The effects of customer rebates and retailer incentives on a manufacturer's profits and sales

In some industries such as automotive, production costs are largely fixed and therefore maximizing revenue is the main objective. Manufacturers use promotions directed to the end customers and/or retailers in their distribution channels to increase sales and market share. We study a game theoretical model to examine the impact of “retailer incentive” and “customer rebate” promotions on the manufacturer's pricing and the retailer's ordering/sales decisions. The main tradeoff is that customer rebates are given to every customer, while the use of retailer incentives is controlled by the retailer. We consider several models with different demand characteristics and information asymmetry between the manufacturer and a price discriminating retailer, and we determine which promotion would benefit the manufacturer under which market conditions. When demand is deterministic, we find that retailer incentives increase the manufacturer's profits (and sales) while customer rebates do not unless they lead to market expansion. When the uncertainty in demand (“market potential”) is high, a customer rebate can be more profitable than the retailer incentive for the manufacturer. With numerical examples, we provide additional insights on the profit gains by the right choice of promotion.© 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2010     

Route optimization for multiple searchers

We consider a discrete time‐and‐space route‐optimization problem across a finite time horizon in which multiple searchers seek to detect one or more probabilistically moving targets. This article formulates a novel convex mixed‐integer nonlinear program for this problem that generalizes earlier models to situations with multiple targets, searcher deconfliction, and target‐ and location‐dependent search effectiveness. We present two solution approaches, one based on the cutting‐plane method and the other on linearization. These approaches result in the first practical exact algorithms for solving this important problem, which arises broadly in military, rescue, law enforcement, and border patrol operations. The cutting‐plane approach solves many realistically sized problem instances in a few minutes, while existing branch‐and‐bound algorithms fail. A specialized cut improves solution time by 50[percnt] in difficult problem instances. The approach based on linearization, which is applicable in important special cases, may further reduce solution time with one or two orders of magnitude. The solution time for the cutting‐plane approach tends to remain constant as the number of searchers grows. In part, then, we overcome the difficulty that earlier solution methods have with many searchers. © 2010 Wiley Periodicals, Inc. Naval Research Logistics, 2010     

一体化联合作战对装备保障系统的影响及要求

装备保障信息建设要适应一体化联合作战的需求,就必须弄清一体化联合作战对装备保障系统的影响。运用系统方法,着眼环境对系统的影响,从分析一体化联合作战本质入手,阐述了一体化联合作战对装备保障系统功能、结构、运行和组成等要素的影响及要求,并为未来我军装备保障信息化建设提出了几点应对策略。     

Complexity and workload considerations in product mix decisions under the theory of constraints

The literature on the product mix decision (or master production scheduling) under the Theory of Constraints (TOC), which was developed in the past two decades, has addressed this problem as a static operational decision. Consequently, the developed solution techniques do not consider the system's dynamism and the associated challenges arising from the complexity of operations during the implementation of master production schedules. This paper aims to address this gap by developing a new heuristic approach for master production scheduling under the TOC philosophy that considers the main operational factors that influence actual throughput after implementation of the detailed schedule. We examine the validity of the proposed heuristic by comparison to Integer Linear Programming and two heuristics in a wide range of scenarios using simulation modelling. Statistical analyses indicate that the new algorithm leads to significantly enhanced performance during implementation for problems with setup times. The findings show that the bottleneck identification approach in current methods in the TOC literature is not effective and accurate for complex operations in real‐world job shop systems. This study contributes to the literature on master production scheduling and product mix decisions by enhancing the likelihood of achieving anticipated throughput during the implementation of the detailed schedule. © 2015 Wiley Periodicals, Inc. Naval Research Logistics 62: 357–369, 2015     

Selling to strategic and loss‐averse consumers: Stocking,procurement, and product design policies

