Labor staffing and scheduling models for controlling service levels

The problems of labor staffing and scheduling have received substantial attention in the literature. We introduce two new models of the labor staffing and scheduling problems that avoid the limitations of existing models. Collectively, the models have five important attributes. First, both models ensure the delivery of a minimally acceptable level of service in all periods. Second, one model can identify the least expensive way of delivering a specified aggregate level of customer service (the labor staffing problem and a form of labor scheduling problem). Third, the other model can identify the highest level of service attainable with a fixed amount of labor (the other form of the labor scheduling problem). Fourth, the models enable managers to identify the pareto relationship between labor costs and customer service. Fifth, the models allow a degree of control over service levels that is unattainable with existing models. Because of these attributes, which existing models largely do not possess, we expect these models to have broad applicability in a wide range of organizations operating in both competitive and noncompetitive environments. © 1997 John Wiley & Sons, Inc. Naval Research Logistics 44: 719–740, 1997     

Natural gas storage valuation and optimization: A real options application

In this article, we present an algorithm for the valuation and optimal operation of natural gas storage facilities. Real options theory is used to derive nonlinear partial‐integro‐differential equations (PIDEs), the solution of which give both valuation and optimal operating strategies for these facilities. The equations are designed to incorporate a wide class of spot price models that can exhibit the same time‐dependent, mean‐reverting dynamics, and price spikes as those observed in most energy markets. Particular attention is paid to the operational characteristics of real storage units. These characteristics include working gas capacities, variable deliverability and injection rates, and cycling limitations. We illustrate the model with a numerical example of a salt cavern storage facility that clearly shows how a gas storage facility is like a financial straddle with both put and call properties. Depending on the amount of gas in storage the relative influence of the put and call components vary. © 2009 Wiley Periodicals, Inc. Naval Research Logistics 2009     

Operational Combat Analysis of the Al Qaeda Network

Contemporary network organizational structures have gradually developed over the last decades of the twentieth century. These new structures are challenging the traditional hierarchical structure form in a number of venues. In conflict and war, they made their potentials unequivocally known on 11 September 2001 via Al Qaeda's strategic suicide bombings against the United States. To better understand the military potentials of networks, an operational combat analysis of the Al Qaeda network was conducted. This analysis, a modification of weapons systems analysis, focused on network speed, along with offensive, defensive and combat multiplier attributes. Such analysis allows for a better understanding of the military capabilities and vulnerabilities of non-state OPFORs (opposing forces) and our own emergent counter-insurgency networks.