A note on efficient sequences with respect to total flow time and number of tardy jobs

For the single‐machine scheduling problem with the objective of simultaneously minimizing total flow time and number of tardy jobs, a lower bound on the number of efficient sequences is known. However, the proof thereof, which makes use of a modified version of Smith's algorithm, is unduly lengthy and sophisticated. Adopting a totally new point of view, we present in this short article a much simpler proof based on the naive idea of pairwise interchange. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 346–348, 2016     

Level workforce planning for multistage transfer lines

In this article, we define two different workforce leveling objectives for serial transfer lines. Each job is to be processed on each transfer station for c time periods (e.g., hours). We assume that the number of workers needed to complete each operation of a job in precisely c periods is given. Jobs transfer forward synchronously after every production cycle (i.e., c periods). We study two leveling objectives: maximin workforce size () and min range (R). Leveling objectives produce schedules where the cumulative number of workers needed in all stations of a transfer line does not experience dramatic changes from one production cycle to the next. For and a two‐station system, we develop a fast polynomial algorithm. The range problem is known to be NP‐complete. For the two‐station system, we develop a very fast optimal algorithm that uses a tight lower bound and an efficient procedure for finding complementary Hamiltonian cycles in bipartite graphs. Via a computational experiment, we demonstrate that range schedules are superior because not only do they limit the workforce fluctuations from one production cycle to the next, but they also do so with a minor increase in the total workforce size. We extend our results to the m‐station system and develop heuristic algorithms. We find that these heuristics work poorly for min range (R), which indicates that special structural properties of the m‐station problem need to be identified before we can develop efficient algorithms. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 577–590, 2016     

Evergreening and operational risk under price competition

“Evergreening” is a strategy wherein an innovative pharmaceutical firm introduces an upgrade of its current product when the patent on this product expires. The upgrade is introduced with a new patent and is designed to counter competition from generic manufacturers that seek to imitate the firm's existing product. However, this process is fraught with uncertainty because the upgrade is subject to stringent guidelines and faces approval risk. Thus, an incumbent firm has to make an upfront production capacity investment without clarity on whether the upgrade will reach the market. This uncertainty may also affect the capacity investment of a competing manufacturer who introduces a generic version of the incumbent's existing product but whose market demand depends on the success or failure of the upgrade. We analyze a game where capacity investment occurs before uncertainty resolution and firms compete on prices thereafter. Capacity considerations that arise due to demand uncertainty introduce new factors into the evergreening decision. Equilibrium analysis reveals that the upgrade's estimated approval probability needs to exceed a threshold for the incumbent to invest in evergreening. This threshold for evergreening increases as the intensity of competition in the generic market increases. If evergreening is optimal, the incumbent's capacity investment is either decreasing or nonmonotonic with respect to low end market competition depending on whether the level of product improvement in the upgrade is low or high. If the entrant faces a capacity constraint, then the probability threshold for evergreening is higher than the case where the entrant is not capacity constrained. Finally, by incorporating the risk‐return trade‐off that the incumbent faces in terms of the level of product improvement versus the upgrade success probability, we can characterize policy for a regulator. We show that the introduction of capacity considerations may maximize market coverage and/or social surplus at incremental levels of product improvement in the upgrade. This is contrary to the prevalent view of regulators who seek to curtail evergreening involving incremental product improvement. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 71–89, 2016     

Variance of the number of units produced on a transfer line with buffer inventories during a period of length T

The transfer-line models in the literature are planning models rather than operational models. That is, they are very useful for planning or designing the transfer line, but are less useful for controlling the daily operation of the line. The performance measure used in these models is the efficiency of the line A. The expected number of units produced during a period of length T cycles is AT. In this article a procedure is presented for calculating the variance of the number of units produced by the transfer line during a period of length T cycles. These two performance measures can be used to construct an interval estimate for, say, the number of units produced during a shift. This interval estimate is an operational guide for the production manager.     

Warranty reserves for nonstationary sales processes

Estimation of warranty costs, in the event of product failure within the warranty period, is of importance to the manufacturer. Costs associated with replacement or repair of the product are usually drawn from a warranty reserve fund created by the manufacturer. Considering a stochastic sales process, first and second moments (and thereby the variance) are derived for the manufacturer's total discounted warranty cost of a single sale for single‐component items under four different warranty policies from a manufacturer's point of view. These servicing strategies represent a renewable free‐replacement, nonrenewable free‐replacement, renewable pro‐rata, and a nonrenewable minimal‐repair warranty plans. The results are extended to determine the mean and variance of total discounted warranty costs for the total sales over the life cycle of the product. Furthermore, using a normal approximation, warranty reserves necessary for a certain protection level, so that reserves are not completely depleted, are found. Results and their managerial implications are studied through an extensive example. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 499–513, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/nav.10023     

A nonidentical parallel processor scheduling problem

The problem considered in this article is a generalization of the familiar makespan problem, in which n jobs are allocated among m parallel processors, so as to minimize the maximum time (or cost) on any processor. Our problem is more general, in that we allow the processors to have (a) different initial costs, (b) different utilization levels before new costs are incurred, and (c) different rates of cost increase. A heuristic adapted from the bin-packing problem is shown to provide solutions which are close to optimal as the number of iterations is allowed to increase. Computational testing, over a large number of randomly generated problem instances, suggests that heuristic errors are, on average, very small.     

Interactive optimization methodology for fleet scheduling

This article addresses the problem of scheduling the United States Navy's Atlantic Fleet to satisfy overseas strategic requirements. An integer programming formulation is developed but results in a model with prohibitive size. This fact and the qualitative nature of additional secondary objectives and constraints suggest an interactive optimization approach. A system that solves a natural relaxation of the integer program within an interactive environment is discussed.     

Facility location when demand is time dependent

In this article we investigate the problem of locating a facility among a given set of demand points when the weights associated with each demand point change in time in a known way. It is assumed that the location of the facility can be changed one or more times during the time horizon. We need to find the time “breaks” when the location of the facility is to be changed, and the location of the facility during each time segment between breaks. We investigate the minisum Weber problem and also minimax facility location. For the former we show how to calculate the objective function for given time breaks and optimally solve the rectilinear distance problem with one time break and linear change of weights over time. Location of multiple time breaks is also discussed. For minimax location problems we devise two algorithms that solve the problem optimally for any number of time breaks and any distance metric. These algorithms are also applicable to network location problems.     

Use of a classifier in a knowledge-based simulation optimization system

This article defines and develops a simulation optimization system based upon response surface classification and the integration of multiple search strategies. Response surfaces are classified according to characteristics that indicate which search technique will be most successful. Typical surface characteristics include statistical measures and topological features, while search techniques encompass response surface methodology, simulated annealing, random search, etc. The classify-then-search process flow and a knowledge-based architecture are developed and then demonstrated with a detailed computer example. The system is useful not only as an approach to optimizing simulations, but also as a means for integrating search techniques and thereby providing the user with the most promising path toward an optimal solution. © 1995 John Wiley & Sons, Inc.