Operations Research articles from March 2007

Operations Research archives from March 2007

In this issue.
March 1, 2007... Thirteen Reasons Why the Vickrey-Clarke-Groves Process Is Not Practical In theory, the Vickrey-Clarke-Groves process offers perfect efficiency with easy to calculate dominant truth-revealing strategies in combinatorial auctions. In...

From the editor.(Editorial)
March 1, 2007... This issue marks the publication of the first paper in the newly established area entitled OR Forum along with the associated expert comments that appear in the new online Discussion Forum. The issue also provides the editorial board with an...

Thirteen reasons why the Vickrey-Clarke-Groves process is not practical.
March 1, 2007... In theory, the mathematically elegant Vickrey-Clarke-Groves process offers perfect efficiency with dominant truth-revealing strategies. However, it has many serious practical problems. This paper describes these problems and argues that...

Relative entropy, exponential utility, and robust dynamic pricing.
March 1, 2007... In the area of dynamic revenue management, optimal pricing policies are typically computed on the basis of an underlying demand rate model. From the perspective of applications, this approach implicitly assumes that the model is an accurate...

Fast, fair, and efficient flows in networks.(Author abstract)
March 1, 2007... We study the problem of minimizing the maximum latency of flows in networks with congestion. We show that this problem is NP-hard, even when all arc latency functions are linear and there is a single source and sink. Still, an optimal flow and...

Decision making with multiattribute performance targets: the impact of changes in performance and target distributions.
March 1, 2007... In many situations, performance on several attributes is important. Moreover, a decision maker's utility may depend not on the absolute level of performance on each attribute, but rather on whether that level of performance meets a target, in...

A framework using two-factor price lattices for generation asset valuation.
March 1, 2007... In this paper, we use a real-options framework to value a power plant. The real option to commit or decommit a generating unit may be exercised on an hourly basis to maximize expected profit while subject to intertemporal operational...

Classification and regression via integer optimization.
March 1, 2007... Motivated by the significant advances in integer optimization in the past decade, we introduce mixed-integer optimization methods to the classical statistical problems of classification and regression and construct a software package called...

Optimal capacity investment decisions with two-sided fixed-capacity adjustment costs.
March 1, 2007... In this paper, we consider the optimal management of capacity when a firm faces fixed costs and variable costs to purchase capacity. The firm can also salvage capacity and receive a variable value per unit capacity salvaged, but faces a...

Note: generalized notions of concavity with an application to capacity management.
March 1, 2007... We introduce a generalization of K-concavity termed weak ([K.sub.1], [K.sub.2])-concavity and show how it can be used to analyze certain dynamic systems arising in capacity management. We show that weak ([K.sub.1], [K.sub.2])-concavity has two...

The cost allocation problem for the first order interaction joint replenishment model.
March 1, 2007... We consider an infinite-horizon deterministic joint replenishment problem with first order interaction. Under this model, the setup transportation/reorder cost associated with a group of retailers placing an order at the same time equals some...

Optimizing service parts inventory in a multiechelon, multi-item supply chain with time-based customer service-level agreements.
March 1, 2007... In the realm of service parts management, customer relationships are often established through service agreements that extend over months or years. These agreements typically apply to a piece of equipment that the customer has purchased, and...

Sensitivity analysis of a dynamic fleet management model using approximate dynamic programming.
March 1, 2007... We present tractable algorithms to assess the sensitivity of a stochastic dynamic fleet management model to fleet size and load availability. In particular, we show how to compute the change in the objective function value in response to an...

Facility reliability issues in network p-median problems: strategic centralization and co-location effects.
March 1, 2007... In this paper, we analyze a facility location model where facilities may be subject to disruptions, causing customers to seek service from the operating facilities. We generalize the classical p-median problem on a network to explicitly include...

Coupling stochastic and deterministic local search in examination timetabling.
March 1, 2007... In this paper, we propose a novel optimization algorithm for examination timetabling. It works by alternating two phases; one based on a stochastic local search and the other on a deterministic local search. The stochastic phase is...

Capacity management for contract manufacturing.
March 1, 2007... Contract manufacturers sell capacity under different terms to different buyers. In a common practice, the supplier offers a market standard price and lead-time combination for products listed in its catalog. At the same time, it strikes...

An efficient trajectory method for probabilistic production-inventory-distribution problems.
March 1, 2007... We consider a supply chain operating in an uncertain environment: The customers' demand is characterized by a discrete probability distribution. A probabilistic programming approach is adopted for constructing an...