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.     

On optimal system designs in reliability‐economics frameworks

Reliability Economics is a field that can be defined as the collection of all problems in which there is tension between the performance of systems of interest and their cost. Given such a problem, the aim is to resolve the tension through an optimization process that identifies the system which maximizes some appropriate criterion function (e.g. expected lifetime per unit cost). In this paper, we focus on coherent systems of n independent and identically distributed (iid) components and mixtures thereof, and characterize both a system's performance and cost as functions of the system's signature vector (Samaniego, IEEE Trans Reliabil (1985) 69–72). For a given family of criterion functions, a variety of optimality results are obtained for systems of arbitrary order n. Approximations are developed and justified when the underlying component distribution is unknown. Assuming the availability of an auxiliary sample of N component failure times, the asymptotic theory of L‐estimators is adapted for the purpose of establishing the consistency and asymptotic normality of the proposed estimators of the expected ordered failure times of the n components of the systems under study. These results lead to the identification of ε‐optimal systems relative to the chosen criterion function. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Exact expected values of variance estimators for simulation

We formulate exact expressions for the expected values of selected estimators of the variance parameter (that is, the sum of covariances at all lags) of a steady‐state simulation output process. Given in terms of the autocovariance function of the process, these expressions are derived for variance estimators based on the simulation analysis methods of nonoverlapping batch means, overlapping batch means, and standardized time series. Comparing estimator performance in a first‐order autoregressive process and the M/M/1 queue‐waiting‐time process, we find that certain standardized time series estimators outperform their competitors as the sample size becomes large. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Pricing bridges to cross a river

We consider a pricing problem in directed, uncapacitated networks. Tariffs must be defined by an operator, the leader, for a subset of m arcs, the tariff arcs. Costs of all other arcs in the network are assumed to be given. There are n clients, the followers, and after the tariffs have been determined, the clients route their demands independent of each other on paths with minimal total cost. The problem is to find tariffs that maximize the operator's revenue. Motivated by applications in telecommunication networks, we consider a restricted version of this problem, assuming that each client utilizes at most one of the operator's tariff arcs. The problem is equivalent to pricing bridges that clients can use in order to cross a river. We prove that this problem is APX‐hard. Moreover, we analyze the effect of uniform pricing, proving that it yields both an m approximation and a (1 + lnD)‐approximation. Here, D is upper bounded by the total demand of all clients. In addition, we consider the problem under the additional restriction that the operator must not reject any of the clients. We prove that this problem does not admit approximation algorithms with any reasonable performance guarantee, unless P = NP, and we prove the existence of an n‐approximation algorithm. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Outbound supply chain network design with mode selection and lead time considerations

We present a large‐scale network design model for the outbound supply chain of an automotive company that considers transportation mode selection (road vs. rail) and explicitly models the relationship between lead times and the volume of flow through the nodes of the network. We formulate the problem as a nonlinear zero‐one integer program, reformulate it to obtain a linear integer model, and develop a Lagrangian heuristic for its solution that gives near‐optimal results in reasonable time. We also present scenario analyses that examine the behavior of the supply chain under different parameter settings and the performance of the solution procedures under different experimental conditions. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

A produce‐to‐stock system with advance demand information and secondary customers

We consider a manufacturer (i.e., a capacitated supplier) that produces to stock and has two classes of customers. The primary customer places orders at regular intervals of time for a random quantity, while the secondary customers request a single item at random times. At a predetermined time the manufacturer receives advance demand information regarding the order size of the primary customer. If the manufacturer is not able to fill the primary customer's demand, there is a penalty. On the other hand, serving the secondary customers results in additional profit; however, the manufacturer can refuse to serve the secondary customers in order to reserve inventory for the primary customer. We characterize the manufacturer's optimal production and stock reservation policies that maximize the manufacturer's discounted profit and the average profit per unit time. We show that these policies are threshold‐type policies, and these thresholds are monotone with respect to the primary customer's order size. Using a numerical study we provide insights into how the value of information is affected by the relative demand size of the primary and secondary customers. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Some rectangular games with a two-man team

Certain zero-sum games are examined in which an individual player is opposed by a two-man team. The members of the team have identical interests, but must act separately during play. Most of the paper is devoted to instances in which one teammate has an opportunity to communicate to the other about their mutual opponent's strategy; but he may only be able to transmit a limited amount of information and his choice of a “message” may affect the payoff. The team must thus make economically efficient use of a limited communication opportunity. The present paper treats a variety of models, all of which are formulated as rectangular (matrix) games. Related models, some of which cannot be so formulated either because of restrictions on the team's opportunities to use mixed strategies or because they are non-zero-sum games, will be treated in another paper.     

Stochastically minimizing the makespan in flow shops

In this article, we are concerned with scheduling stochastic jobs in a flowshop with m machines and zero intermediate storage. We assume that there are n - 2 identically distributed and 2 fast stochastic jobs. Roughly, the main result states that the makespan is stochastically minimized by placing one of the fast jobs first and the other last.