Toward optimal bidding strategies

In this paper we investigate a form of rational behavior in response to an oligopoly pricing problem where only one buyer is involved. We investigate the problem from the standpoint of the seller who wants to maximize his gain from the transaction. In particular, we deal with the problem of one seller's response to an invitation to submit a sealed (i. e., noncooperative) bid to a government or other dominant purchasing agency for supplying a specified bundle of goods and services for which either (1) no other demand exists, or (2) the terms or quantities involved cannot, at least in the short run, be obtained from another source. Although treated from a normative standpoint, i. e., what bid the supplier should make, the paper also has implications for the buyer's behavior and oligopoly-monopsony pricing in a more general sense.     

Real-time task scheduling with overheads considered

n periodic tasks are to be processed by a single machine, where each task i has a maximum request rate or periodicity F_i, a processing time E_i, a deadline D_i, relative to each request of task i, a task-request interrupt overhead I_i, and a task-independent scheduling overhead S. Two scheduling strategies are considered for sequencing the execution of an arbitrary arrangement of task requests in time: the preemptive and the nonpreemptive earliest-deadline algorithms. Necessary and sufficient conditions are derived for establishing whether a given set of tasks can be scheduled by each scheduling strategy. The conditions are given in the form of limited simulations of a small number of well-defined task-request arrangements. If all simulations succeed, the schedule is feasible for the given set of tasks. If any simulation fails, the schedule is infeasible. While interrupt handling and scheduling overheads can be handled by such simulations, context switching overhead resulting from preemption cannot. A counterexample illustrates how the simulations fail to uncover unschedulable task sets when context switching overhead is considered.     

Multiperiod capacity expansion and shipment planning with linear costs

In this paper we consider a multiperiod deterministic capacity expansion and shipment planning problem for a single product. The product can be manufactured in several producing regions and is required in a number of markets. The demands for each of the markets are non-decreasing over time and must be met exactly during each time period (i.e., no backlogging or inventorying for future periods is permitted). Each region is assumed to have an initial production capacity, which may be increased at a given cost in any period. The demand in a market can be satisfied by production and shipment from any of the regions. The problem is to find a schedule of capacity expansions for the regions and a schedule of shipments from the regions to the markets so as to minimize the discounted capacity expansion and shipment costs. The problem is formulated as a linear programming model, and solved by an efficient algorithm using the operator theory of parametric programming for the transporation problem. Extensions to the infinite horizon case are also provided.     

On nash subsets and mobility chains in bimatrix games

This work is concerned with constructing, analyzing, and finding “mobility chains” for bimatrix games, sequences of equilibrium points along which it is possible for the two players to progress, one equilibrium point at a time, to an equilibrium point that is preferred by both players. The relationship between mobility chains and Nash subsets is established, and some properties of maximal Nash subsets are proved.     

The divisionalized firm revisited—A comment on Enzer's “the static theory of transfer pricing”

Three different solutions to a very simple transfer pricing problem are outlined and contrasted. These are labeled by their authors: Hirshleifer, Enzer, and Ronen and McKinney. Weaknesses associated with each solution are pointed out.     

Some properties of optimal control policies for entry to an M/M/1 queue

Customers served by an M/M/1 queueing system each receive a reward R but pay a holding cost of C per unit time (including service time) spent in the system. The decision of whether or not a customer joins the queue can be made on an individual basis or a social basis. The effect of increasing the arrival rate on the optimal policy parameters is examined. Some limiting results are also derived.     

Parametric studies in transportation-type problems

In this paper we present some results in parametric studies on several transportation-type problems. Specifically, a characterization is obtained for the optimal values of the variables in the problem of determining an optimal growth path in a logistics system. We also derive an upper bound beyond which the optimal growth path remains the same. The results are then extended to the goal programming model and the prespecified market growth rate problem.     

Inventory models with a mixture of backorders and lost sales

This article presents several single-echelon, single-item, static demand inventory models for situations in which, during the stockout period, a fraction b of the demand is backordered and the remaining fraction 1 - b is lost forever. Both deterministic and stochastic demand are considered. although the case of stochastic demand is treated heuristically. In each situation, a mathematical model representing the average annual cost of operating the inventory system is developed. and an optimum operating policy derived. At the extremes b=1 and b=0 the models presented reduce to the usual backorders and lost sales cases, respectively.