Vertically restrictive pricing in supply chains with price‐dependent demand

We examine the behavior of a manufacturer and a retailer in a decentralized supply chain under price‐dependent, stochastic demand. We model a retail fixed markup (RFM) policy, which can arise as a form of vertically restrictive pricing in a supply chain, and we examine its effect on supply chain performance. We prove the existence of the optimal pricing and replenishment policies when demand has a linear additive form and the distribution of the uncertainty component has a nondecreasing failure rate. We numerically compare the relative performance of RFM to a price‐only contract and we find that RFM results in greater profit for the supply chain than the price‐only contract in a variety of scenarios. We find that RFM can lead to Pareto‐improving solutions where both the supplier and the retailer earn more profit than under a price‐only contract. Finally, we compare RFM to a buyback contract and explore the implications of allowing the fixed markup parameter to be endogenous to the model. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2006.     

Aircraft routing under the risk of detection

The deterministic problem for finding an aircraft's optimal risk trajectory in a threat environment has been formulated. The threat is associated with the risk of aircraft detection by radars or similar sensors. The model considers an aircraft's trajectory in three‐dimensional (3‐D) space and represents the aircraft by a symmetrical ellipsoid with the axis of symmetry directing the trajectory. Analytical and discrete optimization approaches for routing an aircraft with variable radar cross‐section (RCS) subject to a constraint on the trajectory length have been developed. Through techniques of Calculus of Variations, the analytical approach reduces the original risk optimization problem to a vectorial nonlinear differential equation. In the case of a single detecting installation, a solution to this equation is expressed by a quadrature. A network optimization approach reduces the original problem to the Constrained Shortest Path Problem (CSPP) for a 3‐D network. The CSPP has been solved for various ellipsoid shapes and different length constraints in cases with several radars. The impact of ellipsoid shape on the geometry of an optimal trajectory as well as the impact of variable RCS on the performance of a network optimization algorithm have been analyzed and illustrated by several numerical examples. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2006     

Optimal patrol to uncover threats in time when detection is imperfect

Consider a patrol problem, where a patroller traverses a graph through edges to detect potential attacks at nodes. An attack takes a random amount of time to complete. The patroller takes one time unit to move to and inspect an adjacent node, and will detect an ongoing attack with some probability. If an attack completes before it is detected, a cost is incurred. The attack time distribution, the cost due to a successful attack, and the detection probability all depend on the attack node. The patroller seeks a patrol policy that minimizes the expected cost incurred when, and if, an attack eventually happens. We consider two cases. A random attacker chooses where to attack according to predetermined probabilities, while a strategic attacker chooses where to attack to incur the maximal expected cost. In each case, computing the optimal solution, although possible, quickly becomes intractable for problems of practical sizes. Our main contribution is to develop efficient index policies—based on Lagrangian relaxation methodology, and also on approximate dynamic programming—which typically achieve within 1% of optimality with computation time orders of magnitude less than what is required to compute the optimal policy for problems of practical sizes. © 2014 Wiley Periodicals, Inc. Naval Research Logistics, 61: 557–576, 2014     

On the nature and scope of defence economics

Defence economics uses the tools of economics to study the defence sector and its domestic and international implications. Simple models require careful application in defence economics, since indirect effects may have counterintuitive impacts. For example, while certain arms races can lead to the outbreak of war, others may have the counterintuitive effect of discouraging the outbreak of war owing to mutual deterrence.

The world is now multipolar rather than bipolar, analogous to an oligopoly situation. This multipolar world can be analyzed by a qualitative characteristic function, where the formation of a potential coalition allows study of the shift from conflict to cooperation in international relations. Some new issues to be considered in this framework include accidental nuclear war, potential arms races and conflicts in the third world, and the proliferation of chemical weapons and missiles.     

