bluuebunny/crossref_metadata_2025 huggingface dataset:
An Algorithm for Solving Job Sequencing Problems
Authors: Presby J. T. , Wolfson M. L.
Published: November 2008

The technique described in this paper was devised for sequencing jobs on individual machines having characteristics of: (1) high job changeover costs; (2) small backlogs (10-20 jobs); (3) occasional “rush” orders.

The algorithm starts with four-job sequences and from these constructs five-job sequences; from the five-job sequences, six-job sequences are constructed, and so on. At each stage, a large fraction of sequences are eliminated from further consideration. This elimination process makes the computation feasible because the number of all possible sequences becomes unmanageably large, even for small problems.

The technique always provides a minimum cost sequence. It also permits determination of optimum sequences of backlog sub-sets; thus, rush orders can be accommodated and anticipated changes in the job backlog can be recognized.
Coefficient Estimation in Quadratic Programming Models
Authors: Kriebel Charles H.
Published: November 2008

This report discusses a variety of empirical problems in obtaining statistical estimates of operating costs for a quadratic programming model and presents a case history in aggregate production planning.
Car Pool Systems in Railroad Transportation: Mathematical Models
Authors: Avi-Itzhak B. , Benn B. A. , Powell B. A.
Published: November 2008

A car pool system is a closed transportation system where a number of care are assigned to ship goods from one source to any number of destinations. Such systems are common to all modes of transportation (surface, marine and air). In this paper descriptive mathematical models are developed for car pools in railroad transportation. The models resemble inventory models and are also applicable to similar systems in other modes of transportation.
Errata
Authors: Marschak Thomas
Published: November 2008

Errata to Marschak, T. A., J. A. Yahav. 1966. The sequential selection of approaches to task. Management Sci. 12(9, May) 627–647.
The Cascade Algorithm for Finding all Shortest Distances in a Directed Graph
Authors: Farbey B. A. , Land A. H. , Murchland J. D.
Published: November 2008

Matrix methods for finding shortest distances are convenient and efficient when the lengths of shortest paths are wanted between all pairs of vertices in a graph. The Cascade algorithm requires substantially fewer operations to find these distances than does the standard matrix method.
Chance-Constrained Programming with 0-1 or Bounded Continuous Decision Variables
Authors: Hillier Fredrick S.
Published: November 2008

This paper considers the chance-constrained programming problem where the decision variables can be either bounded and continuous or restricted to be either zero or one, and where some or all of the parameters are random variables that may be statistically dependent. Both exact and approximate solution procedures are presented, where most of these are based on several linear inequalities that permit this problem to be approximated by a number of ordinary (integer or noninteger) linear programming problems. Either zero-order or linear decision rules are allowed for the continuous variables, and a general method of making “second-stage decisions” with either continuous or 0-1 variables is developed.
An Algorithm for the Chebyshev Problem—With an Application to Concave Programming
Authors: Zangwill Willard I.
Published: November 2008

The Chebyshev problem is to determine a point xα which solves maxα min i = 1,…, N{gi(x)}. By exploiting generalized inverses an algorithm is developed for determining xα. It is also shown that in a certain sense the Chebyshev problem is equivalent to the concave programming problem. Moreover, for the programming problem generated by the Chebyshev problem, the Kuhn-Tucker conditions are proven to be sufficient even though the feasible region may not be convex.
The Dynamic Synthesis Theory of Motivation
Authors: Gunn Bruce
Published: November 2008

An interdisciplinary perspective of employee motivation is presented, based on the premise that the principles of natural science provide the fundamental basis for analogizing the operational similarities of physical and social productive systems. This concept is applied to motivation by observing that all productive systems—whether physical, organic or social—are input-output systems. The lowest common denominators in these systems are energy and mass. Le Chatelier's principle provides the universal environment for motivation. Thus, the transformation of energy in a given productive system represents the essence of motivation.

The usefulness of analogizing the process of energy transformation in these two seemingly diverse systems can be seen by tracing the essential factors leading to efficient energy expenditure is physical systems and applying similar strategies to energy transformation in social system.

Such an approach will provide the manager with a concrete frame of reference from which to draw plausible remedies in solving the innumerable problems of efficient motivation and utilization of employee energies.
Critique of: “The Dynamic Synthesis Theory of Motivation”
Authors: Brenner Michael E.
Published: November 2008

Comments on Gunn, B. 1968. The dynamic synthesis theory of motivation. Management Sci. 14(10, June) B-601–B-619.
Demon Mark II: Extremal Equations Solution & Approximation
Authors: Charnes A. , Cooper W. W. , Devoe J. K. , Learner D. B.
Published: November 2008

This paper develops a new method for the solution of DEMON-type functional equations. It is shown how the latter can be reduced to solution of a separated system of simpler equations which, for discrete distributions, can be solved by linear programming methods. The reduction also permits general characteristics of the solutions to be inferred. Additionally, methods of approximation and bounding are developed and interpreted for the general case.

