WA01 CORS / INFORMS INTERNATIONAL— 2004 ■ WA03 Wednesday 8:00-9:30 am Max Bell Building- MB252 ■ WA01 Optimization Techniques I Max Bell Building- Auditorium Contributed Session Intelligent Transportation Systems Chair: Martin Day, Professor, Department of Mathematics, Virginia Tech, Blacksburg, VA, 24061-0123, United States, day@math.vt.edu Cluster: Tutorials-CORS/INFORMS 2004 Invited Session 1 - A Multilevel Parallelized Hybrid Branch and Bound Algorithm for Quadratic Optimization Cong Vo, PhD Student, Tokyo Institute of Technology, Ookayama 2-12-1, Meguro-ku, Tokyo, 152-8552, Japan, Tokyo, Japan, vo.chi.cong@is.titech.ac.jp, Katsuki Fujisawa, Akiko Takeda, Masakazu Kojima 1 - Intelligent Transportation Systems Hani S. Mahmassani, Professor, Civil and Environmental Engineering, University of Maryland, College Park, MD, 20742, United States, masmah@wam.umd.edu The main promise of Intelligent Transportation Systems (ITS) was to harness the power of information and telecommunication technologies to operate transportation networks more efficiently, for both passenger and freight movement. These call for methodologies to support online decision-making under real-time information on the system state (including flows on links and fleet vehicle positions), including algorithms for data fusion, state estimation, prediction and real-time operation of dynamic stochastic systems. The past decade has seen major strides in the development of new problem formulations and decision procedures for online decision problems that arise in both vehicular traffic networks (e.g. dynamic assignment-based methodologies for centralized, decentralized and hybrid control architectures), and freight fleet management. This tutorial assesses the current state of ITS deployment in various transportation domains, introduces key concepts that distinguish problem classes that arise in this environment, and discusses various generic approaches and specific methodologies for online decision-making in ITS systems for both vehicular traffic networks and freight fleet operations. We present a branch-and-bound algorithm for quadratic optimization with high nonconvexity in quadratic terms. The branching procedure reduces the nonconvexity so that the subproblems become easier to solve. The bounding procedure is a successive convex relaxation algorithm based on SDP (semidefinite programming). A significant number of SDP problems generated are solved in parallel using a message passing interface mixed with multithreading for high performance and parallel efficiency. 2 - A Soft Approach for Solving Complicated Discrete Optimization Models Davis Chunhui Xu, Chiba Institute of Technology, Narashino, Chiba, Japan, xchunhui@yahoo.co.jp This paper is to introduce a soft approach for solving discrete optimizations models when seeking the optimum is not realistic. After explaining why new methods are in need for discrete optimization problems, we suggest a soft approach by softening the goals in optimization, and propose a two-stage process for implementing the soft approach. An algorithm is also proposed for solving discrete optimization models where the continuous expansion of the feasible set is convex. ■ WA02 Max Bell Building- MB251 Embedding Optimization Modeling Languages into Applications II 3 - On Oblique Derivative Boundary Conditions for Hamilton-Jacobi Equations Martin Day, Professor, Department of Mathematics, Virginia Tech, Blacksburg, VA, 24061-0123, United States, day@math.vt.edu Cluster: Math Programming Invited Session Value functions in dynamic optimization are often viscosity solutions of Hamilton-Jacobi equations. In queueing network optimization, models using Skorokhod problem formulations are common. These lead to boundary conditions for the H-J equation in the viscosity sense. We present results on such boundary conditions, including an formulation in which the boundary conditions are incorporated directly into the Hamiltonian function, and a geometric interpretation in the case of smooth functions. Chair: Robert Fourer, Professor, Northwestern University, Dept of Industrial Eng & Mgmt Sciences, 2145 Sheridan Rd, Evanston, IL, 60208-3119, United States, 4er@iems.northwestern.edu 1 - Using MPL and OptiMax 2000 to Create Embedded Optimization Applications Bjarni Kristjansson, President, Maximal Software, Inc., 2111 Wilson Boulevard, Suite 700, Arlington, VA, 22201, United States, bjarni@maximalsoftware.com ■ WA04 Max Bell Building- MB253 MPL is a modeling system that allows the model developer to efficiently formulate complicated optimization models. We will demonstrate advanced indexing and data modeling techniques that are used to provide the speed and scalability required to solve large-scale models with millions of variables and constraints. We will also demonstrate how the OptiMax 2000 Component Library can be used to embed MPL models in customized end-user applications to solve realworld optimization problems. Nonlinear Programming Approaches for Mathematical Programs with Equilibrium Constraints Sponsor: Optimization Sponsored Session Chair: Mihai Anitescu, Argonne National Laboratory, MCS, Building 221, 9700 South Cass Avenue, Argonne, IL, 60639, United States, anitescu@mcs.anl.gov 2 - Using Algabaric Modeling Languages with the WWW-NIMBUS Multiobjective optimization system Vesa Ojalehto, University of Jyväskylä, Department of MIT, P.O. Box 35 (Agora), University of Jyväskylä, 40014, Finland, ojveal@mit.jyu.fi, Marko M. Makela, Kaisa Miettinen 1 - Global Convergence of SQP Methods Applied to Mathematical Programs with Equilibrium Constraints Mihai Anitescu, Argonne National Laboratory, MCS, Building 221, 9700 South Cass Avenue, Argonne, IL, 60639, United States, anitescu@mcs.anl.gov We describe how existing models in the AMPL language for large-scale optimization can be imported into the WWW-NIMBUS system for multiobjective nondifferentiable optimization. WWW-NIMBUS is freely available for teaching and research purposes (from nimbus.mit.jyu.fi) and was to our knowledge the first interactive system of its kind on the Internet (in 1995). We also present other developments of the system. We show that, for the mixed P parametric variational inequalities, a class of problems that is slightly stronger than the one studied in the monograph of Luo, Pang and Ralph, the algorithm converges globally to a C-stationary point. If the accumulation point satisfies stronger assumptions, then we prove that the point is an M-stationary point. For the same conditions, we show that in a backward error analysis sense, the result cannot be improved by local search. 3 - Financial Risk Management with AMPL Helmut Mausser, Algorithmics Inc., 185 Spadina Avenue, Toronto, ON, M5T 2C6, Canada, hmausser@algorithmics.com 2 - Solving Multi-Leader-Follower Games Sven Leyffer, Argonne National Laboratory, 9700 South Cass Ave, Argonne, IL, 60439, United States, leyffer@mcs.anl.gov, Todd Munson Managing a portfolio’s risk/return profile gives rise to a wide variety of optimization problems. Modeling languages can play a valuable role in delivering the flexibility required of general-purpose financial optimization systems. We describe an application that generates customized AMPL models according to user specifications. We propose a new practical approach to multi-leader-follower games. Multileader follower games arise when modeling competition between two or more Stackelberg players and lead in a natural way to the novel modeling paradigm of equilibrium problems with equilibrium constraints (EPECs). We show that a nonlinear optimization approach can be used to solve EPECs. We propose several formulations and investigate their practical suitability on some medium sized problems. 96 CORS / INFORMS INTERNATIONAL — 2004 3 - Interior-Point Algorithms, Penalty Methods and Equilibrium Problems Hande Benson, Drexel University, Decision Sciences, Philadelphia, PA, United States, benson@drexel.edu, Arun Sen, Robert Vanderbei, David Shanno WA08 the remaining ones. We investigate why the base-stock policy is or is not optimal in different situations. ■ WA07 TransCanada Pavilion- PAV202 In this talk, we consider the question of solving mathematical programs with equilibrium constraints as nonlinear programs, using an interior-point approach. These problems pose theoretical difficulties for nonlinear solvers, including interior-point methods. We examine the use of penalty methods to get around these difficulties, and present substantial numerical results. We go on to show that penalty methods can resolve some problems that interior-point algorithms encounter in general. Supply Chain Management IV Contributed Session Chair: Chia-Shin Chung, Professor, Cleveland State University, 1860 E.18th Street, Cleveland, OH, 44114, United States, c.chung@csuohio.edu 1 - Collaborations in Supply Chain: Value of Information Sharing Namit Mehta, Student, IIM Ahmedabad, D 1318, IIM Ahmedabad, Ahmedabad, India, namitmehta@hotmail.com 2 - Enhancing Capable-to-Promise with Revenue Management Concepts Hernan Wurgaft, Assistant Professor, SUNY Maritime College, 6 Pennyfield Ave., Throggs Neck, NY, 10465, United States, hwurgaft@sunymaritime.edu ■ WA06 TransCanada Pavilion- PAV201 Inventory Management II Contributed Session Chair: Suresh Sethi, Ashbel Smith Professor and Director of C4ISN, University of Texas at Dallas, School of Management, SM30, P.O. Box 830688, Richardson, TX, 75083-0688, United States, sethi@utdallas.edu Capable-to-promise processes usually emphasize checking for inventory availability, dynamically building short term production schedules, identifying bottlenecks, and assesing the profitabilty of orders. The paper discusses how to enhance capable-to-promise by considering demand forecasting and segmentation and applying policies to reserve capacity for high-revenue and strategic customers. 1 - Two-Echelon Deteriorating Inventory System with Limited Capacity Hui-Ming Wee, Professor, Chung Yuan Christian University, IE Dept, Chung Yuan University, Chungli, Chungli, 320, Taiwan, wee@cycu.edu.tw, Jonas Yu, Ch Chou 3 - Estimation Procedures in Supply Chains: Inventory Management Jack Hayya, Professor Emeritus, Penn State University, 303 Beam bldg, University Park, PA, 16802, United States, jch@psu.edu, Stephen Disney, Terry Harrison, Dean Chatfield, Jeon Kim In current competitive market environment, collaboration in developing strategies is vital to reduce the overall cost of an enterprise. The study considers the case of limited capacity where the excess stock is held in a rented warehouse (which is more expensive) whenever the storage capacity of the company warehouse is insufficient. A numerical example of two-echelon deteriorating inventory system is developed to derive the economic ordering policy. Subtle differences in estimation or forecasting procedures produce dramatically different parameter estimates in inventory management procedures in supply chains. We show, for example, that determining when to introduce estimates of lead-times in the calculation of the variance of demand during lead-time can give dramatically different safety stocks and order-up-to-levels. Also, calculations of supply chain turbulence using a firewalled two-echelon analysis differs markedly from an analysis that considers a k-echelon analysis as a whole, k > 2. For the latter exhibits a cascading phenomenon as occurred in Summer 2003 in the electrical grid of the Eastern United States and Ontario. Our research compares our results to those in the recent literature and shows how superficially equivalent estimation procedures can result in remarkably different scenarios. 2 - Inventory Evaluation and Product Slate Management in LargeScale Continuous Process Industries David Cooke, PhD Candidate, Haskayne School of Business, University of Calgary, 2500 University Dr NW, Calgary, AB, T2N 1N4, Canada, dlcooke@ucalgary.ca, Thomas Rohleder Production planners at a large-scale continuous processing plant must consider the effects of sequence-dependent off-grade production and production-rate penalties, as well as inventory holding costs and capacity/service constraints. We call this the continuous economic lot-sizing and scheduling problem (CELSP). We present a formulation that addresses the particular aspects of the CELSP and apply the proposed mathematical modeling approach to several plants of a chemical processing company. 4 - Virtual Distribution Systems: Review and a Proposed Integrated Model with Research Initiatives Bernard Cheung, Adjunct Professor, Department Math. & Industrial Engineering, Ecole Polytechnique de Montréal, Campus de l’Université de Montréal, 2500, Chemin de Polytechnique, Montréal, QC, H3C3a7, Canada, bernard.cheung@gerad.ca, Eric Ngai 3 - Multi-Constrained Multi-Item Inventory Systems with All-Units Discounts John Moussourakis, Rider University, 2083 Lawrenceville Road, Lawrenceville, NJ, 08648, United States, moussourakis@rider.edu, Cengiz Haksever In this article, we give a comprehensive review of how classical supply chain models evolve with advances in information technology. To show a possible solution to meet this present-day challenge, we propose a Virtual Distribution System for suppliers to use in planning and the distribution of goods to customers over the entire region who often demand that the products they order be delivered promptly to their preferred destinations. Determining order quantities in multi-item inventory systems is based mostly on a fixed or an independent cycle approach, neither of which outperforms the other at all times. In this paper, we examine a model that suggests which of the two approaches is most cost-effective in the presence of a number of resource limitations and all-units discounts. 