multiple constrained resources. Two classes of heuristic procedure, both making use of priority rules, are discussed: the parallel method, which generates just one schedule; and the sampling method, which generates a set of schedules using probabilistic techniques and selects the best schedule from this sample. An experimental investigation is described in which a set of projects with different characteristics is scheduled by each of these heuristics with a variety of priority rules. The effects of the heuristic method, the project characteristics and the priority rules are assessed. It is shown that the choice of priority rule is important with the parallel method, but with the sampling method, although it does affect the distribution of the sample, the choice of rule is not significant. The sampling method with sample size 100 is shown to produce samples at least 7% better than those generated by the corresponding parallel method, with 99% confidence. Further results are discussed and conclusions are presented.
Generalized Linear Programming Solves the Dual
Authors: Magnanti T. L. , Shapiro J. F. , Wagner M. H.
Published: November 2008

The generalized linear programming algorithm allows an arbitrary mathematical programming minimization problem to be analyzed as a sequence of linear programming approximations. Under fairly general assumptions, it is demonstrated that any limit point of the sequence of optimal linear programming dual prices produced by the algorithm is optimal in a concave maximization problem that is dual to the arbitrary primal problem. This result holds even if the generalized linear programming problem does not solve the primal problem. The result is a consequence of the equivalence that exists between the operations of convexification and dualization of a primal problem. The exact mathematical nature of this equivalence is given.
Bias and Error Detection in Property Tax Administration
Authors: Cheng Pao Lun
Published: November 2008

Reform of property tax administration to insure uniform assessment has received increasing attention. Tax administrators at local levels have responded accordingly. A practical scheme for monitoring appraisal biases and errors that cause departure from assessment uniformity has however, been lacking. This paper proposes a stochastic model of biases and errors in assessment administration and transforms it into a regression scheme for estimating bias and errors arising from growth, market and appraising processes. The model is then approximately validated for use in detecting biases and errors by any municipality interested in maintaining assessment uniformity.
Stochastic Cash Management with Fixed and Proportional Transaction Costs
Authors: Constantinides George M.
Published: November 2008

A continuous time model of cash management is formulated with stochastic demand and allowing for positive and negative cash balances. The form of the optimal policy is assumed to be of a simple form (d, D, U, u). The parameters of the optimal policy are explicitly evaluated and the properties of the system are discussed.
An Integrated Optimization/Information System for Academic Departmental Planning
Authors: Dyer James S. , Mulvey John M.
Published: November 2008

This paper describes the integration of a network optimization algorithm with a decision and information system for the Graduate School of Management at UCLA. This optimization algorithm plays an important role in the determination of the annual teaching schedule by assigning faculty to courses and other activities on the basis of their responses to course preference questionnaires. In addition, the network structure provides an ideal framework for a compact information system for the department. The system can also provide some assistance in determining faculty recruiting priorities or in studying the impacts of changes in student enrollments. Our actual experiences in implementing and using this system are described.
A Simple Method of Determining Order Quantities in Joint Replenishments Under Deterministic Demand
Authors: Silver Edward A.
Published: November 2008

We consider the situation of a family of items sharing a common supplier or common production facility. There is a major setup (header) cost to make a replenishment of the family and a minor (line) cost for each item included in the replenishment. In such a setting it makes sense to coordinate replenishments of the various items of a family. Under the assumption of deterministic demand, several authors have suggested iterative solutions which are not necessarily guaranteed to be optimal, yet are not easy to implement. We present an alternative procedure which is extremely simple to use, yet appears to have rather small cost penalties in relation to the earlier more sophisticated methods.
Note—Determination of Warranty Reserves: An Extension
Authors: Amato H. N. , Anderson E. E.
Published: November 2008

This paper extends a previously accepted model, used to estimate the warranty reserves required for nonrepayable products, by discounting future warranty costs to their present value, and by adjusting for expected changes in the general price level. The estimation equations are derived and their implications are discussed.
Nash Equilibria in a Sealed Bid Auction
Authors: Smith Benjamin T. , Case James H.
Published: November 2008

The sealed bid auction with two bidders is regarded as a two-person variable sum game. Under perfect information a class of one-parameter distributions emerges as being “best” strategies for either bidder. Under imperfect information, approximations to these strategies lead to Nash equilibrium strategies for both players which are relatively insensitive to unilateral deviation by either of the bidders.
A Simulation Study of Alternative Pollution Control Enforcement Systems
Authors: Downing Paul B. , Watson William D.
Published: November 2008

Simulation analysis is used to investigate enforcement of the new source performance standard for particulate matter discharges from coal-fired power plants. The analysis uses engineering and econometric estimates of relevant cost and performance paramenters. Results are generalized by Monte Carlo selection over distributions of each of the appropriate parameter values. The simulations are summarized through regression analysis on the outcomes.

