A generalization of the weighted set covering problem

We study a generalization of the weighted set covering problem where every element needs to be covered multiple times. When no set contains more than two elements, we can solve the problem in polynomial time by solving a corresponding weighted perfect b‐matching problem. In general, we may use a polynomial‐time greedy heuristic similar to the one for the classical weighted set covering problem studied by D.S. Johnson [Approximation algorithms for combinatorial problems, J Comput Syst Sci 9 (1974), 256–278], L. Lovasz [On the ratio of optimal integral and fractional covers, Discrete Math 13 (1975), 383–390], and V. Chvatal [A greedy heuristic for the set‐covering problem, Math Oper Res 4(3) (1979), 233–235] to get an approximate solution for the problem. We find a worst‐case bound for the heuristic similar to that for the classical problem. In addition, we introduce a general type of probability distribution for the population of the problem instances and prove that the greedy heuristic is asymptotically optimal for instances drawn from such a distribution. We also conduct computational studies to compare solutions resulting from running the heuristic and from running the commercial integer programming solver CPLEX on problem instances drawn from a more specific type of distribution. The results clearly exemplify benefits of using the greedy heuristic when problem instances are large. © 2003 Wiley Periodicals, Inc. Naval Research Logistics, 2005     

Minimizing makespan on a single batch processing machine with nonidentical job sizes

We deal with the problem of minimizing makespan on a single batch processing machine. In this problem, each job has both processing time and size (capacity requirement). The batch processing machine can process a number of jobs simultaneously as long as the total size of these jobs being processed does not exceed the machine capacity. The processing time of a batch is just the processing time of the longest job in the batch. An approximation algorithm with worst‐case ratio 3/2 is given for the version where the processing times of large jobs (with sizes greater than 1/2) are not less than those of small jobs (with sizes not greater than 1/2). This result is the best possible unless P = NP. For the general case, we propose an approximation algorithm with worst‐case ratio 7/4. A number of heuristics by Uzosy are also analyzed and compared. © 2001 John Wiley & Sons, Inc. Naval Research Logistics 48: 226–240, 2001     

Return policy: Hassle‐free or your money‐back guarantee?

This article compares the profitability of two pervasively adopted return policies—money‐back guarantee and hassle‐free policies. In our model, a seller sells to consumers with heterogeneous valuations and hassle costs. Products are subject to quality risk, and product misfit can only be observed post‐purchase. While the hassle‐free policy is cost advantageous from the seller's viewpoint, a money‐back guarantee allows the seller to fine‐tune the consumer hassle on returning the product. Thus, when the two return policies lead to the same consumer behaviors, the hassle‐free policy dominates. Conversely, a money‐back guarantee can be more profitable even if on average, high‐valuation consumers experience a lower hassle cost than the low‐valuation ones. The optimal hassle cost can be higher when product quality gets improved; thus, it is not necessarily a perfect proxy or signal of the seller's quality. We further allow the seller to adopt a mixture of these policies, and identify the concrete operating regimes within which these return policies are optimal among more flexible policies. © 2014 Wiley Periodicals, Inc. Naval Research Logistics 61: 403–417, 2014     

Strategic outsourcing under technology spillovers

We study a supply chain in which an original equipment manufacturer (OEM) and a contract manufacturer (CM) compete in the finished goods market. The OEM can decide whether to outsource the intermediate good, a critical component for producing the finished good, from the CM or make in‐house production. Technology transition improves the CM's production efficiency, and it can take two different forms: a direct technology transfer from the OEM to the CM or technology spillovers through outsourcing from the OEM to the CM. We document the possibility of strategic outsourcing, that is, the CM supplies the intermediate good to the OEM when she is less efficient than the OEM's in‐house production. We find that technology spillovers can strengthen the incentive for strategic outsourcing. Furthermore, compared with direct technology transfers, outsourcing coupled with technology spillovers may generate more technology transition. Outsourcing is a particularly appropriate channel for implicit collusion when the OEM is not very efficient with the production of the intermediate good. Our results suggest that ex post competition on the finished goods can create room for ex ante collaboration and provide some implications on the OEM's outsourcing strategies when facing a competitive CM.© 2014 Wiley Periodicals, Inc. Naval Research Logistics 61: 501–514, 2014     

Impact of reseller's and sales agent's forecasting accuracy in a multilayer supply chain

