An inventory model of incentives for on-time delivery in just-in-time purchasing contracts

This article formulates an analytic model of just-in-time purchasing contracts and compares the minimum cost solution with the cost attainable through vertical integration. The models use standard inventory theory cost parameters and decision variables. The results quantify the increase in cost of buying an item rather than making it. Optimal incentives are characterized when JIT purchasing contracts are used. When JIT purchasing is implemented, buffer inventories are typically reduced. This inventory reduction makes on-time delivery critical to the buyer; yet timeliness is controlled by the supplier. As an incentive to provide on-time delivery, the buyer offers the supplier a bonus for on-time delivery. The supplier chooses a flow time allowance based upon the bonus offered. First- and second-order conditions are characterized in general, and examples are provided for exponentially and uniformly distributed flow times. The delivery timeliness obtainable in a vertically integrated firm is determined and compared with timeliness obtainable between separate firms. This comparison indicates that buyers who choose to purchase materials from a separate firm are more likely to experience late deliveries. The relationship between the value of the bonus and the proportion of on-time deliveries is also considered. The bonus required to achieve the same probability of on-time delivery as under vertical integration is also determined. © 1993 John Wiley & Sons, Inc.     

A general axiomatization of additive measurement with applications

Necessary and sufficient conditions are specified for a general theory of additive measurement that presumes very little set-theoretic structure. The theory is illustrated for numerical representations in extensive, conjoint, difference, threshold, expected utility, probability, ambiguity, and subset measurement. © 1992 John Wiley & Sons, Inc.     

Maintenance of a device with age-dependent exponential failures

We consider a device that deteriorates over time according to a Markov process so that the failure rate at each state is constant. The reliability of the device is characterized by a Markov renewal equation, and an IFRA (increasing failure rate on average) property of the lifetime is obtained. The optimal replacement and repair problems are analyzed under various cost structures. Furthermore, intuitive and counterintuitive characterizations of the optimal policies and results on some interesting special problems are presented. © 1992 John Wiley & Sons, Inc.     

Scheduling prowler training

The U.S. Navy Prowler aircraft is designed for electronic surveillance and countermeasures. In this paper, we describe the problem of scheduling Prowler crew training, and we present two integer programming models to solve it. The first model maximizes the number of aviators trained above 75% in each mission area, subject to the available number of flights, over a single month. The second model distinguishes peacetime from mobilization, and minimizes the number of flights done in mobilization subject to the available number of flights in peacetime. Our models distinguish different types of crew and allow more than one qualification to be earned on a given flight. We give numerical results using real data, comparing our results to the actual readiness of a squadron. We found that crew readiness of Prowler squadrons can be increased by 10%, simply by better scheduling. © 2003 Wiley Periodicals, Inc. Naval Research Logistics 50: 289–305, 2003.     

An Unlikely Alliance: Portuguese and South African Airpower in Angola, 1968–1974

The war that Portugal was obliged to fight in Africa began in 1961 and immediately stretched the resources of its armed forces. Nowhere was this thinness more apparent than in policing the vast territory of Angola. The east and southeast of Angola were particularly vulnerable, as the area was a vast, sparsely populated region characterised by enormous featureless plains or chanas covered in tall grass and broken by an extensive river system and mountainous forests. The only military solution to policing these immense spaces was aviation and specifically the helicopter that could carry troops into battle, protect them with a gunship and bring them home when the operation was concluded. The immediate problem for the Portuguese Air Force (Força Aérea Portuguesa or FAP) in Angola and elsewhere was a scarcity of helicopters. The solution was an alliance with South Africa, which had a strong inventory of Alouette IIIs, to help in policing the east. This move was likewise in the interest of South Africa, as its threat came from Zambia through south-eastern Angola. This article examines the strategic and tactical development of this unusual, cross-cultural alliance and the symbiotic relationship that resulted in destruction of the enemies of both in Angola.     

Measuring hard power: China’s economic growth and military capacity

China’s rapid economic growth is facilitating massive increases in its military spending and causing increased security concerns in Asia and the Western Pacific. But there is uncertainty over how large China’s military spending is relative to other countries, or how fast it is growing in real terms. We address this issue by deriving a relative military cost price index based on the relative unit costs of inputs. We find that China’s real military spending is much larger than suggested by exchange rate comparisons, and even larger than standard purchasing power parity comparisons. We also find, however, that the real growth of China’s military spending has been smaller than conventionally thought. This is due to rapidly growing wages in China and the large share of personnel in China’s military budget.     

An Investigation of the Weights of Pattern 1907 Bayonets made in the UK around the First World War Period

The standard issue bayonet of the British Army immediately preceding and during the First World War was the Pattern 1907. This was manufactured at different times and in varying numbers during that period by one official body, the Royal Small Arms Factory at Enfield, and by five private contractors. These bayonets were made according to published official specifications issued by the War Department and based on a ‘pattern example’ provided by the Royal Small Arms Factory. The specifications indicate, inter alia, the quality of metal used in making the bayonets, methods of inspection and proofing, and the required maximum and minimum weight range of the completed bayonet. However, examination of a series of these bayonets in a private collection suggested that their weights varied considerably from the mid-point values of the allowed weight ranges in the original and amended specifications (16.5 oz. and 17 oz., respectively). To establish if this was a common feature among this class of bayonet as opposed to a chance factor, the weights of other surviving Pattern 1907 bayonets were determined and compared to establish the degree of variance from the official specifications as originally set out by the Royal Small Arms Factory. Seventy-six percent of the 142 bayonets surveyed were found to be above the mid-point of the allowed weight range given in the amended manufacturing specifications, with many being at the upper end of the allowed range. This is a statistically unusual result. It is speculated that the target weight may have been deliberately set higher by the individual manufacturers to eliminate the possibility of rejection of any underweight bayonets by the Royal Small Arms Factory inspectors and so a refusal of acceptance and payment for the work.     

Portfolio analysis for defense: taking account of networking

To manage their assets at an enterprise level, defense organizations have turned to portfolio theory for the planning, analysis and management of their military forces and materiel. Despite being well established in the commercial sector, the application of portfolio approaches in defense is problematic. The vexatious question for defense of how to define and measure benefits arising is complicated by the increased utility and effectiveness achieved through networking of military forces and the equipment they use. The authors discuss the challenges for defense in using a portfolio approach and propose a conceptual model for dealing with the effects arising from networking with information and communications technologies.