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Full-Text Articles in Business

Mathematical Modeling Optimization And Simulation Improve Large-Scale Finished Goods Inventory Management, Michael S. Salvador, Muhittin Oral, Arnold Reisman, Burton V. Dean Feb 1971

Mathematical Modeling Optimization And Simulation Improve Large-Scale Finished Goods Inventory Management, Michael S. Salvador, Muhittin Oral, Arnold Reisman, Burton V. Dean

Research Reports from the Department of Operations

This article describes an inventory control study conducted for a large manufacturing company involving the distribution of over 7,000 line items through six major warehouses and nearly 800 authorized distributors across the U.S. The study's success, rare in systems of this scale, addressed challenges including unfamiliarity with research methods, inadequate evaluation of parameters, and lack of practical recommendations. A task force comprising operations research faculty, graduate students, and company managers collaborated to optimize inventory control while maintaining a predetermined service level. The study focused on evaluating holding, setup, and shortage costs, with a particular emphasis on shortage costs. Extensive computer …


Integer Programming : Introduction To Integer Programming, Harvey M. Salkin Feb 1971

Integer Programming : Introduction To Integer Programming, Harvey M. Salkin

Research Reports from the Department of Operations

This work represents the second chapter of a forthcoming textbook “Integer Programming” to be written by Harvey M. Salkin.


Toward A R&D Laboratory Evaluation Methodology, Edward S. Esbeck, Nandakumar M. Balwally, S. Srinivasan, Arnold Reisman, Burton V. Dean, S. Subba Rao Jan 1971

Toward A R&D Laboratory Evaluation Methodology, Edward S. Esbeck, Nandakumar M. Balwally, S. Srinivasan, Arnold Reisman, Burton V. Dean, S. Subba Rao

Research Reports from the Department of Operations

The objective of this study is to develop a methodology for evaluating the effectiveness of R&D laboratories. The methods are applied to: (1) determining the input and output variables and (2) weighting and measuring the subjective variables. The results of the study indicate that laboratory effectiveness can be meaningfully quantified and hence evaluated. Further experimentation will be aimed at specific application to the Department of Defense’s Project REFLEX laboratory evaluation.


Algorithms For Stochastic Games: A Comparison Of Efficiency, Arvind Jain Jan 1971

Algorithms For Stochastic Games: A Comparison Of Efficiency, Arvind Jain

Research Reports from the Department of Operations

There are two convergent algorithms for the solution of two person zero sum nonterminating stochastic games. The first one is developed by Hoffman and Karp and the second one is recently developed by Nair, Rao and Chandrasekaran. This paper presents computer programs for the two algorithms and computational experiments for comparing the efficiency of the algorithms. The results show that the second algorithm requires fewer iterations and moreover, the computation time for each iteration in this is significantly lower. Further, the results show that the ratio of the computation of time of the first algorithms to that of the second …


A Faster Algorithm For Nonterminating Stochastic Games, K.P. K. Nair, S. Subba Rao, R. Chandrasekaran Jan 1971

A Faster Algorithm For Nonterminating Stochastic Games, K.P. K. Nair, S. Subba Rao, R. Chandrasekaran

Research Reports from the Department of Operations

In this paper a two person zero sum nonterminating stochastic game with a finite number of positions or states is considered. The movement of the game from state to state is jointly controlled by the two players depending on their choices of strategies from a finite number of alternatives in each state available to each player, respectively. Considering an infinite number of transitions, Hoffman and Karp have provided a convergent algorithm for the solution of this game. This paper presents a new convergent algorithm for the solution of the above game. The proof of convergence shows also the existence of …


Demonstrating Compliance With Anti Discrimination In Employment Laws: Applications Of I.E./O.R., Arnold Reisman, Burton V. Dean, David E. Sands, Joseph A. Svestka Jan 1971

Demonstrating Compliance With Anti Discrimination In Employment Laws: Applications Of I.E./O.R., Arnold Reisman, Burton V. Dean, David E. Sands, Joseph A. Svestka

Research Reports from the Department of Operations

The Equal Pay Act of 1963 and the Title VII of the Civil Rights Act of 1964 make it illegal to discriminate against women in all aspects of employment, any state statutes to the contrary notwithstanding. In recent months, several cases were tried and many are currently pending. This paper discusses work performed in preparation for expert witness testimony for two cases, both of which were decided in Federal Court, one of which is before a higher court on appeal. Methods of engineering economics, actuarial science, industrial engineering, computer simulation, and statistical analysis are utilized to prove that discrimination existed …


