bluuebunny/crossref_metadata_2025_split huggingface dataset:
Perspectives on MS Applications: All Around the Model—Inbound Collection of Goods: The Reverse Distribution Problem
Authors: Schuldenfrei Robert L. , Shapiro Jon M. 
Published: October 2008

Often the manufacturing firm is biased in its organization so that production, marketing, sales, and distribution are largely concerned with outbound. The size of this concentration is large when contrasted with perhaps purchasing, which might have total control of inbound. It is hard to argue that there is little glamour in the collection of materials necessary for production, yet it is often a large area of expense. It is believed by the authors that this is about to change. The pressures of inflation, tight energy supplies, and the trend of higher costs of logistics will force managements who strive for success to look at both sides of the logistical equation. Physical collection will be just as important as physical distribution.
Seen Elsewhere
Authors: Morgan J. I. 
Published: October 2008

Digests presented: —MANAGEMENT PRACTICE AND RESEARCH—POLES APART (Business Horizons June 1977, Vol. 20, No. 3, pp. 23–29) by William G. Ryan (Indiana University). —DECISION ANALYSIS IN RETROSPECT AND IMPLICATIONS FOR THE FUTURE (Managerial Planning May/June 1978, Vol. 26, No. 6, pp. 20–24), by V. M. Rao Tummala (University of Detroit). —SYNTHETIC FUEL NO ANSWER, DP ENERGY ANALYSIS FUNDS (Computerworld June 12, 1978, Vol. 12, No. 24, p. 12), by Marcia Blumenthal. —MODELS FOR PRICING DECISIONS (Journal of Marketing Research August 1978, Vol. XV, No. 3, pp. 413–428), by Kent B. Monroe (Virginia Polytechnic Institute) and Albert J. Della Bitta (University of Rhode Island). —ON HOW TO DECIDE WITH TO DO (The Bell Journal of Economics Autumn 1978, Vol. 9, No. 2, pp. 494–507), by Herbert A. Simon (Carnegie-Mellon University). —A HERETICAL VIEW OF MANAGEMENT “SCIENCE” (Fortune December 18, 1978, Vol. 98, No. 12, pp. 50–52), by Theodore Levitt (Harvard Business School).
Filling Out the Doughnuts; The Single Period Inventory Model in Corporate Pricing Policy
Authors: Pasternack Barry Alan 
Published: October 2008

The single period inventory problem deals with goods which have a characteristically short shelf life or selling season. For this reason the inventory decision is simply how much to produce or stock in order to meet the demand of one selling period. While there are several areas of application which come to mind, perhaps the clearest example of this situation is in the newspaper industry. The problem here is to determine how many papers to supply a newsstand in order to optimize profitability. For this reason the single period inventory problem is oftentimes referred to as “The Newsboy Problem.” In this paper we describe an application of the single period inventory problem to another product which has an extremely short shelf life, donuts. The application of the model was not, however, made for the purpose of determining an optimal production plan. Rather, it was used to give the management of a highly decentralized chain of donut shops an indication as to how modifications in pricing structure could result in individual store managers making decisions which more closely paralleled the objectives of the firm. The model also gave an estimate of the increase in profitability which was possible from such modifications.
Boxcars, Linear Programming, and the Sleeping Kitten
Authors: Brosch Lee C. , Buck Richard J. , Sparrow William H. , White James R. 
Published: October 2008

The sleeping kitten is the corporate symbol of the Chessie System, made up of the Chesapeake and Ohio, Baltimore and Ohio, and Western Maryland railroads and their subsidiaries. It is the largest hauler of coal in the nation and a major transporter of merchandise freight. To maintain earning capacity, large amounts of money are invested annually in the purchase, building, and repair of freight cars (worth over $4 billion). Chessie's Management Science team developed a linear programming model of the freight car fleet to maximize long-term net discounted cash flow without exceeding the capacity of physical facilities available. The first projections of the model output increased contribution to profits of the Chessie fleet in 1978 by $2 million, while reducing the yearly budget for the mechanical department by $6 million. Continued use of the model has resulted in a $2.5 million improvement in employee productivity, as well as a $28 million increase in car sales. Management accepted the recommendations from the model because (1) an immediate budget problem was solved, (2) each repair recommended was financially justified, and (3) the underlying assumptions and logic were quantified and comprehensible. The Mechanical Department now uses the model as the complete basis for its annual budget proposals, and management decisions to sell unused stock and build cars for sale have been facilitated.
Simulation as an Aid in Decision Making at Israel Fertilizers and Chemicals
Authors: Bar-Lev D. , Pollatschek M. A. 
Published: October 2008