5 - Inventory Placement Problem For A Capacitated Supply Chain Chia-Shin Chung, Professor, Cleveland State University, 1860 E.18th Street, Cleveland, OH, 44114, United States, c.chung@csuohio.edu, James Flynn, Piotr Stalinski 4 - Emergency Supply in a Two-Echelon Inventory System Jian Kuai, National University of Singapore, MSc. Program, NUS Business School, No. 1, Business Link, Singapore, 117592, Singapore, g0202126@nus.edu.sg, Mabel Chou, Edwin Romeijn Consider the inventory placement problem in a capacitated supply chain facing a random demand of a short season. Demand can be satisfied from any stage. All unsatisfied demand is lost. Because of delays, only a fraction of demand at a stage will wait for shipments. There is a fixed cost for placing positive stocks at a stage. The goal is to maximize the probability of achieving a budgeted profit level. We characterize properties of optimal solutions and develop an algorithm for computing it. We consider a two-echelon inventory system. Each retailer faces a stochastic demand and has an emergency supply option. We derive the optimal ordering policy for the special case with only one retailer. We also consider two settings with multiple retailers: incomplete and complete demand information for the emergency supply decisions. Under the first setting, we find an iterative method to obtain the optimal solution. Under the second setting, we have shown the convexity of the cost function. ■ WA08 5 - Optimality & Nonoptimality of the Base-stock Policy in Inventory Problems w/Multiple Delivery Modes Suresh Sethi, Ashbel Smith Professor and Director of C4ISN, University of Texas at Dallas, School of Management, SM30, P.O. Box 830688, Richardson, TX, 75083-0688, United States, sethi@utdallas.edu, Qi Feng, Guillermo Gallego, Houmin Yan, Hanqin Zhang Donald Cameron Hall- DCH300N Urban Freight Transportation Sponsor: Transportation and Logistics (Joint Sponsored/Invited) Sponsored Session Chair: Angelica Lozano, Researcher, Universidad Nacional Autonoma de Mexico, Apdo Postal 70-472, Coyoacan, Mexico City, 04510, Mexico, ALozanoC@iingen.unam.mx We present a periodic review inventory model with multiple delivery modes and demand forecast updates. We generalize the notion of the base-stock policy for the model. Base-stock policies are optimal for the fastest two modes. We provide simple counter examples to show that the base stock policies are not optimal for 97 WA09 CORS / INFORMS INTERNATIONAL— 2004 1 - Visions for City Logistics Eiichi Taniguchi, Professor, Kyoto University, Department of Urban Management, Kyoto University, Yoshidahonmachi, Sakyoku, Kyoto, JP, 606-8501, Japan, taniguchi@kiban.kuciv.kyoto-u.ac.jp ual success will be a careful balance of revenue management, marketing, and efficient operations. 4 - Yield Management in a Hotel Chain Ahmet Satir, Professor, Concordia University, John Molson School of Business, Montréal, PQ, H3G 1M8, Canada, ats@vax2.concordia.ca, Jean-Francois Sanchez This paper presents visions for city logistics. City logistics is the process to generate efficient and environmentally friendly urban freight transport systems. Mobility, sustainability and liveability are three important targets to be considered in city logistics. Intelligent Transport Systems can play an important role for decreasing total costs of delivery as well as alleviating congestion on urban road network and reducing negative impacts on the environment in urban areas. Organizational and technical aspects of yield management are discussed for a hotel chain. Reservation modes used are presented. Performance measures in the context of yield management are defined to study the impact of reservation modes. Benefits for the hotel chain of using yield management practices are discussed. 2 - Short-term Fleet Operation Planning in a Two-tier City Logistics System Teodor Gabriel Crainic, Professor, Département management et technologie, Université du Québec à Montréal, C.P. 6192, Succursale Centre-ville, Montréal (QC), H3C 4R2, Canada, theo@crt.umontreal.ca, Nicoletta Ricciardi, Giovanni Storchi ■ WA10 Donald Cameron Hall- DCH303N Public- and Private-Sector Facility Location Sponsor: Location Analysis Sponsored Session Two-tier city logistics systems involve intermodal platforms and satellites within the city where cargo is transferred to energy-efficient “small” city-freighters for final delivery. We focuss on the short-term planning of operations. Following a brief presentation of the model for the entire system, we focuss on the problem of planning the operations of the fleet of city-freighters. Modeling and algorithmic challenges and development avenues are presented and disussed. Chair: Michael Johnson, Assistant Professor, Carnegie Mellon University, 5000 Forbes Ave., 2107C Hamburg Hall, Pittsburgh, PA, 15213-3890, United States, johnson2@andrew.cmu.edu 1 - One Facility Min-Max Location with Block Distances Lin Dearing, Professor, Department of Mathematical Sciences, Clemson University, O-103 Martin Hall, Box 340975, Clemson, SC, 29634-0975, United States, pmdrn@CLEMSON.EDU, Phantipa Thipwiwatpotjana 3 - Bases for a Freight Transportation Program for the Metropolitan Zone Of Mexico City Angelica Lozano, Researcher, Universidad Nacional Autonoma de Mexico, Apdo Postal 70-472, Coyoacan, Mexico City, 04510, Mexico, ALozanoC@iingen.unam.mx, Juan Pablo Antun One facility min-max location problems in R^n using block distance are analyzed using the LP formulations of Ward and Wendell. Geometrical interpretations of the LP formulations provide a dual based algorithm with extensions to Euclidean distance. This presentation shows recent results of four important parts of a Freight Transportation Program, which is been developed for the Metropolitan Zone of Mexico City (MZMC). The four parts are: 1) a Base Origin-Destination (O-D) Matrix for Freight Transportation; 2) the main Metropolitan Freight Transportation Corridors; 3) the bases for a policy for the development of Logistic Platforms; and 4) a Geographic Information System (GIS) for the freight transportation system of the MZMC. 2 - Optimum Positioning of Base Stations in a Mobile Wireless Network with Stochastic Demand Robert Aboolian, Assistant Professor, California State University San Marcos, College of Business Administration, San Marcos, CA, 92096, United States, raboolia@csusm.edu, Sheldon Lou ■ WA09 Location of base stations in a wireless network, have a significant role on the performance of the network. We will formulate a set of models which will optimize the location of base stations for cellular radio networks assuming a stochastic demand. Donald Cameron Hall- DCH301N Revenue Management/Pricing Contributed Session 3 - Location of Fire Stations in a Fiscally Constrained Environment Amy Wendholt, Master’s Candidate, H. John Heinz III School of Public Policy and Management, Carnegie Mellon University, 5000 Forbes Ave., Pittsburgh, PA, 15213-3890, United States, awendhol@andrew.cmu.edu, Michael Johnson Chair: Ahmet Satir, Professor, Concordia University, John Molson School of Business, Montréal, PQ, H3G 1M8, Canada, ats@vax2.concordia.ca 1 - The Effects of Consumer Behavior on Optimal Booking Limits Sang Won Kim, PhD Candidate, Richard Ivey School of Business, 1151 Richmond Street North, University of Western Ontario, London, ON, N6A 3K7, Canada, swkim@ivey.uwo.ca, John Wilson We develop planning models based on set-covering and maximum-covering models to identify the location and type of fire stations to meet service needs at minimum cost. Safety considerations result in multiple-coverage constraints. Computational results indicate significant potential savings as compared to current service provision strategies. We address computational considerations and data aggregation errors associated with alternative formulations. With the increasing focus in decision making systems, Revenue Management is an area which has received a great deal of interest in recent years. Consumers are being aware of strategies used by airlines to set prices. We investigate how an airline company should adapt its strategy for deciding booking limits if customers behave strategically and sometimes postpone purchasing in the hope that a cheaper ticket will become available. 4 - Planning Models for the Provision of Affordable Housing Michael Johnson, Assistant Professor, Carnegie Mellon University, 5000 Forbes Ave., 2107C Hamburg Hall, Pittsburgh, PA, 152133890, United States, johnson2@andrew.cmu.edu 2 - The Impact of Imperfect “Fences” on Revenues under Aggressive Revenue Management Michael Zhang, Ivey School of Business, University of Western Ontario, London, ON, N6A 3K7, Canada, mzhang@ivey.uwo.ca This paper presents multi-objective math optimization models that identify the location and size of rental and owner-occupied housing developments for lowincome families. These models balance need versus availability, and benefits and costs of affordable housing. Current results focus on tradeoffs between efficiency and equity measures and computational challenges for alternative model formulations, using on more realistic estimates of structural parameters than have been previously available. Market segmentation is a key strategic element in the practice of Revenue Management. After being identified, market segments should be kept separate to prevent spillover from high priced segments to low priced segments. Tools to restrict customer migration across segments are referred to as “fences”. We investigate the impact when a fence does not perfectly isolate the customer segments, and characterize the structure of optimal fences when demand is stochastic and a function of prices. ■ WA11 Donald Cameron Hall- DCH305N 3 - Revenue Management from a “Low Cost” Company’s Perspective Montgomery Blair, Director Of Science, Dollar Thrifty Automotive Group, Inc., 5330 East 31st Street, CIMS 7155, Tulsa, OK, 74135, United States, montgomery.blair@dtag.com Reverse Logistics Network Design Cluster: Reverse Logistics Invited Session Chair: Vedat Verter, Associate Professor, McGill University, 1001 Sherbrooke Street W., Montréal, PQ, H3A 1G5, Canada, Vedat.Verter@mcgill.ca There is growing interest in the “low cost” business model, but how does revenue management fit with this? This presentation will discuss RM and pricing from a low-cost company’s perspective in the rental car industry. Specifically, Dollar Thrifty Automotive Group, a Fortune 1,000 company, has posted continuous annual profits while several competitors went bankrupt. A key to the contin- 1 - Hierarchical Planning of Reverse Logistics Networks: Application to the Case of Direct Reuse Zhiqiang Lu,Département d’Automatique et Productique, Ecole 98 CORS / INFORMS INTERNATIONAL — 2004 des Mines de Nantes, La Chantrerie, 4 rue Alfred Kastler, BP 20722, 44307 Nantes cedex 3, France, Zhiqiang.Lu@emn.fr WA15 States, hpsimao@princeton.edu, Warren Powell, Jeff Day We use informational decomposition, approximate dynamic programming and hierarchichal data aggregation, combined in an optimizing simulator, to solve the problem of dynamically allocating resources in large transportation networks. From this approach, we can estimate the marginal value of resources in the system. We report the results of numerical experiments designed to verify the accuracy of these values in the prediction of changes in the objective function. After a brief introduction to the basic concepts of reverse logistics, we present the principles of hierarchical planning and the application to the case of a logistics system including reverse flows: direct reuse. In the context of the hierarchical planning framework, we present the strategic model consisting of finding the best location for the production facilities, and the tactical model to optimize flows while taking into account the necessary correlation with the strategic decisions. 