Interactive optimization methodology for fleet scheduling

This article addresses the problem of scheduling the United States Navy's Atlantic Fleet to satisfy overseas strategic requirements. An integer programming formulation is developed but results in a model with prohibitive size. This fact and the qualitative nature of additional secondary objectives and constraints suggest an interactive optimization approach. A system that solves a natural relaxation of the integer program within an interactive environment is discussed.     

Diffusion approximation to the G/G/R machine repair problem with warm standby spares

The G/G/R machine repair problem with M operating machines, S warm standby spares, and R repairmen is studied as a diffusion process. The steady-state equations are formulated as diffusion equations subject to two reflecting barriers. The approximate diffusion parameters of the diffusion equations are obtained (1) under the assumption that the input characteristics of the problem are defined only by their first two moments rather than their probability distribution function, (2) under the assumption of heavy traffic approximation, that is, when queues of failed machines in the repair stage are almost always nonempty, and (3) using well-known asymptotic results from renewal theory. Expressions for the probability density functions of the number of failed machines in the system are obtained. A study of the derived approximate results, compared to some of the exact results, suggests that the diffusion approach provides a useful method for solving complex machine-repair problems.     

An approach to modeling electric utility capacity expansion planning

This article describes an algorithm for solving the static electric utility capacity expansion problem. The advantages of this algorithm are twofold. First, it is simpler and yet more efficient than previous algorithms for the same problem. Second, by making simplifying but realistic assumptions on plant sizes it is possible to use this algorithm for the case where one does not allow fractional plant additions. While the model has n variables, it has a clear two-dimensional geometric representation for understanding its properties, developing an algorithm, and interpreting the optimal solution. This algorithm has been implemented in the Intermediate Future Forecasting (IFFS) capacity expansion model at the Department of Energy.     

Optimal redesign decisions through failure rate estimates

To reduce the time-to-market of newly developed systems, manufacturers increasingly adopt strategies where systems are brought to market while system field reliability is still uncertain. These systems are typically sold under performance-based contracts, which incentivizes potential customers to invest in them despite reliability uncertainty. Such contracts make the manufacturer (partly) responsible for the availability of the system. Subsequently, when field reliability is lower than anticipated, the manufacturer may choose to redesign the system to avoid high contract penalties. Redesign is a costly effort which may substantially increase field reliability. Deciding when to redesign is challenging, especially because the initial failure rate estimate by the system's engineers is refined over time as failure data accrues. We propose a model that endogenizes the failure rate updating to analyze this tactical redesign decision. We study additive and multiplicative redesigns and show that the optimal policy has a control limit structure. We benchmark our optimal policy against a static counterpart numerically, and conclude that basing redesign decisions on the updated estimate of the failure rate can substantially reduce costs.     

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.     

WHILE WAITING FOR THE PROTOCOL

The Biological Weapons Convention (BWC) regime currently suffers from a lack of effective compliance procedures. Because a legally binding compliance protocol to the BWC is not available, other measures are needed to stabilize the regime against the risk of violations of its rules. The Treaty on the Non-Proliferation of Nuclear Weapons, the Chemical Weapons Convention, and the experiences of UN inspection teams show that among the necessary components of effective compliance mechanisms are an intermediary level between bilateral consultations of states parties and involvement of the UN Security Council as well as independent assessment capabilities. This article suggests that the UN Secretary General could assume such an intermediary function and, using the authority contained in Article 99 of the UN Charter, could investigate not only alleged use of biological weapons but also alleged breaches of the BWC. A standing expert unit in the Department for Disarmament Affairs could provide the independent expertise necessary for such investigations. Such a compliance mechanism could provisionally help stabilize the BWC regime until a permanent compliance system can be agreed.     

MILITARY EXPENDITURE AND ECONOMIC GROWTH IN MIDDLE EASTERN COUNTRIES: A DYNAMIC PANEL DATA ANALYSIS

Defence expenditures have both costs and benefits to the economy. The costs of defence expenditures are mainly emphasized as opportunity costs. On the other hand, defence spending may have growth‐promoting potential benefits: a rise in defence spending may result in a higher aggregate demand, production and employment. This paper examines empirically the effects of military expenditures on economic growth for Middle Eastern countries and Turkey, for the time‐period 1989–1999. The relationship between military expenditure and economic growth is investigated by using cross‐section and dynamic panel estimation techniques. Empirical analysis indicates that military expenditure enhances economic growth in the Middle Eastern countries and Turkey as a whole.     

ON RATIONAL CHOICE THEORY AND THE STUDY OF TERRORISM

When rational choice theory is applied to the study of terrorism, it is important that attention be given to the derived principles of constrained utility maximization. Particularly useful is the Slutsky equation, which rigorously analyzes the quantity response in one activity to a price change in another. By directing attention to assumptions and/or information about compensated cross price elasticities, expenditure shares, and income elasticities, the Slutsky equation can provide critical guidance in both theoretical and empirical analysis.