Strategic obfuscation of production capacities

Recent supply‐chain models that study competition among capacity‐constrained producers omit the possibility of producers strategically setting wholesale prices to create uncertainty with regards to (i.e., to obfuscate) their production capacities. To shed some light on this possibility, we study strategic obfuscation in a supply‐chain model comprised of two competing producers and a retailer, where one of the producers faces a privately‐known capacity constraint. We show that capacity obfuscation can strictly increase the obfuscating producer's profit, therefore, presenting a clear incentive for such practices. Moreover, we identify conditions under which both producers' profits increase. In effect, obfuscation enables producers to tacitly collude and charge higher wholesale prices by moderating competition between producers. The retailer, in contrast, suffers a loss in profit, raises retail prices, while overall channel profits decrease. We show that the extent of capacity obfuscation is limited by its cost and by a strategic retailer's incentive to facilitate a deterrence. © 2014 Wiley Periodicals, Inc. Naval Research Logistics 61: 244–267, 2014     

Impact of tax reduction policies on consumer purchase of new automobiles: An analytical investigation with real data‐based experiments

We investigate and compare the impact of the tax reduction policies implemented in the United States and China to stimulate consumer purchase of new automobiles and improve manufacturers' profits. The U.S. policy provides each qualifying consumer with a federal income tax deduction on state and local sales and excise taxes paid on the purchase price (up to a cutoff level), whereas the Chinese policy reduces the vehicle sales tax rate for consumers. We observe that these policy designs are consistent with the tax management system and the economic environment in the respective country. We analytically determine the effects of the two tax reduction policies on the automobile sales and the manufacturer's and the retailer's profits. Numerical examples are then used to provide insights on the importance of certain factors that influence the effects of the two policies. Finally, a numerical experiment with sensitivity analysis based on real data is conducted to compare the merits and characteristics of the two policies under comparable conditions. We find that the U.S. policy is better than the Chinese policy in stimulating the sales of high‐end automobiles, whereas the Chinese policy is better than the U.S. policy in improving the sales of low‐end automobiles. The U.S. policy is slightly more effective in increasing the profitability of the automobile supply chain; but, in general, the Chinese policy is more cost effective. The methodology developed herein can be used to evaluate other tax reduction policies such as those related to the purchase of energy‐saving vehicles and to serve as a decision model to guide the choice of alternative tax reduction policies. © 2014 Wiley Periodicals, Inc. Naval Research Logistics, 61: 577–598, 2014     

Concavity and monotonicity properties in a groundwater management model

We consider a discrete‐time groundwater model in which the cost of pumping takes a slightly different form to that which has been traditional in the research literature to date. This enables us to prove that (a) the optimal pumping quantity is nondecreasing in the ground water stock, (b) the stock level remaining after each period's pumping is also nondecreasing in the groundwater stock, (c) the optimal decision is determined by maximizing a concave function, and finally (d) the optimal pumping quantity is nonincreasing in the number of periods to go. We show that (a)–(c), while intuitive, do not hold under traditional modeling assumptions. We also explain the connections between our results and similar ones for some classic problems of operations research. © 2011 Wiley Periodicals, Inc. Naval Research Logistics 00: 000–000, 2011     

主机安全监控系统的设计与实现

针对现有主机监控系统存在的执行效率低、监控粒度粗等问题,通过在内核态设置钩子函数改写系统服务调度表,同时在用户层设置策略库进行细粒度监控,设计并实现了主机安全监控系统。该系统具有执行效率高、占用系统资源少、监控粒度细等特点。     

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     

A nonlinear continuous time optimal control model of dynamic pricing and inventory control with no backorders

In this paper, we present a continuous time optimal control model for studying a dynamic pricing and inventory control problem for a make‐to‐stock manufacturing system. We consider a multiproduct capacitated, dynamic setting. We introduce a demand‐based model where the demand is a linear function of the price, the inventory cost is linear, the production cost is an increasing strictly convex function of the production rate, and all coefficients are time‐dependent. A key part of the model is that no backorders are allowed. We introduce and study an algorithm that computes the optimal production and pricing policy as a function of the time on a finite time horizon, and discuss some insights. Our results illustrate the role of capacity and the effects of the dynamic nature of demand in the model. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Joint pricing,assortment, and inventory decisions for a retailer's product line

Consider a set of product variants that are differentiated by some secondary attributes such as flavor, color, or size. The retailer's problem is to jointly determine the set of variants to include in her product line (“assortment”), together with their prices and inventory levels, so as to maximize her expected profit. We model the consumer choice process using a multinomial logit choice model and consider a newsvendor type inventory setting. We derive the structure of the optimal assortment for some important special cases, including the case of horizontally differentiated items, and propose a dominance relationship for the general case that simplifies the search for an optimal assortment. We also discuss structural properties of the optimal prices. Finally, motivated by our analytical results, we propose a heuristic solution procedure, which is shown to be quite effective through a numerical study. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Civil–military relations and organisational preferences regarding the use of the military in Chinese foreign policy: insights from the debate on MOOTW

ABSTRACT

This article analyses the positions of the Chinese civilian leaders and military elites on Military Operations Other Than War in order to shed light on their preferences about the use of the armed forces in foreign policy between the late 1990s and the early 2010s. Over time, a significant divergence developed between civilians and soldiers until 2011, when the Libyan crisis happened. The study also prompts important considerations about our understanding of civil–military relations in China and future role of the People’s Liberation Army as a tool of statecraft in foreign policy.     

Clustering in defence-related procurement: the case of a Belgian naval construction cluster

ABSTRACT

This paper examines the importance of closer co-operation in defence-related procurement. Led by the decision that Belgium will lead the procurement of 12 Mine CounterMeasures Vessels (MCMV), the case of a potential Belgian naval construction cluster is discussed. The feasibility of a potential cluster is investigated by looking at key elements of a successful naval construction cluster, the Dutch naval construction cluster, and comparing those key elements to the current Belgian situation. Forming a sustainable Belgian naval construction cluster will be difficult. Most of the procurement process of the MCMVs is set on a European tender. In the long run, due to the absence of both a launching customer and leader firms, no party is able to carry the cluster with investments and knowledge spill-overs. In order to keep public support for large defence-related investments, clustering around the MCMV integration system and proactive cluster support is recommended.     

Modern liberal wars,illiberal allies,and peace as the failure of policy

ABSTRACT

The post-Cold War period nearly up to the present has been characterised as the age of liberal wars, yet key facets of the liberal guidance of war remain under appreciated. This article seeks to address this wider gap with regard to the particular concern of war termination and the fulfilment or failure of policy. First, it develops characterisations of liberal wars based on the existing literature, identifying three broad types through consideration of context—defensive versus offensive—and of political and strategic agency, particularly regarding the motives for and intents of action. Three types of liberal wars result: defensive liberal wars, offensive liberal wars with humanitarian motive and geopolitical intent, and offensive liberal wars with geopolitical motive and humanitarian intent. The article then presents one exemplary case for each liberal war with an emphasis on how liberal strategy required an illiberal ally and that ally's effect on the subsequent peace.