Under current legal enforcement it is found that most power plants will violate the standard, that small plants will control to higher removal levels than large plants and that power companies will install relatively costly pollution control technology. Three enforcement alternatives are considered for overcoming these shortcomings: more stringent legal enforcement, enforcement using emission taxes, and a mixed system which uses device certification tests and emission taxes. It is found that each of the alternatives can lead to the standard being met and to more-or-less equal sharing in control burden across plant size. But it is only the two systems which use emission taxes that give incentive for choosing least costly control technology. It is also suggested that emission tax systems are likely to provide stronger incentives toward early compliance. The general applicability of these conclusions to other enforcement situations is discussed.
Note—One-Dimensional Facility Location-Allocation using Dynamic Programming
Authors: Love Robert F.
Published: November 2008

A dynamic programming algorithm is presented to locate m variable facilities in relation to n existing facilities situated on one route. Each of the n existing facilities has a requirement flow which must be supplied by the variable facilities. The algorithm does the allocation simultaneously with the location. Computational experience indicates that relatively large problems may be solved optimally.
The Use of the Nash Bargaining Model in Trajectory Selection
Authors: Bonnardeaux James , Dolait Jean-Pierre , Dyer James S.
Published: November 2008

This paper describes a study performed to investigate the use of the Nash Bargaining Model in the selection of a trajectory for the Mariner Jupiter/Saturn 1977 (MJS77) Project spacecraft in the vicinity of Titan, the largest satellite of Saturn. This effort was exploratory in nature with the objective of evaluating the appropriateness of the approach. Although questions were raised regarding the use of the Nash concept of “fairness” as the design criterion and the practical interpretation of randomized outcomes, the results suggest that the model does have potential value as an aid in resolving complex mission design problems.
Control Schemes in Queueing Networks
Authors: Brandwajn A.
Published: November 2008

We consider open and closed queueing networks consisting of a set of controlled service centers. The controlled service center contains an exponential server, a queue of delayed customers and a control switch between them. The switch position is a function (control function) of the service center state which provides a means of controlling the service rate by admitting or not users into the server's queue. We give the stationary probability distribution for a broad class of control functions. An application of these results to the expected queue lengths and the expected waiting times in a two-server closed network is also considered.
Some Properties of a Decentralized Adjustment Process
Authors: Simonovits András
Published: November 2008

This paper deals with some properties of a decentralized adjustment process which were investigated originally by T. A. Marschak in [Marschak, J. 1968. Computation in organizations: Comparison of price mechanisms and other adjustment processes. Risk and Uncertainty Proceedings of an International Economic Association Conference, Ch. XII. of McGuire, C. B., R. Radner (1972), eds. Borch and Mossin, St. Martin's Press, New York, 1972.]. We correct some mathematical errors.

Marschak compares the gross expected payoffs of centralized and decentralized mechanisms. We prove that his Proposition 5: “the greater regular rate is the better” [Marschak, J. 1968. Computation in organizations: Comparison of price mechanisms and other adjustment processes. Risk and Uncertainty Proceedings of an International Economic Association Conference, Ch. XII. of McGuire, C. B., R. Radner (1972), eds. Borch and Mossin, St. Martin's Press, New York, 1972, p. 261] is not correct in this generality and replace it with the exact theorem on the rate-optimum.

We analyse Marschak's Paradox 1 [Marschak, J. 1968. Computation in organizations: Comparison of price mechanisms and other adjustment processes. Risk and Uncertainty Proceedings of an International Economic Association Conference, Ch. XII. of McGuire, C. B., R. Radner (1972), eds. Borch and Mossin, St. Martin's Press, New York, 1972, p. 263: Proposition 6] and prove that it is not a real paradox, namely, that it would hold only if the components of a certain random variable-vector were correlated, a case treated separately.