Because of the importance accorded to log-normal distributions for the new-product marketing problem, further details and developments are undertaken with reference to this class of distributions and then illustrated by reference to the single-parameter case.
Scheduling a Multi-Product Single Machine System for an Infinite Planning Period
Authors: Madigan J. G.
Published: November 2008

This paper describes an easy to apply method of solving the “Single Machine Multi-Product Lot Size Scheduling Problem for an Infinite Planning Period.”
Communications to the Editor—Some Comments On Training for the Future of the Management Sciences
Authors: Rubenstein Albert H.
Published: November 2008

Some of the major issues discussed by the panel members at this meeting are summarized. Among them are: The role of social sciences in management science; role differentiation of the manager, the management scientist and the management researcher; and the need for increased study of values and objectives. Certain difficulties in defining and resolving these issues are discussed.
Communications to the Editor—A Clarification in Lifo vs. Fifo
Authors: Zehna Peter W.
Published: November 2008

Comments on Bomberger, E. E. 1961. Optimal inventory depletion policies. Management Sci. 7(3, April) 294–303.
A Systems Study of Policy Formulation in a Vertically-Integrated Firm
Authors: Roberts Edward B. , Abrams Dan I. , Weil Henry B.
Published: November 2008

Vertically-integrated companies often provide unusual opportunities for conflicts among organizational performance measures, especially as the vertical interdependency of product flow interacts with organisational separation of profit objectives. The resulting problems and their potential resolution by policy reformulation are discussed in this paper for the case of a large manufacturer-retailer of perishable food products.

The methods of Industrial Dynamics constitute the systems analysis approach employed in the described study. Emphasis is placed upon the closed-loop feedback systems that interrelate the company's divisions and that provide the conceptual basis for development of a company simulation model. Even without computer testing of the simulation model, analysis of the feedback systems structure can be used in this case to highlight the general conflict between the company's sales and profit objectives.

Extensive computer simulation of the company model is utilised to test a variety of areas of possible policy change, including among others transfer pricing, market stimulation, budgeting, and performance measurement. A consistent finding from the simulations was that several sources of intensified organizational pressure (including negotiated transfer prices and ambitious budgets) contributed importantly to company growth.

Although the model formulation and simulation results were accepted as valid by company managers, little implementation of the recommended policy changes has yet occurred. Instead the principal benefits in the short run are seen as largely educational in nature, with new managerial perspectives the key outcome. This result appears reasonable and possibly necessary if management is to be educated effectively for later acceptance of policy change recommendations based on sophisticated management science approaches.
The Engineering and Management of an Effective System
Authors: Feigenbaum Donald S.
Published: November 2008

Five to ten years ago, the systems approach was thought to mean full-scale factory automation or fully computerized information flow. Experience has shown that a more useful concept is of systems as integrated man-machine-information structures which provide economic control over technical and organizational complexity.

The systems engineering process includes the six phases of analysis; programming; design; equipment manufacture and software programs; installation and check-out; and service. The greatest progress has been made in the work of systems analysis, which has benefitted from recent developments in modelling and simulation techniques.

A new role is evolving for the manager himself in systems design and systems operation. This includes his establishment of a mechanism for the creation, integration and maintenance of enterprise-wide systems. It is probable that more and more of the operational activities of the firm will be analyzed, and then engineered as systems to obtain the many economic and other benefits.
Critique of: “Verification of Computer Simulation Models”
Authors: Schrank William E. , Holt Charles C.
Published: November 2008

Critique of Naylor, T. H., J. M. Finger. 1967. Verification of computer simulation models. Management Sci. 14 (2, October) B-92–B-101.
Optimization of Experimental Lunar Payloads
Authors: Bartee Edwin M.
Published: November 2008

The scientific exploration of the moon requires that a number of experiments be conducted for the purpose of investigating the many questions and hypotheses posed by nearly every discipline in the scientific community. The broad interest in this effort, the limitations of time and resources for conducting the program, and the complex engineering constraints imposed by the logistics system justify the development of an effective method of making optimum selection of experiments according to the most meaningful criteria. The developed method provides a determination of alternate optimum solutions from which scientific authority may choose. Basic lunar scientific objectives, as determined by NASA interdisciplinary panels, serve as inputs to the system. The relative worth of each objective according to scientific merit is determined by a stratified, intradisciplinary sample of the scientific community using a modified majority-rule technique. The experiments are then ordered according to their contribution to the ordered objectives. A subjective programming method provides alternate payload choices that optimize the scientific merit of the experiments within the engineering constraints of a lunar IMjdoad. An example is presented that simulates the use of an algorithm for sdecting an optimum experiment pajdoad.
The Convex Simplex Method
Authors: Zangwill Willard I.
Published: November 2008

