Optimal redesign decisions through failure rate estimates

To reduce the time-to-market of newly developed systems, manufacturers increasingly adopt strategies where systems are brought to market while system field reliability is still uncertain. These systems are typically sold under performance-based contracts, which incentivizes potential customers to invest in them despite reliability uncertainty. Such contracts make the manufacturer (partly) responsible for the availability of the system. Subsequently, when field reliability is lower than anticipated, the manufacturer may choose to redesign the system to avoid high contract penalties. Redesign is a costly effort which may substantially increase field reliability. Deciding when to redesign is challenging, especially because the initial failure rate estimate by the system's engineers is refined over time as failure data accrues. We propose a model that endogenizes the failure rate updating to analyze this tactical redesign decision. We study additive and multiplicative redesigns and show that the optimal policy has a control limit structure. We benchmark our optimal policy against a static counterpart numerically, and conclude that basing redesign decisions on the updated estimate of the failure rate can substantially reduce costs.     

See the light: Optimization of put-to-light order picking systems

Put-to-light order picking systems invert the basic logic of conventional picker-to-parts systems. Instead of successively visiting the storage positions of the stock keeping units (SKUs) when collecting picking orders, an order picker accompanies successive bins each containing multiple items of a specific SKU along a lane of subsequent orders. Whenever the picker passes an order requiring the current SKU, which is indicated by a light signal, she puts the requested number of items into the bin associated with the order. Such an order picking system is well-suited if the assortment is not overly large and all orders demand similar SKUs, so that it is mainly applied in distribution centers of brick-and-mortar retail chains. This paper evaluates four different setups of put-to-light systems, which, during operations, require the solution of different storage assignment and SKU sequencing problems. We formulate these problems, prove computational complexity, and suggest suited solution algorithms. By applying these algorithms in a comprehensive computational study, we benchmark the impact of the four different setups on picking performance. In this way, warehouse managers receive decision support on how to set up their put-to-light systems.     

Exploiting self‐canceling demand point aggregation error for some planar rectilinear median location problems

When solving location problems in practice it is quite common to aggregate demand points into centroids. Solving a location problem with aggregated demand data is computationally easier, but the aggregation process introduces error. We develop theory and algorithms for certain types of centroid aggregations for rectilinear 1‐median problems. The objective is to construct an aggregation that minimizes the maximum aggregation error. We focus on row‐column aggregations, and make use of aggregation results for 1‐median problems on the line to do aggregation for 1‐median problems in the plane. The aggregations developed for the 1‐median problem are then used to construct approximate n‐median problems. We test the theory computationally on n‐median problems (n ≥ 1) using both randomly generated, as well as real, data. Every error measure we consider can be well approximated by some power function in the number of aggregate demand points. Each such function exhibits decreasing returns to scale. © 2003 Wiley Periodicals, Inc. Naval Research Logistics 50: 614–637, 2003.     

Scheduling with parallel processors and linear delay costs

This paper deals with the sequencing problem of minimizing linear delay costs with parallel identical processors. The theoretical properties of this m-machine problem are explored, and the problem of determining an optimum scheduling procedure is examined. Properties of the optimum schedule are given as well as the corresponding reductions in the number of schedules that must be evaluated in the search for an optimum. An experimental comparison of scheduling rules is reported; this indicates that although a class of effective heuristics can be identified, their relative behavior is difficult to characterize.     