Finally Marschak's problem on the finiteness of a modified adjustment process is solved.
Stochastic Programming of Multiple Channel Service Systems with Deterministic Inflow and Stochastic Service Times
Authors: Resh Michael , Friedman Moshe
Published: November 2008

The problem of allocating customers of different types to various channels of a service system is considered. Service times are assumed to be independent identically distributed random variables whose distribution functions depend on the type of customers as well as the service channel. The total loading time of each channel consists of the sum of service times of all customers which were allocated to it and is thus a random variable also. If the loading time of a given channel exceeds (falls short) its nominal capacity, an overtime (idle time) penalty is incurred. Penalties are assumed to be proportional to the time lapse involved. There is also a revenue gain which is proportional to the number of customers served. The objective is to find the optimal allocation of customers to channels, xij, such that the expected net gain, revenue minus losses, is maximized.

It is shown that the distribution function of a loading time depends on the choice of the xij and hence that, in general, no claims can be made with respect to desirable convexity properties of the objective function. It is further shown that if the service times are assumed to be normally distributed, then the objective function depends also on the means and the variances of the loading times. The mathematical properties of the program are utilized to ascertain that the solution obtained via a suggested algorithm is global. The nonlinear program is reduced to a (possibly iterative) solution of a linear program by using previous results obtained by the first author.
An Optimal Tax Incentive Scheme for a Decentralized Multi-Product Firm
Authors: Venezia Itzhak
Published: November 2008

Consider a multi-product firm facing an uncertain demand. It will be shown that the firm may benefit from decentralizing the decisions of how much to produce. To obtain these benefits, the firm should use the suggested internal tax incentive scheme.

The quantities determined under the suggested scheme are equal to the sum of the quantities determined under centralization and a random vector with zero mean. This result is attributed to the dynamics by which a decentralized solution is obtained.

It follows that the central planner may improve his decisions by behaving according to similar dynamics.

A tax incentive scheme which guarantees improvement by decentralization may be unfair to some decentralized units. Sufficient conditions will be given for the existence of a fair scheme which improves on the centralized solution. It will be shown that if the uncertainty in the demand is large such a scheme will usually exist.
Planning for Freedom
Authors: Van Gigch John P.
Published: November 2008

Freedom can be planned. It is the result of a designing triad consisting of the planning agents' assumptions, the planning system's conditions and the opportunities and/or barriers which enhance or hinder the exercise of freedom. The “assumptions-conditions-opportunities” triad is examined to show that different combinations of the designing components result in different types of freedom. Four planning models, all claiming to be “democratic,” are examined. It is shown that each system offers its own “brand” of freedom or freedoms. Therefore, comparisons of the amounts or kinds of freedom(s) among systems remain unresolved. Each system can justify the freedom afforded in terms of the consonance existing between the agents' assumptions and the values and beliefs of those it serves.
Optimal Investment Scheduling with Price-Sensitive Dynamic Demand
Authors: Erlenkotter Donald , Trippi Robert R.
Published: November 2008

A model is developed that integrates capital investment decisions with output and pricing decisions for a situation of growing demand. Conditions are derived for the model that permit application of a general approach for determining the optimal sequence and timing of investments in a continuous-time framework. The behavior of optimal pricing and output decisions is characterized analytically. Specific results are given for a quadratic cost and revenue case, and an example illustrates the form of a solution. Possible extensions of the model are also discussed.
Note—A Note on Goal Decomposition in a Decentralized Organization
Authors: Freeland James R.
Published: November 2008

The purpose of this note is to show that Ruefli's Generalized Goal Decomposition Model does not allow one to interpret the solution routine as a decentralized process with respect to information processing and decision making. It is then shown how the application of a partitioning algorithm within Ruefli's framework can overcome these interpretation shortcomings.
Note—A Note on the Criss-Cross Algorithm
Authors: Shields W. S.
Published: November 2008