This paper presents a method, called the convex simplex method, for minimizing a convex objective function subject to linear inequality constraints. The method is a true generalization of Dantzig's linear simplex method both in spirit and in the fact that the same tableau and variable selection techniques are used. With a linear objective function the convex simplex method reduces to the linear simplex method. Moreover, the convex simplex method actually behaves like the linear simplex method whenever it encounters a linear portion of a convex objective function. Many of the sophisticated techniques designed to enhance the efficiency of the linear simplex method are applicable to the convex simplex method. In particular, as an example, a network transportation problem with a convex objective function is solved by using the standard transportation tableau and by only slightly modifying the usual procedure for a linear objective function.
Communications to the Editor
Authors: Fife Dennis W.
Published: November 2008

Following publication of my paper entitled (Fife, Dennis W. 1965. Scheduling with random arrivals and linear loss functions. Management Sci. 11 (3, January) 429–437.), a private comment on it was received by the Editor. I responded to this, also in a private communication to the Editor. However the Editor has now suggested that a published statement from me would be appropriate to close the matter.
Errata
Authors: Loane Edward P.
Published: November 2008

Errata to the author's paper “Note on Level-Debt-Service Municipal Bidding”, in Management Science, Vol. 13, No. 3 (November 1966).
Inventory Management for Minimum Cost
Authors: Herron David P.
Published: November 2008

One of the most popular types of inveatoiy management is the (Q, r) system, in which a quantity Q of an item is reordered whenever the inventory position reaches the reorder point r. A number of packaged computer programs are available for this system. However, these programs seldom give the minimum-cost values of Q and r, since they usually employ the Wilson Economic Order Quantity. Use of the Wilson EOQ may result in substantial excess costs, particularly for items of high annual cash flow. This article describes graphical and algebraic methods suitable for computer application to determine accurately the minimum-cost values of Q and r, employing either dollar stockout penalties or specified service levels. Both the single-item and aggregate inventory cases are included. The methods described can readily be implied on most computers and can result in significant cost savings.
Critique of: “Ranking Procedures and Subjective Probability Distributions”
Authors: Morrison Donald G.
Published: November 2008

Professor Smith's article “Ranking Procedures and Subjective Probability Distribution” (Smith, L. H. 1967. Ranking procedures and subjective probability distributions. Management Sci. 14 (4, December) B-236–B-249.) is a worthwhile attempt at making the Bayesian decision theory concepts more operational; however, he has fallen far short of this objective. The example he chose (obtaining a subjective probability distribution on market share) is in many ways inappropriate for Smith's technique, and although his procedure is more “mathematical” than some existing methods, it is not as relevant. There are some relatively minor points in Smith's article on which one might quibble, but there are also enough major, substantive matters that we will direct our critique to these issues.
Algorithmic Equivalence in Linear Fractional Programming
Authors: Wagner Harvey M. , Yuan John S. C.
Published: November 2008

This paper demonstrates the equivalence of several published algorithms for solving the so-called linear fractional programming problem.
Utility Theory
Authors: Fishburn Peter C.
Published: November 2008

Utility theory is interested in people's preferences or values and with assumptions about a person's preferences that enable them to be represented in numerically useful ways. The first two sections of this paper say more about what utility is, why people are interested in it, and how it is interpreted and used in the management and behavioral sciences. The third section summarizes a number of utility theories: it may be used either as a concluding overview of the range and variety of utility theories or as a bridge to the final sections. The final eight sections comprise a semi-technical survey of particular theories for readers interested in greater depth.
A Goal Programming Model for Media Planning
Authors: Charnes A. , Cooper W. W. , Devoe J. K. , Learner D. B. , Reinecke W.
Published: November 2008

A goal programming model for selecting media is presented which alters the objective and extends previous media models by accounting for cumulative duplicating audiences over a variety of time periods. This permits detailed control of the distribution of message frequencies directed at each of numerous marketing targets over a sequence of interrelated periods. This is accomplished via a new logarithmic non-reach device and a continuous lognormal generation of the discrete message frequencies.
Note on an Application of a Goal Programming Model for Media Planning
Authors: Charnes A. , Cooper W. W. , Learner D. B. , Snow E. F.
Published: November 2008

