Capacity expansion under a service‐level constraint for uncertain demand with lead times

For a service provider facing stochastic demand growth, expansion lead times and economies of scale complicate the expansion timing and sizing decisions. We formulate a model to minimize the infinite horizon expected discounted expansion cost under a service‐level constraint. The service level is defined as the proportion of demand over an expansion cycle that is satisfied by available capacity. For demand that follows a geometric Brownian motion process, we impose a stationary policy under which expansions are triggered by a fixed ratio of demand to the capacity position, i.e., the capacity that will be available when any current expansion project is completed, and each expansion increases capacity by the same proportion. The risk of capacity shortage during a cycle is estimated analytically using the value of an up‐and‐out partial barrier call option. A cutting plane procedure identifies the optimal values of the two expansion policy parameters simultaneously. Numerical instances illustrate that if demand grows slowly with low volatility and the expansion lead times are short, then it is optimal to delay the start of expansion beyond when demand exceeds the capacity position. Delays in initiating expansions are coupled with larger expansion sizes. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2009     

Northern Ireland and minimum force: the refutation of a concept?

The debate over whether there exists a British counter-insurgency tradition of minimum force is one that has been thoroughly discussed. Is there anything left to say? This study suggests there is further insight to be attained if one explicitly evaluates the concept of minimum force in relation to the conduct of the security forces in the years of the Northern Ireland conflict. Through an examination of three key periods in the conflict, it will be shown that while there was invariably an awareness of the need to act with restraint among senior officers at the strategic level, this was often difficult to apply at the tactical level in the heat of confrontation. The argument demonstrates that the British Army, and other instruments of the state, rarely acted in a manner that could be described as ‘minimal’. Instead, it was the broader liberal values of the British state that explains largely the degrees of restraint exhibited by the government and security forces.     

Conflict and fiscal capacity

We examine the role of war in retarding state fiscal capacity in developing countries, measured by tax revenue ratios to GDP. We build a simple theoretical model of a factionalized state, where patronage substitutes for common interest public goods, along with violent contestation over a rent or prize. Our dynamic panel empirical analysis applied to 79 developing countries, during 1980–2010, indicates that war, especially civil war, retards fiscal capacity, along with imperfect democracy, political repression, poor governance, and dependence on oil and macroeconomic mismanagement. High intensity conflict is particularly destructive of state capacity. In countries experiencing low intensity wars, other institutional factors may matter more than war. The diminution of fiscal capacity due to war appears less pronounced after the end of the cold war.     

Spatial Distribution of Minority Communities and Terrorism: Domestic Concentration versus Transnational Dispersion

Qualitative studies of terrorist movements frequently highlight the importance of diaspora communities as important factors in producing and sustaining terrorist activity in countries. The underlying theoretical argument is that bifurcation of tight-knit minority communities between countries nurtures separatist or irredentist sentiments among affected community members, thus prompting terrorist activity, while minority community members in other countries might mobilize financial and political resources to support terrorist activity among their compatriots. In this study, we empirically test whether transnational dispersion, versus domestic concentration, of minority communities in countries produces higher incidents of terrorism. Conducting a series of negative binomial estimations on a reshaped database of around 170 countries from 1981 to 2006, derived from the Minorities at Risk database and the Global Terrorism Database, we determine that both transnational dispersion of kin minority communities and domestic concentration of minorities within countries increase terrorism and that transnational dispersion is a particularly robust predictor of terrorist attacks.     

Military Spending and Growth: The Role of Institutions

Recent literature on whether military spending affects economic growth argues that the relationship may be a conditional one. We add to this literature by considering the role that ‘good institutions’ play in the effect of military spending on growth. Using data from a sample of over 100 countries from 1988 to 2010, our analysis suggests that the effect of military spending on growth is generally negative or zero at best, and this effect is mitigated in the presence of good economic and political institutions.     

Scheduling customer arrivals to a stochastic service system

An efficient algorithm for determining the optimal arrival schedule for customers in a stochastic service system is developed. All customers arrive exactly when scheduled, and service times are modeled as iid Erlang random variables. Costs are incurred at a fixed rate per unit of time each customer waits for service, and an additional cost is incurred for every unit of time the server operates beyond a scheduled closing time. The objective is to minimize total operating cost. This type of problem arises in many operational contexts including transportation, manufacturing, and appointment‐based services. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 549–559, 1999     

Decomposition algorithms for the maximum-weight connected graph problem

Given a positive integer R and a weight for each vertex in a graph, the maximum-weight connected graph problem (MCG) is to find a connected subgraph with R vertices that maximizes the sum of their weights. MCG has applications to communication network design and facility expansion. The constrained MCG (CMCG) is MCG with a constraint that one predetermined vertex must be included in the solution. In this paper, we introduce a class of decomposition algorithms for MCG. These algorithms decompose MCG into a number of small CMCGs by adding vertices one at a time and building a partial graph. They differ in the ordering of adding vertices. Proving that finding an ordering that gives the minimum number of CMCGs is NP-complete, we present three heuristic algorithms. Experimental results show that these heuristics are very effective in reducing computation and that different orderings can significantly affect the number of CMCGs to be solved. © 1998 John Wiley & Sons, Inc. Naval Research Logistics 45: 817–837, 1998     

Automated air load planning

We describe the development of a heuristic algorithm for determining efficient 2-dimensional packings in cargo aircraft where cargo placement constraints are critically important in determining the feasibility of packing locations. We review the performance of a new algorithm versus some traditional ones for aircraft loading. The algorithm is also tested in a more generalized setting where there exist no additional constraints on items, to suggest applicability in other environments. The new algorithm has been used worldwide in the Automated Air Load Planning System (AALPS) for cargo aircraft loading, with much success. © 1998 John Wiley & Sons, Inc. Naval Research Logistics 45: 751–768, 1998     

Markovian models of three‐on‐one combat involving a hidden defender

In this paper, Markovian models of three‐on‐one stochastic firefights between ground‐based weapon systems are developed. These models address a common scenario of interest to the military, but one which has been much neglected in analytic combat models, that of combat between a hidden defender and an exposed attacking force. Each combatant must detect an opponent before commencing their firing cycle, a task which is considerably more difficult for the attacker. In the models developed here, the defender detects the exposed attacking group after an exponentially distributed time interval, while each attacker has a fixed probability of detecting the defender via the flash signature produced after each shot fired by him. The utility of the approach is demonstrated by investigating what impact the introduction of a coordinated gun‐laying system for the attacking force might have, a system made possible by battlefield digitization. The method used here allows models to be developed incrementally. This and other advantages of the Markovian approach are discussed. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 627–646, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/nav.10041