The “Criss-cross” linear programming method formulated by Zionts (Zionts, Sanley. 1969. The criss-cross method for solving linear programming problems. Management Sci. 15 (7, March) 426–445.), although remarkably efficient for small problems (Zionts [Zionts, Sanley. 1972. Some empirical tests of the criss-cross method. Management Sci. 19 (4, December) 406–410.]), often requires an excessive number of iterations for problems of size 40 × 40 or larger. Garfinkel and Yu (Garfinkel, Robert S., P. L. Yu. 1974. The composite simplex algorithm. Paper MA10.4. Joint National ORSA/TIMS Meeting, Boston, 22 April.) reported 3 such problems for which it terminated short of solution after 1000 pivots. Fortunately, the algorithm can be salvaged. All that is needed is a minor pivot rule change.
A Duality Theorem for a Nondifferentiable Fractional Programming Problem
Authors: Chandra Suresh , Gulati T. R.
Published: November 2008

A fractional analogue of Sinha's problem [Sinha, S. M. 1966. A duality theorem for nonlinear programming. Management Sci. 12 385.] is considered and duality theory is developed for it. This duality subsumes duality results of Chadha [Chadha, S. S. 1971. A dual fractional program. ZAMM 51 560.] and Sinha [Sinha, S. M. 1966. A duality theorem for nonlinear programming. Management Sci. 12 385.], and gives a dual to the minimum risk problem of stochastic programming studied by Bergthaller [Bergthaller, C. 1970. A quadratic equivalent of the minimum risk problem. Revue Roumaine Math. pur. appl. 15 17.].
A Utility Criterion for Markov Decision Processes
Authors: Jaquette Stratton C.
Published: November 2008

Optimality criteria for Markov decision processes have historically been based on a risk neutral formulation of the decision maker's preferences. An explicit utility formulation, incorporating both risk and time preference and based on some results in the axiomatic theory of choice under uncertainty, is developed. This forms an optimality criterion called utility optimality with constant aversion to risk. The objective is to maximize the expected utility using an exponential utility function. Implicit in the formulation is an interpretation of the decision process which is not sequential. It is shown that optimal policies exist which are not necessarily stationary for an infinite horizon stationary Markov decision process with finite state and action spaces. An example is given.
A Budget Allocation Model for Large Hierarchical R&D Organizations
Authors: Baker N. R. , Souder W. E. , Shumway C. R. , Maher P. M. , Rubenstein A. H.
Published: November 2008

A model is developed which allocates an available budget to research alternatives subject to budgetary constraints on both organizational and technical entities. The solution algorithm is based on the out-of-kilter minimum cost network flow algorithm and is programmed for use in a time-share, conversational mode. Although the model does not describe the decision processes observed empirically, its output is sufficiently similar to actual allocations that it can be viewed as predictive. Strengths and weaknesses of the model are detailed based on questionnaire and interview data provided by the potential users of the system. The decision information system is used to illustrate that experimentation concerned with better understanding of the adoption process can be used to facilitate model design and application.
Lot Sizing and Sequencing for N Products on One Facility
Authors: Delporte Christian M. , Thomas L. Joseph
Published: November 2008

The problem of determining both lot sizes and repeating sequences for N products on one facility is difficult due to the combinatorial and continuous nature of the problem. The work that has been done on the problem has made various assumptions (“zero-switch rule” or “equal lot size,” for example) to simplify the problem. Several heuristics have been suggested that come fairly close to a computable lower bound on cost.

This paper discusses a mathematical programming formulation of the entire problem, along with reasons for its (current) nonpracticality. Heuristics for reducing the problem to a manageable mathematical programming formulation are presented. Specifically, a formulation is given when the sequence is known with both (potentially unequal) lot sizes and idle time periods as variables. The formulation is a convex quadratic program. Heuristics for finding sequences (to feed to the quadratic program) are explored, and examples from previous literature demonstrate that the methods here give consistent results as good as and sometimes significantly better than previous methods. Finally, we discuss situations in which such methods might be important and situations in which easier methods should suffice.
Decision Models for Individual Scientists Involved in Basic Research
Authors: Zimmerman Jerold L.
Published: November 2008

Management science has not produced useful (operational) models for managers of basic research. This paper attempts to model the decision process of individual scientists. A number of models are developed and their applicability discussed, including their ability to generate insights and testable hypotheses. In order to increase the model's applicability, an alternative specification of behavior is recommended—a behavioral conceptualization of die scientist as a REMM (a Resourceful, Evaluative, Maximizing Man).
The Substitution of Communication for Transportation—A Case Study
Authors: Lopez David A. , Gray Paul
Published: November 2008

