Dynamic routing of prioritized warranty repairs

Recent years have seen a strong trend toward outsourcing warranty repair services to outside vendors. In this article we consider the problem of dynamically routing warranty repairs to service vendors when warranties have priority levels. Each time an item under warranty fails, it is sent to one of the vendors for repair. Items covered by higher priority warranty receive higher priority in repair service. The manufacturer pays a fixed fee per repair and incurs a linear holding cost while an item is undergoing or waiting for repair. The objective is to minimize the manufacturer's long‐run average cost. Because of the complexity of the problem, it is very unlikely that there exist tractable ways to find the optimal routing strategies. Therefore, we propose five heuristic routing procedures that are applicable to real‐life problems. We evaluate the heuristics using simulation. The simulation results show that the index‐based “generalized join the shortest queue” policy, which applies a single policy improvement step to an initial state‐independent policy, performs the best among all five heuristics. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2008     

Optimizing the US Navy's combat logistics force

We study how changes to the composition and employment of the US Navy combat logistic force (CLF) influence our ability to supply our navy worldwide. The CLF consists of about 30 special transport ships that carry ship and aircraft fuel, ordnance, dry stores, and food, and deliver these to client combatant ships underway, making it possible for our naval forces to operate at sea for extended periods. We have modeled CLF operations to evaluate a number of transforming initiatives that simplify its operation while supporting an even larger number of client ships for a greater variety of missions. Our input is an employment schedule for navy battle groups of ships operating worldwide, extending over a planning horizon of 90–180 days. We show how we use optimization to advise how to sustain these ships. We have used this model to evaluate new CLF ship designs, advise what number of ships in a new ship class would be needed, test concepts for forward at‐sea logistics bases in lieu of conventional ports, demonstrate the effects of changes to operating policy, and generally try to show whether and how the CLF can support planned naval operations. Published 2008 Wiley Periodicals, Inc. Naval Research Logistics 2008     

Security Cooperation Issues in the Western Hemisphere

Building regional security cooperation in the Western Hemisphere is not a strictly short-term, unilateral or bilateral defense effort. Regional security will only result from a long-term, cooperative, multilateral civil-military effort. A viable framework for success includes the need to advance hemispheric understanding of the security concerns of each country and those that the region as a whole faces (for example, the internal and external threat(s) to security). Finally, these issues and associated recommendations demand a carefully staffed and phased regional security plan of action, with measurable short- and long-term objectives to validate its planning and implementation. The basic directions for a regional security plan, as identified at the Miami conference, are as follow.     

Using real options analysis to value reoptimization options in the shifting bottleneck heuristic

The reoptimization procedure within the shifting bottleneck (SB) involves reevaluation of all previously scheduled toolgroup subproblems at each iteration of the SB heuristic. A real options analysis (ROA) model is developed to value the option to reoptimize in the SB heuristic, such that reoptimization only occurs when it is most likely to lead to a schedule with a lower objective function. To date, all ROA models have sought to value options financially (i.e., in terms of monetary value). The ROA model developed in this paper is completely original in that it has absolutely no monetary basis. The ROA methodologies presented are shown to greatly outperform both full and no reoptimization approaches with respect to both computation time and total weighted tardiness. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2006     

Inducing coordination in supply chains through linear reward schemes

Decentralized decision‐making in supply chain management is quite common, and often inevitable, due to the magnitude of the chain, its geographical dispersion, and the number of agents that play a role in it. But, decentralized decision‐making is known to result in inefficient Nash equilibrium outcomes, and optimal outcomes that maximize the sum of the utilities of all agents need not be Nash equilibria. In this paper we demonstrate through several examples of supply chain models how linear reward/penalty schemes can be implemented so that a given optimal solution becomes a Nash equilibrium. The examples represent both vertical and horizontal coordination issues. The techniques we employ build on a general framework for the use of linear reward/penalty schemes to induce stability in given optimal solutions and should be useful to other multi‐agent operations management settings. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2006     

Global strategic studies: a manifesto

This contribution reflects on the state of strategic studies today and the criticism it has received in recent years, as being outdated and irrelevant. The authors formulate some premises for reinvigorating this field of inquiry by widening its scope and research agenda to do more justice to the wide variety of actors, perspectives and practices observable in the enterprise of strategy in our contemporary globalised world.     

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.