Flexible supply contracts for short life‐cycle goods: The buyer's perspective

In this paper we analyze a two‐period supply contract which allows for order adjustment by the buyer. The buyer is required to place orders for two periods. After observing initial demand, the buyer is then allowed to adjust the second order, paying a per unit order adjustment penalty. We describe the optimal behavior of the buyer under such a contract, both in determining the initial order quantities and in subsequently adjusting the order. We compare the solution to a contract where no adjustment is allowed and to the case where adjustment is allowed without penalty. We demonstrate that flexible contracts can reduce the potentially negative effect of correlation of demand between two periods. Further, we investigate how the duration of the first period vis‐à‐vis the second period affects the profitability of the buyer as a function of the degree of correlation. © 2002 John Wiley & Sons, Inc. Naval Research Logistics, 49: 25–45, 2002; DOI 10.1002/nav.10002     

Analysis of down times of jib cranes—A stochastic approach

In this paper a case study dealing with the maintenance problem of jib cranes is presented. A jib crane is viewed as a complex system whose performance is observed as a single realization over period of time. After pointing out limitations of existing stochastic models to analyze the observed realization a new family of bivariate stochastic processes is introduced. The data of jib crane is analyzed using new model and cross‐validated using part of the data set. It is noted that the new family of stochastic processes is useful to analyze bivariate data where one of the variables is finitely valued and the other is nonnegative and continuous. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 231–243, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/nav.10006     

Warranty reserving

This paper considers a problem of warranty reserving, namely, the current practice of setting aside part of a product revenue to meet future claims arising from the warranty. We define a Compound Poisson stochastic model for warranty claims and reserve and obtain, using a sample paths technique, the long-run probability distribution of a warranty reserves, managed under alternative warranties and reserve policies.     

A hard knapsack problem

In this article we develop a class of general knapsack problems which are hard for branch and bound algorithms. The number of alternate optimal solutions for these problems grows exponentially with problem parameters. In addition the LP bound is shown to be ineffective. Computational tests indicate that these problems are truly difficult for even very small problems. Implications for the testing of algorithms using randomly generated problems is discussed.     

A duality model for a generalized minmax program

We consider a generalized minmax programming problem, and establish, under certain weaker convexity assumptions, the Fritz John sufficient optimality conditions for such a problem. A dual program is introduced and using those optimality conditions duality theorems are proved relating the dual and the primal. Duality for the generalized fractional programming problem is considered as an application of the results proved.     

Acceptance sampling,imperfect production,and the optimality of zero defects

Acceptance sampling is often used to monitor the quality of raw materials and components when product testing is destructive, time-consuming, or expensive. In this paper we consider the effect of a buyer-imposed acceptance sampling policy on the optimal batch size and optimal quality level delivered by an expected cost minimizing supplier. We define quality as the supplier's process capability, i.e., the probability that a unit conforms to all product specifications, and we assume that unit cost is an increasing function of the quality level. We also assume that the supplier faces a known and constant “pass-through” cost, i.e., a fixed cost per defective unit passed on to the buyer. We show that the acceptance sampling plan has a significant impact on the supplier's optimal quality level, and we derive the conditions under which zero defects (100% conformance) is the policy that minimizes the supplier's expected annual cost. © 1997 John Wiley & Sons, Inc. Naval Research Logistics 44: 515–530, 1997     

Nuclear opportunism: A theory of how states use nuclear weapons in international politics

How do states use nuclear weapons to achieve their goals in international politics? Nuclear weapons can influence state decisions about a range of strategic choices relating to military aggression, the scope of foreign policy objectives, and relations with allies. The article offers a theory to explain why emerging nuclear powers use nuclear weapons to facilitate different foreign policies: becoming more or less aggressive; providing additional support to allies or proxies, seeking independence from allies; or expanding the state’s goals in international politics. I argue that a state’s choices depend on the presence of severe territorial threats or an ongoing war, the presence of allies that provide for the state’s security, and whether the state is increasing in relative power. The conclusion discusses implications of the argument for our understanding of nuclear weapons and the history of proliferation, and nonproliferation policy today.     

More military base closure? Considering the alternatives*

Despite multiple base closing rounds, the United States Department of Defense still has excess base capacity, and thus President Trump and high-level Defense Department officials are calling for more base closure through the Base Realignment and Closure (BRAC) process. However, another BRAC may not be the optimal solution, because simple base closure is not an efficient way to reduce surplus base capacity. Thus, Defense Department officials should consider other methods to reduce surplus capacity, including reduction in base size, leasing excess base property, or transferring it to another government agency for a variety of alternative uses. The surplus capacity issue also offers an opportunity to DOD to reassess base utilization, to update base requirements with current and future force structure. While BRAC focuses on American military bases, the process and alternatives also have international applications.     

Information sharing in multinational security and military operations. Why and why not? With whom and with whom not?

Military operations increasingly require cooperation between agencies within the same nation, but also collaboration with security and military organizations internationally. Throughout history multinational military cooperation has often been an appropriate way to conduct major operations; national manpower and material resources are generally insufficient to address the demands of missions worldwide. The desire to optimize the use of scarce research and development and investment capabilities, the need for international legitimacy and political support, and the fact that today’s risks transcend national borders, have rendered multinational cooperation in the security domain unavoidable. With joint operations comes the requirement for multi-partner- and multinational information sharing. However, information sharing has both advantages and costs, and is subject to both enabling factors as well as barriers. This paper reflects on theories, both classical and current, as well as empirical case studies, to examine the pros and cons of multinational information sharing, and the factors that conduce or interfere with the transmission and the receipt of intelligence. The importance of a holistic approach and of learning lessons learned are two key lessons gleaned from the analysis, along with an emphasis on developing both the organizational and the interpersonal enablers of information sharing.     

The one‐warehouse multiretailer problem with an order‐up‐to level inventory policy

We consider a two‐level system in which a warehouse manages the inventories of multiple retailers. Each retailer employs an order‐up‐to level inventory policy over T periods and faces an external demand which is dynamic and known. A retailer's inventory should be raised to its maximum limit when replenished. The problem is to jointly decide on replenishment times and quantities of warehouse and retailers so as to minimize the total costs in the system. Unlike the case in the single level lot‐sizing problem, we cannot assume that the initial inventory will be zero without loss of generality. We propose a strong mixed integer program formulation for the problem with zero and nonzero initial inventories at the warehouse. The strong formulation for the zero initial inventory case has only T binary variables and represents the convex hull of the feasible region of the problem when there is only one retailer. Computational results with a state‐of‐the art solver reveal that our formulations are very effective in solving large‐size instances to optimality. © 2010 Wiley Periodicals, Inc. Naval Research Logistics, 2010