OTHER-THAN-INTERNET (OTI) CYBERWARFARE: CHALLENGES FOR ETHICS,LAW, AND POLICY

Almost all discussions of cyberwarfare, other cyber-attacks, and cyber-espionage have focused entirely on the Internet as the chief means of damage – the Internet as a ‘vector,’ using a term from the theory of infectious diseases. However there are a variety of means, some of which have already been used, that involve cyber-exploitation using vectors other than the Internet. Malware can be installed in the integrated circuits of computers and servers, but also in any devices attached to them – thumb drives, CDs, printers, scanners, and so on. One can also use various forms of electromagnetic radiation at a distance of meters or more to exfiltrate data or to infiltrate corrupt data. I call this large and diverse family of unwanted interference with the functioning of information processing systems other-than-Internet (OTI) attacks on information systems. Stuxnet, and probably the 2007 Israeli corruption of Syrian air defenses, were OTI attacks. Such OTI techniques are more difficult to develop than creating malware, requiring electronic manufacturing facilities or novel technologies, and are thus accessible only to larger corporations and technologically sophisticated countries. Particularly vulnerable would be countries (like the United States and Europe) whose information processing devices are mainly produced outside of the country. Once exploitations via the Internet become harder to perpetrate, OTI exploitations are certain to grow dramatically, eventually requiring equipment for critical uses to be expensively fabricated in (and transported using) secure facilities; expensive detection measures will have to be instituted. This will create challenges for policy, law, and ethics, as well as greatly increasing the cost of many electronic devices.     

WHILE WAITING FOR THE PROTOCOL

The Biological Weapons Convention (BWC) regime currently suffers from a lack of effective compliance procedures. Because a legally binding compliance protocol to the BWC is not available, other measures are needed to stabilize the regime against the risk of violations of its rules. The Treaty on the Non-Proliferation of Nuclear Weapons, the Chemical Weapons Convention, and the experiences of UN inspection teams show that among the necessary components of effective compliance mechanisms are an intermediary level between bilateral consultations of states parties and involvement of the UN Security Council as well as independent assessment capabilities. This article suggests that the UN Secretary General could assume such an intermediary function and, using the authority contained in Article 99 of the UN Charter, could investigate not only alleged use of biological weapons but also alleged breaches of the BWC. A standing expert unit in the Department for Disarmament Affairs could provide the independent expertise necessary for such investigations. Such a compliance mechanism could provisionally help stabilize the BWC regime until a permanent compliance system can be agreed.     

MILITARY EXPENDITURE AND ECONOMIC GROWTH IN MIDDLE EASTERN COUNTRIES: A DYNAMIC PANEL DATA ANALYSIS

Defence expenditures have both costs and benefits to the economy. The costs of defence expenditures are mainly emphasized as opportunity costs. On the other hand, defence spending may have growth‐promoting potential benefits: a rise in defence spending may result in a higher aggregate demand, production and employment. This paper examines empirically the effects of military expenditures on economic growth for Middle Eastern countries and Turkey, for the time‐period 1989–1999. The relationship between military expenditure and economic growth is investigated by using cross‐section and dynamic panel estimation techniques. Empirical analysis indicates that military expenditure enhances economic growth in the Middle Eastern countries and Turkey as a whole.     

ON RATIONAL CHOICE THEORY AND THE STUDY OF TERRORISM

When rational choice theory is applied to the study of terrorism, it is important that attention be given to the derived principles of constrained utility maximization. Particularly useful is the Slutsky equation, which rigorously analyzes the quantity response in one activity to a price change in another. By directing attention to assumptions and/or information about compensated cross price elasticities, expenditure shares, and income elasticities, the Slutsky equation can provide critical guidance in both theoretical and empirical analysis.     

ANALYSING THE DETERMINANTS OF TERRORISM IN TURKEY USING GEOGRAPHICALLY WEIGHTED REGRESSION

This paper investigates the determinants of provincial terrorism in Turkey taking spatial dimension into account for the time period 1990–2006. Following a traditional global regression analysis, spatial variations in the relationships are examined with geographically weighted regression (GWR) to obtain locally different parameter estimates. Empirical results indicate that increases in income and schooling ratio tend to reduce the provincial average level of terrorism, whereas an increase in unemployment enhances it. Moreover, GWR results indicate that the provincial effects of per capita income and education are more pronounced for the Eastern and South Eastern provinces compared to the Western provinces.