5 - Timetable Synchronization for Mass Transit Janny Leung, Professor, The Chinese University of Hong Kong, Systems Engineering & Eng. Mgt. Department, CUHK, Shatin, NT, Hong Kong, janny@se.cuhk.edu.hk, Rachel Wong 2 - Improving a Reverse Supply Chain using Designed Experiments Edmund Prater, United States, eprater@uta.edu, Markus Biehl, Matthew Realff Reverse Logistics (RL) is different from forward logistics in that it is more complex and prone to a higher degree of uncertainty. Tools typically used for designing forward supply chains are not suitable for defining reverse supply chains. In this article, we identify factors critical to the design of a carpet reverse supply chain, including the number of collection centers and the type of forecasting system. We then simulate the RL supply chain and use a designed experiment to analyze the impact of the design factors as well as environmental factors impacting the operational performance of the RL system. In public transport systems, passengers would like to interchange between different lines with minimal delay. We propose a mixed-integer-programming model for designing timetables to minimize interchange waiting-times of all passengers. A novelty in our formulation is the correct representation of waiting-times for the “next available” train, using binary variables. Preliminary numerical results indicate significant improvements in synchronization over current practice. ■ WA15 3 - Retail-Collection Network Design under Deposit-Refund Vedat Verter, Associate Professor, McGill University, 1001 Sherbrooke Street W., Montréal, PQ, H3A 1G5, Canada, Vedat.Verter@mcgill.ca, Rico Wojanowski, Tamer Boyaci Donald Cameron Hall- DCH12S E-Commerce I Contributed Session We present a continuous modeling framework for designing a drop-off facility network and determining the sales price that maximize the firm’s profit under a given deposit-refund. The customers’ preferences with regards to purchasing and returning the product are incorporated via a discrete choice model with stochastic utilities. Through parametric analyses, we determine the net value that can be recovered from a returned product as a key driver for the firm to voluntarily engage in collection. Chair: Miao Zhang, Msc Student, National University of Singapore, Department of Decision Sciences, Singapore, Singapore, g0201927@nus.edu.sg 1 - Consumers’ Decision Making in Online Auctions: A Neural Network Approach Ying Lan, University of Mississippi, PO Box 1342, Department of Economics, University, MS, 38677, United States, jwhou@olemiss.edu, Jianwei Hou ■ WA12 Donald Cameron Hall- DCH307N One primary advantage of neural networks over statistical models is that NNs can automatically estimate whatever function forms that best fit the data. Because of this property, NNs are used to analyze consumers’ online bidding behaviors. We begin with basic concepts of NNs and statistical models. Based on the online bidding date, we then compare NNs to some statistical models on the basis of the prediction accuracy and error measures. Finally, we summarize the advantages and limitations of NNs. Routing Contributed Session Chair: Janny Leung, Professor, The Chinese University of Hong Kong, Systems Engineering & Eng. Mgt. Department, CUHK, Shatin, NT, Hong Kong, janny@se.cuhk.edu.hk 1 - A Freight Route Planner for Intermodal Transportation Michael Pedersen, Ph.D. Student, CTT, Tech. University of Denmark, DTU, Bygning 115, Kgs. Lyngby, 2300, Denmark, mbp@ctt.dtu.dk, Per Homann Jespersen, Jesper Aastrup 2 - Fusing Old And New Economies: The Important Role Of Operations In Retail E-Commerce Patricia Nemetz, Professor, Eastern Washington University, 668 North Riverpoint Boulevard, Suite A, Spokane, WA, 99109, United States, pnemetzmills@ewu.edu This talk presents the development of a freight route planner for intermodal transportation. Based on cooperation with the rail operator Railion Danmark we have identified organizational barriers to the establishment of a competitive combined transport system with rail freight operators as the intermodal integrator. We shall present the concepts behind the design of the route planner, the levels of implementation and the methodology used. The “old economy” practices so important to operations may now take on more importance as they fuse with the “new economy” information revolution. The purpose of this study is to suggest possible determinants of e-commerce success by exploring the physical operations of several e-commerce enterprises, presenting a taxonomy of e-commerce operations strategies, and discussing issues to consider when making operations decision choices. 2 - Evaluation Framework and Solution Strategies for Traveling Salesman Problems Under Real-Time Info Ta-Yin Hu, Professor, Department of Traffic and Transportation Engineering, 100 Wenhua Road, Feng Chia University, Taichung, 407, Taiwan, tyhu@fcu.edu.tw, Peter Chung 3 - Complementary Commercial Communicator System (3COMSys): A New e-Commerce Service Mahdi Jalili-Kharaajoo, Student, Young Resaerchers Club, Azad University, tehran, Iran, P.O. Box: 14395/1355, tehran, 14395, Iran, mahdijalili@ece.ut.ac.ir This research proposes an evaluation framework for dynamic vehicle routings problems, and examines possible solution approaches. Possible TSP solution strategies under real-time information are discussed, and two approaches are considered, meta-heuristic approach and mathematical programming based approach. The first approach primarily follows SVRP methods to develop mathematic problems. In the heuristic approach, two methods, including a saving method and a tabu search method, are proposed. In this paper we present a new complementary method, help businesses to better identify their customers’ favorites and necessities. This service is an interactive multi-agent customer-to-business and customer relationship management e-service, which is offered with a pay-perperformance format, directly originated through commercial sites or in collaboration with search engines and web directories. 4 - Adoption of Business-to-Business Electronic Commerce in China Miao Zhang, Msc Student, National University of Singapore, Department of Decision Sciences, Singapore, Singapore, g0201927@nus.edu.sg, Thompson Teo, Mark Goh 3 - Multiobjective Optimization of the Vehicle Assignment Problem Jacek Zak, Assistant Professor, Poznan University of Technology, 3 Piotrowo Street, Poznan, 60-965, Poland, jzak@uclink.berkeley.edu The advent of Internet-based business-to-business electronic commerce (B2B-EC) has brought about many benefits to global enterprises. This study examines B2BEC adoption in mainland China. Based on previous IS adoption research and institutional theory, this study proposes a model incorporating three factors: perceived benefits, cognitive constraints and institutional pressures as main predictors of B2B-EC adoption intention. A vehicle assignment problem is formulated as a multiobjective combinatorial optimization problem. Contradictory interests of passengers and company’s shareholders are considered. A two-phase solution procedure is proposed. In the first phase a multiple objective hybrid metaheuristic procedure is used to generate a sample of Pareto-optimal solutions. In the second phase an interactive, multicriteria method is utilized, to review and evaluate this sample and find a compromise solution. 4 - Predicting the Value of Resources in Large Transportation Networks Hugo Simao, Research Staff, CASTLE Lab - Princeton University, ORFE Department - EQUAD E-316, Princeton, NJ, 08540, United 99 WA16 CORS / INFORMS INTERNATIONAL— 2004 ■ WA16 ■ WA18 Donald Cameron Hall- DCH17S Donald Cameron Hall- DCH25S Data Mining II Intelligent Systems Contributed Session Contributed Session Chair: Abhijit Sanyal, Independent Consultant, Sancorp, 3 North Street, Lexington, MA, 02420, United States, asanyal@rcn.com Chair: Robin Burk, Instructor, United States Military Academy, 413 Mahan Hall, West Point, NY, 10996, United States, Robin.Burk@usma.edu 1 - Applications of Data, Web and Text Mining in Forest Products Industry Irina Neaga, PostDoctoral Researcher, Forac Research Consortium, University Laval, Pavillon Pouliot, Québec, Qc, G1K 7P4, Canada, Irina.Elena-Neaga@forac.ulaval.ca, Jean-Marc Frayret, Sophie D’Amours 1 - In-Process Estimation of Radial Immersion Angle using Cutting Force in Face Milling Deokki Choi, Associate Professor, Kangung National University, Department of Precision Mechanical Eng., 123, Jibyeong Dong, Kangnung, KW, 210-702, South Korea, choidk@kangnung.ac.kr, Seong Jun Kim, Won Tae Kwon Data, web and text mining are emerging areas for intelligent processing of large amounts of data included in databases, web server logs, cookies and text files. The related complex algorithms, methods and techniques have been extensively researched as statistical, and computer science areas. However there is still a need to approach the application of data, web and text mining in several engineering areas such as forest products industry. This research deals with these aspects. An on-line estimation method of the radial immersion angle using cutting force is presented. The ratio of cutting forces in feed and cross-feed directions acting on the single tooth is a function of the immersion angle and the ratio of radial to tangential cutting force. It is found that the ratio of radial to tangential cutting force is not affected by cutting conditions. Consequently, using the measured cutting force and predetermined ratio, the radial immersion ratio is estimated in process. 2 - Application of Data Mining Techniques in University Timetabling Hamid Maydanchi, Senior SAP Consultant, Manchester Metropolitan University, 1 Brabant Rd, Cheadle Hulme, Stockport, SK8 7AU, United Kingdom, hamid@maydanchi.com 2 - Intellectualized Design Techniques for Product Maintainability in China Quan Shi, Shiquan, Maintenance Engneering Institute, No. 97, West Heping Road, Shijiazhuang, Mechanical Engineering College, Shijiazhuang, 050003, China, shiquan@heinfo.net, Gang Wei The goal of the timetabling data mining project at the UMIST is to develop a system to enable better decision support applications. This paper is a summary of the current functionality and architecture of the timetabling data mining System. Our overall approach has been to identify basic data mining operations that cut across applications and develop fast, scalable algorithms for their execution. Maintainability is a critical quality attribute for production. Based upon the two guideline lecture namely “maintainability design criterion” and “complication of maintainability design technique”, an intellectualized architecture for combining case-based reasoning, rule-based reasoning and data mining is discussed in this paper by analyzing maintainability design procedure to the thought of our solving the maintainability design problem. 3 - Estimating the Profitability Risk in a Customer Portfolio using a Monte Carlo Approach Abhijit Sanyal, Independent Consultant, Sancorp, 3 North Street, Lexington, MA, 02420, United States, asanyal@rcn.com 3 - Weblogs as Dynamic Value Models Robin Burk, Instructor, United States Military Academy, 413 Mahan Hall, West Point, NY, 10996, United States, Robin.Burk@usma.edu A firm’s customers are the intangible assets of the firm and can be viewed as a portfolio of assets that needs to be actively valued, measured and subsequently managed to achieve the profitability goals of the firm. Using simulation methodology from financial credit risk management and Monte Carlo techniques I will illustrate alternative and potentially new ways to arrive at an understanding of customer value which is usually the first step for a typical CRM consulting project. We examine weblogs as value models associated with information gathered from remote, potentially unreliable and often anonymous sources. By identifying how bloggers dynamically assign measures of utility, reliability and relevance to information, we explore principles that may be of use in constructing intelligent agents which associate measures of value with automated data and utilize those value models in automated decisionmaking. ■ WA17 Donald Cameron Hall- DCH24S Analytic Hierarchy Process ■ WA19 Contributed Session Donald Cameron Hall- DCH28S Chair: Mischel Carmen Neyra Belderrain, Instituto Tecnologico de Aeronautica, Caixa Postal 6022 - CTA, Sao Jose dos Campos, SP, 12231-970, Brazil, carmen@mec.ita.br Military Applications - OR Support to Land Forces Sponsor: Military Applications Society Sponsored Session 1 - Singular Value Decomposition (SVD) in AHP Saul I. Gass, Professor Emeritus, Robert H. Smith School of Business, University of Maryland, College Park, MD, 20854, United States, sgass@rhsmith.umd.edu, Tamas Rapcsak Chair: Lise Arseneau, Canada, arseneau@ora.dnd.ca 1 - Operational Research Support to NATO SCI-095 Task Group “Enhancement of Camouflage Assessment Techni Lise Arseneau, Canada, arseneau@ora.dnd.ca Using the SVD and the theory of low rank approximations of a (pairwise comparison) matrix, we offer a new approach for determining the associated weights. We prove that the rank one left and right singular vectors yield theoretically justified weights. We suggest the Frobenius norm as an inconsistency measure. The NATO SCI-095 Task Group “Enhancement of Camouflage Assessment Techniques” was established in February 2001. One of their tasks was to compare the results obtained from field trials with those obtained from photosimulation experiments. This presentation will explain several camouflage assessment techniques and describe the statistical procedures used to analyze the data. The comparison between the results from the Camouflage Assessment Trial and the photosimulation experiment will be given. 2 - Multicriteria Model for Prioritizing Projects at Aeronautical Industry Mischel Carmen Neyra Belderrain, Instituto Tecnologico de Aeronautica, Caixa Postal 6022 - CTA, Sao Jose dos Campos, SP, 12231-970, Brazil, carmen@mec.ita.br, Wagner Schneider 2 - OR Support for Canadian Solder Modernization Melanie Bernier, Canada, bernier@ora.dnd.ca Evaluating and prioritizing projects is a complex and unstructured decision problem. Decision-makers must consider a wealth of information concerning cost savings, process enhancement, reliability and implementation among others.The purpose of this research is to use Analytic Hierarchy Process.This method is applied to establish project priorities within an aeronautical industry. A Decision Analysis procedure for establishing project priorities, based on AHP, is proposed. Technological growth is changing not only military operations, but has led to many studies on soldier modernization to identify effective technologies that will enhance the operational performance of the dismounted solder under a range of expected mission/task scenarios and conditions of use. We will examine how an interactive wargame can be used to overcome this challenge and provide valuable insight on the utility of the technologies and combinations thereof. 