Demand forecasting by temporal aggregation

Demand forecasting performance is subject to the uncertainty underlying the time series an organization is dealing with. There are many approaches that may be used to reduce uncertainty and thus to improve forecasting performance. One intuitively appealing such approach is to aggregate demand in lower‐frequency “time buckets.” The approach under concern is termed to as temporal aggregation, and in this article, we investigate its impact on forecasting performance. We assume that the nonaggregated demand follows either a moving average process of order one or a first‐order autoregressive process and a single exponential smoothing (SES) procedure is used to forecast demand. These demand processes are often encountered in practice and SES is one of the standard estimators used in industry. Theoretical mean‐squared error expressions are derived for the aggregated and nonaggregated demand to contrast the relevant forecasting performances. The theoretical analysis is supported by an extensive numerical investigation and experimentation with an empirical dataset. The results indicate that performance improvements achieved through the aggregation approach are a function of the aggregation level, the smoothing constant, and the process parameters. Valuable insights are offered to practitioners and the article closes with an agenda for further research in this area. © 2013 Wiley Periodicals, Inc. Naval Research Logistics 60: 479–498, 2013     

Feeding Bread to the Luddites: The Radical Fundamentalist Islamic Revolution in Guerrilla Warfare

This study examines the war that the United States has waged since September 2001 as a global counterinsurgency. Placing the war against al-Qaeda and its allied groups and organizations in the context of a global insurgency also presents implications for doctrine, interagency coordination and military cultural change. The first part of the article offers a distilled analysis of al-Qaeda and its associated networks. The second section examines the US military in the context of the Western way of war, with the attendant military-cultural impediments to adapting to an enemy who embraces a very different approach to war. The third section aims to define and describe the nature of the war that America and its coalition partners are trying to wage. The concluding section offers the most value as it refines and distills the work of several international security and military thinkers to arrive at some imperatives for successfully prosecuting this type of war to its end.     

A Clash of Wills: Hizballah's Psychological Campaign Against Israel in South Lebanon

This article analyzes Hizballah's war against Israel in south Lebanon as a psychological contest where public opinion, perception, and persuasion were the real determinants of victory. Hizballah successfully mobilized popular support for its war by communicating nationalist and religious themes to different sectarian groups in Lebanon. At the same time, it used classic guerrilla warfare as a carefully calibrated psychological tool to erode the morale of Israeli forces, their Lebanese allies, and the Israeli public's support for the war. Hizballah's sophisticated media capability, particularly combat video footage aired on its satellite TV station and the Internet, played a critical role in amplifying the effects of its attrition campaign. By orchestrating information-age media and guerrilla tactics, this strategy has important implications for the future of irregular warfare.     

An American Trojan horse? Eisenhower,Latin America,and the development of us internal security policy 1954–1960

Perceptions of Third World nations as susceptible to communist subversion and revolutionary warfare led the Eisenhower administration to formulate a coordinated internal security strategy known simply as ‘1290d’. Later renamed the Overseas Internal Security Program (OISP), this policy initiative sought to strengthen host‐nation security forces, judicial systems, and public information media in an effort to combat indirect communist intervention strategies. Implementing OISP policy in Latin America proved difficult. In Congress, the administration was criticised for colluding with dictatorial regimes, while Latin Americans feared that the new program would be used as a ‘Trojan Horse’ to penetrate their security structures. After the Cuban Revolution, however, OISP policies developed under Eisenhower came to dominate US‐Latin American security relations for the remainder of the Cold War.     

The Demand for Military Spending in Egypt

Egypt plays a pivotal role in the security of the Middle East as the doorway to Europe and its military expenditure reflects its involvement in the machinations of such an unstable region, showing considerable variation over the last 40?years. These characteristics make it a particularly interesting case study of the determinants of military spending. This paper specifies and estimates an econometric model of the Egyptian demand for military spending, taking into account important strategic and political factors. Both economic and strategic factors are found to play a role in determining military burden/spending, with clear positive effects of lagged military burden, suggesting some sort of institutional inertia, plus negative output and net exports effects. The strategic effect as a result of the impact of Israel’s military burden is mostly positive and significant, though its impact is reduced when the impact of important strategic events are taken into account. The military spending of Egypt’s allies Jordan and Syria generally seems to have had no effect on Egypt’s spending. These results are consistent over a range of econometric techniques.     

The single-machine absolute-deviation early-tardy problem with random completion times

We consider sequencing n jobs on a single machine subject to job completion times arising from either machine breakdowns or other causes. The objective is to minimize an expected weighted combination of due dates, completion times, earliness, and tardiness penalties. The determination of optimal distinct due dates or optimal common due dates for a given schedule is investigated. The scheduling problem for a fixed common due date is considered when random completion times arise from machine breakdowns. The optimality of a V-shaped about (a point) T sequence is established when the number of machine breakdowns follows either a Poisson or a geometric distribution and the duration of a breakdown has an exponential distribution. © 1996 John Wiley & Sons, Inc.     

Expressions for item fill rates in periodic inventory systems

We examine the problem of estimating the item fill rate in a periodic inventory system. We show that the traditional expressions for line item fill rate, found in many operations management textbooks, perform well for high fill rates (above 90%), but they consistently underestimate the true fill rate. The problem of underestimation becomes significant as the fill rate falls below 90% and is greatly amplified in cases with very low fill rates (below 50%). We review other more accurate expressions for fill rate, discussing their relative merits. We then develop an exact fill rate expression that is robust for both high and low fill rates. We compare the new expression to others found in the literature via an extensive set of simulation experiments using data that reflect actual inventory systems found at Hewlett-Packard. We also examine the robustness of the expressions to violations in the underlying assumptions. Finally, we develop an alternative fill rate expression that is robust for cases of high demand variability where product returns are allowed. © 1995 John Wiley & Sons, Inc.     

Facility location and capacity acquisition: An integrated approach

The facility location and capacity acquisition decisions are intertwined, especially within the international context where capacity acquisition costs are location dependent. A review of the relevant literature however, reveals that the facility location and the capacity acquisition problems have been dealt with separately. Thus, an integrated approach for simultaneous optimization of these strategic decisions is presented. Analytical properties of the arising model are investigated and an algorithm for solving the problem is devised. Encouraging computational results are reported. © 1995 John Wiley & Sons, Inc.     

Note: Pairwise rearrangements in reliability structures

Boland, Proschan, and Tong [2] used the notion of criticality of nodes in a coherent system to study the optimal component arrangement of reliability structures. They also provided a sufficient minimal cut (path) based criterion for verifying the criticality ordering of two nodes. We develop a necessary and sufficient condition for two nodes to be comparable and provide specific examples illustrating our result's applicability. As a corollary, certain optimal arrangement properties of well-known systems are derived. © 1994 John Wiley & Sons, Inc.