The possibilities of substituting communications for transportation in urban settings is investigated in a case study of an insurance company. An optimization model is developed for determining the number and location of sites to be selected, and the results of the optimization are used as part of a cost/benefit analysis. It is concluded that such substitution is economically, operationally, and technically feasible for the firm studied and that such substitution would be of benefit to many firms in the information industries. The model, the analysis and the implementation of the results are discussed.
Generalized Programming by Linear Approximation of the Dual Gradient: Convex Programming Case
Authors: Wagner Michael H. , Sharp J. Franklin
Published: November 2008

A modified version of Generalized Programming is presented for solving convex programming problems. The procedure uses convenient linear approximations of the gradient of the dual in order to approximate the Kuhn-Tucker conditions for the dual. Solution points of these approximate Kuhn-Tucker conditions are then used for column generation. Computational results are reported.
An Order-Level-Scheduling-Period System with Lost Sales
Authors: Pressman Israel
Published: November 2008

An order-level-scheduling-period system with lost sales is considered. The zero leadtime case is analyzed first and a method for computing the total average cost is presented. The nonzero leadtime case is then treated for a scheduling period of one time unit. The average cost for this case depends on the distribution of the inventory available on hand. This random variable, on-hand inventory, is denoted by Q and its distribution is given by g(Q). Methodologies are presented for finding this distribution for any leadtime L. A comparison of the Markov chain approach and the direct solution approach for finding g(Q) is also given.
Majority Decisions and Transitivity: Some Special Cases
Authors: Merchant Deepak K. , Rao M. R.
Published: November 2008

The problem considered is that of obtaining majority decisions which are transitive. We show that the corresponding optimization problems for the weighted l1 norm and the weighted l2 norm are identical. We then show that she general problem of minimizing the weighted lk norm can be equivalently formulated as a set covering problem. Finally, we identify the Tchebycheff problem (l2 norm) with a class, of bottleneck quadratic assignment problems and give an efficient algorithm for solving it.
Global Solutions for a Nonconvex Nonconcave Rail Network Model
Authors: LeBlanc Larry J.
Published: November 2008

This paper is concerned with developing long-range planning models of transportation systems to assist planners in assessing the impact of various levels of service in a transportation network. Railroad distribution networks are studied in particular, and emphasis is placed on the problem of determining optimal levels of service (improvements, degradations, abandonments) on each arc in the existing network. The problem is to optimally design a transportation system: the term “design” as used here, does not comprehend new networks, but more importantly, the optimization or “pruning” of existing transshipment networks. The model is formulated so that improvements to the shipping arcs are included as decision variables: The concave transshipment problem is extended to the case where coefficients of the shipping cost functions are treated as decision variables. Thus the model determines optimum movements of freight between nodes and optimum improvements/degradations to the network to minimize shipping costs plus maintenance costs on the shipping arcs. The result is a nonconvex, nonconcave transshipment problem which is then converted into a concave minimization problem for which global optimal solutions can be found. Several sample problems are solved.
A Parametric Model for the Allocation of Fire Companies in New York City
Authors: Rider Kenneth Lloyd
Published: November 2008

A fire department, in order to balance equitably its resources throughout a city, must consider several often conflicting objectives. This paper describes an allocation method that avoids the difficulty of choosing an objective in advance by allowing the decision-maker to enumerate a range of criteria by varying a trade-off parameter. The method uses travel time to fires as a measure of system performance and generates allocations satisfying criteria ranging from the minimization of city-wide travel time to the equalization of average travel times in different regions. A comparison of the allocations generated by the model to the current allocation of fire companies in New York City shows that one value of the trade-off parameter produces results that correspond closely to the current allocation policy. An example of how the model can be used as a policy tool is given.
A Homogeneous Distribution Problem with Applications to Finance
Authors: Huang C. C. , Wehrung D. A. , Ziemba W. T.
Published: November 2008