100 CORS / INFORMS INTERNATIONAL — 2004 ■ WA21 WA26 tion modeling approaches that satisfy the efficiency and feasibility criteria, but are ill equipped to incorporate uncertainty inherent in planning inputs (eg. forest inventories, market demands, etc). We present a framework to assess the robustness of an operational plan using a stochastic model that simulates the implementation process. Pro. Devel. Centre- PDC102 Accessibility and Quality of Health Services in Latin America 3 - A Simulation Model for the Growth and Suppression of Large Forest Fires in Ontario Justin Podur, PhD Candidate, University of Toronto Faculty of Forestry, Faculty of Forestry, 33 Willcocks St, Toronto, ON, M5S 3B3, Canada, justin.podur@utoronto.ca, David Martell Sponsor: Health Applications/Healthcare (Joint Sponsored/Invited) Sponsored Session Chair: Mario Jorge Ferreira de Oliveira, Professor, Federal University of Rio de Janeiro, Caixa Postal 68507, Rio de Janeiro, RJ, 21945-970, Brazil, mario_jo@PEP.UFRJ.BR A fire that escapes initial attack can become a large project fire. There are numerous simulation models of initial attack systems that have been studied in more detail than project fires. We describe a model for the suppression of project fires. Its inputs are weather, fuel and fire suppression resource data and it predicts annual area burned. The model can be used for simulating the effect of different suppression policies and weather scenarios on annual area burned. 1 - A Multi-User Simulation of an Emergency Admission System of a Brazilian Public Hospital Adriana Bandeira Moraes, PhD Student, Federal University of Rio de Janeiro, Caixa Postal 68507, Rio de Janeiro, RJ, 21945-970, United States, Adrianabandeira@ibge.gov.br, M.J.F. De Oliveira ■ WA25 The objective of this paper is to contribute towards the improvement of the admission system of a major emergency hospital in Rio de Janeiro. A 3D multiuser simulation of a public hospital queue is developed in a virtual space, where users have the chance to interact with each other. One expects that this exercise convey a contribution to furthering understanding of this chronic and complex problem that occurs in Brazilian hospitals. Pro. Devel. Centre- PDC202 Statistics/Quality Control Contributed Session Chair: Hancong Liu, Postdoctoral Fellow, University of Alberta, Department of Chem. and Matt. Engg, U. of A., Edmonton, AB, T6H5B5, Canada, hancong@ualberta.ca 2 - The Asymmetric Geographical Aspects of the Brazilian Supplemental Health Assistance System Anibal Ignacio, PhD Student, Federal University of Rio de Janeiro, Caixa Postal 68507, Rio de Janeiro, RJ, 21945-970, Brazil, avilcap@pep.ufrj.br, Elton Fernandes, Lea Maria Dantas Sampaio, Heloisa Márcia Pires Capobianco 1 - A Joint SPC Monitoring Scheme for APC-Controlled Processes Wei Jiang, Assistant Professor, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ, 07030, United States, wjiang@stevens.edu The health services assistance in Brazil is either public or private. Among the private services are the health supplemental companies. This article discusses the state of the supplemental assistance at municipal and state levels by using a geographic information system and socioeconomic indicators. The results reveal a hard geographical asymmetry on the health supplementary assistance system in the country. SPC techniques have been proposed to integrate with APC schemes for continuous quality improvement. To monitor an APC-controlled process, this paper proposes a univariate approach to combine the information provided by both process output and input control action based on a UMP test. The proposed control chart can be customized for monitoring an linearly controlled process with an optimal efficiency in transient or steady state. 3 - An Integrated Information System to the Management of Cancer treatment Antonio Augusto Gonçalves, Systems Manager, Instituto Nacional do Câncer, Praçda da Cruz Vermelha 23 third floor, Rio de Janeiro, RJ, Brazil, augusto@inca.gov.br, M.J.F. De Oliveira, Altino Leitão 2 - Robust Parameter Design of Machining Process with Multiple Performance Variables Seong Jun Kim, Associate Professor, Kangnung National University, Department of Industrial Engineering, 123, Jibyeon Dong, Gangneung, KW, 210-702, South Korea, sjkim@kangnung.ac.kr, Deokki Choi This paper describes the development and the implementation of an integrated information system designed for the Brazilian National Cancer Institute. The system provides secure access to key information about treatment process and intends to bridge the gap between the doctor, the manager and the patient. The goal is to provide, in real time, an accurate disease status and to evaluate the treatment flow process. This system is proven to be a useful tool for decisionmaking. Taguchi’s robust parameter design as a method for quality improvement has received much attention from industrial fields over the last twenty years. But most of works on robust parameter design have been done for the case of single performance variable. It is not difficult to meet the problem where multiple performance variables should be considered. In this paper some techniques to deal with such situations are presented. An illustration is also given by machining process example. ■ WA23 Pro. Devel. Centre- PDC104 3 - Statistical Monitoring of Multirate Sampled Data Systems Hancong Liu, Postdoctoral Fellow, University of Alberta, Department of Chem. and Matt. Engg, U. of A., Edmonton, AB, T6H5B5, Canada, hancong@ualberta.ca, Sirish Shah Forest Management Planning Cluster: OR in Forestry/ENRE-Forestry (Joint Sponsored/Invited) Invited Session In recent years both Statistical Process Control for auto-correlated processes and multirate sampled data process control have received a great deal of attention, due in part to the increasing prevalence of autocorrelated and multirate sampled data. We propose a statistical monitoring scheme for multirate sampled data for dynamic systems with naturally auto-correlated data. The scheme involves monitoring using Hotelling’s T2 statistic for a multivariate vector formed by the lifting technique. Chair: David Martell, Professor, University of Toronto, Faculty of Forestry, 33 Willcocks Street, Toronto, ON, M5S 3B3, Canada, martell@smokey.forestry.utoronto.ca 1 - Clustering in Forest Management Zone Design with a Tabu Search Algorithm Emina Krcmar, University of British Columbia, Forest Economics and Policy Analysis, Vancouver, BC, Canada, ekrcmar@interchange.ubc.ca, G. Cornelis van Kooten, Snezana Mitrovic-Minic, Ilan Vertinsky ■ WA26 Pro. Devel. Centre- PDC301 Negotiation Support Systems Forest zoning involves spatial segregation between production and protection. Large non-fragmented forest reserves are ecologically desirable and larger clusters of timber production areas are considered economically efficient. An integer programming formulation of the forest management zone design problem will be presented that explicitly addresses clustering of both timber production and forest reserves. Performance of a tabu search algorithm for various clustering methods will be discussed. Sponsor: Group Decision and Negotiation Sponsored Session Chair: Mareike Schoop, RWTH Aachen, Informatik V (Information Systems), Ahornstr. 55, Aachen, 52056, Germany, schoop@informatik.rwth-aachen.de 2 - Analysis of Robustness of Forest Operational Plans Jason Myers, MSC Candidate, University of New Brunswick, Faculty of Forestry, PO Box 44555, Fredericton, NB, E3B6C2, Canada, l58jz@unb.ca, Evelyn Richards 1 - Challenges Facing the Development of Negotiation Support Systems for Non-Monolithic Parties Willy Picard, Department of Information Technology, The Poznan University of Economics, Mansfelda 4, Poznan, 60-854, Poland, picard@kti.ae.poznan.pl Forest operations management aims to produce plans that are feasible, efficient and robust. Operational planners have relied on various mathematical optimiza- 101 WB01 CORS / INFORMS INTERNATIONAL— 2004 Research Department, Glasgow Hall 211, Monterey, CA, 93943, United States, RRosenthal@nps.navy.mil Negotiation support systems traditionally assume that parties involved in the negotiation process are monolithic, i.e. each party is a unitary decisional entity. In this paper, we aim at identifying the challenges facing the development of negotiation support systems for non-monolithic parties. The implications of the introduction of non-monolithic parties are studied in three areas: data structure, negotiation protocols, and analysis of the negotiation process. Practical optimization applications continue to be bigger, more complex, closer to real-time, less dependent on OR gurus, and more depended upon by organizations of all kinds. We have many great researchers and commercial implementers to thank for the remarkable advances in computers and solvers that make this possible, but there is another big part of the story, which is sometimes overlooked: good modeling practice. This talk will recommend some keys to successful optimization modeling. 2 - Content, Process, and Interaction Analysis of Web-based Negotiations Sabine Koeszegi, University of Vienna, Bruennerstrasse 72, Vienna, A, 1210, Austria, sabine.koeszegi@univie.ac.at, Katharina Srnka, Eva-Maria Pesendorfer, Gregory Kersten 2 - Problem Solving in Airline Operations: Marrying End-user Modeling and Large Scale Optimization Stefan Karisch, Carmen Systems, 1800 McGill College Ave., Ste. 2800, Montréal, H3A 3J6, Canada, stefan.karisch@carmensystems.com, Anders Forsman This study analyzes web-based negotiations conducted with two e-negotiation platforms which differ considerably with regard to implemented support features. By applying content analysis we (1) identify particularities of negotiation processes of each system, (2) analyze the impact of the support system on negotiation behavior, (3) compare negotiation behavior with regard to user characteristics, and (4) identify negotiation behavior and/or patterns, which increase the probability of agreements. Airline planning and operations problems are complex and require detailed and accurate modeling to be solved efficiently and effectively. The challenge for optimization systems is to be able to adapt timely to a changing environment and to model and solve the changed problems accurately. We describe a special purpose modeling system and its application in airline planning and operations. We give concrete examples of this successful marriage of end-user modeling and large scale optimization. 3 - Integrating Communication and Decision Support for Effective Negotiation Support Systems Mareike Schoop, RWTH Aachen, Informatik V (Information Systems), Ahornstr. 55, Aachen, 52056, Germany, schoop@informatik.rwth-aachen.de, Frank Koehne, Dirk Staskiewicz 3 - Optimization in Distributed Applications: Provide Web-Based Services with XML/SOAP Bjarni Kristjansson, President, Maximal Software, Inc., 2111 Wilson Boulevard, Suite 700, Arlington, VA, 22201, United States, bjarni@maximalsoftware.com Negotiation Support Systems (NSSs) support negotiators in complex negotiations. On the one hand, there should be sufficient flexibility for the negotiators to express rich communicative content. Thus, communication management is essential. On the other hand, negotiators require decision support in complex negotiations. We argue that there must be an integration of communication and decision support in order to design effective NSSs. Our arguments will be exemplified using the NSS Negoisst. In this presentation we will explore how innovative new technologies, such as XML and SOAP, are creating new opportunities for solving optimization problems within distributed applications. We will demonstrate how optimization and modeling services can be packaged into component libraries based on industry standards such as ActiveX/Com and JavaBeans. This allows seamless integration of optimization into easily maintainable applications. 