An illustrative example is developed from an actual application of goal programming to media planning over a period of time. These goals involve distributions of frequencies by demographic and other characteristics as well as budget and other constraining limitations.
Job-Shop Lot Release Sizes
Authors: Schussel George
Published: November 2008

A new model (ELRS) for determining optimal job-shop lot sizes is presented. Since the setting of the lot release size is one of the most important controlling parameters in the scheduling of a job-shop, the improvement in technique described in the article should result in substantial savings to job-shop operation costs. In those cases where management is already using an EOQ method for determining lot release sizes, the input data and system required for the implementation of ELRS is basically similar and therefore the new and improved analysis can be substituted at relatively minor inconvenience to the user. For those job-shops which set lot release sizes by informal means, the ELRS concept may provide enough of an improved technique to induce this use of this analysis.
Critique of: “A New Product Analysis and Decision Model”
Authors: Lipstein Benjamin
Published: November 2008

Critique of [Urban, G. L. 1968. A new product analysis and decision model. Management Sci. 14(8, April) B-490–B-517.].
The I Days of Christmas: A Model for Competitive Advertising Over An Intensive Campaign
Authors: Bell Colin E.
Published: November 2008

During a pre-Christmas campaign in which daily sales are generally increasing, it is important to achieve a proper balance in advertising allocation between the final days of heavy sales and the earlier days of the campaign when sales are lighter but advertising might affect sales farther into the future. This paper presents a model of such a problem for two competing firms, an algorithm for solution of the model, numerical examples, and a proof of the algorithm.

An equilibrium solution is found in which each firm applies the same proportioning vector to distribute its total advertising budget over the N days.
An Inverse Warehousing Problem for Imperfect Markets
Authors: Bell Duean
Published: November 2008

This paper focuses upon the problem of a monopolist who has no control over the rate of arrivals into inventory and who ships his product to distant markets where the price per unit is a randomly shifting inverse function of the quantity shipped. It is assumed that the firm seeks to minimize its expected losses over a many-period horizon where the quantity shipped during any period is subject to last minute reconsideration.

Given certain assumptions about the cost and revenue functions and the level of inventory, it will be shown that the optimal shipping quantity is a linear function of the storage level and that the solution of the many-period nonstationary problem can be expressed in closed form.
A Treatment of Transportation Problems by Primal Partition Programming
Authors: Grigoriadis Michael D. , Walker William F.
Published: November 2008

J. B. Rosen's Primal Partition Programming method [Rosen, J. B. 1964. Primal partition programming for block diagonal matrices. Numerische Mathematik 6.] is applied to the classical transportation problem and to some related generalizations or extensions. Observations on the special structure of the constraint matrix result in a subproblem which may be solved by inspection, a unimodular master inverse of order m and in a considerable reduction in the number of vectors spanning the dual space of the master problem. This inverse and master problem may be replaced by a directed network of at most m(m − 1) arcs and m nodes, where m is the number of sources. Dual feasibility is maintained throughout the optimization procedure. The generalizations and extensions treated are: (i) The upper bounded transportation problem, (ii) the transportation problem in which the source availabilities are subject to some general linear constraints and, (iii) the parametric transportation problem. Programming of the method for a digital computer is quite simple and requires only integer arithmetic (except for (ii)). Computing efficiency compares quite well with the specialization of the Dantzig-Wolfe Decomposition method to transportation problems [Williams, A. C. 1962. A treatment of transportation problems by decomposition. J. Soc. Indust. Appl. Math. 10(1, March).] and other methods of solution.
On Decision Theory Under Competition
Authors: Jackson James R.
Published: November 2008

Decision theory treats models in which a decision maker must choose an information function and a decision function, where the former transforms states of nature into messages, the latter transforms messages into actions, and the ultimate payoff depends upon the state of nature, the message, and the action. This paper treats similar models in which nature's role is played by a selfseeking rational opponent. These models fall into the purview of the theory of two-person games, and the main results concern the maximin and minimax theories of these games. The various games treated differ in the assumptions made about the decision maker's ability to probability mix his choices and about his opponent's information concerning these choices. Twenty different sets of assumptions are considered, but it is shown that the maximin and minimax theories of the resulting games are all reducible in substance to those of just three games: (i) in which the decision maker cannot probability mix his choices at all, and his opponent observes both choices; (ii) in which the decision maker can mix arbitrarily, and his opponent observes neither of his choices; or (iii) in which the decision maker can mix decision functions only, and his opponent observes only the information function. These games are represented in terms of matrix games, and the matrices are compressed by the deletion of dominated strategies for the decision maker. Further compressions are obtained for the case in which the cost of information is separable from the payoff resulting from the actions of the decision maker and his opponent. The game matrices are finally reduced to manageable proportions for the further specialized cases in which either the capacity of the decision maker's information channel is significantly limited and information cost is constant, or the capacity of the information channel is large and there is one low—cost “non-message” available. A numerical example is given, and the concluding comments point to directions for further research.
Optimal Operations & Investments of the Firm
Authors: Thompson Russell G. , George Melvin D.
Published: November 2008