We consider the problem of determining the cumulative distribution function and/or moments of the optimal solution value of a nonlinear program dependent upon a single random variable. This problem is difficult computationally because one must in effect determine the optimal solution to an infinite number of nonlinear programs. Bereanu [Bereanu, B., G. Peeters. 1970. A ‘Wait-and-See’ problem in stochastic linear programming. An experimental computer code. Cashiers Centre Etudes Rech. Oper. 12 (3) 133–148.] has provided an algorithm to solve the distribution problem in the linear case based on extensions of the methods of parametric linear programming. (See also [Bereanu, B. 1967. On stochastic linear programming, distribution problems: stochastic technology matrix. Z. f. Wahrscheinlichkeitstheorie u. oerw. Gerbieter 8 148–152; Bereanu, B. 1971. The distribution problem in stochastic linear programming: the Cartesian integration method. Center of Mathematical Statistics of the Academy of RSR, Bucharest, 71–103 (mimeographed); Bereanu, B. 1970. Renewal processes and some stochastic programming problems in economics. SIAM J. Appl. Math. 19 308–322; Bereanu, B. 1973. The Cartesian integration method in stochastic linear programming. L. Collatz, W. Wetterlink, eds. Numerische Methoden bei Optimierungsaufgaben. Springer-Verlag Publishing Co., Inc., Basel; Prekopa, A. 1966. On the probability distribution of the optimum of a random linear program. SIAM J. Control 4 211–222.] for the analysis of more general linear programs.) This paper presents an extremely simple algorithm to solve the problem in the special case when all functions in the nonlinear program are homogeneous. In this instance the infinite class of optimal solutions are known linear homogeneous transformations of the optimal solution to a single nonlinear program. The distribution function may then be determined by substitution of an easily calculated variable into the distribution function of the random variable. The results are useful in the solution and analysis of a number of financial optimization problems. Problems from the analysis of optimal capital accumulation and portfolio separation are treated in some detail.
A Programming Problem with a Linear Objective Function Having the Quadratic Contraints of the Form ½x′x + p′x ≤ r*
Authors: Chang Shang-Wang
Published: November 2008

The basic properties are stated of a linear programming problem with a linear objective function having quadratic constraints whose associated matrices are identities, and a method to find its optimal solution is given with an example.
Note—Note on “Manufacturing Cycle Time Determination for a Multi-Stage Economic Production Quantity Model”
Authors: Goyal S. K.
Published: November 2008

Note on “Manufacturing Cycle Time Determination for a Multi-Stage Economic Production Quantity Model” [Szendrovits, A. Z. 1975. Manufacturing cycle time determination for a multi-stage economic production quantity model. Management Sci. 22 (3, November) 298–308.].
Note—On the Optimality of Sub-Batch Sizes for a Multi-Stage EPQ Model—A Rejoinder
Authors: Szendrovits Andrew Z.
Published: November 2008

Goyal [Goyal, S. K. 1976. Note on ‘Manufacturing cycle time determination for a multi-stage economic production quantity model’. Management Sci. 23 (3, November) 332–333.] suggests an extension of the EPQ model described in [Szendrovits, A. Z. 1975. Manufacturing cycle time determination for a multi-stage economic production quantity model. Management Sci. 22 (3, November) 298–308.]. His simultaneous optimization of both the lot size (Q) and the number of sub-batches (b) is valid provided that the transportation cost of sub-batches through all stages can be established and that the transportation cost function is of the form he suggests. We should, however, examine the basic nature of transportation costs in a plant and their usual allocation. In practice, any system of transportation equipment and personnel must be designed to cope flexibly with unscheduled activities. The timing of transport operations and the variability in loading the equipment have a great influence on costs. In addition, this transportation system must handle a whole spectrum of products, and it is difficult to allocate the costs of the system to particular product lots. As a consequence, transportation costs in a plant are usually regarded as sunk costs and are treated accordingly in most of the multi-stage inventory models.
Information Overload in Mechanical Processes
Authors: Gehrlein William V. , Fishburn Peter C.
Published: November 2008

