Production and transport logistics scheduling with two transport mode choices

This paper considers a new class of scheduling problems arising in logistics systems in which two different transportation modes are available at the stage of product delivery. The mode with the shorter transportation time charges a higher cost. Each job ordered by the customer is first processed in the manufacturing facility and then transported to the customer. There is a due date for each job to arrive to the customer. Our approach integrates the machine scheduling problem in the manufacturing stage with the transportation mode selection problem in the delivery stage to achieve the global maximum benefit. In addition to studying the NP‐hard special case in which no tardy job is allowed, we consider in detail the problem when minimizing the sum of the total transportation cost and the total weighted tardiness cost is the objective. We provide a branch and bound algorithm with two different lower bounds. The effectiveness of the two lower bounds is discussed and compared. We also provide a mathematical model that is solvable by CPLEX. Computational results show that our branch and bound algorithm is more efficient than CPLEX. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005     

Rectilinear m-Center problem

In this article we consider the unweighted m-center problem with rectilinear distance. We preent an O(n^m–2 log n) algorithm for the m-center problem where m ≥ 4.     

Quality control and the sales process

Product quality is emerging as a major strategic instrument for competition. The purpose of this article is to assess the effects of quality control on sales, and, vice versa, the effects of the sales process on quality control. A model relating quality control and the sales process (advertising, repeat purchase, and word-of-mouth effects) is developed to evaluate the above relationships. Two special cases, with degenerate and beta distribution for defect items in the production lot, are analyzed in detail. In the former case, analytical results for the optimal quality control schemes are obtained, whereas in the latter, efficient bounds are derived to search for the optimal scheme. It is shown, analytically and numerically, that the sales parameters have significant impact on whether more “stringent” or “tighter” quality control is warranted. Future research directions are also discussed.     

A linear programming model for design of communications networks with time varying probabilistic demands

In this paper marginal investment costs are assumed known for two kinds of equipment stocks employed to supply telecommunications services: trunks and switching facilities. A network hierarchy is defined which includes important cases occurring in the field and also appearing in the literature. A different use of the classical concept of the marginal capacity of an additional trunk at prescribed blocking probability leads to a linear programming supply model which can be used to compute the sizes of all the high usage trunk groups. The sizes of the remaining trunk groups are approximated by the linear programming models, but can be determined more accurately by alternate methods once all high usage group sizes are computed. The approach applies to larger scale networks than previously reported in the literature and permits direct application of the duality theory of linear programming and its sensitivity analyses to the study and design of switched probabilistic communications networks with multiple busy hours during the day. Numerical results are presented for two examples based on field data, one of which having been designed by the multi-hour engineering method.     

Warehouse sizing to minimize inventory and storage costs

This paper considers a warehouse sizing problem whose objective is to minimize the total cost of ordering, holding, and warehousing of inventory. Unlike typical economic lot sizing models, the warehousing cost structure examined here is not the simple unit rate type, but rather a more realistic step function of the warehouse space to be acquired. In the cases when only one type of stock‐keeping unit (SKU) is warehoused, or when multiple SKUs are warehoused, but, with separable inventory costs, closed form solutions are obtained for the optimal warehouse size. For the case of multi‐SKUs with joint inventory replenishment cost, a heuristic with a provable performance bound of 94% is provided. © 2001 John Wiley & Sons, Inc. Naval Research Logistics 48: 299–312, 2001     