In this paper, a dynamic continuous time model of the firm, encompassing operations and investments, is formulated as an optimal control problem in an activity analysis context. In the model, the objective of the firm is to maximize, subject to various constraints, the discounted value of operating profits less the costs of new capacity and the interest on borrowed funds (or plus the interest on savings) over a fixed decision-making interval plus the discounted value of capacity at the end of the period. The state variables are capacity and debt, and the controls are scale of operation and rate of purchase of new capacity; the final capacity and debt are control parameters. There are several inequality constraints.

Using results in control theory, the optimal controls are determined for the case the rate of production is linear in the scale variable, the growth of capacity is linear in the rate of purchase of new capacity and the attrition of capacity is linear in the amount of capacity. Extensions of the model are made to include multiple processes.
Theory of Investment Behavior and Empirical Analysis of Stock Market Price Relatives
Authors: Renwick Fred B.
Published: November 2008

This paper examines the hypothesis that “outliers” observed in empirical frequency distributions of share price relatives can be anticipated and explained via the theory of financial analysis. Specifically, price is treated as a ratio estimate. Each term in the estimate is subject to error, and both numerator and denominator of the ratio are considered to be normally distributed. Then deviations from the ideal Gaussian form for the empirical frequency distributions of change in price are explained in terms of fundamental economic variables that interact to determine numerical values for the numerator and denominator of the ratio.
Synthesis of Several Techniques
Authors: Goetz Billy E.
Published: November 2008

Business systems analysis can have many forms and names, accounting, Industrial Dynamics,1 operations research, motion and time study, and budgeting, etc. These should not be considered as separate, but as systems where each can contribute enormously to the power of the others—the integrated whole is immensely greater than the sum of the parts. Each produces an analog of an enterprise system or subsystem, and these analogs simulate the behavior of the system caricatured. I contend that each would gain enormously in power if all were merged into a single analog as against their treatment as separate independent analogs.
A Computer Aided Decision System
Authors: Ferguson Robert L. , Jones Curtis H.
Published: November 2008

The use of on-line, real-time computer-based information systems to augment managerial decision making raises interesting and significant questions. In search of operational answers, the authors have developed and conducted experiments with a time-sharing computer model. By modeling the dynamics of a job shop the authors were able both to make use of and to evaluate academic research in job shop scheduling. The authors have devised a specific apportionment of the problem environment which permits users of their information system to explore the effects of various combinations of heuristics and programmed decision rules. The response of over 300 managers and academicians who have participated in the experiments provides evidence of the practicality of such an approach to multi-dimensional, time-variant problem solving.
A “Variable s” Inventory Model
Authors: Sargent Robert G. , Bradley Hugh E.
Published: November 2008

This paper develops a linear periodic review inventory model in which the reorder rule is an extension of the “order up to S” or (S, T) policy where S varies as a general linear function of demand and net inventory. Stationary and non-stationary demand processes are considered. Lead time is assumed to be an integral multiple of the review period and, at most, an independent and identically distributed random variable. Analysis of the model includes stability, transient response, steady-state response, and the effects of common nonlinearities.
Optimal Allocation for a Class of Finite Horizon Processes
Authors: Seelenfreund Alan
Published: November 2008

The purpose of this paper is to derive a fundamental frame of reference for the analysis of a class of multistage decision problems that have been separately treated in the literature. It is hoped that exposition of the basic structure of these problems in a general setting will provide a convenient point of departure for future investigations. Specific examples of problems in this class are the capital budgeting problem of Dorfman [Dorfman, R. 1963. Regional allocation of investment: Comment. Quart. J. Econom. (Feb.)], the warehouse problem of Dreyfus [Dreyfus, S. 1957. An analytic solution of the warehouse problem. Management Sci. 4(1, Oct.)], the price speculation model of Arrow and Karlin [Arrow, K. J., S. Karlin. 1958. Price speculation under certainty. Chapter 13 in Arrow, K. J., L. Hurwicz, H. Uzawa. Studies in Linear and Non-linear Programming. Stanford University Press, Stanford, Calif.] and the work on multistage linear programs by Dantzig [Dantzig, G. B. 1959. On the status of multistage linear programming problems. Management Sci. 2(1, Oct.)]. The special results elucidating the structure of optimal solutions to these problems may all be obtained by application of the Linearity Theorem proven in this paper.
Free For All—Guest Editorial
Authors: Norden Peter V.
Published: November 2008