4 - Negotiating Production and Delivery Schedules in a Supply Chain Andreas Ernst, Research Scientist, CSIRO Mathematical & Information Sciences, Private Bag 10, Clayton, Vi, 3168, Australia, Andreas.Ernst@cmis.csiro.au, Simon Dunstall, Lam Lam ■ WB03 This talk considers an abstracted version of the following scenario that commonly occurs in supply chains: A manufacturer and a distributor need to agree on the size and timing of orders. We present an attempt to negotiate good schedules that take into account both the manufacturing and trucking limitations without either side having to reveal their internal data and constraints. The negotiation is an iterative process with each party solving scheduling problems to generate and evaluate offers. Max Bell Building- MB252 Wednesday 10:00-11:30 am 1 - A Tensor-Product Approach for Bivariate Cubic L1 Splines Yong Wang, Ph.D. Candidate, North Carolina State University, North Carolina State University, IE Department, Campus Box 7906, Raleigh, NC, 27695-7906, United States, ywang16@eos.ncsu.edu, John Lavery, Shu-Cherng Fang, Yuan-Shin Lee Optimization Techniques II Contributed Session Chair: Anne Liret, Research & Development Scientist, British Telecom / BT Exact - Intelligent Systems Lab, BT France - immeuble Jean Monnet, 11, place des Vosges, Paris, 92061, France, anne.liret@bt.com ■ WB01 Max Bell Building- Auditorium Analyzing Infeasible Optimization Models In this paper, we propose an efficient approximation mechanism, called tensorproduct approach, to generate bivariate cubic L1 splines by using the first order information obtained from corresponding univariate cubic L1 splines. This approach not only produces “good” approximation to the true cubic L1 splines, but also shows its potential for handling large scale problems. Some computational results are presented. Cluster: Tutorials-CORS/INFORMS 2004 Invited Session 1 - Analyzing Infeasible Optimization Models John Chinneck, Professor, Carleton University, Systems & Computer Engineering, 1125 Colonel By Drive, Ottawa, ON, K1S 5B6, Canada, chinneck@sce.carleton.ca 2 - Constraint Programming Models Pawel Radzikowski, The Reference, 177 Main St #108, Fort Lee, United States, pawelr@aol.com Infeasibility is frequent in the early stages of developing a complex optimization model. For linear programs, algorithmic tools that assist in the analysis of infeasibility are well developed, and are available in most commercial LP solvers. The tutorial will focus on these, with the goal of helping modellers make the most effective use of the available tools. In addition, we will briefly explore the state of the art in infeasibility analysis for integer and nonlinear programs, and will also survey how infeasibility analysis algorithms are proving useful in unexpected ways in applications such as data mining and logic programming. Constraints appeared in the seventies as an AI (Artificial Intelligence) technique. Since they are applied in many areas to handle the combinatorial model elements. The solution process under CP adds a loop over the constraints, interactively executing a traditional solution algorithm. The term Constraint Programming (CP) is not applied to methods that use similar approaches but predate AI or were not inspired by it (ex. cutting planes, some mixed LP problems). The discusses uses of CP models. 3 - iSchedule: A Constraint and Heuristic Search-Based Toolkit to Solve Scheduling Applications Anne Liret, Research & Development Scientist, British Telecom / BT Exact - Intelligent Systems Lab, BT France - immeuble Jean Monnet, 11, place des Vosges, Paris, 92061, France, anne.liret@bt.com, Raphael Dorne, Chris Voudouris ■ WB02 Max Bell Building- MB251 Optimization Modeling in Practice I Cluster: Math Programming Invited Session Despite their proven efficiency, metaheuristics often require complete re-engineering to solve new problems. To address this issue, the Optimization Toolkit iOpt provides problem modelling and solving facilities, where a constraint processing supports heuristic search operations. Extending iOpt, the iSchedule toolkit assists non-expert users in modelling scheduling applications. Both have been successfully used by BT to develop efficient solutions in transports, logistics and telecommunications. Chair: Bjarni Kristjansson, President, Maximal Software, Inc., 2111 Wilson Boulevard, Suite 700, Arlington, VA, 22201, United States, bjarni@maximalsoftware.com 1 - Some Keys to Success for Optimization Modeling Rick Rosenthal, Professor, Naval Postgraduate School, Operations 102 CORS / INFORMS INTERNATIONAL — 2004 ■ WB04 WB07 work structure according to our conceptual framework via the calculation of just a few key independent variables. The derived structural equations can be used on an ongoing basis for monitoring the appropriateness of the facility network structure and deciding on structural shifts needed in response to market or environmental changes. Max Bell Building- MB253 Mathematical/Heuristic Optimization Techniques for VLSI CAD Design 3 - A Case Study Investigation of Quality Program usage in Maquiladoras Terri Friel, Associate Professor, Butler University, 4600 Sunset Avenue, Indianapolis, ID, 46260, United States, tfriel@butler.edu Sponsor: Optimization Sponsored Session Chair: Shawki Areibi, Associate Professor, University of Guelph, School of Engineering, Albert Thornborough Building #159, Guelph, On, N1G 2W1, Canada, sareibi@uoguelph.ca Four different maquiladoras in the garment industry of Aguascalientes, Mexico were researched for their usage of quality tools and treatment of employees. Extensive tours were taken as well as 2 hour interviews of the plant managers and quality managers, if they existed. This preliminary study was to develop contacts as well as a foundation for future research in this area. Results and conclusions of quality tool usage in Mexican maquiladoras are presented. 1 - Efficient Optimization Techniques for Low Power Design Shawki Areibi, Associate Professor, University of Guelph, School of Engineering, Albert Thornborough Building #159, Guelph, On, N1G 2W1, Canada, sareibi@uoguelph.ca ■ WB07 Reducing power dissipation is one of the most important issues in VLSI design today. Several heuristic techniques for efficient gate clustering in MTCMOS circuits will be introduced by modeling the problem via Bin-Packing (BP) and SetPartitioning (SP) techniques. Results obtained indicate that our proposed techniques can achieve on average 84\% savings for leakage power and 12\% savings for dynamic power. TransCanada Pavilion- PAV202 Supply Chain Management V Contributed Session Chair: Yue Dai, Ph. D student, Industrial Engineering,NC State University, 3925 #c, Marcom st, Raleigh, NC, 27606, United States, ydai2@eos.ncsu.edu 2 - Congestion Based Models for Combined VLSI Placement and Routing Laleh Behjat, Assistant Professor, University of Calgary, Electrical Engineering, Calgary, AB, T2N 1N4, Canada, laleh@enel.ucalgary.ca 1 - A Diagnostic Analysis Tool for Supply Chain Improvement Bernardo Villarreal, Dr., Universidad de Monterrey, Ave. I. Morones Prieto 4500 Pte., San Pedro Garza Garcia, 66238, Mexico, bvillarreal@udem.edu.mx, Dulce Gonzalez, Pamela Madero In this research, a method based on combined placement and routing of VLSI circuits is presented. First, an initial placement is determined for the cells and a congesting estimation technique is developed to estimate the congested areas in a circuit. Then, heuristic techniques are developed to improve the layout of the circuit by moving the cells from the congested areas to the less congested areas. Supply chain continuous improvement has become a necessary strategy for businesses to attain the required performance level to compete worldwide. This project is concerned with a scheme for supply chain improvement developed for a Mexican company that fabricates and distributes aluminum profiles. The conceptual model is described and applied with particular emphasis in the diagnostic stage. Results of the project are also presented. 3 - An Integer Linear Programming Model for VLSI Partitioning Anthony Vannelli, Professor/Chair, University of Waterloo, electrical and computer engineering, Waterloo, On, Canada, vannelli@cheetah.vlsi.uwaterloo.ca, Dorthy Kucar 2 - A Multi-Product, Multi-Constraint, Single-Period Distribution (MMSD) Model V. Venkata Rao, Professor, Indian Institute of Managememt, Wing - 4 ‘B’, IIMA, Vastrapur, Ahmedabad, 380015, India, vvrao@iimahd.ernet.in, Devanath Tirupati, Satyendra Kumar Very Large Scale Integrated (VLSI) circuits are designed so that the time it takes an electrical signal to travel from one end to another is minimized. In order that electrical signals propagate efficiently from sources to sinks, it is imperative that the constituent parts of the circuit, the cells, be placed on the chip such that the wiring cost is made as small as possible. One such problem involves placing cells that perform related tasks in proximity to one another. If the cells are modelled as vertices and the electrical signals connecting them as edges, then this is known as the partitioning problem. The goal in partitioning is to assign a similar number of vertices to two blocks such that the number of edges with endpoints in both blocks (i.e., the net-cut) is minimized. In our talk, we formulate partitioning as an integer linear program and solve it to optimality, thereby obtaining exact partitioning solutions with fixed vertices for the first time. We pinpoint precisely what it is that makes partitioning NP-hard and show how by intelligently assigning the fixed vertices to blocks, we can simplify the problem considerably. A new integer linear programming model allows us to find vertex assignments that result in the smallest possible net-cut. This paper addresses the inventory allocation and vehicle routing problem of a manufacturing company / central warehouse serving multiple retailers dealing with multiple products. This problem being NP-hard, a multi-stage heuristic method has been developed to solve the model. Each stage is concerned with one of the five sub-problems into which the original problem is decomposed. Various experiments were conducted to test the performance of the heuristic solutions, which were quite encouraging. 3 - Automated Negotiation Based Supply Chain Planning For Distributor-Oriented Supply Chain Bongju Jeong, Associate Professor, Yonsei University, Department of Industrial Systems Eng., 134 Shinchon-dong, Seodaemoon-ku, Seoul, 120749, South Korea, bongju@yonsei.ac.kr, Hosang Jung, Chi-Ghun Lee ■ WB06 TransCanada Pavilion- PAV201 In distributor-oriented supply chain, the distributor has an initiative to make a global supply chain plan. The negotiation between manufacturer and distributor to create the global supply chain plan is based on the restricted communication to keep the independent competitive power of them. We introduce two independent mathematical models for manufacturer and distributor, and then the restricted communication based negotiation procedure for obtaining a global supply chain plan is presented. Global Manufacturing Contributed Session Chair: Terri Friel, Associate Professor, Butler University, 4600 Sunset Avenue, Indianapolis, ID, 46260, United States, tfriel@butler.edu 1 - Academics Weigh in on Lean Production System Hallie Kintner, General Motors, 480-106-359, 30500 mound rd, warren, mi, 48090, United States, hallie.kintner@gm.com, Daniel Reaume, Ningjian Huang 4 - Capacity Allocation with Traditional and Internet Channels Yue Dai, Ph. D student, Industrial Engineering,NC State University, 3925 #c, Marcom st, Raleigh, NC, 27606, United States, ydai2@eos.ncsu.edu, Xiuli Chao, Henry Nuttle, Shu-Cherng Fang In 1990, The Machine that Changed the World predicted lean production would replace mass production as the dominant system for manufacturing. Many academic researchers have examined lean production since the book’s publication. This report examines claims that lean production is new, great, and universally applicable via a systematic review of over 100 articles and books. We find moderate support for the claims of newness and greatness, and counterexamples to the claimed universal applicability. We study a capacity allocation problem for two firms each of which has a local store and an online store and allocates its capacity between its stores. Customers shift among the stores upon encountering a stockout. We consider a single-period model and derive existence and stability conditions for a Nash equilibrium. We then analyze a multi-period model in which each firm decides its total capacity and capacity allocation. A myopic solution is derived and shown to be an equilibrium solution. 