Untruthful probabilistic demand forecasts in vendor‐managed revenue‐sharing contracts: Coordinating the chain

Vendor‐managed revenue‐sharing arrangements are common in the newspaper and other industries. Under such arrangements, the supplier decides on the level of inventory while the retailer effectively operates under consignment, sharing the sales revenue with his supplier. We consider the case where the supplier is unable to predict demand, and must base her decisions on the retailer‐supplied probabilistic forecast for demand. We show that the retailer's best choice of a distribution to report to his supplier will not be the true demand distribution, but instead will be a degenerate distribution that surprisingly induces the supplier to provide the system‐optimal inventory quantity. (To maintain credibility, the retailer's reports of daily sales must then be consistent with his supplied forecast.) This result is robust under nonlinear production costs and nonlinear revenue‐sharing. However, if the retailer does not know the supplier's production cost, the forecast “improves” and could even be truthful. That, however, causes the supplier's order quantity to be suboptimal for the overall system. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Kurtosis correction method for X̄ and R control charts for long‐tailed symmetrical distributions

This paper proposes a kurtosis correction (KC) method for constructing the X? and R control charts for symmetrical long‐tailed (leptokurtic) distributions. The control charts are similar to the Shewhart control charts and are very easy to use. The control limits are derived based on the degree of kurtosis estimated from the actual (subgroup) data. It is assumed that the underlying quality characteristic is symmetrically distributed and no other distributional and/or parameter assumptions are made. The control chart constants are tabulated and the performance of these charts is compared with that of the Shewhart control charts. For the case of the logistic distribution, the exact control limits are derived and are compared with the KC method and the Shewhart method. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

India's Tortuous Road to Defence-Industrial Self-Reliance

…Rapid indigenisation is the cornerstone of our policy of self-reliance

India MoD Annual Report 1978–9

     

Optimal maintenance policies for a safety‐critical system and its deteriorating sensor

We consider the integrated problem of optimally maintaining an imperfect, deteriorating sensor and the safety‐critical system it monitors. The sensor's costless observations of the binary state of the system become less informative over time. A costly full inspection may be conducted to perfectly discern the state of the system, after which the system is replaced if it is in the out‐of‐control state. In addition, a full inspection provides the opportunity to replace the sensor. We formulate the problem of adaptively scheduling full inspections and sensor replacements using a partially observable Markov decision process (POMDP) model. The objective is to minimize the total expected discounted costs associated with system operation, full inspection, system replacement, and sensor replacement. We show that the optimal policy has a threshold structure and demonstrate the value of coordinating system and sensor maintenance via numerical examples. © 2017 Wiley Periodicals, Inc. Naval Research Logistics 64: 399–417, 2017     

Terrorism as Method in Nepali Maoist Insurgency, 1996–2016

During the period 1996–2006, the Communist Party of Nepal (Maoist) waged overt people’s war to seize state power and institute a new order that realized the party’s understanding of ‘New Democracy’ as posited by Mao Tse-tung. Contextual shifts led to a crucial strategic turning point in September 2005, when the Maoists agreed to a united front with estranged legal parties to oust the monarchy and establish a republic. Though touted as acceptance of political reintegration, the move was tactical rather than strategic. The party had no intention of supporting a parliamentary version of democracy and thus, 2006–2016, engaged in a covert effort to seize power. Central to this effort was the paramilitary Young Communist League (YCL), the members of which responded to inflammatory party verbiage and exhortations with attacks upon rival political actors. These attacks, academically and legally, were terrorism and offered a salient illustration of intra-state unrestricted warfare. Ultimately, organizational, national, and regional circumstances caused the main Maoist movement to move decisively away from its covert approach. By that time, however, radical splinters had embraced the use of terrorism against rival political actors, creating a situation whereby local politics is yet a dangerous endeavor in certain areas and at certain times.     

Economic Losses From a Fire in a Dense-Packed U.S. Spent Fuel Pool

In 2013, the staff of the U.S. Nuclear Regulatory Commission estimated the reduction of the off-site economic losses from a fire in a drained U.S. spent fuel pool if fuel that had cooled for more than five years were transferred to dry cask storage—an option it called “expedited transfer.” In this article, it is shown that the savings would be much higher than the NRC estimated. Savings increase to about $2 trillion if: losses beyond 50 miles are included; the land-contamination threshold for long-term population relocation is changed to that used for the Chernobyl and Fukushima accidents and recommended by the U.S. Environmental Protection Agency; and, based on the experience of Japan, decontamination of land areas to levels acceptable for population return is assumed to take at least four years. If expedited transfer were implemented, the off-site economic losses would be reduced by about 98%.