Scheduling maintenance and semiresumable jobs on a single machine

The majority of scheduling literature assumes that the machines are available at all times. In this paper, we study single machine scheduling problems where the machine maintenance must be performed within certain intervals and hence the machine is not available during the maintenance periods. We also assume that if a job is not processed to completion before the machine is stopped for maintenance, an additional setup is necessary when the processing is resumed. Our purpose is to schedule the maintenance and jobs to minimize some performance measures. The objective functions that we consider are minimizing the total weighted job completion times and minimizing the maximum lateness. In both cases, maintenance must be performed within a fixed period T, and the time for the maintenance is a decision variable. In this paper, we study two scenarios concerning the planning horizon. First, we show that, when the planning horizon is long in relation to T, the problem with either objective function is NP-complete, and we present pseudopolynomial time dynamic programming algorithms for both objective functions. In the second scenario, the planning horizon is short in relation to T. However, part of the period T may have elapsed before we schedule any jobs in this planning horizon, and the remaining time before the maintenance is shorter than the current planning horizon. Hence we must schedule one maintenance in this planning horizon. We show that the problem of minimizing the total weighted completion times in this scenario is NP-complete, while the shortest processing time (SPT) rule and the earliest due date (EDD) rule are optimal for the total completion time problem and the maximum lateness problem respectively. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 845–863, 1999     

Global planning of accelerated degradation tests based on exponential dispersion degradation models

The accelerated degradation test (ADT) is an efficient tool for assessing the lifetime information of highly reliable products. However, conducting an ADT is very expensive. Therefore, how to conduct a cost-constrained ADT plan is a great challenging issue for reliability analysts. By taking the experimental cost into consideration, this paper proposes a semi-analytical procedure to determine the total sample size, testing stress levels, the measurement frequencies, and the number of measurements (within a degradation path) globally under a class of exponential dispersion degradation models. The proposed method is also extended to determine the global planning of a three-level compromise plan. The advantage of the proposed method not only provides better design insights for conducting an ADT plan, but also provides an efficient algorithm to obtain a cost-constrained ADT plan, compared with conventional optimal plans by grid search algorithms.     

Callable products with dependent demands

Capacity providers such as airlines often sell the same capacity to different market segments at different prices to improve their expected revenues. The absence of a secondary market, due to the nontransferability of airline tickets, gives rise to an opportunity for airlines to broker capacity between consumers with different willingness to pay. One way to broker capacity is by the introduction of callable products. The idea is similar to callable bonds where the issuer has the right, but not the obligation, to buy back the bonds at a certain price by a certain date. The idea of callable products was introduced before under the assumption that the fare-class demands are all independent. The independent assumption becomes untenable when there is significant demand recovery (respectively, demand cannibalization) when lower fares are closed (respectively, opened). In this case, consumer choice behavior should be modeled explicitly to make meaningful decisions. In this paper, we consider a general consumer choice model and develop the optimal strategy for callable products. Our numerical study illustrates how callable products are win-win-win, for the capacity provider and for both high and low fare consumers. Our studies also identify conditions for callable products to result in significant improvements in expected revenues.     

Validation of a strategy for harbor defense based on the use of a min‐max algorithm receding horizon control law

We present a validation of a centralized feedback control law for robotic or partially robotic water craft whose task is to defend a harbor from an intruding fleet of water craft. Our work was motivated by the need to provide harbor defenses against hostile, possibly suicidal intruders, preferably using unmanned craft to limit potential casualties. Our feedback control law is a sample‐data receding horizon control law, which requires the solution of a complex max‐min problem at the start of each sample time. In developing this control law, we had to deal with three challenges. The first was to develop a max‐min problem that captures realistically the nature of the defense‐intrusion game. The second was to ensure the solution of this max‐min problem can be accomplished in a small fraction of the sample time that would be needed to control a possibly fast moving craft. The third, to which this article is dedicated, was to validate the effectiveness of our control law first through computer simulations pitting a computer against a computer or a computer against a human, then through the use of model hovercraft in a laboratory, and finally on the Chesapeake Bay, using Yard Patrol boats. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 247–259, 2016     

Military spending and growth: a small open economy stochastic growth model

The paper analyzes the effects of military spending on economic growth in a small open stochastic endogenous growth model involving the supply-side and demand-side effects produced by military spending. We show that a rise in the military spending affects economic growth through four channels, including the crowding-out effect, the spin-off effect, the resource mobilization effect, and the portfolio effect. The net effect which depends on these four channels is ambiguous. Hence, we demonstrate that there exists an optimal defense burden that maximizes the economic growth rate.