2 - Structural Equations Modeling for Designing and Monitoring Strategic International Facility Networks Charles Munson, Assistant Professor, Washington State University, Box 644736, Pullman, WA, 99163, United States, munson@wsu.edu, Panos Kouvelis We develop a structural equations model based on an MIP that captures essential design tradeoffs of global networks. The resulting model classifies a firm’s net- 103 WB10 CORS / INFORMS INTERNATIONAL— 2004 ■ WB08 2 - Improving Port Efficiency using Double Cycling Anne Goodchild, University of California at Berkeley, 945 Ohlone Ave #964, Albany, CA, 94706, United States, anne_g@uclink.berkeley.edu, Carlos Daganzo Donald Cameron Hall- DCH300N Railroad and Highway Transportation of Hazardous Materials Double cycling improves efficiency by unloading and loading a ship simultaneously; using wasted crane moves to transport containers. Double cycling can reduce ship turn-around time through this efficiency improvement. The nature of the double cycling problem is described and, for a given loading-plan, the benefits quantified. The relationship between the benefits of double cycling, and the problem parameters is analyzed using simple formulas and a simulation program. Sponsor: Transportation and Logistics (Joint Sponsored/Invited) Sponsored Session Chair: Manish Verma, Ph.D. Candidate, McGill University, 1001 Sherbrooke Street West, Montréal, PQ, H3A1G5, Canada, manish.verma@mail.mcgill.ca 3 - Integration of Transportation Planning and Execution in Real Time Enterprise Environment Jaehun Jeong, LG CNS, 9F,Prime Tower,Hoehyeondong2ga,Junggu, Seoul, South Korea, jeongjh@lgcns.com, Dong-go Jang, Sangmin Lee, Jaeho Lee, Wontae Seo, Seungryong Lee 1 - Optimal Design of Hazardous Materials Vehicles to Minimize Accident-Caused Releases Christopher P.L Barkan, Associate Professor and Director, Railroad Engineering Program, University of Illinois, 1201 Newmark Engineering Laboratory, MC-250, 205 N. Mathews Ave., Urbana, IL, 61801, United States, cbarkan@uiuc.edu With the revolutionary development of information technology,it is possible to use enormous dynamic information generated during delivery operation. By utilizing this information in real time manner, transportation planning and execution are carried adaptively and more efficiently. In this paper, we present integration of transportation planning and execution in real time enterprise environment. Realtime ATP is introduced to reduce time gap between planning and execution. Conventional wisdom is that a thicker tank on tank cars reduces risk. However, this increases vehicle weight and shipments required and consequently exposure to accidents. We present a model that analyzes the tradeoff between damage resistance and accident exposure. The objective function is minimization of probability of release. Three variables affecting optimal thickness are: volumetric capacity, probability of release from other non-tank sources, and the weight capacity of the car. 4 - Order Batching in a 2-Block Warehouse Tho Le Duc, PhD Student, Erasmus University Rotterdam, F2-65, Burg. Oudlaan 50, 3062 PA, Rotterdam, Netherlands, tleduc@fbk.eur.nl, Rene de Koster 2 - Real-Time Routing and Scheduling of Hazmat Trucks Stevanus Tjandra, Dr., University of Alberta, School of Business, 3-23 Business Building, Edmonton, AB, T6G 2R6, Canada, Stevanus.Tjandra@ualberta.ca, Erhan Erkut Order batching problem (OBP) is the problem of determining the number of orders to be picked together in one picking tour that minimizing the average throughput time of a random order. We consider the OBP for a typical 2-block shelf-type warehouse. We first elaborate on the first and second moment of the travel time. Then we use these moments to estimate the average throughput time of a random order by using a queue model. Simulation results show that the method provides a high accuracy level. We discuss methods which can reduce hazmat transport risks on a stochastic network with time-dependent distances and risks by combining routing and scheduling decisions. We assume it is possible to change the route at each node of the network based on information obtained en route. Application of such methodology is possible through the availability of onboard GPS-based navigation systems and real-time weather and road information. 5 - Assigning Delivery Routes to Vehicle Drivers in Stochastic Routing Operations: Some Near-Bou Michael Haughton, Professor, Wilfrid Laurier University, 75 University Avenue West, Waterloo, ON, N2L3C5, Canada, mhaughto@wlu.ca 3 - Statistical Risk Assessment Methods for Developing Protective Action Distances in the 2004 ERG David Brown, Research Engineer, Argonne National Laboratory, 9700 S. Cass Avenue, Argonne, IL, 60439, United States, dbrown@anl.gov A potential problem of stochastic demands in vehicle routing operations is instability in drivers’ delivery duties. One instability-control tactic is using driver-toroute assignment rules to ensure that each customer continues to be served by that customer’s most often encountered driver. This paper estimates boundary values on the rule’s performance by experimenting with extreme parameters for three factors: demand volatility, vehicle capacity, and number of delivery routes. This paper discusses statistical risk assessment methods used to develop Protective Action Distances in the 2004 Emergency Response Guidebook (ERG) published by United States Department of Transportation (DOT) in cooperation with Transport Canada. The paper will detail the general methodology, transportation risk assessment models employed (in particular the Chemical Accident Statistical Risk Assessment Model - CASRAM) and related risk assessment studies. ■ WB15 4 - A Bi-Objective Tactical Planning Model for Railroad Transportation of Hazardous Materials Manish Verma, Ph.D. Candidate, McGill University, 1001 Sherbrooke Street West, Montréal, PQ, H3A1G5, Canada, manish.verma@mail.mcgill.ca, Vedat Verter Donald Cameron Hall- DCH12S E-Commerce II Contributed Session We present a mathematical model, which can be used to plan and manage hazardous material shipments. The model takes care of blocking, classification and transfer of railcars, and builds upon an earlier work by the same authors. We also present a multi-criteria metaheuristic algorithm devised to solve the tactical planning problem. Chair: Yufei Yuan, Professor of Information Systems, McMaster University, 1280 Main St. West, Hamilton, ON, L8S 4M4, Canada, yuanyuf@mcmaster.ca 1 - Expected Benefits and Usage of Business-to-Business EMs: A Study S. Subba Rao, Professor, University of Toledo, 428 S. Centennial, Holland, Oh, 43528, United States, subba.rao@utoledo.edu, Thoung Le, Dothang Truong ■ WB10 Donald Cameron Hall- DCH303N Logistics I Chair: Michael Haughton, Professor, Wilfrid Laurier University, 75 University Avenue West, Waterloo, ON, N2L3C5, Canada, mhaughto@wlu.ca While the volume of transactions via EMs has grown steadily, it falls far short of what EM operators had hoped for. The latest quarterly survey by the Institute of Supply Management (ISM, 2003) shows only one out of three firms have used EMs for B2B procurement A question arises as to whether EMs, as seen by prospective market participants, offer sufficient benefits to attract B2B usage. This is the subject of investigation in this study. 1 - A Strategic Supply Chain Network Model with Safety Stock Guoyong Lv, graduate student for doctors degrees, Transportation System Engineering, 2-1-6 Etchujima Koto-ku, Tokyo, 135-8533, Japan, glu@e.kaiyodai.ac.jp, Mikio Kubo 2 - iBAM: Internet Banking Acceptance Model Hsi-Peng Lu, Professor, Nat. Taiwan University of Sci. and Tech, No. 43, Keelung Rd, Sec. 4, Taipei, 106, Taiwan, hsipeng@cs.ntust.edu.tw, Huei-Ru Fion Tsai, Wu Jo-Yu In this model, we incorporate safety stock costs at all nodes of the network for dealing with demand as uncertain. With the assumption that the variance-tomean ratio of the demand is identical for all customers, we formulate the model as a non-linear MIP problem, where safety stock costs on each node is a concave function of the flow. We propose a dynamic cut-adding algorithm to deal with concave costs as piecewise linear function. A numerical example is provided to show this solution method. This study proposes an i-Bank acceptance model (iBAM) with three types of predictors: personal beliefs (relative advantage, perceived ease, and perceived risk), social influence (from mass-media, interpersonal channel, and reference groups), and technology features (compatibility and triability). The sample includes 296 subjects (105 early users & 191 potential adopters) collected from portal sites in Taiwan. The results suggest that i-bank marketing strategies should be different to each group. Contributed Session 104 CORS / INFORMS INTERNATIONAL — 2004 WB23 3 - A Business Model for e-Negotiation in Electronic Commerce Yufei Yuan, Professor of Information Systems, McMaster University, 1280 Main St. West, Hamilton, ON, L8S 4M4, Canada, yuanyuf@mcmaster.ca, Ofir Turel ■ WB21 In this paper we propose a high-level e-negotiation business model and use it to analyze key issues for the success of these services. We focus on the value proposition of e-negotiation systems and examine it through surveying potential market segments. We found that the awareness for e-negotiation services is very low but the potential benefits e-negotiations are clear to the surveyed managers and so are the challenges. Contributed Session ■ WB19 1 - Coordinating Emergency Health Services Katherine Wytrykush, MBA student, University of Calgary, 2500 University Drive NW, Calgary, AB, T2N 1N4, Canada, kawytryk@ucalgary.ca Pro. Devel. Centre- PDC102 Health Applications I Chair: Jonathan Patrick, Graduate Student, Centre for Operations Excellence/University of British Columbia, 2053 Main Mall, Sauder School of Business, Vancouver BC V6T1Z2, Canada, jpatrick@coe.ubc.ca Donald Cameron Hall- DCH28S Military Applications This presentation discusses background research and a quantitative modeling effort to support the potential development of a coordination centre for emergency medical services in the Calgary, Alberta region. The model incorporates the highly variable patient demands and includes coordination of emergency room, medical consultant, and paramedic resources. Contributed Session Chair: Greg Parlier, COL, USA, Retired, UAH, OED, B-20, VBRH, Huntsville, AL, 35749, United States, parlieg@email.uah.edu 1 - “Commander as Shooter” - Operational Planning Using C2 for Confronting and Collaborating Andrew Tait, CTO, Idea Sciences, 205 The Strand, Alexandria, VA, 22314, United States, andrew.tait@ideasciences.com, Nigel Howard 2 - Efficient Scheduling of CT Scanners in Vancouver Area Hospitals Jonathan Patrick, Graduate Student, Centre for Operations Excellence/University of British Columbia, 2053 Main Mall, Sauder School of Business, Vancouver, BC, V6T1Z2, Canada, jpatrick@coe.ubc.ca, Martin L. Puterman Confrontation and Collaboration Analysis (CCA) is a way of analyzing interactions between parties - especially in Stabilization and Reconstruction Operations. It concentrates on achieving a particular kind of psychological effect, viz, a change in the intentions of other parties - and directly supports emerging command concepts such as Effects Based Operations. This paper describes the use of CCA, as a simplified system for C2 of Confronting and Collaborating (C2CC), within a NATO exercise. We describe an approach for efficient scheduling of diagnostic imaging exams in a random environment trading off machine idle time, throughput, patient waiting times and overtime. The booking system analyzed requires low priority patients to be scheduled for future dates without knowing the incoming demand of higher priority patients. Our approach combines reservation policies, booking limits and overbooking. The efficacy of the proposed scheduling rules were evaluated using simulation models. 2 - An Example of Applied OR Problem Solving to a Military Logistics Event William Waymire, U.S. Army, Hq 21st TSC Unit 23203, Box 228, APO, AE, 09263, United States, william.waymire@hq.21tsc.army.mil ■ WB23 Pro. Devel. Centre- PDC104 Environment/Natural Resources The U.S. was heading to war and planning its logistical role was priority for the 21st TSC. One important mission involved supply movement from central Europe to a staging point east. During the planning process the commander wanted to know if the allotted HETs were adequate to move required equipment along the MSR. The ORSA division and the command’s JDLM contractor were tasked to provide independent answers ASAP. This paper outlines our response and subsequent simulations. Contributed Session Chair: Ravi Subramanian, PhD Candidate, Michigan Business School, D2259 Davidson Hall, 701 Tappan St., Ann Arbor, MI, 48109, United States, rsubramz@bus.umich.edu 1 - A Bayesian Network-Based Decision Analysis Approach to Watershed Management Decisions William Labiosa, graduate student, Stanford University, Terman Engineering Center, MC 4020, 380 Panama St., Stanford, CA, 94305, United States, labiosa@stanford.edu, James Leckie, Ross Shachter 3 - Inspections as Deterrents James Bradley, Professor, Calvin College, Department of Mathematics and Computer Scienc, Grand Rapids, MI, 49546, United States, braj@calvin.edu This paper models a conflict between an inspectee and an inspector as a non-zero sum game. Inspectee can violate a law or treaty at n sites. Inspector can visit k (less than n) sites. Formulae are derived for the minimal cost that must be imposed on cheating in order to deter violations and for the optimal mix of inspection sites. We describe a decision analysis approach to watershed management strategies using Bayesian networks to predict environmental outcomes. We are exploring the use of penalty functions based on the “probability of compliance” with regulatory targets, transforming the decision problem into a cost-effectiveness exercise. By varying the penalty parametrically, the group can explore tradeoffs between costs and compliance certainty without having agreed upon penalty values. 4 - On Averaging Exchange Ratios John Steele, Operational Research Analyst, DND, c/o DLSC, Box 17000 Stn Forces, Kingston, ON, K7K 7B4, Canada, John.Steele@ora.dnd.ca, Roger Roy 2 - Locational Characteristics of Wild Landfills in the Prefecture of Thessaloniki, Greece Avraam Karagiannidis, Assistant Professor, Aristotle University, Department of Mechanical Engineering, Laboratory of Heat Transfer and Environmental Engineering, Box 483, University Campus, Thessaloniki, GR-54124, Greece, makis@aix.meng.auth.gr, Agis Papadopoulos, George Perkoulidis, Maria Theodoseli In military ops research, we often characterize the outcome of a land battle using exchange ratios (their losses over our losses). When one side has no losses, that side’s exchange ratio is infinite, thwarting any use of the average to determine an expected exchange ratio for the battle scenario. Even when ratios are finite, the common average is not a good measure of central tendency due to denominator sensitivity. We show the weakness of the arithmetic mean of ratios and give alternatives. 