Bayesian selling problem with partial information

We introduce an optimal stopping problem for selling an asset when the fixed but unknown distribution of successive offers is from one of n possible distributions. The initial probabilities as to which is the true distribution are given and updated in a Bayesian manner as the successive offers are observed. After receiving an offer, the seller has to decide whether to accept the offer or continue to observe the next offer. Each time an offer is observed a fixed cost is incurred. We consider both the cases where recalling a past offer is allowed and where it is not allowed. For each case, a dynamic programming model and some heuristic policies are presented. Using simulation, the performances of the heuristic methods are evaluated and upper bounds on the optimal expected return are obtained. © 2013 Wiley Periodicals, Inc. Naval Research Logistics, 2013     

Statistical equivalency and optimality of simple step‐stress accelerated test plans for the exponential distribution

Accelerated life testing (ALT) is commonly used to obtain reliability information about a product in a timely manner. Several stress loading designs have been proposed and recent research interests have emerged concerning the development of equivalent ALT plans. Step‐stress ALT (SSALT) is one of the most commonly used stress loadings because it usually shortens the test duration and reduces the number of required test units. This article considers two fundamental questions when designing a SSALT and provides formal proofs in answer to each. Namely: (1) can a simple SSALT be designed so that it is equivalent to other stress loading designs? (2) when optimizing a multilevel SSALT, does it degenerate to a simple SSALT plan? The answers to both queries, under certain reasonable model assumptions, are shown to be a qualified YES. In addition, we provide an argument to support the rationale of a common practice in designing a SSALT, that is, setting the higher stress level as high as possible in a SSALT plan. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2013     

Book reviews

Norman Cigar, Genocide in Bosnia: The Policy of “Ethnic Cleansing”. College Station, Texas: Texas A&M University Press, 1995. Pp.xiv + 247; app., map, notes, cartoon.

Maria Jose Moyano, Argentina's Lost Patrol: Armed Struggle, 1969–1979. New Haven: Connecticut Yale University Press, 1995. Pp.xiii + 226, biblio., abbreviations, 10 figures, 1 map, tables, index; $25/£16.95. ISBN 0–300–01622–6.

Donald E. Schulz and Deborah Sundloff Schulz, The United States, Honduras, and the Crisis in Central America, Westview Thematic Studies in Latin America, Boulder, Co: Westview, 1994. Pp.368, map, figure, select biblio., abbreviations, index. $52.50/£37.50; (cloth) $17.95/£11.95 (paper). ISBN 0–8133–1324–4 and 1323–6.

Joseph H. Alexander and Merrill L. Bartlett, Sea Soldiers in the Cold War: Amphibious Warfare 1945–1991. Annapolis, Maryland: Naval Institute Press, 1995. Pp.iii + 178, 1 map, 29 illus, biblio, index. $32.95. ISBN

Gary P. Cox, The Halt in the Mud: French Strategic Planning from Waterloo to Sedan. Westview Press, 1994. Pp.258, maps, notes, biblio, index. £33.50. ISBN 0–133–1536–0.     

Bayesian sampling plans for exponential distributions with interval censored samples

This article studies the problem of designing Bayesian sampling plans (BSP) with interval censored samples. First, an algorithm for deriving the conventional BSP is proposed. The BSP is shown to possess some monotonicity. Based on the BSP and using the property of monotonicity, a new sampling plan modified by the curtailment procedure is proposed. The resulting curtailed Bayesian sampling plan (CBSP) can reduce the duration time of life test experiment, and it is optimal in the sense that its associated Bayes risk is smaller than the Bayes risk of the BSP if the cost of the duration time of life test experiment is considered. A numerical example to compute the Bayes risks of BSP and CBSP and related quantities is given. Also, a Monte Carlo simulation study is performed to illustrate the performance of the CBSP compared with the BSP. The simulation results demonstrate that our proposed CBSP has better performance because it has smaller risk. The CBSP is recommended. © 2015 Wiley Periodicals, Inc. Naval Research Logistics 62: 604–616, 2015     

Inventory models with nonlinear shortage costs and stochastic lead times; applications of shape properties of randomly stopped counting processes

In this article, we study generalizations of some of the inventory models with nonlinear costs considered by Rosling in (Oper. Res. 50 (2002) 797–809). In particular, we extend the study of both the periodic review and the compound renewal demand processes from a constant lead time to a random lead time. We find that the quasiconvexity properties of the cost function (and therefore the existence of optimal (s, S) policies), holds true when the lead time has suitable log‐concavity properties. The results are derived by structural properties of renewal delayed processes stopped at an independent random time and by the study of log‐concavity properties of compound distributions. © 2015 Wiley Periodicals, Inc. Naval Research Logistics 62: 345–356, 2015     

Progress payments and cost overruns in defence contracts

In recent years military procurement agencies have used “progress payments” in contracting. Although, overall, the adoption of such a policy may well have contributed to a decrease in total costs of procurement, we identify a class of inefficiencies that are likely to have been generated by it.     

The impact of defense and non‐defense public spending on growth in Asia and Latin America∗

For a three‐sector Feder‐Ram framework, we present time‐series, cross‐sectional estimates for two cohorts, consisting of Asian and Latin American countries. The estimates indicate that private investment, and defense and non‐defense public spending are growth promoting for alternative error components representations. For the best error components representation, greater growth enhancement is associated with the two forms of public spending in Asia than in Latin America, while the opposite comparison characterizes private investment. Although defense is growth promoting, an opportunity cost exists insofar as non‐defense spending, financed by defense spending, appears to give a small net boost to growth in Latin America.     

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.