Optimal stocking policies for low usage items in multi-echelon inventory systems

Multi-echelon logistic systems are essential parts of the service support function of high technology firms. The combination of technological developments and competitive pressures has led to the development of services systems with a unique set of characteristics. These characteristics include (1) low demand probabilities: (2) high cost items; (3) complex echelon structures; (4) existence of pooling mechanisms among stocking locations at the same echelon level; (5) high priority for service, which is often expressed in terms of response time service levels for product groups of items: (6) scrapping of failed parts; and (7) recycling of issued stock due to diagnostic use. This article develops a comprehensive model of a stochastic, multi-echelon inventory system that takes account of the above characteristics. Solutions to the constrained optimization problem are found using a branch and bound procedure. The results of applying this procedure to a spare parts inventory system for a computer manufacturer have led to a number of important policy conclusions.     

Book reviews

Managing International Conflict, From Theory to Practice: a Teaching Tool Using CASCON by Lincoln P. Bloomfield and Allen Moulton, New York: St Martin's Press, 1997, ISBN 0-312-13675-7 (pbk), £18.99.

The American Century: the Rise and Decline of the United States as a World Power by Donald W. White, London: Yale University Press, 1997, ISBN 0-300-05721-0 (hbk), £25.

Humanitarian Intervention in Contemporary Conflict by Oliver Ramsbotham and Tom Woodhouse, Cambridge: Blackwell, 1996.

The US Military/NGO Relationship in Humanitarian Interventions by Chris Seiple, Peacekeeping Institute, Center for Strategic Leadership, US Army War College, 1996.

Uncivil Wars: International Security and the New Internal Conflicts by Donald M. Snow, London: Lynne Rienner Publishers, 1996, ISBN 1-55587-655-2 (pbk), £15.50, ISBN 1-55587-648-X (hbk), £33.50.

Intelligence Power in Peace and War by Michael Herman, Royal Institute for International Affairs, Cambridge: Cambridge University Press, 1996, ISBN 0-521-56231-7 (hbk), £50, ISBN 0-521-56636 (pbk), £16.95.

UK Eyes Alpha: Inside British Intelligence by Mark Urban, London: Faber and Faber, 1996, ISBN 0-571-17689-5 (hbk), £16.99.

New Cloak, Old Dagger by Michael Smith, London: Victor Gollancz, 1996, ISBN 0-575-06150-2 (hbk), £20.

Conversion Survey 1997: Global Disarmament and Disposal of Surplus Weapons by Bonn International Center for Conversion, Oxford: Oxford University Press, 1997.

Plutonium and Highly Enriched Uranium 1996: World Inventories, Capabilities and Policies by David Albright, Frans Berkhout and William Walker, Oxford: SIPRI and Oxford University Press, 1997.

The Wars of Eduard Shevardnadze by Carolyn McGiffert Ekedahl and Melvin A. Goodman, University Park, PA: Penn State University Press, 1997.     

Approximation methods for the analysis of a multicomponent,multiproduct assemble‐to‐order system

In this article, we consider the performance evaluation of a multicomponent, multiproduct assemble‐to‐order (ATO) system. Each component is managed independently using a base‐stock policy at a supply facility with limited production capacity and an infinite buffer. The arrivals of demands follow a multivariate Poisson process and unfilled demands are backlogged. Because exact analysis of the proposed system is not feasible, we propose two approximation methods which provide upper and lower bounds for various performance measures such as fill rate, average waiting time, and average number of backorders of the proposed system. Our computational experiments demonstrate the effectiveness of the two approximation methods under various system settings. © 2011 Wiley Periodicals, Inc. Naval Research Logistics, 2011     

Book reviews

Use of Force: The Practise of States by A. Mark Weisburd, Penn: Penn State Press, University Park, 1997, ISBN 0-271-01679-5 (hbk), $65.00/£58.00, ISBN 0-271-01680-9 (pbk), $25.00/£22.50

Late Breaking Foreign Policy: the News Media's Influence on Peace Operations by Warren P. Strobel, Washington DC: United States Insititute of Peace Press, 1997, ISBN 1-878379-68-2 (hbk), £23.25, ISBN 1-878379-67-4 (pbk)

The Reluctant Sheriff: The United States After the Cold War by Richard N. Haass, New York: Council on Foreign Relations, 1997, 148pp, index, ISBN 0-87609-201-6 (hbk), $24.95

The UN, Peace and Force edited by Michael Pugh, London: Frank Cass, 1997, ISBN 0-7146-4795-4 (hbk), £29.50, ISBN 0-7146-4320-3 (pbk), £15.00

Confidence-Building in South East Asia by Malcolm Chalmers, Oxford: Westview Press, 1996, ISBN 1-85143-116-0 (pbk), £19.95

Britain's Strategic Nuclear Deterrent: From Before the V-Bomber to Beyond Trident by Robert H. Paterson, London: Frank Cass, 1997, ISBN 0-7146470-3 (hbk), £35.00, ISBN 0-7146-4297-5 (pbk) £18.00