Management Science invited Dr. Norton, upon his election as President-Elect, to prepare a guest editorial outlining some of his plans and ideas for TIMS.
Robustness in Sequential Investment Decisions
Authors: Gupta Shiv K. , Rosenhead Jonathan
Published: November 2008

Long-range investment plans, particularly for expansion or decentralization, often consist of a number of separate but interacting investments spaced over a number of years. Where there is appreciable uncertainty about external conditions in the future, it is possible that a “best” scheme based on the state of current knowledge will prove during the course of the intervening years to be less than good. One way of guarding against this danger is to ensure that the early (and therefore irreversible) steps in the investment sequence keep open as many options of “good” schemes as possible. Concepts of robustness and stability are developed. As a practical example of the use of these concepts a case study is presented, which deals with the location of sites for new factories in an industrial expansion program.
An Extension of Lawler and Bell's Method of Discrete Optimization with Examples from Capital Budgeting
Authors: Mao James C. T. , Wallingford B. A.
Published: November 2008

The usefulness of integer programming as a tool of capital budgeting hinges on the development of an efficient solution technique. An algorithm based on partial enumeration has been developed by E. L. Lawler and M. D. Bell for solving integer linear programs with 0–1 decision variables; however their algorithm is not general enough to deal with all problems in which the objective function is quadratic. This paper extends Lawler and Bell's method so that it can be generally applied to integer quadratic programs. The new algorithm is illustrated by examples from capital budgeting.
Free For All
Authors: Ackoff Russell L.
Published: November 2008

—Editorial by Russell L. Ackoff, University of Pennsylvania
Information Retrieval for Media Planning
Authors: Kwerel Seymour M.
Published: November 2008

A critical problem, continually faced by managers in developing “effective” resource allocation plans, is that only limited partial information is available about the system under consideration on which to base these plans. This is particularly true in planning involving the limited information typically available on the relevant behavior and characteristics of large human populations.

This paper develops the insight that partial information—which at first scrutiny appears to contain only severely limited information about the system—in many important cases actually contains (or stores) a great deal of the relevant total system information needed for planning (or control). This insight leads to powerful methods-for retrieving the needed information about the behavior and characteristics of the total system from the information contained in the partial information data.

In the present paper, we illustrate these information retrieval methods by developing and applying them to partially specified media audience exposure systems to retrieve certain critical total system information needed for media planning. More specifically, partial information on the audience of a combination of advertising media vehicles consisting of only two information quantities—the sum of the individual audiences, and the sum of the audiences of all pairs of media vehicles in the combination—is shown, in fact, to contain a significant amount of the information about the audience exposure pattern of the combination that is needed for media planning evaluation. Theory and methods are developed which retrieve, from these two quantities, operationally useful information on the unduplicated audience, the average exposure frequency, and the frequency distribution of audience exposure of the combination.

The retrieval methods developed in this paper have been successfully applied to evaluating and developing “effective” media selection programs. These retrieval methods apply as well to management information systems involving marketing, demographic, socio-economic and related partially specified information systems in which individuals are classified in terms of the presence or absence of each of a large number of relevant attributes. In addition, these retrieval methods can be extended to retrieve additional information about the total system, where required, including the development of usefully precise single value estimates of the critical information quantities of the total system.
A Simulation Model of Capital Budgeting Under Uncertainty
Authors: Salazar Rodolfo C. , Sen Subrata K.
Published: November 2008

This paper describes a simulation model of capital budgeting under uncertainty. It analyzes the effects of two types of uncertainty which influence the cash flows of the potential investment projects. Techniques of simulation and stochastic linear programming (using Weingartner's Basic Horizon model of capital budgeting) are employed to compute the expected return (with an associated measure of the risk involved) of different portfolios of projects. The manager can then select the portfolio which is closest to his personal risk-return preference. The model provides a practical guide to management in the entire process of project search, portfolio generation, and portfolio evaluation which characterizes the capital budgeting decision.
Note on “Maximizing Insurance Buyers' Utility”
Authors: Hayes Robert H.
Published: November 2008

In an article entitled “Maximizing Insurance Buyers' Utility” (Management Science, February 1968), Morris Hamburg and William Matlack obtained results which suggested that-under certain rather stringent assumptions about an individual's utility function, the probability distribution of the possible losses he is exposed to, and the mechanism that determines the cost of insurance—not only is it advantageous for him to buy insurance, but the more insurance he buys (i.e., the higher he sets his liability limit) the more advantageous it becomes. On the surface it might appear that this intuitively appealing1 result should be true under less stringent conditions regarding the individual's utility function, and possibly that it might be true for concave utility in general. The purpose of this note is to show that not only is it not true in general for concave utility, it is not even true necessarily for the case considered by Hamburg and Matlack if the individual's total asset position, and the utility he assigns to total assets, is taken into consideration.
A New Product Growth for Model Consumer Durables
Authors: Bass Frank M.
Published: November 2008