Information overload usually refers to a situation in which a decision-maker's performance is harmed by too much input information. Experiments have shown that better decisions can occur when selected information is withheld from the decision-maker. This paper suggests that the notion of information overload can apply also to purely mechanical processes. It is presumed that a paired-comparison measurement procedure which attempts to detect as many ordered pairs as possible in a set which is linearly ordered by some unidimensional attribute can identify only part of the underlying linear order L. This part is in the form of a partial order P which is a subset of L. An algorithm can then be applied to P in an attempt to identify ordered pairs in L which are not in P. Simulation experiments have shown that significantly more than 50 percent of the ordered pairs added to P by the construction process of the algorithm agree with their orders in L. However, it has also been discovered that the construction process is expected to yield better results (in a sense specified precisely in the paper) when its input is taken to be a subset of P which is obtained by removing selected ordered pairs from P. Thus, by withholding certain known and correct information from the input to the construction process, a better output is expected.
A Dual Concept and Associated Algorithm in Mean-Variance Portfolio Analysis
Authors: Bowden Roger J.
Published: November 2008

We consider in this paper the problem of allocation by an investor of his funds between a set of risky assets and a single safe asset, under conditions in which the separation theorem holds. Focussing in particular on the computationally more difficult case where no short sales are permitted, we exhibit a dual problem which arises naturally out of the saddle-point property implied in the Kuhn-Tucker optimising conditions. By showing how to solve this dual we derive a computationally straightforward method of solution for the optimum portfolio proportions and obtain a condition for every security to be held. We show briefly how the treatment can be extended to general homogeneous restrictions on portfolio proportions.
Capital Budgeting in the Decentralized Firm
Authors: Maier Steven F. , Vander Weide James H.
Published: November 2008

In this paper we analyze the capital budgeting problem of an organization which contains a central headquarters and K divisions. The headquarters serves as the planner-coordinator of the capital budgeting process and is the only member of the organization which has access to the external capital markets. The K divisions make decisions regarding the set of capital projects each wants to accept. The capital budgeting problem of this decentralized organization is solved and analyzed with the aid of an algorithm based on mathematical decomposition. It is shown that (i) the decomposition algorithm does indeed converge to an optimal corporate solution, (ii) under reasonable assumptions, the marginal rate of return on the last dollar spent is the same for each division and is equal to the corporate headquarters' “cost of capital,” (iii) in some circumstances, the decomposition model will only select integral projects, and (iv) the optimal choice of projects for the firm is made independently by the divisions, each acting in its own self-interest. This last feature of the capital budgeting model suggests that the firm may be able to achieve the informational economies usually associated with a decentralized organization structure.
Exceptional Paper—Parametric and Postoptimality Analysis in Integer Linear Programming
Authors: Geoffrion A. M. , Nauss R.
Published: November 2008

The purpose of this paper is to take stock of what is known and to suggest some conceptual foundations for future progress in the areas of postoptimality analysis and parametric optimization techniques for integer programming.
Stochastic Dominance Tests for Decreasing Absolute Risk-Aversion II: General Random Variables
Authors: Vickson R. G.
Published: November 2008

Necessary and sufficient conditions are given for stochastic dominance over the class of decreasing absolute risk-averse utility functions. The random variables being compared may be continuous as well as discrete but are assumed to be bounded from below, to have finite means, to have only finitely many mass points in finite intervals, and to have cumulative distribution functions which cross one another only finitely many times, or touch one another only finitely many times in finite intervals. The precise forms of the dominance tests depend upon the number of times the distribution functions cross. An example of the DSD test is presented, and a dynamic programming algorithm for carrying out the general test is given.
Single Cycle Continuous Review Policies for Arborescent Production/Inventory Systems
Authors: Graves Stephen C. , Schwarz Leroy B.
Published: November 2008

In this paper we examine optimal and near-optimal continuous review policies for a deterministic arborescent inventory system: Known and constant outside demand must be met without backlogging or lost sales at minimum average system cost per unit time. Costs are of two types: A fixed order cost at each stage and proportional holding costs on each stage's echelon inventory. We describe some characteristics of optimal policies and, under fairly mild conditions (e.g., zero initial inventory), prove that the optimal stationary policy is a “single-cycle” policy. We present an efficient branch-and-bound algorithm for determining optimal single-cycle policies for arborescent systems. We also examine the near-optimality of “system myopic” single-cycle policies.
On the Design of Alternative Obstetric Anesthesia Team Configurations
Authors: Reisman A. , Cull W. , Emmons H. , Dean B. , Lin C. , Rasmussen J. , Darukhanavala P. , George T.
Published: November 2008