A case study is presented of the development of a simulator for phosphate processing in the course of which there was mutual feedback between the authors and the company. The problem facing the company was how much and where to invest to increase the overall productivity under changing circumstances. Due to the dynamic nature of the problem and the intricate interrelation between transporting, storage, production segments, and sales, simulation was chosen as the analyzing tool. The development process consumed 1,450 man-hours, with an $800 computer bill. The simulator was applied in decisions involving nearly $1 million (2% of the yearly sales). One of its recommendations has been actually checked and found to lead to a saving of $60,000 per annum.
Implementing Linear Programming in a Textile Unit: Some Problems and a Solution
Authors: Bhatnagar S. C. 
Published: October 2008

Cotton textiles is a very important industry for India. It represents 20% of the industrial production, 11% of the total exports, and employs 20% of the total labor force in the industrial sector. In recent years, the gross profit margins of textile units have dwindled to 7% of sales. Since the industry is old, 1.4% of sales turnover (20% of gross profit) is being reinvested in modernization. To combat eroding profits a typical unit is now faced with the problem of controlling costs, improving contribution by defining a suitable product mix, and choosing the right areas for modernization and capacity expansion. In spite of widespread realization of the potential of using linear programming (LP) for product mix, there are hardly any textile units which use the LP on a continuing basis. In the developed countries it may be that most of the time a unit can make more than it can sell and the value of LP dwindles. In developing countries, demand is forever growing and outstrips supplies. There are crippling power shortages requiring that a production plan be made which uses limited production resources optimally. In this paper we discuss the impediments to the use of LP in textiles, and describe how a software package was designed to facilitate the LP formulation and its implementation in a textile mill.
Information Systems in Management Science—Information Evaluation and Decision Makers' Objectives
Authors: Ahituv Niv , Wand Yair 
Published: October 2008

The article is preceeded by a short editorial introduction by the column editor Andrew Vazsonyi of St. Mary's University, San Antonio, Texas. Theoretically, the value of information is defined as the difference between the value of the business outcome with and without having the information. Although this definition is straightforward, its application to real situations is extremely difficult, if not impossible. Information Economics (IE) suggests an avenue of approach to the problem via concepts of Decision Theory. In a discussion based on these concepts, Vazsonyi [Vazsonyi, Andrew. 1979. Concerning the dangers of little knowledge. Interfaces 9 (3, May) 78–86.] demonstrates by means of an example that the common notion that the value of information is directly related to the uncertainty it removes is not necessarily correct. He concludes by three statements, the last of which is: “Choice of an information system must be based on your state of mind and cost/benefit analysis, that is, maximization of expected utility.” This statement is based on another conception; that individual's desire to maximize expected utility. However, utility is not that simple, and often we have multiple objectives and more than one outcome to consider, particularly when an individual is responsible for business decisions.
Looking Up at Mathematical Programming
Authors: Tilanus C. Bernhard 
Published: October 2008

It is estimated that more people in the world are busy sowing methodologies of mathematical programming than reaping the fruits that these might bear. This paper investigates the fruits: it is looking up from the black soil of practice to the pure air of theory. If mathematical programming may be compared to a pyramid, it turns out that the pyramid is positioned upside-down, a paradoxical position found to correspond with nature. First results and research plans are discussed in two areas, market research and consumer research of mathematical programming. Market research considers the applications field of methodologies as a whole: which methodologies can be “sold” and in which areas is future demand? Consumer research considers methodologies from the viewpoint of the individual user; he will use benchmarks and other means to evaluate the software products in which the methodologies are incorporated.
Watching the Whole Doughnut
Authors: Whitin T. M. 
Published: October 2008

In a recent article in this journal, B. A. Pasternack [1980] explored the effects of varying the pricing structure so that individual store managers in a highly decentralized chain would make decisions which “more closely paralleled the objectives of the firm.” Using the same type of payment assumed by the author, it is simple to provide the store managers with a pricing structure which makes their objectives precisely equal to those of the firm. Several of Pasternack's conclusions are shown to be wrong or misleading when viewed in the context of the more general model presented here. In addition, simpler formulas for computation of expected profits are developed, which make possible a brief exploration of the sensitivity of the model's profits to variations in the price of donuts. This indicates that the determination of the optimal price may be of more importance than the problem of setting appropriate incentives for the decentralized manager.
The Chinese-U.S. Symposium on Systems Analysis
Authors: Gray Paul , Dean Burton V. 
Published: October 2008