A growth model for the timing of initial purchase of new products is developed and tested empirically against data for eleven consumer durables. The basic assumption of the model is that the timing of a consumer's initial purchase is related to the number of previous buyers. A behavioral rationale for the model is offered in terms of innovative and imitative behavior. The model yields good predictions of the sales peak and the timing of the peak when applied to historical data. A long-range forecast is developed for the sales of color television sets.
On a New Class of Combinatoric Optimizers for Multi-Product Single-Machine Scheduling
Authors: Kortanek K. O. , Maxwell W. L.
Published: November 2008

Many people have proposed objective functions, or optimizers, which guide one to schedule a multi-product single stage production system. In this paper we present a whole new class of optimizers, or solution concepts, which generalizes most of the well-known optimizers to date. Our combinatoric formulations are related to a new class of solution concepts for n-person games developed by Charnes-Kortanek [Charnes, A., K. O. Kortanek. 1967. On a class of convex and non-archimedean solution concepts for n-person games. Technical Report No. 22, Department of Operations Research, Cornell University, and Systems Research Memo No. 172, Northwestern University, Evanston, Illinois, March.]. By constructing a combinatoric linear programming problem, where some of the variables are determined by an arbitrary set of permutations, we encompass classical optimizers in one formulation including such concepts as

(1) minimizing maximum lateness or tardiness,

(2) maximizing minimum lateness or tardiness,

(3) minimizing mean lateness or flow time, and

(4) random sequencing.

More generally, we characterize a new class of optimizers as optimal solutions to specially constructed combinatoric programming problems, including optimizers which are integer in character.
Shortest Route Models for the Allocation of Inspection Effort on a Production Line
Authors: White Leon S.
Published: November 2008

Two shortest route models for determining where to allocate inspection effort on a production line are developed for the cases where this effort is unlimited or limited in its availability. A production line is defined as an ordered sequence of production stages, each stage consisting of a manufacturing operation followed by a potential inspection station. Items flow through the line in batches and may incur defects at any stage. Defects are assumed to be repairable or non-repairable. The defect generating process at any stage is taken to be an independent Bernoulli process with a known parameter. Two levels of inspection effort may be applied at any stage: no inspection or 100% inspection. Thus, both models are used to determine the stages at which batches are to be 100% inspected. A general cost structure is postulated first for the case where items with repairable defects are immediately repaired and items with non-repairable defects are discarded, and then for the case where all items found to be defective are replaced immediately with non-defectives. An expected cost per batch criterion is used to determine an optimal inspection plan in all cases. Examples are included.
Stock Rationing
Authors: Kaplan Alan
Published: November 2008

A supplier may distinguish between the demands be receives for an item, attaching greater importance to satisfying some categories of demand than others. This paper discusses use of reserve levels, i. e, stock levels at which to stop issuing in response to lower priority demand. An algorithm which calculates optimum reserve levels is developed. Its effectiveness is compared to use of unsophisticated policies.
Extensions of the Planning Horizon Theorem in the Dynamic Lot Size Model
Authors: Eppen Gary D. , Gould F. J. , Pashigian B. Peter
Published: November 2008

This paper considers an N period production planning problem in which a sequence of known demands d1, d2,…, dN must be satisfied. The cost of production in period t consists of a setup cost Kt plus a marginal cost per unit ct. The cost of carrying a unit of inventory into period t is ht − 1. An optimal policy is a production plan that satisfies demand at minimum cost.

The main results of the paper are a theorem that decreases the computational effort required to find optimal policies and a theorem that establishes the existence of planning horizons. The results of these two theorems are combined in a forward algorithm for the efficient solution of the problem.
Optimality of Myopic Inventory Policies for Several Substitute Products
Authors: Ignall Edward , Veinott Arthur F.
Published: November 2008

Multiproduct inventory systems with proportional ordering costs and stochastic demands are studied. New conditions are obtained under which a myopic ordering policy (a policy of minimizing expected cost in the current period alone) is optimal for a sequence of periods for all initial inventory levels. An important one of these, the substitute property, holds when the myopic policy is such that increasing the initial inventory of one product does not increase the quantity ordered of any product.

Conditions on the one period expected holding and shortage cost function, which are of independent interest in nonlinear programming, are shown to imply the substitute property. Applications of these conditions to models with storage or investment limitations and to a multiechelon model are given.