Alternative ways to alleviate the shortage of anesthesiologists in obstetric services have been investigated in three study stages. These were (1) a survey and detailed analysis of the existing situation in one metropolitan region of the United States, (2) the construction and validation of a computer simulation model to study the consequences of alternative practice modes with speed, with economy and requiring no human experimentation, and (3) the establishment of a methodology for selecting an optimal anesthesia team configuration. This in turn should aid administrators in establishing future manpower needs and enable more efficient allocations of existing staff. The methodology, incorporating the simulation model, provides team design charts which enable decision makers to arrive at a basis for enlightened tradeoffs between personnel-associated costs and quality of service. Service quality is measured in terms of temporary unavailability of anesthesia personnel with the proper skills for performing certain tasks when needed. This article documents the overall project mission, the data base, the methodologies used, and the study results.
The Just Noticeable Difference in Complexity of Jobs
Authors: Globerson Shlomo
Published: November 2008

This paper investigates the magnitude of Nonrepetitive Time (NRT) change that will be subjectively perceived as significant. NRT is a previously developed index of job complexity and NRT change can be identified with the “Just Noticeable Difference” of job complexity. Together, they enable the job designer to evaluate the nature of the jobs and to compare the complexity of one job to another. The results indicate that two jobs would be subjectively considered to be significantly different one from the other in terms of their complexity, if the NRT index of one of them is larger by approximately 100 percent than the other.
The Value of Information Given Decision Flexibility
Authors: Merkhofer M. W.
Published: November 2008

This paper explores the effect of decision flexibility on the value of information. The usefulness of calculating the value of information under various assumptions concerning decision flexibility is illustrated with a simple economic example. An upper limit to the value of information given some level of flexibility is the expected value of perfect information given undiminished flexibility (EVPIGUF). By approximating an arbitrary smooth value function with a quadratic equation, first order characteristics of the EVPIGUF are identified. Finally, it is shown that sensitivity analysis can be used as a basis for obtaining simplified approximations for EVPIGUF's.
Tolls: Efficiency and Equity Issues for Inland Waterways
Authors: Case Leland S. , Lave Lester B.
Published: November 2008

Transportation requires large amounts of capital in fixed facilities such as roads, tracks, or canals. Inland waterway transport is unique among modes, since it neither owns its right-of-way nor pays taxes to support its construction and maintenance. Although user charges are widely employed to recover the costs of publicly provided investments, proper theoretical foundation has not been made for their application to inland waterway transport. In this paper we shall provide this foundation focusing on efficiency of allocation of resources, on equity of taxation, and on administration simplicity of each toll scheme. Section 1 of this paper presents the criteria to be used in evaluating waterway user charges. Section 2 appraises possible alternative tolls and estimates the rates that would be needed to recover current expenditures. A combination of toll schemes (segment tolls, locking fees, and congestion tolls) are argued to be economically and politically feasible and to dominate fuel taxes and license fees. The Appendix presents an example of the benefits and costs of waterway expansion and a test of the predictive power of the queueing model.
On Optimal Doubling in Backgammon
Authors: Zadeh Norman , Kobliska Gary
Published: November 2008

The concept of an effective doubling number for noncontinuous games is introduced. Computer simulation is employed to determine an extremely accurate strategy for accepting, doubling, and redoubling in running games.
Communication—APL as a User-Oriented Programming Language
Authors: Shah Prakash A.
Published: November 2008

This is in reference to the article, “A Survey of Users of Corporate Planning Models,” by Mr. Naylor and Mr. Schauland, Management Science, May 1976. While I would like to compliment the authors on their excellent work, I have to disagree with them strongly when they say that: “Corporate models which have been written in scientific programming languages like FORTRAN and APL do not tend to be very user-oriented”.
Work Stretch Properties for the Scheduling of Continuous Operations Under Alternative Labor Policies
Authors: Lowerre James M.
Published: November 2008

For a seven-day's-a-week operation in which N employees are needed on each weekday and n on each weekend day, with N at least as large as n, the work stretch is developed for each of several different rest policies. The work stretch is the number of consecutive work days between rest days. Additionally, work force size formulas are developed for policies not previously covered in the literature.
On Doubling in Tournament Backgammon
Authors: Zadeh Norman
Published: November 2008

A strategy is determined which takes into account a player's skill, the score of the match, the value of the current game, and the possibility of winning a double-game (a gammon). The strategy described here has worked quite well in practice.