Product moments of order statistics from the doubly truncated exponential distribution

Recurrence relations for the product moments of order statistics from a doubly truncated exponential distribution are obtained. These relations allow us to evaluate the product moments for all sample sizes.     

On the manipulation of transfer prices in a static environment

In a static environment, J. Hirschleifer's marginal cost solution to the transfer pricing problem is commonly accepted as analytically correct. However, actual pricing practice within Western corporations and socialist-planned economies generally deviates from marginal cost pricing. Some form of average cost pricing is more commonly chosen. Recently in this journal, H. Enzer has claimed to show that some form of average cost pricing is indeed the analytically correct solution to the transfer pricing problem when choice of technique and manipulation are allowed. Enzer claims that optimal decisions made by each of two divisions according to their individual self-interests are made compatible with overall firm optimization when the transfer price assigned to the internally-transferred commodity is any form of average cost. We show that the marginal cost solution is correct for Enzer's problem in the absence of manipulation by either division. Indeed, this was all that Hirschleifer claimed. In the process, we uncover a fundamental mathematical error in Enzer's argument. When manipulation of the transfer price by divisions is allowed, we demonstrate the faults with Enzer's average cost solution and conclude Hirschleifer's original statements on manipulation to be correct even in Enzer's environment. A final section briefly indicates the importance to the transfer pricing problem of a growing body of economic literature on incentive structures.     

The constrained shortest path problem

The shortest path problem between two specified nodes in a general network possesses the unimodularity property and, therefore, can be solved by efficient labelling algorithms. However, the introduction of an additional linear constraint would, in general, destroy this property and the existing algorithms are not applicable in this case. This paper presents a parametric approach for solving this problem. The algorithm presented would require, on the average, a number of iterations which is polynomially bounded. The similarity of this approach to that of the generalized Lagrange multiplier technique is demonstrated and a numerical example is presented.     

Use of dimensionless ratios to determine minimum-cost inventory quantities

The iteration usually necessary for simultaneous determination of minimum-cost order quantity and reorder point in (Q, r) inventory systems may be eliminated by a graphical technique employing dimensionless ratios. This technique is illustrated for three different types of stock-out penalty.     

To catch an intruder: Part A—uncluttered scenario

We analyze an interdiction scenario where an interceptor attempts to catch an intruder as the intruder moves through the area of interest. A motivating example is the detection and interdiction of drug smuggling vessels in the Eastern Pacific and Caribbean. We study two models in this article. The first considers a nonstrategic target that moves through the area without taking evasive action to avoid the interdictor. We determine the optimal location the interceptor should position itself to best respond when a target arrives. The second model analyzes the strategic interaction between the interceptor and intruder using a Blotto approach. The intruder chooses a route to travel on and the interceptor chooses a route to patrol. We model the interaction as a two‐player game with a bilinear payoff function. We compute the optimal strategy for both players and examine several extensions. © 2017 Wiley Periodicals, Inc. Naval Research Logistics, 64: 29–40, 2017     

Linear search with bounded resources

A point is placed at random on the real line according to some known distribution F, and a search is made for this point, beginning at some starting points s on the line, and moving along the line according to some function x(t). The objective of this article is to maximize the probability of finding the point while traveling at most d units. Characterizations of simple optimal searches are found for arbitrary distributions, for continuous distributions with continuous density everywhere (e.g., normal, Cauchy, triangular), and for continuous distributions with density which is continuous on its support (e.g., exponential, uniform). These optimal searches are also shown to be optimal for maximization of the expected number of points found if the points are placed on the line independently from a known distribution F.     

Transient analysis of multiple-unit reliability systems

A general Markovian model representing several multiple-unit redundant repairable systems is proposed and its transient behavior is studied. Specifically, for multiple-unit reliability system the reliability and availability functions are derived in an explicit form for the transient case. The stationary availability and mean time to system failure are deduced from the main results as special cases.