Decomposition-based approximation algorithms for the one-warehouse multi-retailer problem with concave batch order costs

We study the one-warehouse multi-retailer problem under deterministic dynamic demand and concave batch order costs, where order batches have an identical capacity and the order cost function for each facility is concave within the batch. Under appropriate assumptions on holding cost structure, we obtain lower bounds via a decomposition that splits the two-echelon problem into single-facility subproblems, then propose approximation algorithms by judiciously recombining the subproblem solutions. For piecewise linear concave batch order costs with a constant number of slopes we obtain a constant-factor approximation, while for general concave batch costs we propose an approximation within a logarithmic factor of optimality. We also extend some results to subadditive order and/or holding costs.     

Return policies for an inventory system with positive and negative demands

We consider a single item inventory system with positive and negative stock fluctuations. Items can be purchased from a central stock, n items can be returned for a cost R + rn, and a linear inventory carrying cost is charged. It is shown that for minimizing the asymptotic cost rate when returns are a significant fraction of stock usage, a two-critical-number policy (a,b) is optimal, where b is the trigger level for returns and b – a is the return quantity. The values for a and b are found, as well as the operating characteristics of the system. We also consider the optimal return decision to make at time zero and show that it is partially determined by a and b.     

A two-echelon inventory model with purchases,dispositions, shipments,returns and transshipments

This paper presents a one-period two-echelon inventory model with one warehouse in the first echelon and n warehouses in the second echelon. At the beginning of the period the stock levels at all facilities are adjusted by purchasing or disposing of items at the first echelon, returning or shipping items between the echelons and transshipping items within the second echelon. During the period, demands (which may be negative) are placed on all warehouses in the second echelon and an attempt is made to satisfy shortages either by an expedited shipment from the first echelon to the second echelon or an expedited transshipment within the second echelon. The decision problem is to choose an initial stock level at the first echelon (by a purchase or a disposition) and an initial allocation so as to minimize the initial stock movement costs during the period plus inventory carrying costs and system shortage costs at the end of the period. It is shown that the objective function takes on one of four forms, depending on the relative magnitudes of the various shipping costs. All four forms of the objective function are derived and proven to be convex. Several applications of this general model are considered. We also consider multi-period extensions of the general model and an important special case is solved explicitly.     

Causal Linkages Between Domestic Terrorism and Economic Growth

We use the Hsiao–Granger method to test for terrorism–growth causality for seven Western European countries. In bivariate settings, the impact of economic performance on domestic terrorism is very strong. In trivariate settings, the impact of performance on terrorism diminishes. In general, we find that economic performance leads terrorist violence in robust ways only for three out of seven countries. Terrorism is almost never found to causally influence growth in bivariate and trivariate specifications. Our findings indicate that the role of economic performance in determining terrorist violence appears to have been important for some countries, whereas all attacked economies have been successful in adjusting to the threat of terrorism.     

Strategic Ambiguity: Nuclear Sharing and the Secret Strategy for Drafting Articles I and II of the Nonproliferation Treaty

ABSTRACT

Since the 1950s, the United States has engaged in nuclear sharing with its NATO allies. Today, 150-200 tactical nuclear weapons remain on European soil. However, the Treaty on the Non-proliferation of Nuclear Weapons (NPT) prohibits the transfer of nuclear weapons to non-nuclear weapon states. The potential discrepancy between text and practice raises the question of how the NPT's negotiators dealt with NATO's nuclear-sharing arrangements while drafting the treaty that would eventually become the bedrock of the international nonproliferation regime. Using a multitiered analysis of secret negotiations within the White House National Security Council, NATO, and US-Soviet bilateral meetings, this article finds that NATO's nuclear-sharing arrangements strengthened the NPT in the short term by lowering West German incentives to build the bomb. However, this article also finds that decision makers and negotiators in the Lyndon B. Johnson administration had a coordinated strategy of deliberately inserting ambiguous language into drafts of Articles I and II of the Treaty to protect and preserve NATO's pre-existing nuclear-sharing arrangements in Europe. This diplomatic approach by the Johnson administration offers lessons for challenges concerning NATO and relations with Russia today.     

Book reviews

Frank Zimmer, Bismarcks Kampf gegen Kaiser Franz Joseph Konigsgratz und seine Folgen. Graz, Vienna, Cologne: Styria Verlag 1996. Pp.203,49 illus., 1 map. OS 350/DM 49. ISBN 3–222–12377–2.

Saul Zadka, Blood in Zion: How the Jewish Guerrillas drove the British out of Palestine. London and Washington: Brassey's, 1995. Pp.227, chron., illus., index. £19.95. ISBN 1–85753–136–1.

Theodore L. Gatchel, At the Water's Edge: Defending against the Modern Amphibious Assault. Annapolis, MD: Naval Institute Press, 1996. Pp.xvi+217, notes, biblio, index. $36.95. ISBN 1–55750–308–7.

Max G. Manwaring and William J. Olson (eds.) Managing Contemporary Conflict: Pillars of Success. Boulder, CO: Westview Press, 1996. Pp.269, no index. $65 (cloth); $25 (paper). ISBN 0–8133–8969 and 9978–5

Chris Seiple, The US Military/NGO Relationship in Humanitarian Interventions, Carlisle Barracks, PA: The

Richard L. Millett and Michael Gold‐Biss (eds.) Beyond Praetorianism: The Latin American Military in Transition. University of Miami: North/South Center Press; Boulder, CO: Lynne Rienner, 1996. Pp.xv +317, index. $24.95. ISBN 1–5745–000–9.

Rudolph C. Barnes Jr, Military Legitimacy: Might and Right in the New Millennium. London and Portland, OR: Frank Cass, 1996. Pp.199, select biblio., index. £27.50/$39.50, ISBN 0–714–4624–5.