On convexity proofs in location theory

It is often assumed in the facility location literature that functions of the type ø_i(x_i, y) = β_i[(x_i-x)²+(y_i-y)²]^K/2 are twice differentiable. Here we point out that this is true only for certain values of K. Convexity proofs that are independent of the value of K are given.     

Optimal policy for a dynamic multi-echelon inventory model

A general multiperiod multi-echelon supply system consisting of n facilities each stocking a single product is studied. At the beginning of a period each facility may order stock from an exogenous source with no delivery lag and proportional ordering costs. During the period the (random) demands at the facilities are satisfied according to a given supply policy that determines to what extent stock may be redistributed from facilities with excess stock to those experiencing shortages. There are storage, shortage, and transportation costs. An ordering policy that minimizes expected costs is sought. If the initial stock is sufficiently small and certain other conditions are fulfilled, it is optimal to order up to a certain base stock level at each facility. The special supply policy in which each facility except facility 1 passes its shortages on to a given lower numbered facility called its direct supplier is examined in some detail. Bounds on the base stock levels are obtained. It is also shown that if the demand distribution at facility j is stochastically smaller (“spread” less) than that at another facility k having the same direct supplier and if certain other conditions are fulfilled, then the optimal base stock level (“virtual” stock out probability) at j is less than (greater than) or equal to that at facility k.     

Time-cost tradeoffs in uncertain empirical research projects

This paper explores the relationship between research project cost and expected time to completion under various scheduling strategies; it assumes that many potential technical approaches to the research problem can be identified; and that each approach has a low but finite subjective probability of success. It is shown that under a variety of assumptions, expected time to project completion can be reduced, but that as a result expected project cost rises at an increasing rate. Some cases in which this convex time-cost tradeoff relationship might not hold generally are identified. When the time-cost tradeoff function is convex, the desirability of concurrent as opposed to series scheduling of approaches depends crucially upon the depth of the stream of benefits expected to be realized upon successful project completion. The deeper the benefit stream is, the more desirable concurrent scheduling is.     

The network redesign problem for access telecommunications networks

The network redesign problem attempts to design an optimal network that serves both existing and new demands. In addition to using spare capacity on existing network facilities and deploying new facilities, the model allows for rearrangement of existing demand units. As rearrangements mean reassigning existing demand units, at a cost, to different facilities, they may lead to disconnecting of uneconomical existing facilities, resulting in significant savings. The model is applied to an access network, where the demands from many sources need to be routed to a single destination, using either low‐capacity or high‐capacity facilities. Demand from any location can be routed to the destination either directly or through one other demand location. Low‐capacity facilities can be used between any pair of locations, whereas high‐capacity facilities are used only between demand locations and the destination. We present a new modeling approach to such problems. The model is described as a network flow problem, where each demand location is represented by multiple nodes associated with demands, low‐capacity and high‐capacity facilities, and rearrangements. Each link has a capacity and a cost per unit flow parameters. Some of the links also have a fixed‐charge cost. The resulting network flow model is formulated as a mixed integer program, and solved by a heuristic and a commercially available software. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 487–506, 1999     

Pareto-optimality in classical inventory problems

In this paper the inventory problem with backorders both deterministic and stochastic is studied using trade-off analysis in the context of vector optimization theory. The set of Pareto-optimal solutions is geometrically characterized in both the constrained and unconstrained cases. Moreover, a new way of utilizing Pareto-optimality concepts to handle classical inventory problems with backorders is derived. A new analysis of these models is done by means of a trade-off analysis. New solutions are shown, and an error bound for total inventory cost is provided. Other models such as multi-item or stochastic lead-time demand inventory problems are addressed and their Pareto-optimal solution sets are obtained. An example is included showing the additional applicability of this kind of analysis to handle parametric problems. © 1998 John Wiley & Sons, Inc. Naval Research Logistics 45: 83–98, 1998     

See the light: Optimization of put-to-light order picking systems

Put-to-light order picking systems invert the basic logic of conventional picker-to-parts systems. Instead of successively visiting the storage positions of the stock keeping units (SKUs) when collecting picking orders, an order picker accompanies successive bins each containing multiple items of a specific SKU along a lane of subsequent orders. Whenever the picker passes an order requiring the current SKU, which is indicated by a light signal, she puts the requested number of items into the bin associated with the order. Such an order picking system is well-suited if the assortment is not overly large and all orders demand similar SKUs, so that it is mainly applied in distribution centers of brick-and-mortar retail chains. This paper evaluates four different setups of put-to-light systems, which, during operations, require the solution of different storage assignment and SKU sequencing problems. We formulate these problems, prove computational complexity, and suggest suited solution algorithms. By applying these algorithms in a comprehensive computational study, we benchmark the impact of the four different setups on picking performance. In this way, warehouse managers receive decision support on how to set up their put-to-light systems.     

Degeneracy in inventory models

In order‐quantity reorder‐point formulations for inventory items where backordering is allowed, some of the more common ways to prevent excessive stockouts in an optimal solution are to impose either a cost per unit short, a cost per stockout occasion, or a target fill rate. We show that these popular formulations, both exact and approximate, can become “degenerate” even with quite plausible parameters. By degeneracy we mean any situation in which the formulation either cannot be solved, leads to nonsensical “optimal” solutions, or becomes equivalent to something substantially simpler. We explain the reasons for the degeneracies, yielding new insight into these models, and we provide practical advice for inventory managers. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 686–705, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/nav.10037     

Scheduling prowler training

The U.S. Navy Prowler aircraft is designed for electronic surveillance and countermeasures. In this paper, we describe the problem of scheduling Prowler crew training, and we present two integer programming models to solve it. The first model maximizes the number of aviators trained above 75% in each mission area, subject to the available number of flights, over a single month. The second model distinguishes peacetime from mobilization, and minimizes the number of flights done in mobilization subject to the available number of flights in peacetime. Our models distinguish different types of crew and allow more than one qualification to be earned on a given flight. We give numerical results using real data, comparing our results to the actual readiness of a squadron. We found that crew readiness of Prowler squadrons can be increased by 10%, simply by better scheduling. © 2003 Wiley Periodicals, Inc. Naval Research Logistics 50: 289–305, 2003.