A dynamic-programming approach to continuous-review obsolescent inventory problems

Inventory models of modern production and service operations should take into consideration possible exogenous failures or the abrupt decline of demand resulting from obsolescence. This article analyzes continuous-review versions of the classical obsolescence problem in inventory theory. We assume a deterministic demand model and general continuous random times to obsolescence (“failure”). Using continuous dynamic programming, we investigate structural properties of the problem and propose explicit and workable solution techniques. These techniques apply to two fairly wide (and sometimes overlapping) classes of failure distributions: those which are increasing in failure rate and those which have finite support. Consequently, several specific failure processes in continuous time are given exact solutions. © 1997 John Wiley & Sons, Inc. Naval Research Logistics 44: 757–774, 1997     

Probabilistic a priori routing-location problems

In many routing-location models customers located at nodes of a network generate calls for service with known probabilities. The customers that request service in a particular day are served by a single server that performs a service tour visiting these customers. The order of providing service to customers for each potential list of calls is uniquely defined by some a priori fixed basic sequence of all the customers (a priori tour). The problems addressed in this article are to find an optimal home location or an optimal basic sequence for the server so as to minimize the expectation of a criterion. The following criteria are considered: the total waiting time of all the customers, the total length of the tour, the maximal waiting time of a customer, the average traveled length per customer, and the average waiting time per customer. We present polynomial-time algorithms for the location problems. For the routing problems we present lower bounds that can be calculated efficiently (in polynomial time) and used in a branch-and-bound scheme. © 1994 John Wiley & Sons, Inc.     

Safe distances

This work highlights the problem in military operations of setting safety limits for friendly forces, neutral forces, or civilians, to avoid sustaining unnecessary casualties both in wartime and in training. We present and investigate an analytic model which both enables the quantitative understanding of the inherent problems, and which furnishes a reasonably flexible tool in the hands of the analyst. Characteristic numerical results are displayed and analyzed: They show in particular that prevailing crude approximations are inadequate. © 2001 John Wiley & Sons, Inc. Naval Research Logistics 48: 259–269, 2001     

Maintaining systems with heterogeneous spare parts

We consider the problem of optimally maintaining a stochastically degrading, single‐unit system using heterogeneous spares of varying quality. The system's failures are unannounced; therefore, it is inspected periodically to determine its status (functioning or failed). The system continues in operation until it is either preventively or correctively maintained. The available maintenance options include perfect repair, which restores the system to an as‐good‐as‐new condition, and replacement with a randomly selected unit from the supply of heterogeneous spares. The objective is to minimize the total expected discounted maintenance costs over an infinite time horizon. We formulate the problem using a mixed observability Markov decision process (MOMDP) model in which the system's age is observable but its quality must be inferred. We show, under suitable conditions, the monotonicity of the optimal value function in the belief about the system quality and establish conditions under which finite preventive maintenance thresholds exist. A detailed computational study reveals that the optimal policy encourages exploration when the system's quality is uncertain; the policy is more exploitive when the quality is highly certain. The study also demonstrates that substantial cost savings are achieved by utilizing our MOMDP‐based method as compared to more naïve methods of accounting for heterogeneous spares.     

Can Limited Intervention Work? Lessons from Britain’s Success Story in Sierra Leone

ABSTRACT

Following frustrating campaigns in Iraq and Afghanistan, Western interventions are becoming more limited, with troops being deployed for short bursts and residual peace-building tasks being left to others. Although this approach limits exposure for the intervening government, it struggles to achieve meaningful political change. Examining the comparatively successful British intervention in Sierra Leone (2000–02), this article identifies the conditions for effectiveness in these campaigns. It challenges the historiography of the case by framing armed confrontations and raids as enablers of politics rather than ends in themselves; indeed, in both the conduct and study of intervention, politics must reign supreme.     

Lot sizes under continuous demand: The backorder case

We study a deterministic lot-size problem, in which the demand rate is a (piecewise) continuous function of time and shortages are backordered. The problem is to find the order points and order quantities to minimize the total costs over a finite planning horizon. We show that the optimal order points have an interleaving property, and when the orders are optimally placed, the objective function is convex in the number of orders. By exploiting these properties, an algorithm is developed which solves the problem efficiently. For problems with increasing (decreasing) demand rates and decreasing (increasing) cost rates, monotonicity properties of the optimal order quantities and order intervals are derived.     

Multi-item service constrained (s,S) policies for spare parts logistics systems

Many organizations providing service support for products or families of products must allocate inventory investment among the parts (or, identically, items) that make up those products or families. The allocation decision is crucial in today's competitive environment in which rapid response and low levels of inventory are both required for providing competitive levels of customer service in marketing a firm's products. This is particularly important in high-tech industries, such as computers, military equipment, and consumer appliances. Such rapid response typically implies regional and local distribution points for final products and for spare parts for repairs. In this article we fix attention on a given product or product family at a single location. This single-location problem is the basic building block of multi-echelon inventory systems based on level-by-level decomposition, and our modeling approach is developed with this application in mind. The product consists of field-replaceable units (i.e., parts), which are to be stocked as spares for field service repair. We assume that each part will be stocked at each location according to an (s, S) stocking policy. Moreover, we distinguish two classes of demand at each location: customer (or emergency) demand and normal replenishment demand from lower levels in the multiechelon system. The basic problem of interest is to determine the appropriate policies (s_i S_i) for each part i in the product under consideration. We formulate an approximate cost function and service level constraint, and we present a greedy heuristic algorithm for solving the resulting approximate constrained optimization problem. We present experimental results showing that the heuristics developed have good cost performance relative to optimal. We also discuss extensions to the multiproduct component commonality problem.