Duality for quasi-concave programs with application to economics

A duality theory is developed for mathematical programs with strictly quasi-concave objective functions to be maximized over a convex set. This work broadens the duality theory of Rockafellar and Peterson from concave (convex) functions to quasi-concave (quasi-convex) functions. The theory is closely related to the utility theory in economics. An example from economic planning is examined and the solution to the dual program is shown to have the properties normally associated with market prices.     

Optimal project compression with due-dated events

The paper proposes an algorithm for the determination of the solution of the activities to be shortened and the amount by which they are to be shortened in order to minimize the total cost of project completion. This cost involves a linear penalty for tardienss of a set of key events and a linear cost of activity compression from its normal duration. The procedure is a generalization of the work of Fulkerson.     

On the aggregation of preferences

The article attempts to show how network theory may be applied to gain new and better insights into basic economic problems. Starting with a precise definition of what is meant by acting and, in particular, by economic acting, we direct the line of argumentation toward solving the problem of how to aggregate economic decisions. Results indicate that network theory might well prove itself to be a powerful instrument in developing a theory of human behavior much more comprehensive than currently used models.     

Steady state waiting time in a multicenter job shop

This paper analyzes the waiting-time distribution of a specific job as it moves through a job-shop with multiple centers and exponential service times. The movement of the job through the shop is governed by a Markovian transition matrix and ends with the job's exit from the shop.     

A targeting model that minimizes collateral damage

This paper considers the problem of allocating weapons to achieve targeting objectives while simultaneously minimizing aggregate damage to surrounding nonmilitary facilities, each of which has an upper limit to the damage it is permitted to incur. A model is formulated which assumes only that damage to individual targets or associated facilities does not decrease as the number of allocated weapons increases. An implicit enumeration algorithm, based on that of Lawler and Bell is described that yields optimal integer solutions. An example is presented.     

The optimum design of multivariate acceptance sampling plans

A model is developed which may be used to determine the expected total cost of quality control per inspection lot under acceptance sampling by variables where several characteristics are to be simultaneously controlled. Optimization of the model is accomplished through the application of a conventional search procedure. The sensitivity of the model and the optimum solution to the shape of the underlying probability distributions is discussed and associated analyses are presented through an example.     

A characterization of the value of zero-sum two-person games

For the family D, consisting of those zero-sum two-person games which have a value, the value-function on D is characterized by four properties called objectivity, monotony, symmetry and sufficiency.     

The continuous‐time single‐sourcing problem with capacity expansion opportunities

This paper develops a new model for allocating demand from retailers (or customers) to a set of production/storage facilities. A producer manufactures a product in multiple production facilities, and faces demand from a set of retailers. The objective is to decide which of the production facilities should satisfy each retailer's demand, in order minimize total production, inventory holding, and assignment costs (where the latter may include, for instance, variable production costs and transportation costs). Demand occurs continuously in time at a deterministic rate at each retailer, while each production facility faces fixed‐charge production costs and linear holding costs. We first consider an uncapacitated model, which we generalize to allow for production or storage capacities. We then explore situations with capacity expansion opportunities. Our solution approach employs a column generation procedure, as well as greedy and local improvement heuristic approaches. A broad class of randomly generated test problems demonstrates that these heuristics find high quality solutions for this large‐scale cross‐facility planning problem using a modest amount of computation time. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005.     

Dominating sets for rectilinear center location problems with polyhedral barriers

In planar location problems with barriers one considers regions which are forbidden for the siting of new facilities as well as for trespassing. These problems are important since they model various actual applications. The resulting mathematical models have a nonconvex objective function and are therefore difficult to tackle using standard methods of location theory even in the case of simple barrier shapes and distance functions. For the case of center objectives with barrier distances obtained from the rectilinear or Manhattan metric, it is shown that the problem can be solved in polynomial time by identifying a dominating set. The resulting genuinely polynomial algorithm can be combined with bound computations which are derived from solving closely connected restricted location and network location problems. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 647–665, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/nav.10038     

Capacitated warehouse location model with risk pooling

In this article, we introduce the capacitated warehouse location model with risk pooling (CLMRP), which captures the interdependence between capacity issues and the inventory management at the warehouses. The CLMRP models a logistics system in which a single plant ships one type of product to a set of retailers, each with an uncertain demand. Warehouses serve as the direct intermediary between the plant and the retailers for the shipment of the product and also retain safety stock to provide appropriate service levels to the retailers. The CLMRP minimizes the sum of the fixed facility location, transportation, and inventory carrying costs. The model simultaneously determines warehouse locations, shipment sizes from the plant to the warehouses, the working inventory, and safety stock levels at the warehouses and the assignment of retailers to the warehouses. The costs at each warehouse exhibit initially economies of scale and then an exponential increase due to the capacity limitations. We show that this problem can be formulated as a nonlinear integer program in which the objective function is neither concave nor convex. A Lagrangian relaxation solution algorithm is proposed. The Lagrangian subproblem is also a nonlinear integer program. An efficient algorithm is developed for the linear relaxation of this subproblem. The Lagrangian relaxation algorithm provides near‐optimal solutions with reasonable computational requirements for large problem instances. © 2008 Wiley Periodicals, Inc. Naval Research Logistics, 2008