Algorithm to solve a chance‐constrained network capacity design problem with stochastic demands and finite support

We consider the problem of determining the capacity to assign to each arc in a given network, subject to uncertainty in the supply and/or demand of each node. This design problem underlies many real‐world applications, such as the design of power transmission and telecommunications networks. We first consider the case where a set of supply/demand scenarios are provided, and we must determine the minimum‐cost set of arc capacities such that a feasible flow exists for each scenario. We briefly review existing theoretical approaches to solving this problem and explore implementation strategies to reduce run times. With this as a foundation, our primary focus is on a chance‐constrained version of the problem in which α% of the scenarios must be feasible under the chosen capacity, where α is a user‐defined parameter and the specific scenarios to be satisfied are not predetermined. We describe an algorithm which utilizes a separation routine for identifying violated cut‐sets which can solve the problem to optimality, and we present computational results. We also present a novel greedy algorithm, our primary contribution, which can be used to solve for a high quality heuristic solution. We present computational analysis to evaluate the performance of our proposed approaches. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 236–246, 2016     

Capacity expansion and cost efficiency improvement in the warehouse problem

The warehouse problem with deterministic production cost, selling prices, and demand was introduced in the 1950s and there is a renewed interest recently due to its applications in energy storage and arbitrage. In this paper, we consider two extensions of the warehouse problem and develop efficient computational algorithms for finding their optimal solutions. First, we consider a model where the firm can invest in capacity expansion projects for the warehouse while simultaneously making production and sales decisions in each period. We show that this problem can be solved with a computational complexity that is linear in the product of the length of the planning horizon and the number of capacity expansion projects. We then consider a problem in which the firm can invest to improve production cost efficiency while simultaneously making production and sales decisions in each period. The resulting optimization problem is non‐convex with integer decision variables. We show that, under some mild conditions on the cost data, the problem can be solved in linear computational time. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 367–373, 2016     

Through military lenses. Perception of security threats and jointness in the Italian Air Force

The article explores Italian Air Force (ITAF) officers’ perceptions of military transformation and of changes in the global security environment. While several studies have addressed the challenges faced by European armed forces in the last two decades, the methods used have been rather uniform, mostly relying on in-depth case studies through qualitative interviews and analysis of strategic documents and budgets. Using data from an original, and unique, survey conducted among ITAF captains (N = 286), this article focuses on servicemen’s attitudes towards the transformations of the global security environment and the changes occurring (and needed) within the Italian Air Force. After describing the “military view” on these topics, the article provides preliminary statistical evidence on the links between individual experiences, views, and change. The research aims to contribute to the broader debate on military transformation by adding a novel dimension of analysis and providing new insights on the micro-level aspects of learning.     

Optimal empty vehicle redistribution for hub‐and‐spoke transportation systems

This article considers the empty vehicle redistribution problem in a hub‐and‐spoke transportation system, with random demands and stochastic transportation times. An event‐driven model is formulated, which yields the implicit optimal control policy. Based on the analytical results for two‐depot systems, a dynamic decomposition procedure is presented which produces a near‐optimal policy with linear computational complexity in terms of the number of spokes. The resulting policy has the same asymptotic behavior as that of the optimal policy. It is found that the threshold‐type control policy is not usually optimal in such systems. The results are illustrated through small‐scale numerical examples. Through simulation the robustness of the dynamic decomposition policy is tested using a variety of scenarios: more spokes, more vehicles, different combinations of distribution types for the empty vehicle travel times and loaded vehicle arrivals. This shows that the dynamic decomposition policy is significantly better than a heuristics policy in all scenarios and appears to be robust to the assumptions of the distribution types. © 2008 Wiley Periodicals, Inc. Naval Research Logistics, 2008     