Since the reestablishment of relations between the United States and the People's Republic of China (PRC) in 1979, a number of contacts have taken place between the OR/MS communities of the two countries. Until 1981, these contacts were in the form of Chinese delegations attending international meetings (e.g., IFORS in Toronto), and joint TIMS/ORSA meetings or travel to the PRC by individual Management Scientists. An account of one such trip, by Leon Lasdon in December 1978, appeared in Interfaces in the February 1980 issue. Others who have visited the PRC include Martin Starr, George Dantzig, John D. C. Little, and Victor Klee. This is certainly not an exhaustive list; however, it does indicate the range of contacts that have been made. The next logical step for formalizing and extending these contacts is the holding of joint symposia and the undertaking of joint research projects. Such a joint symposium, the PRC-US Symposium on Systems Analysis was held in Xian, the capital of Shaanxi Province, April 17–21, 1981; this paper describes it.
Power to the People—A Fable
Authors: James l'Abbé 
Published: October 2008

The real author wrote this paper under the pseudonym l'Abbé James. Any professional, and particularly a professional Management Scientist, likes to have a certain visibility within the organization. Beyond any of our ego trips is the need to be recognized so that the people who use our services will know who we are, what we can do for them, and where to find us. Outside of the organization, we like to have a certain visibility within our professional world. It helps us to keep us with the latest techniques and allows us to meet new people with ideas that we ourselves might be able to use.
The Passenger-Mix Problem in the Scheduled Airlines
Authors: Glover Fred , Glover Randy , Lorenzo Joe , McMillan Claude 
Published: October 2008

Deregulation has opened up many opportunities and challenges in the transportation industry—opportunities to increase profits and challenges to keep from being outflanked by competition. A goal of particular interest to the scheduled airlines is to set prices more adaptively and to change them more rapidly. A difficult problem arises when many passengers with different itineraries compete for a limited number of seats on a single-flight segment. The problem is complicated by the existence of different fare classes, many flight segments, and different demands across time. For any given set of prices, flight-segment capacities, and passenger-carrying demand, there is some number of passengers at each fare class on each flight segment that will optimize revenue. Knowledge of such an optimum can be used not only in pricing analysis but also in setting policies to influence the passenger fare-class mix so that the optimum will be more nearly achieved in actual practice. We describe a method for identifying the optimum fare-class mix and the design of a system for that purpose which we built and implemented for Frontier Airlines. The recognition and formulation of the problem has become even more important as the number of aircraft in the sky has been reduced and the competition for a limited number of seats has become more intense.
Improving the Effectiveness of Management Services
Authors: Nadler Gerald 
Published: October 2008

Whatever your disciplinary background—decision science (DS), industrial engineering (IE), information systems (IS), Management Science (MS), Operations Research (OR), or systems analysis (SA)—your education consisted almost completely of models and techniques. What is disconcerting to me (during my over 12 years on the Board of Directors of a nearly $100 million manufacturing firm) is to watch management services professionals rely on techniques, “accuracy” of measurements and models, and jargon in seeking approval for a recommendation (even for more accurate and detailed models and techniques). In addition, the professional far too often believes the technique or model led to the solution, rather than serving as one (quite minor) factor in arriving at accepted or implemented effective and innovative responses and changes. Then how is a management services person to practice effectively? Through a conversion-to-practice linkage not often described or taught between the tools of the trade and the many other factors. The key link is a “total approach” which shows how to decide when a technique is or is not useful, and how to interrelate appropriately with the real-world organization and environment.
Seen Elsewhere
Authors: Morgan J. I. 
Published: October 2008

“Seen Elsewhere” consists of digests of articles on the application and implementation of management science seen in other publications. Contributions to this section are wanted. If you come across an article which is on the leading edge of the practice of management science, send it or a digest of it to the “Seen Elsewhere” editor. We welcome additional regular contributions or editors-at-large.
Information Systems in Organizations
Authors: Hoffer Jeffrey , Keen Peter 
Published: October 2008

The 1960's were devoted mainly to computer hardware developments, and the 1970's to software tools. Now, the challenge is to put the technology to work. Information systems can touch the breadth and depth of an organization. Our guide to the future is in the study of successful innovations in information systems within organizations. Papers on information systems should describe current practical applications of information technology. While research is needed to guide practice, practice is a form of research which validates worthwhile systems and identifies limitations, problems, and issues for study. We seek papers that relate research to practice and practice to research.
Judging the CPMS/TIMS Prize Winners
Authors: Lilien Gary 
Published: October 2008

This issue of Interfaces, printing the CPMS/TIMS prize winners, is most eagerly awaited by many readers. It is an important issue because the papers report some of our more impressive professional successes. This year's competition was the first I attended. I am sorry that I waited so long. If this year's finalists were any indication, over the years I have missed many outstanding presentations of successful implementations of management science. From a set of over 30 applicants, 17 semi-finalists were selected. Each semi-finalist was assigned to a “verifier” from the CPMS council. The verifier, through extensive interviewing within the applicant's organization, helped determine the impact of the management science contribution on that organization. From this information, seven finalists were chosen. Each finalist was assigned a coach, a CPMS member whose job was to help the finalist prepare the written and oral project reports.
Developing Generation Construction Plans for the Potomac Electric Power Company: Management Science in Utility Regulation
Authors: Graves Joseph S. 
Published: October 2008