INTERNATIONAL REGIME OF FRESH FUEL SUPPLY AND SPENT FUEL DISPOSAL

Recent events in Iran and elsewhere demand a reevaluation of the need for increasing nuclear fuel supplies and assuring reliable flow of fuel to nuclear power user states vis-à-vis the need for strengthened security for all countries against the use of weapons of mass destruction (WMD). The right of countries to a guaranteed supply of nuclear energy for peaceful uses must be balanced with the global community's desire to limit flows of nuclear material and sensitive nuclear facilities that could create opportunities for nuclear proliferation. This article proposes elements of an international regime of fresh fuel supply and spent fuel disposal that will guarantee fresh fuel supplies to countries honoring their obligations under the Treaty for the Non-Proliferation of Nuclear Weapons (NPT), while reducing concerns about diversion of spent fuel for weapons purposes. A specific application to countries with small pre-commercial uranium enrichment plants is also proposed.     

Nuclear‐ and missile‐related trade and developments for selected countries,March‐June 1998

The material in this overview is drawn from selected abstracts that appear in the Center for Nonproliferation Studies' nuclear and missile databases. Transactions of nuclear and missile technologies, parts, and materials are listed according to the recipient country. Other developments are listed according to the country where the event or development took place.     

Reviews

Douglas S. Derrer, We Are All the Target: A Handbook of Terrorism Avoidance and Hostage Survival. Annapolis, MD: US Naval Institute Press, 1992. Pp. x+135, notes, index. $14.95. ISBN 01–55750–150–5

Ian Knight, Zulu: Isandlwana and Rorke's Drift, 22–23 January 1879. London: Windrow & Greene, 1992. Pp.136, 150 illus., incl 8 colour plates, maps, biblio. £35. ISBN 1–872004–23–7

Ian Knight, By the Orders of the Great White Queen: Campaigning in Zululand through the Eyes of the British Soldiers, 1879. London: Greenhill Books and Novato: Presidio Press, 1992. Pp. 272, 17 illus., 1 map. £18.95. ISBN 1–85367–122–3

Manfried Rauchensteiner and Erwin A. Schmidl (eds.), Formen des Krieges: vom Mittelalter zum ‘Low‐intensity’ Conflict’. Graz : Verlag Styria, 1991. Pp.208. DM35. ISBN 3–22–12139–7

Harold J. Kearsley, Maritime Power and the Twenty‐First Century. Dartmouth: Dartmouth Publishing Company, Limited, 1992. Pp.xv + 203, 13 diagrams, index. £32.50. ISBN 1–85521–288–9     

The challenges of Iraq: putting US Army stability operations doctrine to the test

The US Army develops doctrine as a set of fundamental principles that guide its actions in support of national objectives. Recently, those national objectives required stability operations, with increasing scope and frequency. This study examines whether existing US Army doctrine adequately fulfilled its role as a guide to tactics in addressing the challenges that Army forces faced in the first 15 months of the war in Iraq. Field Manual 3-24 Counterinsurgency has remedied many deficiencies, but several remain to be addressed to offer commanders better guidance in the face of the many complex challenges they face in stability operations.     

The Wretched of the Empire: Politics,Ideology and Counterinsurgency in Rhodesia, 1965–80

This article examines the vital importance of political ideology in formulating effective counterinsurgency, by examining the case of Rhodesia between 1965 and 1980. During this period, the Rhodesian Front (RF) Government of Ian Smith adopted a radical right-wing ‘world-struggle ideology’ to justify settler resistance to African decolonisation. The RF's ideology, based on settler-status anxiety, upheld a conspiratorial interpretation of modern politics that emphasised virulent forms of Anglophobia, anti-communism, anti-internationalism and anti-liberalism. The Smith Government portrayed African nationalism not as an indigenous political phenomenon, but as an external instrument of world communism and Western appeasement. After 1972, when Rhodesia faced a protracted insurgency, many of the principles of RF ideology were applied to counterinsurgency warfare with disastrous results. Because the Rhodesian Government viewed African guerrilla warfare as unrelated to domestic politics, Rhodesian counterinsurgency lacked a realistic political dimension. The dictates of settler ideology blinded the Rhodesian Government to the vital need to win ‘hearts and minds’ by applying timely principles of political pacification and reform to its counterinsurgency effort. Instead a Rhodesian counterinsurgency campaign of maximum force was pursued. Such a campaign proved counter-productive accelerating strategic deterioration and leading ultimately to the political victory of the African guerrilla cause in 1980.