A Corporate Production Planning And Inventory Control Policy, C. Pekmezciler Jan 1971

A Corporate Production Planning And Inventory Control Policy, C. Pekmezciler

Research Reports from the Department of Operations

A company which produces a large number of different products is taken as an example where the production of each item is made alternately in lots on the same facility. Depending on their demand forecast and inventory levels lot sizes determined and produced for order or inventory. Description of the production facilities, production, products groups, their inventory and demand pattern in the past is given and discussed. Problems generally faced in overall planning and scheduling of this kind of a company are identified. A dynamic programming approach for aggregate production capacity decision for the case when aggregate production, inventory and …


An Efficient Algorithm For Minimizing Barrier And Penalty Functions, Leon S. Lasdon Dec 1970

An Efficient Algorithm For Minimizing Barrier And Penalty Functions, Leon S. Lasdon

Research Reports from the Department of Operations

Constrained minimization is often done via interior penalty functions. Such functions can be very difficult to minimize using existing algorithms. In this paper, a new algorithm is described which is specially constructed to deal with such functions. It generates search directions by linearizing the objective and constraints about the current (interior) point, substituting these linearizations into the penalty function, and minimizing the result. Properties of the algorithm are derived, an efficient method for solving the direction finding problem is suggested, and computational results are presented. Preliminary results are also given on an extension to quasi-barrier and exterior penalty functions.


A Computerized Data Base Of Hardware For Real-Time Information Systems, Donald E. Pauley Dec 1970

A Computerized Data Base Of Hardware For Real-Time Information Systems, Donald E. Pauley

Research Reports from the Department of Operations

A strategy for evaluation of the information processing requirements of real-time systems is presented with a discussion of future research necessary for the development of algorithms for the automatic design and evaluation of real-time information systems. A model for a database containing the characteristics of the hardware for real-time systems is developed.


Stochastic Cash Flow Formulae Under Conditions Of Inflation, Arnold Reisman, Arza K. Rao Dec 1970

Stochastic Cash Flow Formulae Under Conditions Of Inflation, Arnold Reisman, Arza K. Rao

Research Reports from the Department of Operations

This paper presents time-dependent deterministic and stochastic variations of common discounted cash flow formulae with explicit consideration given to inflation. The cash flows, the rates of discount or of compounding, and the rate of inflation are allowed to vary with time in a deterministic as well as random fashion in equations for the Compound Amount of a Single Payment, Present Worth of a Single Payment, Amount of an Annuity, Periodic Deposits to Accumulate a Future Amount, Present Worth of an Annuity, Capital Recovery, and the Present Worth of a Deferred Annuity.


Toward A Tuition Credit Allocation Methodology For Institutions Of Higher Learning, Arnold Reisman, Burton V. Dean, Robert R. White Dec 1970

Toward A Tuition Credit Allocation Methodology For Institutions Of Higher Learning, Arnold Reisman, Burton V. Dean, Robert R. White

Research Reports from the Department of Operations

This paper describes a methodology developed at the Case Western Reserve University for the purposes of more rationally keeping track of the costs of education and for the allocation of tuition revenue credits. One of the co-authors recognized the lack of a database necessary for more rational decision making. This paper reports on a methodology designed to provide the tuition element segment of such a base.


Dynamic Programming And Fuzzy Allocation Processes, Augustine O. Esogbue, Vengalathur Ramesh Nov 1970

Dynamic Programming And Fuzzy Allocation Processes, Augustine O. Esogbue, Vengalathur Ramesh

Research Reports from the Department of Operations

The modeling and computational aspects of certain allocation processes are studied through a new concept in systems theory --- fuzzy decision making. The use of these concepts will generally provide models of better proximity to the systems modelled than the traditional deterministic and stochastic approaches. Some concepts of fuzzy systems theory are first introduced. Fuzzy dynamic programming models with their corresponding flow charts are then provided for an allocation problem arising in R&D systems. The computational problems in fuzzy algorithms are discussed. An extensive bibliography on fuzzy decision theory is included.