OSS in China: Prelude to Cold War by Maochun Yu, London: Yale University Press, 1997, ISBN 0 300 06698-8 (hbk), £25.00

Preventing Violent Conflicts: A Strategy for Preventive Diplomacy by Michael S. Lund, Washington DC: US Institute of Peace Press, 1996, ISBN 1-878379-52-6 (pbk), £11.75     

Does Military Spending Really Matter for Economic Growth in China and G7 Countries: The Roles of Dependency and Heterogeneity

This study revisits the causal linkages between military spending and economic growth in China and G7 countries (i.e. Canada, France, Germany, Italy, Japan, the UK, and the USA) by focusing country-specific analysis for the period 1988–2010. The panel causality analysis, which accounts for both cross-country dependency and heterogeneity across countries, is employed in this study. Our results find evidence of the neutrality hypothesis for Italy, France, and Germany, the military spending–growth detriment hypothesis for both Canada and the UK, and one-way Granger causality running from economic growth to military spending for China. Furthermore, we find a feedback between military spending and economic growth in both Japan and the USA. Thus, our results do not support that one size fits all.     

China’s ‘Three Warfares’: Origins,Applications, and Organizations

Entering the twenty-first century, China has demonstrated an assertive foreign policy, not only in employing various types of economic and military leverage but also in conducting the Three Warfares (三战) – psychological warfare, public opinion warfare, and legal warfare. This article attempts to identify the motives and methods of China’s Three Warfares by analyzing its history, logic, and agents. Based on this analysis, the author also presents the position of the Three Warfares in China’s foreign policy and the warfares’ impact on the international security environment involving other major powers and China’s neighbors.     

Analysis of algorithms for two‐stage flowshops with multi‐processor task flexibility

In this article we introduce a 2‐machine flowshop with processing flexibility. Two processing modes are available for each task: namely, processing by the designated processor, and processing simultaneously by both processors. The objective studied is makespan minimization. This production environment is encountered in repetitive manufacturing shops equipped with processors that have the flexibility to execute orders either individually or in coordination. In the latter case, the product designer exploits processing synergies between two processors so as to execute a particular task much faster than a dedicated processor. This type of flowshop environment is also encountered in labor‐intensive assembly lines where products moving downstream can be processed either in the designated assembly stations or by pulling together the work teams of adjacent stations. This scheduling problem requires determining the mode of operation of each task, and the subsequent scheduling that preserves the flowshop constraints. We show that the problem is ordinary NP‐complete and obtain an optimal solution using a dynamic programming algorithm with considerable computational requirements for medium and large problems. Then, we present a number of dynamic programming relaxations and analyze their worst‐case error performance. Finally, we present a polynomial time heuristic with worst‐case error performance comparable to that of the dynamic programming relaxations. © 2003 Wiley Periodicals, Inc. Naval Research Logistics, 2004.     

Lagrangian relaxation approach to the targeting problem

In this paper, we consider a new weapon–target allocation problem with the objective of minimizing the overall firing cost. The problem is formulated as a nonlinear integer programming model. We applied Lagrangian relaxation and a branch‐and‐bound method to the problem after transforming the nonlinear constraints into linear ones. An efficient primal heuristic is developed to find a feasible solution to the problem to facilitate the procedure. In the branch‐and‐bound method, three different branching rules are considered and the performances are evaluated. Computational results using randomly generated data are presented. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 640–653, 1999     

Minimizing total completion time in two-processor task systems with prespecified processor allocations

We consider the problem of scheduling multiprocessor tasks with prespecified processor allocations to minimize the total completion time. The complexity of both preemptive and nonpreemptive cases of the two-processor problem are studied. We show that the preemptive case is solvable in O(n log n) time. In the nonpreemptive case, we prove that the problem is NP-hard in the strong sense, which answers an open question mentioned in Hoogeveen, van de Velde, and Veltman (1994). An efficient heuristic is also developed for this case. The relative error of this heuristic is at most 100%. © 1998 John Wiley & Sons, Inc. Naval Research Logistics 45: 231–242, 1998     

Scheduling target illuminators in naval battle-group anti-air warfare

We schedule a set of illuminators (homing devices) to strike a set of targets using surface-to-air missiles in a naval battle. The task is viewed as a production floor shop scheduling problem of minimizing the total weighted flow time, subject to time-window job availability and machine downtime side constraints. A simple algorithm based on solving assignment problems is developed for the case when all the job processing times are equal and the data are all integer. For the general case of scheduling jobs with unequal processing times, we develop two alternate formulations and analyze their relative strengths by comparing their respective linear programming relaxations. We select the better formulation in this comparison and exploit its special structures to develop several effective heuristic algorithms that provide good-quality solutions in real time; this is an essential element for use by the Navy. © 1995 John Wiley & Sons, Inc.