Motivated by the presence of loss‐averse decision making behavior in practice, this article considers a supply chain consisting of a firm and strategic consumers who possess an S‐shaped loss‐averse utility function. In the model, consumers decide the purchase timing and the firm chooses the inventory level. We find that the loss‐averse consumers' strategic purchasing behavior is determined by their perceived gain and loss from strategic purchase delay, and the given rationing risk. Thus, the firm that is cognizant of this property tailors its inventory stocking policy based on the consumers' loss‐averse behavior such as their perceived values of gain and loss, and their sensitivity to them. We also demonstrate that the firm's equilibrium inventory stocking policy reflects both the economic logic of the traditional newsvendor inventory model, and the loss‐averse behavior of consumers. The equilibrium order quantity is significantly different from those derived from models that assume that the consumers are risk neutral and homogeneous in their valuations. We show that the firm that ignores strategic consumer's loss‐aversion behavior tends to keep an unnecessarily high inventory level that leads to excessive leftovers. Our numerical experiments further reveal that in some extreme cases the firm that ignores strategic consumer's loss‐aversion behavior generates almost 92% more leftovers than the firm that possesses consumers’ loss‐aversion information and takes it into account when making managerial decisions. To mitigate the consumer's forward‐looking behavior, we propose the adoption of the practice of agile supply chain management, which possesses the following attributes: (i) procuring inventory after observing real‐time demand information, (ii) enhanced design (which maintains the current production mix but improves the product performance to a higher level), and (iii) customized design (which maintains the current performance level but increases the variety of the current production line to meet consumers’ specific demands). We show that such a practice can induce the consumer to make early purchases by increasing their rationing risk, increasing the product value, or diversifying the product line. © 2015 Wiley Periodicals, Inc. Naval Research Logistics 62: 435–453, 2015     

Conjectures for framing cyberwarfare

Cyberspace has emerged as a potentially new (and unconventional) domain for warfare. Much debate has focused on understanding cyber conflict. The ability to critically analyse this phenomenon is important; however, the nascent nature of cyberwarfare and the complexity of the systems involved create challenges not met by conventional approaches. As a first step, this requires an analytical construct to frame discussions in a way that highlights distinct characteristics of the cyber domain. An approach proposed is one of the postulating conjectures for debate as a way to achieve this and to demonstrate its use, both at the strategic and operational levels. It is suggested that such an approach provides one component of a mature analytical framework for the analysis of cyber across a range of warfare domains.     

基于复杂网络的联合作战指挥体系研究

以作战指挥理论需求为牵引,从复杂网络的角度对联合作战指挥体系问题进行网络抽象,将指挥体系中的指挥机构作为网络的节点,将指挥关系作为网络的边,按照指挥体系历史发展的规律,从简单到复杂,分别构建了传统层级纵长树状型的指挥体系网络模型,在树状模型基础上,增加了横向联系但依然具有层级结构的信息共享改进型的指挥体系网络模型,以及...     

Explaining US and British performance in complex expeditionary operations: The civil-military dimension

A nation's structure and culture of civil-military relations are important and largely overlooked factors in explaining the performance of armed forces involved in complex expeditionary operations. The US model of ‘Huntingtonian’, divided civil-military structures and poor interagency cooperation, makes the US military less suited for complex expeditionary operations. British civil-military relations involve a Defence Ministry that conscientiously integrates military and civilian personnel, as well as extensive interagency cooperation and coordination. This ‘Janowitzean’, integrated form of civil-military relations makes the British military more likely to provide for the planning and implementation of comprehensive campaigns that employ and coordinate all instruments of power available to the state, as well as troops in the field displaying the flexibility and cultural and political understanding that are necessary in complex expeditionary operations.     

Analyzing Taliban taranas (chants): an effective Afghan propaganda artifact

This article describes and analyzes a little understood Afghan Taliban propaganda tool: chants or taranas . These melodic refrains effectively use historical narratives, symbology, and iconic portraits. The chants are engendered in emotions of sorrow, pride, desperation, hope, and complaints to mobilize and convince the Afghan population of the Taliban's worldview. The chants represent culturally relevant and simple messages that are communicated in a narrative and poetic form that is familiar to and resonates with the local people. They are virtually impossible for the United States and NATO to counter because of Western sensitivities concerning religious themes that dominate the Taliban narrative space, not to mention the lack of Western linguistic capabilities, including the understanding and mastering the poetic nature of local dialects.     

Helping hands: civil–military cooperation and Italy's military operation abroad

In the Post-Bipolar Era the growing complexity of the military operations requires a new approach for the resolution of international crises. Since the end of the Cold War, peace support operations (PSO) have become the mainstay and principal occupation of most Western armies. At the same time, Italy has been one of the most important actors in such an area. The article focuses on the cooperation between military and civil components (a process called CIMIC) as a key variable in the Italian PSOs. We will analyse in detail the main lessons learned from past military interventions as well as the general context in which new tendencies are taking place. The maintaining of a minimum security frame becomes essential to fulfil activities ‘collateral’ to the mission: reconstructing services and infrastructure, food distribution, water and medication, law and order, de-mining, training of local forces, and supporting local institutions. These are the main tasks to obtain thrust and support from the population.