A Special Linear Program, R. Chandrasekaran Nov 1970

A Special Linear Program, R. Chandrasekaran

Research Reports from the Department of Operations

This study addresses an optimization problem within a water resources system, focusing on the allocation of firm power. Demands for power occur in fixed ratios throughout the year, with total annual demand being substantial. The challenge lies in determining the total amount of power to supply for the year while ensuring it is distributed proportionally across months. At the beginning of a contractual period, a utility company must be promised a specified amount of power, delivered according to seasonal ratios (e.g., higher demand in winter). This paper formulates the problem in detail, providing a framework for optimizing the allocation of …


Mechanical Rules For Trading In Wheat Futures, William J. Brown, Thomas B. Crabill, Burton V. Dean Nov 1970

Mechanical Rules For Trading In Wheat Futures, William J. Brown, Thomas B. Crabill, Burton V. Dean

Research Reports from the Department of Operations

An answer to the question of whether to buy, wait, or sell when trading in wheat futures is sought through the use of heuristic mechanical trading rules. Two basic models are examined. In the first, an updated price band is maintained about the daily close. The relationship between a given day's closing price and the previous day's price band is the signal to buy, wait, or sell. In the second approach, a linear regression is calculated for closing prices over time, and a tolerance band is established about the calculated line. Both fixed and variable bands are considered. Whenever a …


A Pseudo Dual All-Integer Algorithm For The Set Covering Problem, Harvey M. Salkin, Ronald D. Koncal Nov 1970

A Pseudo Dual All-Integer Algorithm For The Set Covering Problem, Harvey M. Salkin, Ronald D. Koncal

Research Reports from the Department of Operations

A modified linear programming method for the inequality or equality set covering problem (i.e., minimize cx subject to Ex ≥ b or Ex = b, where E is a zero-one matrix, b is a column of ones, and c is a nonnegative integral row) is presented. The "almost unimodular" property of the (zero-one) constraint matrix suggested an algorithm in which one performs (dual) simplex interactions whenever unit pivots are available and adjoin Gomory all-integer cuts when they are not. Finiteness, time reducing criteria, the elimination of roundoff errors, and applications to enumerative schemes are discussed. Preliminary computational experience, being very …


Stochastic Games With Semi-Markovian Rewards, R. Chandrasekaran, K.P. K. Nair, S. Subba Rao Oct 1970

Stochastic Games With Semi-Markovian Rewards, R. Chandrasekaran, K.P. K. Nair, S. Subba Rao

Research Reports from the Department of Operations

This paper examines a two-person zero-sum stochastic game with a finite number of states and non-terminating transitions. Unlike prior studies that focus on Markovian reward structures, this work explores semi-Markovian reward structures, deriving the equations that the game's value must satisfy. The study develops convergent algorithms for finite and infinite transitions, considering scenarios with and without discounting. Potential extensions include nonzero-sum games and time-horizon analyses. The model serves as a generalization of Jewell's semi-Markovian decision process in a game-theoretic context and extends the non-terminating stochastic game framework of Hoffman and Karp. This research broadens the scope of stochastic games by …


Some Considerations Of A Queueing Model For Research And Development Project Flow, S. Subba Rao Oct 1970

Some Considerations Of A Queueing Model For Research And Development Project Flow, S. Subba Rao

Research Reports from the Department of Operations

The purpose of the present note is to consider the stochastic flow of projects in a Research and Development Organization. The flow of projects can be modeled as a stochastic network of queues. But the questions as to the details remain to be answered apart from the difficult and important question of how to analyze such systems. One has to concede that in the simplest case of time-homogeneous Poisson inputs exponential services and unlimited waiting space in between stations, the problem is solvable. But any relaxation of these conditions leads to new difficulties. Some of the problems raised in this …


On The Evaluation Of Shortage Costs For Inventory Control, Muhittin Oral, Michael S. Salvador, Arnold Reisman, Burton V. Dean Oct 1970

On The Evaluation Of Shortage Costs For Inventory Control, Muhittin Oral, Michael S. Salvador, Arnold Reisman, Burton V. Dean

Research Reports from the Department of Operations

This paper summarizes work performed in evaluating shortage costs associated with stockouts for each of a manufacturer's seven thousand catalogued line items. A modified version of a decision tree model proposed by Yu Chang is employed in a determination of estimated unit shortage costs for a stratified random sample of items. The results are then extended to all items on the basis of an excellent correlation between the evaluated unit shortage costs and unit gross profits of the items in the sample.