To assist the Public Service Commission of the District of Columbia in overseeing the construction plans of the Potomac Electric Power Company, Resource Planning Associates, Inc. (on behalf of the Commission staff) independently developed long-term capital expansion plans for the utility. Such decisions in this extremely capital-intensive industry have effects for up to 50 years and involve billions of dollars in initial expenditures and several times more in future retail rates. In a publicly scrutinized, trial-like, adversary situation, in spite of the inherent uncertainties in and the complexities of the issues being addressed, our analysis showed how substantial savings could be achieved (as much as 15 billion dollars depending upon the future values of uncertain and uncontrollable variables), and convinced the Commission that their action was necessary. To do this we used state-of-the-art methods for generation planning and a new framework for strategic planning under uncertainty.
From the Shadows: Earthmoving on Construction Projects
Authors: Perry Chad , Iliff Mike 
Published: October 2008

The finalists' papers from the 1982 Management Science Achievement Award competition were the stars of December's special issue. Here, I commend to your attention an account of an LP application from Australia. It was not a finalist in the competition; indeed, it was not even submitted to the competition. But, by comparing it to the finalists' papers, we can draw some useful inferences about the potential value of solid LP applications. The article deals with minimizing earth-moving costs at an airport construction project. The two resulting LP models are straightforward, simple, and small. The smaller one is a pure transportation model with 4 sources and 5 destinations, yielding an LP structure with 9 rows and 20 columns. The larger one is about twice as large in each dimension. In terms of model size and structure, this application might well be an illustrative example in an introductory MS/OR textbook. But it's not a made-up example; it's real. This tiny example produced demonstrable savings of about $400,000 over the best that experienced “engineering judgment” could yield and, consequently, influenced operations in the field run by non-LP-oriented managers.
MS/OR Education
Authors: Greenberg Irwin 
Published: October 2008

In the August 30, 1982 issue of Business Week, an article headed “Hard times push B-schools into basics” states that: “In response to pressures created by the recession and by fierce competition from abroad, U.S. companies are beginning to demand that business schools supply them with graduates who have specialized in operations and people — not just numbers.” The article mentions the growth of operations management courses at some of the better-known business schools and it describes how some major corporations are working with the schools to develop these courses. I would like to ask for the reactions of the MS/OR community to this trend. In particular, I would like to hear from those outside the academic world, those in business, industry, and the public sector. Do MS/OR practitioners agree with the demands cited above?
Seen Elsewhere
Authors: Morgan J. I. 
Published: October 2008

“Seen Elsewhere” consists of digests of articles on the application and implementation of management science seen in other publications. Digests presented: —“MANAGEMENT THEORY: Retreat to the academy” (Business Horizons, Vol. 25, No. 4, July—August 1982, pp. 31–37) by Joseph W. McGuire (University of California at Irvine). —“Turning baseball into a science” (Discover, June 1982, Vol. 3, No. 6, pp. 28—31) by Kevin McKean. —“Diagnosis by computer” (Discover, September 1982, Vol. 3, No. 9, pp. 63—5) by Kevin McKean.
Issues in Evaluating Standards
Authors: Keeney Ralph L. 
Published: October 2008

When the consequences of a decision affect the public, for example, in nuclear power plant design and construction, standards are set to promote decision making in the public interest. The interrelationship of standards, their possible impacts, and the public's values is examined, by focusing on technological tradeoffs between feasible standards and diverse values of members of the public. When these issues are not explicitly addressed, the resulting standards often do not promote the optimum alternative of the public.
From the Shadows
Authors: Hirshfeld David S. 
Published: October 2008

Does linear programming have a place in the corporate executive suite? Or, does it belong solely in the refinery, the plant, the warehouse, and the terminal, on whose detailed operations and configuration LP applications have historically focused? In October 1982, Duke University's Center for Corporate Economics and Strategy sponsored a well-attended conference (“The Future of Optimization Models for Strategic Planning”) that shed some new light on this question. The conference explored the actual and potential contributions of mathematical programming (primarily LP and its extensions) to the analysis of the strategic issues that shape businesses and the process of long-term, strategic planning in business organizations. Although no definitive answers emerged from the conference, some encouraging and stimulating ideas did. The conference reinforced my belief that for many LP practitioners high-impact strategic applications are the shortest path from their current place in the shadows to the corporate sunlight. Hence, I am devoting this column and the next to some thoughts on LP and corporate planning.