Note on “future supply uncertainty in EOQ models”

We present an inventory model where the supply becomes randomly unavailable for random periods of time. We investigate the operating characteristics of the model, and we study the robustness of the optimal order quantity. Our work builds on Parlar and Berkin [2]. © 1994 John Wiley & Sons. Inc.     

A note on the “value” of bounds on EVPI in stochastic programming

The existing literature concentrates on determining sharp upper bounds for EVPI in stochastic programming problems. This seems to be a problem without an application. Lower bounds, which we view as having an important application, are only the incidental subject of study and in the few instances that are available are obtained at an extremely high cost. In order to suggest a rethinking of the course of this research, we analyze the need for bounds on EVPI in the context of its significance in decision problems.     

Requirements of an “optimizer” for computer simulations

Computer simulation has many advantages. However, one major disadvantage is that, in all too many cases, the attempt to use computer simulation to find an optimum solution to a problem rapidly degenerates into a trial-and-error process. Techniques for overcoming this disadvantage, i. e., for making optimization and computer simulation more compatible, are applicable at two points in the development of the overall computer simulation. Techniques which are used within actual construction of the mathematical models comprising the simulation will be labeled as internal methods, while those which are used after the simulation has been completely developed will be termed external methods Because external methods appear to offer the largest potential payoff, discussion is restricted to these methods, which are essentially search techniques. In addition, the development of an “Optimizer” computer program based on these techniques is suggested Although drawbacks to the use of search techniques in the computer simulation framework exist, these techniques do offer potential for “optimization.” The modification of these techniques to satisfy the requirements of an “Optimizer” is discussed.     

Storage problems when demand is “all or nothing”

An inventory of physical goods or storage space (in a communications system buffer, for instance) often experiences “all or nothing” demand: if a demand of random size D can be immediately and entirely filled from stock it is satisfied, but otherwise it vanishes. Probabilistic properties of the resulting inventory level are discussed analytically, both for the single buffer and for multiple buffer problems. Numerical results are presented.     

The Argentine dilemma: The Southern cone vis-à-vis the “contradictory duality of world reality”

The world has been faced with a contradiction since the end of the Cold War. On the one hand, there are factors that have led to complex multi-interdepen-dency; on the other, there is a process of global disintegration caused by those very same factors. It is in this context that the Southern Cone of South America has revealed a remarkable inequality in its balance of military power. If Argentina is taken as the center of gravity of both the sub-regions in the area, the Mercado Comun del Sur (Mercosur) and the Austral Cone, it is difficult to find a solution to this imbalance because the regional structure is experiencing the same contradictions as the world itself. What is clear is that the solution depends much more on the policies adopted by Argentina than those of Chile or Brazil. To solve this dilemma, Argentina needs credibility - something that requires fundamental internal change and substantial external support.     

The divisionalized firm revisited—A comment on Enzer's “the static theory of transfer pricing”

Three different solutions to a very simple transfer pricing problem are outlined and contrasted. These are labeled by their authors: Hirshleifer, Enzer, and Ronen and McKinney. Weaknesses associated with each solution are pointed out.