Optimal Location Of A Single Service Center Of Certain Types, K.P. K. Nair Oct 1970

Optimal Location Of A Single Service Center Of Certain Types, K.P. K. Nair

Research Reports from the Department of Operations

Considering communities to be interconnected by road network, Hakimi provided a graph theoretic method for finding the optimal location of a single service center, such as hospital or police station, minimizing largest distance from the service center. The same problem is considered in this paper when the region to be served is represented by a convex polygon with finite number of corner points and the distance between any pair of points in the polygon is taken to be the straight path between the two points. This problem is shown to be exact in certain cases though in some other cases …


Some Considerations Of A Queueing Model For Research And Development Project Flow, S. Subba Rao Oct 1970

Some Considerations Of A Queueing Model For Research And Development Project Flow, S. Subba Rao

Research Reports from the Department of Operations

The purpose of the present note is to consider the stochastic flow of projects in a Research and Development Organization. The flow of projects can be modeled as a stochastic network of queues. But the questions as to the details remain to be answered apart from the difficult and important question of how to analyze such systems. One has to concede that in the simplest case of time-homogeneous Poisson inputs exponential services and unlimited waiting space in between stations, the problem is solvable. But any relaxation of these conditions leads to new difficulties. Some of the problems raised in this …


Non Iterative Algorithm Form Solving Special Types Of Transportation Problems, Benjamin Lev Sep 1970

Non Iterative Algorithm Form Solving Special Types Of Transportation Problems, Benjamin Lev

Research Reports from the Department of Operations

Many transportation problems are such that, when origins and destinations are suitably indexed, the cost matrix contains elements along the main diagonal, a band above it, and a band below it, while the other elements of the cost matrix are infinite. A procedure has been developed which yields optimal solution to such tridiagonal problems in n steps for a n-origin, n-destination problem. A second model has been solved for a tridiagonal and a coupling column of the cost matrix. A third model, a four-diagonal one, has been partially solved. We suggested and showed a method to solve any other model …


Investment Decisions Under Conditions Of Inflation: An Extension Of Theory, Arnold Reisman, Juri Pill Aug 1970

Investment Decisions Under Conditions Of Inflation: An Extension Of Theory, Arnold Reisman, Juri Pill

Research Reports from the Department of Operations

This paper extends existing quantitative methods for the economic evaluation of alternative investment proposals to the area of decision-making under conditions of non-negligible inflation. It includes a rigorous and consistent set of definitions and a generalized model which may be used in decisions involving several countries with different rates of inflation.


On The Resource Allocation Problem With S-Shaped Utility Functions, Fabio M. Vicentini Aug 1970

On The Resource Allocation Problem With S-Shaped Utility Functions, Fabio M. Vicentini

Research Reports from the Department of Operations

A given amount "a" of a resource is allocated among n activities. A return Fi(xi) is obtained as a result of using xi units of the resource in activity "i". The problem is to find an allocation which maximizes the total return, that is, max Σ Fi(xi) s.t. Σ xi = a, xi ≥ 0 . In this paper we examine this well known problem under the assumption that the Fi's are "s-shaped" functions. In an economic context this assumption means that small allocations lead to essentially zero returns while large ones have a saturation effect, the "law of diminishing …


Stochastic Variations Of Commonly Used Discounted Cash Flow Formulae, Arnold Reisman, Arza K. Rao Aug 1970

Stochastic Variations Of Commonly Used Discounted Cash Flow Formulae, Arnold Reisman, Arza K. Rao

Research Reports from the Department of Operations

This paper addresses challenges in applying discounted cash flow analysis as presented in standard texts on Engineering Economy, Capital Allocation Theory, Finance, Managerial Economics, and Economic Analysis. While traditional research texts assume deterministic values for independent variables and parameters, real-world applications often face uncertainty in determining these values. The paper proposes stochastic formulations to account for such uncertainty, detailing equations for various combinations and permutations of distributions. The findings aim to bridge the gap between theoretical models and the complexities of real-world financial decision-making.


