Are PRTs Supposed to Compete with Terrorists?

This chapter discusses the impact Provincial Reconstruction Teams (PRTs) have on the security situation in Afghanistan, specifically in countering the terrorist threat and in counter-narcotics.

The Afghan people define the lack of security as their country's greatest problem. The terrorist activities of groups opposed to the central government and the political process compounded by violence related to the opium trade are seen as the main sources of insecurity. The authors argue that, currently, PRTs should not assume active counterterrorism as an additional main area of operation. The complexity of Afghanistan's security environment and the pressure to have PRTs involved in the counter-narcotics effort underscore the necessity of local knowledge and experience in the PRTs. Participation of indigenous actors, such as NGOs, in the PRT-organisational structure could provide this required expertise.     

‘Taylor must go’ – the strategy of the Liberians United for Reconciliation and Democracy

In 1999, rebels rose to oppose the newly elected former warlord Charles Taylor in Liberia. Motivated by a variety of reasons, the minimal common denominator of these rebels, who assumed the name Liberians United for Reconciliation and Democracy (LURD), was that Charles Taylor must leave the country. The decentralized nature of LURD though stands out in their struggle, as they don't fit the unitary actor assumed by literature on strategy, nor the alternative conception of decentralized forces fighting for purely local reasons. Understanding such aberrations as LURD is the first step to finding strategies that can incorporate and manage them.     

A produce‐to‐stock system with advance demand information and secondary customers

We consider a manufacturer (i.e., a capacitated supplier) that produces to stock and has two classes of customers. The primary customer places orders at regular intervals of time for a random quantity, while the secondary customers request a single item at random times. At a predetermined time the manufacturer receives advance demand information regarding the order size of the primary customer. If the manufacturer is not able to fill the primary customer's demand, there is a penalty. On the other hand, serving the secondary customers results in additional profit; however, the manufacturer can refuse to serve the secondary customers in order to reserve inventory for the primary customer. We characterize the manufacturer's optimal production and stock reservation policies that maximize the manufacturer's discounted profit and the average profit per unit time. We show that these policies are threshold‐type policies, and these thresholds are monotone with respect to the primary customer's order size. Using a numerical study we provide insights into how the value of information is affected by the relative demand size of the primary and secondary customers. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Joint pricing,assortment, and inventory decisions for a retailer's product line

Consider a set of product variants that are differentiated by some secondary attributes such as flavor, color, or size. The retailer's problem is to jointly determine the set of variants to include in her product line (“assortment”), together with their prices and inventory levels, so as to maximize her expected profit. We model the consumer choice process using a multinomial logit choice model and consider a newsvendor type inventory setting. We derive the structure of the optimal assortment for some important special cases, including the case of horizontally differentiated items, and propose a dominance relationship for the general case that simplifies the search for an optimal assortment. We also discuss structural properties of the optimal prices. Finally, motivated by our analytical results, we propose a heuristic solution procedure, which is shown to be quite effective through a numerical study. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Collaboration in contingent capacities with information asymmetry

We study the optimal contracting problem between two firms collaborating on capacity investment with information asymmetry. Without a contract, system efficiency is lost due to the profit‐margin differentials among the firms, demand uncertainty, and information asymmetry. With information asymmetry, we demonstrate that the optimal capacity level is characterized by a newsvendor formula with an upward‐adjusted capacity investment cost, and no first‐best solution can be achieved. Our analysis shows that system efficiency can always be improved by the optimal contract and the improvement in system efficience is due to two factors. While the optimal contract may bring the system's capacity level closer to the first‐best capacity level, it prevents the higher‐margin firm from overinvesting and aligns the capacity‐investment decisions of the two firms. Our analysis of a special case demonstrates that, under some circumstances, both firms can benefit from the principal having better information about the agent's costs. © 2007 Wiley Periodicals, Inc. Naval Research Logistics 54:, 2007     

Fighting maritime piracy: three lessons from pompeius magnus

Piracy in international waters is on the rise again, in particular off the coast of Somalia. While the dynamic game between pirates, ship-owners, insurance firms and the military seems to have reached some kind of equilibrium, piracy risks generating significant negative externalities to third parties (e.g. in terms of environmental hazards and terrorism), justifying attempts to contain it. We argue that these attempts may benefit from a look back – through the analytical lens of rational choice theory – to the most successful counterpiracy campaign ever undertaken, namely, the one led by the Roman general Gnaeus Pompeius Magnus (Pompey the Great) in 67 BC.     

Maintenance scheduling for modular systems: Modeling and algorithms

We study new models of scheduled maintenance management for modular systems, consisting of multiple components with respective cycle limits. The cycle limit of each component specifies the time interval in which this component must be repaired or replaced. The goal is to compute a feasible maintenance schedule that minimizes the cost associated with component maintenance. Applications of these models arise in Air Force aircraft maintenance as well as in other arenas with required preventive maintenance. The typical cost structures that arise in practical settings are submodular, which make the resulting models computationally challenging. We develop two efficient and operationally tenable approximation algorithms. We prove constant factor worst‐case guarantees for both algorithms, and present computational experiments showing that these algorithms perform within a few percent of optimality on operationally relevant instances. © 2014 Wiley Periodicals, Inc. Naval Research Logistics 61: 472–488, 2014