Dynamic evacuation routes for personnel on a naval ship

We propose a dynamic escape route system for emergency evacuation of a naval ship. The system employs signals that adapt to the causative contingency and the crew's physical distribution about the ship. A mixed‐integer nonlinear programming model, with underlying network structure, optimizes the evacuation process. The network's nodes represent compartments, closures (e.g., doors and hatches) and intersections, while arcs represent various types of passageways. The objective function integrates two potentially conflicting factors: average evacuation time and the watertight and airtight integrity of the ship after evacuation. A heuristic solves the model approximately using a sequence of mixed‐integer linear approximating problems. Using data for a Spanish frigate, with standard static routes specified by the ship's designers, computational tests show that the dynamic system can reduce average evacuation times, nearly 23%, and can improve a combined measure of ship integrity by up to 50%. In addition, plausible design changes to the frigate yield further, substantial improvements. Published 2008 Wiley Periodicals, Inc. Naval Research Logistics 2008     

On the asymptotic optimality of algorithms for the flow shop problem with release dates

We consider the nonpermutation flow shop problem with release dates, with the objective of minimizing the sum of the weighted completion times on the final machine. Since the problem is NP‐hard, we focus on the analysis of the performance of several approximation algorithms, all of which are related to the classical Weighted Shortest Processing Time Among Available Jobs heuristic. In particular, we perform a probabilistic analysis and prove that two online heuristics and one offline heuristic are asymptotically optimal. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005.     

Irreducibility of joint inventory positions in an assemble‐to‐order system under (r,nQ) policies

In a typical assemble‐to‐order system, a customer order may request multiple items, and the order may not be filled if any of the requested items are out of stock. A key customer service measure when unfilled orders are backordered is the order‐based backorder level. To evaluate this crucial performance measure, a fundamental question is whether the stationary joint inventory positions follow an independent and uniform distribution. In this context, this is equivalent to the irreducibility of the Markov chain formed by the joint inventory positions. This article presents a necessary and sufficient condition for the irreducibility of such a Markov chain through a set of simultaneous Diophantine equations. This result also leads to sufficient conditions that are more general than those in the published reports. © 2011 Wiley Periodicals, Inc. Naval Research Logistics, 2011     

A standardized scan statistic for detecting spatial clusters with estimated parameters

The scan statistic based on likelihood ratios (LRs) have been widely discussed for detecting spatial clusters. When developing the scan statistic, it uses the maximum likelihood estimates of the incidence rates inside and outside candidate clusters to substitute the true values in the LR statistic. However, the parameter estimation has a significant impact on the sensitivity of the scan statistic, which favors the detection of clusters in areas with large population sizes. By presenting the effects of parameter estimation on Kulldorff's scan statistic, we suggest a standardized scan statistic for spatial cluster detection. Compared to the traditional scan statistic, the standardized scan statistic can account for the varying mean and variance of the LR statistic due to inhomogeneous background population sizes. Extensive simulations have been performed to compare the power of the two cluster detection methods with known or/and estimated parameters. The simulation results show that the standardization can help alleviate the effects of parameter estimation and improve the detection of localized clusters. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012     

Newsvendor problems with sequentially revealed demand information

This article analyzes a capacity/inventory planning problem with a one‐time uncertain demand. There is a long procurement leadtime, but as some partial demand information is revealed, the firm is allowed to cancel some of the original capacity reservation at a certain fee or sell off some inventory at a lower price. The problem can be viewed as a generalization of the classic newsvendor problem and can be found in many applications. One key observation of the analysis is that the dynamic programming formulation of the problem is closely related to a recursion that arises in the study of a far more complex system, a series inventory system with stochastic demand over an infinite horizon. Using this equivalence, we characterize the optimal policy and assess the value of the additional demand information. We also extend the analysis to a richer model of information. Here, demand is driven by an underlying Markov process, representing economic conditions, weather, market competition, and other environmental factors. Interestingly, under this more general model, the connection to the series inventory system is different. © 2012 Wiley Periodicals, Inc. Naval Research Logistics 2012