Some Efficient Dynamic Programming Algorithms For The Optimal Sequencing And Scheduling Of Water Supply Projects, Augustine O. Esogbue, Thomas L. Morin Jul 1970

Some Efficient Dynamic Programming Algorithms For The Optimal Sequencing And Scheduling Of Water Supply Projects, Augustine O. Esogbue, Thomas L. Morin

Research Reports from the Department of Operations

The sequencing and scheduling aspects of some important capacity expansion problems encountered in water resources development are studied. Dynamic programming algorithms are developed for both project timing problems and combined project selection and timing problems involving durable high cost water supply projects, which in the aggregate are subject to continuous-time demand requirements. The structure of the problems is successfully exploited in order to produce computationally efficient algorithms to solve problems of the dimension encountered in water resources systems. The computational superiority of these algorithms over conventional dynamic programming algorithms is discussed and illustrated via a numerical example.


A Primal Method For Linear Programs With Coupling Rows And Columns, James K. Hartman Jul 1970

A Primal Method For Linear Programs With Coupling Rows And Columns, James K. Hartman

Research Reports from the Department of Operations

A considerable amount of work has been done in recent years on adapting the simplex method for linear programming to solving II large-scale specially structured linear programs. One class of methods which has proved to be quite useful in practice is the class of compact inverse methods ([16], Chapter 6). In these S methods, the special structure of the constraint matrix is 8 exploited to obtain a representation of the basis inverse matrix 1 which is more compact than the explicit inverse used in the revised simplex method. .Early proposals for this type of algorithm are found in [1] and …


Parallel Operations Of Sequential Service Lines With Interline Transfer, Joseph A. Svestka, K.P. K. Nair Jun 1970

Parallel Operations Of Sequential Service Lines With Interline Transfer, Joseph A. Svestka, K.P. K. Nair

Research Reports from the Department of Operations

Scientific analysis of servicing processes has resulted in the development of sequential servicing where in a unit requiring service is processed through a fixed number of stages sequentially. A detailed study of such a system has been presented by Baling. In this paper a large servicing system consisting of a finite number of identical sequential service lines is considered. These lines are operated in parallel but interline transfers of units are made whenever advantageous. Using time homogeneous Markov Chain, a model is developed for analyzing the operation of such a system. It is shown that interline transfers of units result …


A Generalized Upper Bounding Method For Doubly Coupled Linear Programs, James K. Hartman, Leon S. Lasdon Jun 1970

A Generalized Upper Bounding Method For Doubly Coupled Linear Programs, James K. Hartman, Leon S. Lasdon

Research Reports from the Department of Operations

The constraints of large linear programs can often be partitioned into independent subsets, except for relatively few coupling rows and coupling columns. The individual subsets may, for example, arise from constraints on the activity levels of subdivisions of a large corporation. Alternatively, such blocks may arise from activities in different time periods. The coupling rows may arise from limitations on shared resources or from combining the outputs of subdivisions to meet overall demands. The coupling columns arise from activities which involve different time periods (e.g storage), or which involve different subdivisions (e.g. transportation or assembly). The case with only coupling …


A Taxonomic Analysis Of Financial Ratios, Denis Moffet Jun 1970

A Taxonomic Analysis Of Financial Ratios, Denis Moffet

Research Reports from the Department of Operations

Operations research techniques have been applied in fields like portfolio management, inventory control, and capital budgeting, but their use in accounting remains underdeveloped. This paper seeks to undertake a taxonomic analysis of financial ratios by developing a formal system for classifying the most commonly used financial ratios, identifying the most important dimensions measured within that set of ratios, and determining the relative importance of each ratio in measuring each dimension.


Measurement Of Output In A System Of Social Agencies, Arnold Reisman, Samuel J. Mantel Jr., Burton V. Dean, Norman C. Eisenberg, Elliot Markus, Allan L. Service Jun 1970

Measurement Of Output In A System Of Social Agencies, Arnold Reisman, Samuel J. Mantel Jr., Burton V. Dean, Norman C. Eisenberg, Elliot Markus, Allan L. Service

Research Reports from the Department of Operations

An on-going research project being performed at the Jewish Community Federation of Cleveland is described. Background of the project is given. The basis and components of a proposed output measurement mechanism are discussed briefly so that the details of implementing that measurement model may be considered in perspective. Three aspects of the implementation process are examined: the generation of service-client package values, the development of quality criteria weights and utility curves, and the collection of the requisite objective data. In each case, an objective is defined, the conceptual and mechanical details of the implementation process are given, and the results …