Demand forecasting by temporal aggregation

Demand forecasting performance is subject to the uncertainty underlying the time series an organization is dealing with. There are many approaches that may be used to reduce uncertainty and thus to improve forecasting performance. One intuitively appealing such approach is to aggregate demand in lower‐frequency “time buckets.” The approach under concern is termed to as temporal aggregation, and in this article, we investigate its impact on forecasting performance. We assume that the nonaggregated demand follows either a moving average process of order one or a first‐order autoregressive process and a single exponential smoothing (SES) procedure is used to forecast demand. These demand processes are often encountered in practice and SES is one of the standard estimators used in industry. Theoretical mean‐squared error expressions are derived for the aggregated and nonaggregated demand to contrast the relevant forecasting performances. The theoretical analysis is supported by an extensive numerical investigation and experimentation with an empirical dataset. The results indicate that performance improvements achieved through the aggregation approach are a function of the aggregation level, the smoothing constant, and the process parameters. Valuable insights are offered to practitioners and the article closes with an agenda for further research in this area. © 2013 Wiley Periodicals, Inc. Naval Research Logistics 60: 479–498, 2013     

Feeding Bread to the Luddites: The Radical Fundamentalist Islamic Revolution in Guerrilla Warfare

This study examines the war that the United States has waged since September 2001 as a global counterinsurgency. Placing the war against al-Qaeda and its allied groups and organizations in the context of a global insurgency also presents implications for doctrine, interagency coordination and military cultural change. The first part of the article offers a distilled analysis of al-Qaeda and its associated networks. The second section examines the US military in the context of the Western way of war, with the attendant military-cultural impediments to adapting to an enemy who embraces a very different approach to war. The third section aims to define and describe the nature of the war that America and its coalition partners are trying to wage. The concluding section offers the most value as it refines and distills the work of several international security and military thinkers to arrive at some imperatives for successfully prosecuting this type of war to its end.     

A Clash of Wills: Hizballah's Psychological Campaign Against Israel in South Lebanon

This article analyzes Hizballah's war against Israel in south Lebanon as a psychological contest where public opinion, perception, and persuasion were the real determinants of victory. Hizballah successfully mobilized popular support for its war by communicating nationalist and religious themes to different sectarian groups in Lebanon. At the same time, it used classic guerrilla warfare as a carefully calibrated psychological tool to erode the morale of Israeli forces, their Lebanese allies, and the Israeli public's support for the war. Hizballah's sophisticated media capability, particularly combat video footage aired on its satellite TV station and the Internet, played a critical role in amplifying the effects of its attrition campaign. By orchestrating information-age media and guerrilla tactics, this strategy has important implications for the future of irregular warfare.     

An American Trojan horse? Eisenhower,Latin America,and the development of us internal security policy 1954–1960

Perceptions of Third World nations as susceptible to communist subversion and revolutionary warfare led the Eisenhower administration to formulate a coordinated internal security strategy known simply as ‘1290d’. Later renamed the Overseas Internal Security Program (OISP), this policy initiative sought to strengthen host‐nation security forces, judicial systems, and public information media in an effort to combat indirect communist intervention strategies. Implementing OISP policy in Latin America proved difficult. In Congress, the administration was criticised for colluding with dictatorial regimes, while Latin Americans feared that the new program would be used as a ‘Trojan Horse’ to penetrate their security structures. After the Cuban Revolution, however, OISP policies developed under Eisenhower came to dominate US‐Latin American security relations for the remainder of the Cold War.     

Command and Control of India's Nuclear Forces

The Indian government has not made a public comment about the status of its nuclear weapon program since approving a nuclear doctrine in 2003. However, there is now enough information in the public domain to determine that the command-and-control system for the nuclear program has steadily matured in accordance with the intent of the approved nuclear doctrine. The Indian government has successfully mitigated many of the issues that plague the conventional military. The result is a basic command-and-control system that is focused only on the delivery, if ordered by the prime minister, of nuclear weapons. The system is not as robust as those of the United States and Russia, but is in place and ready as new Indian nuclear weapons enter into operation. The command-and-control system is developing to meet India's needs and political compulsions, but not necessarily as part of a more assertive nuclear policy.     

The Demand for Military Spending in Egypt

Egypt plays a pivotal role in the security of the Middle East as the doorway to Europe and its military expenditure reflects its involvement in the machinations of such an unstable region, showing considerable variation over the last 40?years. These characteristics make it a particularly interesting case study of the determinants of military spending. This paper specifies and estimates an econometric model of the Egyptian demand for military spending, taking into account important strategic and political factors. Both economic and strategic factors are found to play a role in determining military burden/spending, with clear positive effects of lagged military burden, suggesting some sort of institutional inertia, plus negative output and net exports effects. The strategic effect as a result of the impact of Israel’s military burden is mostly positive and significant, though its impact is reduced when the impact of important strategic events are taken into account. The military spending of Egypt’s allies Jordan and Syria generally seems to have had no effect on Egypt’s spending. These results are consistent over a range of econometric techniques.     

An adaptive dynamic programming algorithm for a stochastic multiproduct batch dispatch problem

We address the problem of dispatching a vehicle with different product classes. There is a common dispatch cost, but holding costs that vary by product class. The problem exhibits multidimensional state, outcome and action spaces, and as a result is computationally intractable using either discrete dynamic programming methods, or even as a deterministic integer program. We prove a key structural property for the decision function, and exploit this property in the development of continuous value function approximations that form the basis of an approximate dispatch rule. Comparisons on single product‐class problems, where optimal solutions are available, demonstrate solutions that are within a few percent of optimal. The algorithm is then applied to a problem with 100 product classes, and comparisons against a carefully tuned myopic heuristic demonstrate significant improvements. © 2003 Wiley Periodicals, Inc. Naval Research Logistics 50: 742–769, 2003.     

Exact algorithms for scheduling multiple families of jobs on parallel machines

In many practical manufacturing environments, jobs to be processed can be divided into different families such that a setup is required whenever there is a switch from processing a job of one family to another job of a different family. The time for setup could be sequence independent or sequence dependent. We consider two particular scheduling problems relevant to such situations. In both problems, we are given a set of jobs to be processed on a set of identical parallel machines. The objective of the first problem is to minimize total weighted completion time of jobs, and that of the second problem is to minimize weighted number of tardy jobs. We propose column generation based branch and bound exact solution algorithms for the problems. Computational experiments show that the algorithms are capable of solving both problems of medium size to optimality within reasonable computational time. © 2003 Wiley Periodicals, Inc. Naval Research Logistics 50: 823–840, 2003.     

Capacity expansion with lead times and autocorrelated random demand

The combination of uncertain demand and lead times for installing capacity creates the risk of shortage during the lead time, which may have serious consequences for a service provider. This paper analyzes a model of capacity expansion with autocorrelated random demand and a fixed lead time for adding capacity. To provide a specified level of service, a discrete time expansion timing policy uses a forecast error‐adjusted minimum threshold level of excess capacity position to trigger an expansion. Under this timing policy, the expansion cost can be minimized by solving a deterministic dynamic program. We study the effects of demand characteristics and the lead time length on the capacity threshold. Autocorrelation acts similarly to randomness in hastening expansions but has a smaller impact, especially when lead times are short. However, the failure either to recognize autocorrelation or to accurately estimate its extent can cause substantial policy errors. © 2003 Wiley Periodicals, Inc. Naval Research Logistics, 2003