Production to order and off‐line inspection when the production process is partially observable

This study combines inspection and lot‐sizing decisions. The issue is whether to INSPECT another unit or PRODUCE a new lot. A unit produced is either conforming or defective. Demand need to be satisfied in full, by conforming units only. The production process may switch from a “good” state to a “bad” state, at constant rate. The proportion of conforming units in the good state is higher than in the bad state. The true state is unobservable and can only be inferred from the quality of units inspected. We thus update, after each inspection, the probability that the unit, next candidate for inspection, was produced while the production process was in the good state. That “good‐state‐probability” is the basis for our decision to INSPECT or PRODUCE. We prove that the optimal policy has a simple form: INSPECT only if the good‐state‐probability exceeds a control limit. We provide a methodology to calculate the optimal lot size and the expected costs associated with INSPECT and PRODUCE. Surprisingly, we find that the control limit, as a function of the demand (and other problem parameters) is not necessarily monotone. Also, counter to intuition, it is possible that the optimal action is PRODUCE, after revealing a conforming unit. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Neo-conservation

Africa's wildlife is in danger. The last couple of years have been disastrous for the African elephant as poaching for ivory reached record numbers. Rhinos have been hit hard with several sub-species becoming extinct. The current anti-poaching and anti-trafficking operations lack the sophistication and determination that is found abundantly within criminal organisations immersed in this illicit trade. Terrorism, rebellious elements and corrupt officials all benefit from the destruction of Africa's eco-system and the inaction or lack of efficient action thereof by law enforcement officials. This commentary suggests new courses of action using methods from the fields of counter-terrorism and special operations.     

ON THE CHOICE OF MULTI-TASK R&D DEFENSE PROJECTS: A CASE STUDY OF The ISRAELI MISSILE DEFENSE SYSTEM

Investments in R&D constitute a major share of the expenditures of the hi-tech industry since, generally, they enable firms to successfully compete in the rapidly and constantly changing markets for hi-tech products and services. The role of R&D projects is particularly important in the areas of defense and homeland security due to the nature of warfare and the continuous threats posed by arms races and by terror organizations. This study analyzes the choice of the R&D projects designed to counter multiple related military threats. It develops the methodology required to assess whether it is preferable to develop one project to thwart several related threats, or several distinct projects, each of which provides an answer to one specific threat or a partial set of the threats. An analytic solution is provided and assessed for two simple models with two related threats. A solution of the model is then provided for any number of related threats, using a dynamic programming methodology. Finally, we demonstrate the usefulness of our model and methodology to Israel’s missile defense problem; that is, we show how to optimally develop systems aimed at thwarting the multiple threats of short-, medium-, and long-range missiles.     

A ‘transparent gold’ rush?

Abstract

The signing of a new treaty on the equitable sharing of the Nile waters – signed last May in Kampala by Rwanda, Ethiopia, Uganda and Tanzania – has the potential of derailing relations with Sudan and Egypt. According to the latter countries, this new agreement replaces the 1959 Nile agreement – that awarded them with 90 per cent control over the Nile water – giving other Nile Basin countries the possibility to implement water-related projects in agriculture and energy. This new development, according to Egypt and Sudan, places their water level security in jeopardy. Furthermore, the use of land grabs and water consumption for food security by wealthy foreign countries contributes to the sensitive situation the nine Nile Basin countries are now facing. Water is a red line when it comes to Egypt and Sudan and the future of the whole region depends on whether this line will be crossed.