Combined variance reduction techniques in fully sequential selection procedures

In the past several decades, many ranking‐and‐selection (R&S) procedures have been developed to select the best simulated system with the largest (or smallest) mean performance measure from a finite number of alternatives. A major issue to address in these R&S problems is to balance the trade‐off between the effectiveness (ie, making a correct selection with a high probability) and the efficiency (ie, using a small total number of observations). In this paper, we take a frequentist's point of view by setting a predetermined probability of correct selection while trying to reduce the total sample size, that is, to improve the efficiency but also maintain the effectiveness. In particular, in order to achieve this goal, we investigate combining various variance reduction techniques into the fully sequential framework, resulting in different R&S procedures with either finite‐time or asymptotic statistical validity. Extensive numerical experiments show great improvement in the efficiency of our proposed procedures as compared with several existing procedures.     

Probabilistic partial set covering problems

In this article, we consider a situation in which a group of facilities need to be constructed in order to serve a given set of customers. However, the facilities cannot guarantee an absolute coverage to any of the customers. Hence, we formulate this problem as one of maximizing the total service reliability of the system subject to a budgetary constraint. For this problem, we develop and test suitable branch-and-bound algorithms and study the effect of problem parameters on solution difficulty. Some generalizations of this problem are also mentioned as possible extensions.     

Economic design of sampling plans with multi-decision alternatives

For situations where there are several markets with different profit-cost structures, economic attributes sampling plans are developed for determining the market to ship the lot to. Two sampling plans are considered; the fixed-size sampling plan with several levels of acceptance numbers, and the inverse sampling plan with several levels of sample sizes. Linear profit models are constructed which involve four profit/cost components; profit from a conforming item, inspection cost, replacement cost, and cost from an accepted nonconforming item. For fixed-size and inverse sampling plans, methods of finding optimal sampling plans are presented and examples with beta-binomial prior distributions are given.     

An economic selective assembly procedure for two mating components with equal variance

An economic procedure of selective assembly is proposed when a product is composed of two mating components. The major quality characteristic of the product is the clearance between the two components. The components are divided into several classes prior to assembly. The component characteristics are assumed to be independently and normally distributed with equal variance. The procedure is designed so that the proportions of both components in their corresponding classes are the same. A cost model is developed based on a quadratic loss function and methods of obtaining the optimal class limits as well as the optimal number of classes are provided. Formulas for obtaining the proportion of rejection and the unavailability of mating components are also provided. The proposed model is compared with the equal width and the equal area partitioning methods using a numerical example. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 809–821, 1999     

Economic and environmental impacts of vertical and horizontal competition and integration

We explore the economic and environmental impacts of market structures (competition or integration at vertical and horizontal levels). We consider a bilateral duopoly consisting of two manufacturers and two retailers in which each manufacturer offers a wholesale price contract to the respective retailer. The manufacturers decide on wholesale prices and abatement efforts concerning pollution emissions related to manufacturing processes, whereas the retailers compete in quantities in the consumer market. To understand the comprehensive effects of market structures on economic competitiveness and environmental sustainability, we examine a measure of eco‐friendly social welfare, which is the ratio of social welfare and environmental pollution. Interestingly, we find that the market structures that have been believed to be more efficient are less efficient from a broader perspective: (1) double marginalization can generate higher eco‐friendly social welfare, and (2) horizontal competition between firms can result in lower eco‐friendly social welfare. Although vertical integration and horizontal competition yield greater social welfare by facilitating more production activities, these market structures often fail to induce sufficient abatement efforts to balance the polluting effect of the large volume, resulting in more significant environmental degradation. We also show that, despite the pollution‐curbing effect, higher emission penalties can result in less eco‐friendly social welfare. They can even curtail the abatement efforts of firms under particular circumstances. When products become more substitutable, the eco‐friendly social welfare can decrease depending upon the market structure.     

Some order relations in closed networks of queues with multiserver stations

Consider a closed network of queues of the “product-form” type, where each station has s servers (s ≥ 1 is identical for all stations). We show that the throughput function of the network is Schur concave with respect to the loading of the stations and arrangement increasing with respect to the assignment of server groups. Consequently, different loading/assignment policies can be compared under majorization/arrangement orderings and their relative merits decided according to the yields of throughput. The results can be used to support planning decisions in computer and production systems which are modeled as closed networks of queues.     

Why provoke? the Sino-US competition in East Asia and North Korea’s strategic choice

This article seeks to make sense of North Korean provocations in light of the Sino-US strategic competition in post-Cold War East Asia, where such variables as China’s rise, US’s pivot to Asia, and growing Sino-ROK economic ties are driving the strategic choices of major states in the region. The article examines the main motivations behind Pyongyang’s provocations since the end of the Cold War, discusses their implications for the Sino-US strategic competition in East Asia, and offers predictions about the future of North Korean provocations. The central thesis of the article is that Pyongyang has exploited the Sino-US strategic competition in East Asia for its regime survival. By raising North Korea’s strategic value to China, the intensifying Sino-US competition allows Pyongyang to continue provocations, regardless of Beijing’s explicit opposition.     

Minimal LST representations of MAP(n)s: Moment fittings and queueing approximations

A Markovian arrival process of order n, MAP(n), is typically described by two n × n transition rate matrices in terms of rate parameters. While it is straightforward and intuitive, the Markovian representation is redundant since the minimal number of parameters is n² for non‐redundant MAP(n). It is well known that the redundancy complicates exact moment fittings. In this article, we present a minimal and unique Laplace‐Stieltjes transform (LST) representations for MAP(n)s. Even though the LST coefficients vector itself is not a minimal representation, we show that the joint LST of stationary intervals can be represented with the minimum number of parameters. We also propose another minimal representation for MAP(3)s based on coefficients of the characteristic polynomial equations of the two transition rate matrices. An exact moment fitting procedure is presented for MAP(3)s based on two proposed minimal representations. We also discuss how MAP(3)/G/1 departure process can be approximated as a MAP(3). A simple tandem queueing network example is presented to show that the MAP(3) performs better than the MAP(2) in queueing approximations especially under moderate traffic intensities. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 549–561, 2016     

Heuristic algorithms for routing yard‐side equipment for minimizing loading times in container terminals

This paper discusses a method of routing yard‐side equipment during loading operations in container terminals. Both the route of yard‐side equipment (such as transfer cranes or straddle carriers) and the number of containers picked up at each yard‐bay is determined simultaneously. The objective of the problem in this paper is to minimize the total container‐handling time in a yard. The size of the search space can be greatly reduced by utilizing inherent properties of the optimal solution. An encoding method is introduced to represent solutions in the search space. A genetic algorithm and a beam search algorithm are suggested to solve the above problem. Numerical experiments have been conducted to compare the performances of the proposed heuristic algorithms against each other and against that of the optimal solution. © 2003 Wiley Periodicals, Inc. Naval Research Logistics 50: 498–514, 2003     

The evaluation of a possible future Sino-Japanese armed conflict through the application of the ACEI-model

There is relatively little formal modeling of the economic effects of armed conflicts even though they have substantial economic effects. We set forth a new model, namely the armed conflict economic impact model – ACEI-Model. The model looks at the economic effects of war in three different stages: (i) pre-conflict stage; (ii) armed conflict stage; and (iii) post-conflict stage. The model is based on economic desgrowth (-δ) and other new conceptual indicators. We evaluate an imaginary armed conflict between China and Japan by applying the ACEI-Model.