We consider a three‐layer supply chain with a manufacturer, a reseller, and a sales agent. The demand is stochastically determined by the random market condition and the sales agent's private effort level. Although the manufacturer is uninformed about the market condition, the reseller and the sales agent conduct demand forecasting and generate private demand signals. Under this framework with two levels of adverse selection intertwined with moral hazard, we study the impact of the reseller's and the sales agent's forecasting accuracy on the profitability of each member. We show that the manufacturer's profitability is convex on the reseller's forecasting accuracy. From the manufacturer's perspective, typically improving the reseller's accuracy is detrimental when the accuracy is low but is beneficial when it is high. We identify the concrete interrelation among the manufacturer‐optimal reseller's accuracy, the volatility of the market condition, and the sales agent's accuracy. Finally, the manufacturer's interest may be aligned with the reseller's when only the reseller can choose her accuracy; this alignment is never possible when both downstream players have the discretion to choose their accuracy. © 2014 Wiley Periodicals, Inc. Naval Research Logistics 61: 207–222, 2014     

A general model for accelerated life testing with time‐dependent covariates

This paper introduces a general or “distribution‐free” model to analyze the lifetime of components under accelerated life testing. Unlike the accelerated failure time (AFT) models, the proposed model shares the advantage of being “distribution‐free” with the proportional hazard (PH) model and overcomes the deficiency of the PH model not allowing survival curves corresponding to different values of a covariate to cross. In this research, we extend and modify the extended hazard regression (EHR) model using the partial likelihood function to analyze failure data with time‐dependent covariates. The new model can be easily adopted to create an accelerated life testing model with different types of stress loading. For example, stress loading in accelerated life testing can be a step function, cyclic, or linear function with time. These types of stress loadings reduce the testing time and increase the number of failures of components under test. The proposed EHR model with time‐dependent covariates which incorporates multiple stress loadings requires further verification. Therefore, we conduct an accelerated life test in the laboratory by subjecting components to time‐dependent stresses, and we compare the reliability estimation based on the developed model with that obtained from experimental results. The combination of the theoretical development of the accelerated life testing model verified by laboratory experiments offers a unique perspective to reliability model building and verification. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 303–321, 1999     

Designing a degradation experiment

Degradation experiments are widely used to assess the reliability of highly reliable products which are not likely to fail under the traditional life tests. In order to conduct a degradation experiment efficiently, several factors, such as the inspection frequency, the sample size, and the termination time, need to be considered carefully. These factors not only affect the experimental cost, but also affect the precision of the estimate of a product's lifetime. In this paper, we deal with the optimal design of a degradation experiment. Under the constraint that the total experimental cost does not exceed a predetermined budget, the optimal decision variables are solved by minimizing the variance of the estimated 100pth percentile of the lifetime distribution of the product. An example is provided to illustrate the proposed method. Finally, a simulation study is conducted to investigate the robustness of this proposed method. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 689–706, 1999     

Book reviews

Frank Zimmer, Bismarcks Kampf gegen Kaiser Franz Joseph Konigsgratz und seine Folgen. Graz, Vienna, Cologne: Styria Verlag 1996. Pp.203,49 illus., 1 map. OS 350/DM 49. ISBN 3–222–12377–2.

Saul Zadka, Blood in Zion: How the Jewish Guerrillas drove the British out of Palestine. London and Washington: Brassey's, 1995. Pp.227, chron., illus., index. £19.95. ISBN 1–85753–136–1.

Theodore L. Gatchel, At the Water's Edge: Defending against the Modern Amphibious Assault. Annapolis, MD: Naval Institute Press, 1996. Pp.xvi+217, notes, biblio, index. $36.95. ISBN 1–55750–308–7.

Max G. Manwaring and William J. Olson (eds.) Managing Contemporary Conflict: Pillars of Success. Boulder, CO: Westview Press, 1996. Pp.269, no index. $65 (cloth); $25 (paper). ISBN 0–8133–8969 and 9978–5

Chris Seiple, The US Military/NGO Relationship in Humanitarian Interventions, Carlisle Barracks, PA: The

Richard L. Millett and Michael Gold‐Biss (eds.) Beyond Praetorianism: The Latin American Military in Transition. University of Miami: North/South Center Press; Boulder, CO: Lynne Rienner, 1996. Pp.xv +317, index. $24.95. ISBN 1–5745–000–9.

Rudolph C. Barnes Jr, Military Legitimacy: Might and Right in the New Millennium. London and Portland, OR: Frank Cass, 1996. Pp.199, select biblio., index. £27.50/$39.50, ISBN 0–714–4624–5.