Maximization of long-run average rate-of-return by stochastic approximation

Suppose that an individual has a surplus stock of wealth and a fixed set of risky investment opportunities over a sequence of time periods. Assuming the criterion of maximal long-run average rate-of-return, the individual may select portfolios sequentially via a modified stochastic approximation procedure. This approach yields optimal asymptotic investment results under minimal assumptions.     

Solving quadratic assignment problems with rectangular distances and integer programming

The problem considered involves the assignment of n facilities to n specified locations. Each facility has a given nonnegative flow from each of the other facilities. The objective is to minimize the sum of transportation costs. Assume these n locations are given as points on a two-dimensional plane and transportation costs are proportional to weighted rectangular distances. Then the problem is formulated as a binary mixed integer program. The number of integer variables (all binary) involved equals the number of facilities squared. Without increasing the number of integer variables, the formulation is extended to include “site costs” Computational results of the formulation are presented.     

Longitudinal manpower planning models

A manpower planning model is presented that exploits the longitudinal stability of manpower cohorts. The manpower planning process is described. An infinite horizon linear program for calculating minimum cost manpower input plans is presented and found to have a straightforward solution in a great many cases and to yield an easily implemented approximation technique in other cases.     

A manpower planning/capital budgeting model (MAPCAB)

A deterministic resource allocation model is developed to optimize defense effectiveness subject to budget, manpower, and risk constraints. The model consists of two major submodels connected by a heuristic. The first is a mathematical program which optimizes the multiperiod weapon mix subject to the constraint set. The second is a manpower supply model based on a transition matrix in which individual transitions are functions of personnel related budgets and historical transition rates. The heuristic marries the submodels through an iterative process leading to improved solutions. An example is provided which demonstrates how systems are undercosted and overprocured if manpower supply is not properly reflected relative to manpower demand.     

Finite statistical games and linear programming

The dual linear programs associated with finite statistical games are investigated and their optimal solutions are interpreted. The usual statistical game is generalized to a two-sided (inference) game and its possible application as a tactical model is discussed.     

Fund Transfers – African Terrorists Blend Old and New: Hawala and Satellite Telecommunications

Attempts to disrupt the flow of funds through Africa used to finance terrorism have been hindered by terrorists utilizing satellite telecommunications in conjunction with hawala, an ancient system of fund transfers based on trust. This arrangement leaves few records for tracing transactions, a task made even more difficult by the general paucity of investigators trained in the languages commonly used for hawala. Acquiring personnel with the appropriate linguistic skills is one of the steps agencies can take to reduce the terrorist financing that occurs through this unique blend of an ancient system with modern technology.     

Amidst the chaos a small force for stability: Somalia's business community

Though parts of Somalia appear mired in intractable conflict, both domestic and foreign trade continues. As a result amidst the conflict, corruption, and chaos Somalia's business community is a small force for peace and stability. Thus, efforts directed at enhancing the business community, possibly via the Transitional Federal Government or its successor, could play a small role in improving the situation in this strategically poised country with a very entrepreneurial population. However, such success is far from certain, and numerous other factors besides a strengthened business community would have to occur for Somalia even to begin the journey on the long road to recovery.