5 - Enabling A Strategically Repsonsive, Transforming Army Greg Parlier, COL, USA, Retired, UAH, OED, B-20, VBRH, Huntsville, AL, 35749, United States, parlieg@email.uah.edu This paper presents a study of the temporal variation of the number of existing and operating wild landfills for solid wastes in the case-study area (one of the 52 Greek prefectures), over the period 1997-2003, allowing for monitoring of the closure process and for future predictions of this trend. Furthermore, their present-day registered locational characteristics are analysed and correlations are studied among them, aiming also at prioritizing their restoration and sanitation. This paper summarizes a comprehensive systems approach, combining elements of classical inventory theory with recent developments in large-scale supply chain design and management theory and innovative approaches pioneered in the corporate sector, culminating in the development of an “analytical architecture” to guide Logistics Transformation for the US Army. 3 - Emissions Control and Compliance Strategies: A Permit AuctionBased Model Ravi Subramanian, PhD Candidate, Michigan Business School, D2259 Davidson Hall, 701 Tappan St., Ann Arbor, MI, 48109, United States, rsubramz@bus.umich.edu, Sudheer Gupta, Brian Talbot Despite the growing prevalence of permit auctions in market-based programs for controlling emissions, research has thus far not clearly delineated firms’ abatement, bidding, and production strategies in conjunction with permit auctioning. 105 WB25 CORS / INFORMS INTERNATIONAL— 2004 We model a three-stage game in an oligopoly where firms invest in abatement, participate in a regulator-conducted share auction for permits, and produce output. Equilibrium outcomes are intricate and often counterintuitive. The purpose of this talk is to review negotiation support systems and Internetbased e-negotiation systems (commercial and academic) and propose their classification. Models and procedures embedded in NSSs and ENSs are discussed. The focus is on recent developments and the use of ENSs in experimental and field studies. ■ WB25 3 - Market Engineering Christof Weinhardt, Professor Dr., Karlsruhe University, Kaisserstrasse 12, Karlsruhe, 76131, Germany, weinhardt@iw.uka.de Pro. Devel. Centre- PDC202 Stochastic Networks Contributed Session This talk proposes a discursive development process for e-negotiation systems (ENS). A structured development process is intended to assure an acceptable quality of ENS. Based on a solid theoretical and practical fundament the development process is deduced into a phase model. The decomposition provides the basis for computer-support that aims at improving the process. The talk closes with the suggestion of an integrated tool-set for building ENS via CAME (Computer Aided Market Engineering). Chair: Hengqing Ye, Assistant professor, National University of Singapore, 1 business link, Singapore, 117591, Singapore, bizyehq@nus.edu.sg 1 - An Efficient Algorithm to Compute Network Reliability Importance Takeshi Koide, Assistant Professor, University of Marketing and Distribution Sciences, Faculty of Service Industries, GakuenNishimachi 3-1, Nishi-ku, Kobe, 6512188, Japan, koide@umds.ac.jp, Shuichi Shinmori, Hiroaki Ishii Wednesday 12:00-1:30 pm We have proposed a procedure to compute reliability importance (RI) efficiently for network systems. RI is an appropriate measure on system components against system reliability and contributes to design reliable systems. However, computing RI in network systems is time-consuming due to NP-completeness. The proposed procedure has employed network reductions and a network decomposition to reduce the computational time and the effectiveness was shown in numerical experiments. ■ WC01 Max Bell Building- Auditorium Measurement and Decisions: Theory, Tools, and Applications 2 - Generalized Finite Urn Models Chris Leith, Ph.D. Student, Queen’s University, Department of Math & Stats, Kingston, ON, K7L3N6, Canada, cleith@mast.queensu.ca, Glen Takahara Cluster: Tutorials-CORS/INFORMS 2004 Invited Session 1 - Measurement and Decisions: Theory, Tools, and Applications Jonathan Barzilai, Professor, Department of Industrial Engineering, Dalhousie University, Halifax (Nova Scotia), Canada, Jonathan.Barzilai@dal.ca We consider an urn that may contain balls of C different colors. For color selection, we consider general weights attached to each ball color. Balls contribute to the composition of the urn for exactly M steps, unlike the classic infinite memory urn model. We obtain the stationary distribution of the urn composition and derive the limiting distribution of the sequence of scaled stationary distributions as M goes to infinity and compare this to the limiting results for the infinite memory urn. Subjective measurement is at the core of decision theory and operations research yet some fundamental modelling issues are not well understood. For example, the construction of scales to which the operations of addition and multiplication are applicable is related to Measurement units: Measurement without units, or without properly specified units results in weak scales to which addition and multiplication are not applicable. We will relate the issues of applicability of addition and multiplication to measurement units and the need for empirical and numerical reference objects, and to problems with the common use of verbal scales, pairwise comparisons, ratio scales, etc. We will show that commonly used methodologies produce scales that do not enable the operations of addition and multiplication and discuss the practical implications of these findings. We will also demonstrate a powerful yet easy-to-use software package (Tetra) that implements Preference Function Modelling (PFM). Tetra constructs strong scales that enable addition and multiplication and it supports multi-criteria group decision making and evaluation. 3 - Stability of Flow Level Data Network Models Hengqing Ye, Assistant professor, National University of Singapore, 1 business link, Singapore, 117591, Singapore, bizyehq@nus.edu.sg, Jihong Ou, Xue Ming Yuan We study stability of network models that capture macroscopic features of data communication networks including the Internet. Under a necessary stability condition (i.e., the average offered transmission load on each link is within its bandwidth capacity), we show that the proportionally fair, the minimum potential delay, the max-min fair and a class of utility maximizing bandwidth allocations ensure network stability, while some priority oriented and the maximum throughput policies do not. ■ WC02 ■ WB26 Max Bell Building- MB251 Pro. Devel. Centre- PDC301 Optimization Modeling in Practice II New Approaches in E-negotiation Research Cluster: Math Programming Invited Session Sponsor: Group Decision and Negotiation Sponsored Session Chair: Bjarni Kristjansson, President, Maximal Software, Inc., 2111 Wilson Boulevard, Suite 700, Arlington, VA, 22201, United States, bjarni@maximalsoftware.com Chair: Christof Weinhardt, Professor Dr., Karlsruhe University, Kaisserstrasse 12, Karlsruhe, 76131, Germany, weinhardt@iw.uka.de 1 - Does Web-based Negotiation Support System have a Better use Adoption? Tung Bui, Professor, University of Hawaii, 2404 Maile Way, E303a, Honolulu, HI, 96822, United States, tbui@cba.hawaii.edu 1 - Budget Model for Federal Wildland Fire Management Agencies Gyana Parija, Research Staff Member, IBM Research, 1101 Kitchawan Road, Route 134, Yorktown, NY, 12601, United States, parija@us.ibm.com 2 - Assigning People in Practice Robert Fourer, Professor, Northwestern University, Dept of Industrial Eng & Mgmt Sciences, 2145 Sheridan Rd, Evanston, IL, 60208-3119, United States, 4er@iems.northwestern.edu Since its first appearance more than two decades ago, DSS technology has enjoyed considerable attention within the MS/OR/MIS community. Despite some reported successes, the use of DSS/NSS has not been widely adopted. The Internet phenomenon has brought a renewed optimism from researchers, anticipating a stronger adoption. This paper discusses the adoption challenges and opportunities of Internet-based GDNSS. An adoption model will be proposed and conditions for eNSS adoption will be discussed. Chances are you’ve been stuck at least once with a problem of assigning people to something — offices, projects, tables, whatever. The venerable idea of an “assignment problem” can be useful in these circumstances, if applied with care. This presentation describes several applications of assignment problems to real people, along with some rules for success suggested by these experiences. 2 - From NEGO to Invite: Twenty Years of Developing Software to Support Negotiations Gregory Kersten, Professor, School of Management University Ottawa, 136 Jean-Jacques L, Ottawa, ON, K1N 6N5, Canada, gregory@jmsb.concordia.ca 106 CORS / INFORMS INTERNATIONAL — 2004 3 - COE Optimization Projects Mehmet Atilla Begen, Associate Director, Research, Centre for Operations Excellence/University of British Columbia, 2053 Main Mall, Sauder School of Business, Vancouver, BC, V6T 1Z2, Canada, mabegen@coe.ubc.ca WC08 In this paper, we propose a decomposition method for solving two-stage quadratic stochastic programming (QSP) based on the logarithmic barrier methods applied to both the master problem and the recourse sub-problem. Under certain assumptions, we establish the polynomial complexity of the algorithm. 2 - On the Smoothing Newton Method for Symmetric Matrix-Valued Complementarity Problems Jie Sun, Professor, National University of Singapore, 1 Buziness Link #02-05, Singapore, 117591, Singapore, jsun@nus.edu.sg We present an overview of applied optimization projects from three different areas: fisheries, beverage and paper industries. We share our challenges and experience and demonstrate the end tools developed for these projects. Centre for Operations Excellence (COE) is a research center at the Sauder School of Business at the University of British Columbia and offers a 16 month masters program in OR. http://www.coe.ubc.ca A smoothing Newton method for solving symmetric matrix-valued complementarity problems (which include the semidefinite programming problem as a special case) is analyzed. The method has a quadratic rate of local convergence under a nonsigularity assumption. The results are based on the strong semismoothness and the characterization of the B-subdifferential of the corresponding smoothing matrix function. ■ WC03 Max Bell Building- MB252 3 - Rapid, IPM Based Optimization of Spiral Magnetic Resonance Image Reconstruction Resampling Kernels Tamás Terlaky, Professor, CRC, McMaster University, Department Computing and Software, 1280 Main Street West, Hamilton, ON, L8S4K1, Canada, terlaky@mcmaster.ca, Bixiang Wang, Christopher Anand Optimization Techniques III Contributed Session Chair: Yu Xia, McMaster, 1280 Main Street West, ITB-202, Hamilton, ON, L8S 4K1, Canada, xiay@optlab.mcmaster.ca 1 - Solving QAPLIB using GATS: A New Hybrid Genetic AlgorithmTabu Search Approach Jose Rodriguez, UNB, Department of Mechanical Engineering, Fredericton, NB, Canada, jm.rodriguez@unb.ca, F. Chris MacPhee, David J. Bonham, Joseph D. Horton We show that an iterative Gauss-Seidel-type interior-point method is suitable (fast, light-weight) for optimal design of Resampling Kernels in MRI. We directly optimize a piecewise-linear kernel rather than an analytic function (KaiserBessel). We optimize for worst-case (infinity-norm) signal aliasing, rather than the usual proxy energy (2-norm). In numerical simulations of near-frequency systematic noise the new kernel significantly outperforms a conventional KaiserBessel-based solution. The solution of 75% of 200 available instances of well-known quadratic assignment problem (QAP) and dynamic plant layout problem (DPLP), with particular interest placed on problem instances contained in the QAPLIB, is described in this paper. The methodology and time complexity of a new hybrid genetic and tabu-search (GATS) algorithm are discussed. Also, 2D strategies based on a novel (P-CF) matrix technique implemented via parameter sweep using GATS and experimental results are presented. ■ WC08 Donald Cameron Hall- DCH300N New Advances in Optimizing Railroads 2 - STA , HAT and SAT : Three Novel Algorithms for Examination Timetabling Problem Zahra Naji Azimi, Yong Research Club of Iran, Department of math. Ferdowsi University, Mashhad, Iran, najiazimi@yahoo.com Sponsor: Transportation and Logistics (Joint Sponsored/Invited) Sponsored Session Chair: Ravindra K. Ahuja, Professor, University of Florida, 303, Weil Hall, P O Box 116595, Gainesville, FL, 32608, United States, ahuja@ufl.edu SA ,TS,GA,ACS are four of the main algorithms for solving challenging problems of intelligent systems. We apply these techniques and three novel hybrid combinations of them to a ETP.Three novel hyrbrid algorithms consist of a sequential TS-ACS (STA), a hybrid ACS/TS(HAT), and a sequential ACS-TS(SAT) algorithms. These various hybrid combinations are then tested on ten different scenarios of the classical ETP. 1 - Open OR Problems within BNSF Railway Pooja Dewan, BNSF Railway, Lou Menk Drive, Fort Worth, TX, United States, pooja.dewan@bnsf.com BNSF Railway operates one of the largest railroad networks in North America with 33,500 miles of track spread over 28 states and 2 Canadian provinces. Revenues are generated primarily from the transportation of coal, grain, intermodal containers and trailers, chemicals, metals and minerals, forest products, automobiles, and consumer goods. We will be discussing some of the unsolved OR problems that the industry is currently faced with. 3 - Kernel Methods with Noisy Data Theodore Trafalis, Professor, University of Oklahoma, 202 West Boyd, Rm. 124, Norman, OK, 73019, United States, ttrafalis@ou.edu A robust convex optimization approach is proposed for Kernel Methods with noisy input data. All that is known about the uncertain data vector v, referring to a perturbation of an input data point, is that it belongs to a given uncertainty set U. We show that in the case that the set U is a hyper sphere, the resulting optimization problem is equivalent to a convex quadratic optimization problem with conic quadratic constraints. Preliminary computational results are also presented 2 - Solving Real-Life Train Schedule Design Problems Ravindra K. Ahuja, Professor, University of Florida, 303, Weil Hall, P O Box 116595, Gainesville, FL, 32608, United States, ahuja@ufl.edu, Krishna Jha, Jian Liu The train schedule design problem consists of designing the train schedule (train origins, destinations, routes, frequencies, and train timings) for a major railroad and assigning blocks of shipments to trains so that train capacities are met, no small trains are formed, and the total shipment cost is minimum. In this talk, we preset a practical solution approach to solve this problem and present its results on the data provided by a major US railroad. 