Under backlogging the usual extension to a fixed delivery lag is obtained. Some non-stationary cases are also treated.
Does “Good Portfolio Management” Exist?
Authors: Simon Julian L.
Published: November 2008

Using closed-end investment trusts as subject-matter, this paper explores this question: Are some portfolio managers “really” better than others? i.e., are there differences in performance among managers other than those differences due to chance? It also throws some light on whether investors, in the aggregate, act rationally upon the knowledge of performance that is reasonably available to them in the pricing of securities.

The results of the study suggest that there is some consistency over time in a closed-end trust's relative success in portfolio management; success in any year is apparently not just a random occurrence, and hence some degree of “good” portfolio management of closed-end trusts seems to exist. (However, the lack of dependence from year to year calls this conclusion into question.) As is therefore rational, the price of the stock, as measured by the discount or premium at which it sells, is loosely related to the closed-end stock's success. The discount (premium) is therefore a better-than-chance prediction of the trust's success in the following year. Further research is called for to check the findings given here and to unravel some of the perplexities.
Critique of: “Does ‘Good Portfolio Management’ Exist?”
Authors: Barineau John N.
Published: November 2008

Critique of the paper Simon, Julian L. 1969. Does “Good portfolio management” exist? Management Sci. 15(6, February) B-308–B319. Professor Simon addresses two interesting questions on portfolio management and performance of closed-end investment trusts: 1. Do some trust managers actually “outperform” others, or is trust performance only the result of luck or chance? 2. Are the discounts (or premiums) represented in trust share prices in the open market valid indicators of future portfolio performance? Despite some interesting and creative research, the author's work, unfortunately, falls short of providing a really conclusive answer to the first and most important of these questions.
A Stochastic Response Model with Application to Brand Choice
Authors: Montgomery David B.
Published: November 2008

This paper develops a model which is an extension of a class of stochastic response models first proposed by Coleman [Coleman, J. A. 1964a. Models of Change and Response Uncertainty. Prentice-Hall, Inc., Englewood Cliffs, New Jersey.]. In its present form the model applies to the binary response situation. The model postulates a population of respondents who are heterogeneous with respect to their response probabilities. A given respondent may experience changes in his response probability in the intervals between response occasions, but since the actual responses he makes do not effect his response probability, the model is zero order. The paper also presents a variant of the minimum chi square procedure which may be used to estimate and test the model. An application to consumer brand choice data demonstrates that the model is empirically viable. Potential applications to multi-wave voting intentions panels and social-psychological experiments are indicated.
Mathematical Programming with Increasing Constraint Functions
Authors: Pierskalla William P.
Published: November 2008

The mathematical programming problem—find a non-negative n-vector x which maximizes f(x) subject to the constraints gi(x) ≥ O, i = 1,…, m—is investigated where f(x) is assumed to be concave or pseudo-concave and the gi(x) are increasing functions. It is shown that under certain conditions on gi(x), the Kuhn-Tucker-Lagrange conditions are necessary and sufficient for the optimality of x*. It is also shown that the gi(x) are a useful class of functions since, among other properties, they are closed under non-negative addition, under the addition of any scalar, and under multiplication of non-negative members of the class.

Examples of the above programming problem with increasing constraint functions are found in many chance-constrained programming problems.
On the use of Information Theory Concepts in the Analysis of Financial Statements
Authors: Theil Henri
Published: November 2008

Balance sheets and income statements are numerical decompositions of certain total sums: total assets, total liabilities, total sales, and total costs and expenses. The behavior of individual items measured as fractions of the corresponding total is important for the analysis of the company's financial position. It will be argued in this article that certain concepts derived from information theory are useful as summarizing descriptive devices for changes in such fractions as well as for the analysis of differences between companies of the same industry.
Integer Linear Programming: A Study in Computational Efficiency
Authors: Trauth C. A. , Woolsey R. E.
Published: November 2008

In this report, twenty-nine integer linear programming problems, raging from very simple to apparently rather difficult, are introduced. The results of running these problems on four different computer codes, involving five distinct algorithms, are presented as both time and iteration data. A brief description of the codes used is also included.
Optimal Production Planning by a Gradient Technique I. First Variations
Authors: Lee E. S. , Shaikh M. A.
Published: November 2008

A gradient technique baaed on the first variations is used to solve a production scheduling problem with known sales forecasting. The function to be minimized is the sum of the costs derived from holding inventories, stockouts, and the deviation of the production rate from the optimal rate for the plant. This technique has the advantage of being able to investigate problems with a large number of state variables and can also be extended to multiproduct, multifacility operations with complex interconnections.