4 - Sum-of-Squares Clustering via Matrix Optimization Yu Xia, McMaster, 1280 Main Street West, ITB-202, Hamilton, ON, L8S 4K1, Canada, xiay@optlab.mcmaster.ca, Jiming Peng We reformulate the sum-of-squares clustering as a continuous optimization problem and provide some computation results. 3 - New Approaches for Solving the Train Despatching Problem Guvenc Sahin, PhD Student, University of Florida, Industrial and Systems Eng. Department, Gainesville, FL, 32607, United States, guvencs@ufl.edu, Ravindra K. Ahuja, Claudio Cunha ■ WC04 Max Bell Building- MB253 High Performance Optimization The train despatching problem (also known as the meet-pass problem) is an important discrete optimization problem arising in railroad and consists of scheduling trains on tracks so as to avoid collisions. In this talk, we present a new MIP formulation of the train despatching problem, propose several heuristic algorithms, and present computational results. Sponsor: Optimization Sponsored Session Chair: Tamás Terlaky, Professor, CRC, McMaster University, Department Computing and Software, 1280 Main Street West, Hamilton, ON, L8S4K1, Canada, terlaky@mcmaster.ca 1 - Log-Barrier Method for Two-Stage Quadratic Stochastic Programming Jiming Peng, Assistant Professor, McMaster University, Department Computing and Software, 1280 Main Street West, Hamilton, ON, L8S4K1, Canada, pengj@mcmaster.ca, Gyeongmi Cho 107 WC10 CORS / INFORMS INTERNATIONAL— 2004 ■ WC10 2 - Reducing CT Scanner Waiting Times in Vancouver Area Hospitals Kevin Y.M. Chen, Technical Analyst, Centre for Operations Excellence/University of British Columbia, 2053 Main Mall, Sauder School of Business, Vancouver, V6T1Z2, Canada, kymchen@coe.ubc.ca, Mark Chase, Mehmet Atilla Begen, Bailey Kluczny, Jonathan Patrick, David Puterman, Martin L. Puterman Donald Cameron Hall- DCH303N Logistics II Contributed Session Chair: N Ravichandran, Professor, Indian Institute Of Management, Vastrapur, Ahmedabad, Ahmedabad, 380015, India, nravi Many hospitals face excessive diagnostic exam waiting times. We analyzed CT scanner utilization at several hospitals and estimated waiting times for various patient categories. This involved estimating demand and determining capacity and constraints, in light of data availability and collection constraints. Through extensive observation and process analysis, bottlenecks and possible improvements were identified. A simulation model was built to increase utilization through scenario analysis. 1 - Optimization of Posts Supplying at Hydro-Quebec Diane Riopel, Professor, Ecole Polytechnique, C.P. 6079 Succ. Centre-ville, Montréal, Qc, H3C 3A7, Canada, diane.riopel@polymtl.ca, Louis Garneau, André Langevin Following new environmental standards, the management and operation of Hydro-Québec sites for posts storage are likely to become much more expensive. Sixty sites are located throughout the province of Quebec. We developed a decision support tool to help the managers analyse the opening or closing of some storage sites. 3 - Fuzzy Organ Allocation System for Cadaveric Kidney Transplantattion Emin Gundogar, Assoc. Professor, Sakarya University, Sakarya Universitesi Muh. Fak., Endüstri Muh. Esentepe Kampus, Adapazari, 54187, Turkey, gun@sakarya.edu.tr, Osman Cerezci, Hayrettin Evirgen, Baha Guney 2 - Custom Clearance Process-Delay Propagation and Control Strategies for Perishing Products in Air Cargo Wei-Che Wang, Graduate Research Assistant, Department of Transportation Technology and Management, National Chiao Tung University, 1001 Ta Hsueh Road, Hsinchu, TW, 30010, Taiwan, milton224.tem91g@nctu.edu.tw, Chaug-Ing Hsu In this article, the Fuzzy Logic expert system has been used as a new approach to overcome the uncertainty and complications that the doctors face in the process of deciding on kidney allocation. System has been developed and evaluated based on the UNOS scoring system in America and TONKS in Turkey. In our experiment, which is based on real data, it has been found that the fuzzy logic system could provide better suggestions for the professionals compared to the other allocation systems. We develop models on analyzing the delay process and delay propagation of custom clearance in air cargo terminals. The inventory loss of perishing products due to the delay is formulated considering stochastic process. We explore the possibilities on changing customer procedures in terms of information and cargo flows to propose control strategies aiming at minimizing delay costs. CKS airport terminal is used as an example to demonstrate the application and feasibility of the developed models. ■ WC25 Pro. Devel. Centre- PDC202 Stochastic Processes/Optimization 3 - Unveiling the Efficient Frontier of a Biobjective (cost-coverage) Unconstrained Location Problem Palacios Fernando, Full Professor, Universidad de los Andes, Department of Industrial Engineering, A.A.4976, Bogota, DC, Colombia, fpalacio@uniandes.edu.co, Juan G. Villegas, Andres Medaglia Contributed Session Chair: Alireza Ghasemi, Polytechnique de Montréal, App #1, 7411 Boul. St. Michel, Montréal, QC, H2A3A2, Canada, alireza.ghasemi@polymtl.ca 1 - A Chance-Constrained Capacitated Facility Location-Allocation Problem C K Y Lin, Assistant Professor, City University of Hong Kong, Department of Management Sciences, City University of HK, 83 Tat Chee Ave., Hong Kong, China, mslincky@cityu.edu.hk The Federación Nacional de Cafeteros de Colombia requires reconfiguring its supply network. We model this problem as a biobjective uncapacitated facility location problem. We designed an algorithm based on the Nondominated Sorting Genetic Algorithm; an algorithm based on the Pareto Archive Evolution Strategy; and an algorithm based on mathematical programming. We compared these algorithms and identified unique tradeoff opportunities for the reconfiguration of the Colombian coffee supply network. A capacitated facility location-allocation problem with stochastic demand and service level constraints is described. The objective is to minimize total costs. The facility service levels are modelled by probabilistic constraints. The deterministic equivalent non-linear integer model is rescaled and approximated by a mixed integer program with relevant bounds. To solve the original problem, the mixed integer model is solved iteratively by adding constraints to eliminate infeasibilities. 5 - Improved Effficiency in Logistics using ERP N Ravichandran, Professor, Indian Institute Of Management, Vastrapur, Ahmedabad, Ahmedabad, 380015, India This paper docments the experiance of implementing an ERP solution in the context of an Indian company engaged in the business of consumables.The issues and perfomance before and after implementation is presented.The potential to improve the logistics function in the ERP enabled environment concludes this paper. 2 - Stochastic Prog & Scenario Generation in a Simulation Framework: An Information Systems Perspective Nico Di Domenica, CARISMA, Brunel University, Mathematical Sciences Building, Uxbridge, Middlesex, UB8 3PH, United Kingdom, nico.didomenica@brunel.ac.uk, George Birbilis, Patrick Valente, Gautam Mitra ■ WC21 Pro. Devel. Centre- PDC102 Stochastic Programming unites models of optimum resource allocation and models of randomness to create a robust decision making framework. The models of randomness with their finite, discrete realisations are called Scenario Generators. In this work we investigate the role of such tools within the context of a combined information and decision support system. We introduce illustrative examples of optimisation, simulation models and results analysis to explain our multifaceted view of modelling. Health Applications II Contributed Session Chair: Emin Gundogar, Assoc. Professor, Sakarya University, Sakarya Universitesi Muh. Fak., Endüstri Muh. Esentepe Kampus, Adapazari, 54187, Turkey, gun@sakarya.edu.tr 3 - Using Server Idle Time with Other Tasks to Improve Utilization Ernie Love, Dean, Simon Fraser University, Faculty of Business Administration, 8888 University Drive, Burnaby, BC, Canada, love@sfu.ca, George Zhang 1 - Overcoming Structural Constraints to Patient EPR Use: A Critical Framework Warren Winkelman, Student Researcher, University of Toronto/University Health Network, Centre for Global eHealth Innovation, 190 Elizabeth Street, 4th Floor, Toronto, ON, M5G 2C4, Canada, w.winkelman@utoronto.ca, Kevin Leonard We consider a single server which has a variety of available vacation-type jobs which can be selected when free from the main servicing function. Vacation types are probabalistically available and selection is at the discretion of the server. A critical threshold value for the queue results in servicing to exhaustion. A finite state Semi-Markov model finds the optimal threshold value as well as an optimal vacation selection policy is generated. There are four characteristics that either enhance or mitigate the influence of medical record structure on patient EPR use: environmental pressures, physician centeredness, collaborative organizational culture, and patient centeredness. An evaluation framework is proposed. Traditional IS development may not capture pertinent social issues that arise when expanding access of EPR systems to patients. Critically rooted evaluation can help patient use of an EPR positively influence health outcomes. 108 CORS / INFORMS INTERNATIONAL — 2004 4 - Optimal Replacement In The Proportional Hazard Model of A Partially Observed System Alireza Ghasemi, Polytechnique de Montréal, App #1, 7411 Boul. St. Michel, Montréal, QC, H2A3A2, Canada, alireza.ghasemi@polymtl.ca, Soumaya Yacout A Condition Based Maintenance problem formulated via the Proportional Hazard Model and fixed inspection period is considered. The system is subject to a stochastic deterioration. The obtained data indicate the state of the system through a statistical relation. The system state is predicted by using Bayes rule. An optimal replacement policy is found. It minimizes the system’s long-run average cost of maintenance and failures. The actions are Do-nothing or Replace. A numerical example is given. ■ WC26 Pro. Devel. Centre- PDC301 E-negotiations: Systems, Agents and Methods Sponsor: Group Decision and Negotiation Sponsored Session Chair: Gregory Kersten, Professor, School of Management University Ottawa, 136 Jean-Jacques L, Ottawa, ON, K1N 6N5, Canada, gregory@jmsb.concordia.ca 1 - A Model of an Agent Supporting Multi-Issue Negotiations in a Marketplace Eva Chen, Concordia University, 2384 Barbe, Laval, QC, H7T1Z6, Canada, eh_chen@jmsb.concordia.ca, Rustam Vahidov As e-commerce grows, marketplace participants require greater customization and personalization of the transaction process. Negotiation is the essence in bringing these characteristics to the supply chain. eAgora is a marketplace and a platform for multi-issue negotiations. An integrated agent generates offers and critiques counter-offers. Both the e-marketplace and the agent are verified by a small scale usability test; its results are presented. 2 - Estimation of Parameters of Multi-Attribute Utility Functions in Presence of Response Error Jamshid Etezadi, Concordia University, Canada, etezadi@jmsb.concordia.ca, Tak Mak Most available methods for estimating parameters of multi-attribute utility models overlook presence of response error. We propose a least-squares estimation method for estimating the relative weights of multi-attribute additive utility function. It is based on decomposition assessment procedure and can accommodate random error as well as systematic bias in assessment. 3 - Invite: A Multi-Protocol E-negotiation System Ka Pong Law, Student, Concordia University, Montréal, PQ, Canada, kp_law@jmsb.concordia.ca, Stefan Strecker Most ENSs implement a single negotiation protocol, restricting their use to problems and interactions to those assumed a priori by designers. We present Invite, a flexible and customizable e-negotiation software platform. Invite enables negotiators to map negotiation activities to components and construct their own protocols by creating a sequence of layout programs invoking components and rules. Its main purpose is to investigate cross-cultural negotiations and comparison between ENSs. 109 WC26