Monotonicity properties of a class of stochastic inventory systems

We consider inventory systems which are governed by an (r,q) or (r,nq) policy. We derive general conditions for monotonicity of the three optimal policy parameters, i.e., the optimal reorder level, order quantity and order-up-to level, as well as the optimal cost value, as a function of the various model primitives, be it cost parameters or complete cost rate functions or characteristics of the demand and leadtime processes. These results are obtained as corollaries from a few general theorems, with separate treatment given to the case where the policy parameters are continuous variables and that where they need to be restricted to integer values. The results are applied both to standard inventory models and to those with general shelf age and delay dependent inventory costs.     

Monotonicity in multidimensional Markov decision processes for the batch dispatch problem

Structural properties of stochastic dynamic programs are essential to understanding the nature of the solutions and in deriving appropriate approximation techniques. We concentrate on a class of multidimensional Markov decision processes and derive sufficient conditions for the monotonicity of the value functions. We illustrate our result in the case of the multiproduct batch dispatch (MBD) problem.     

An N-path user equilibrium for transportation networks

The traditional trip-based approach to transportation modeling has been employed for the past decade. The last step of the trip-based modeling approach is traffic assignment, which has been typically formulated as a user equilibrium (UE) problem. In the conventional perspective, the definition of UE traffic assignment is the condition that no road user can unilaterally change routes to reduce their travel time. An equivalent definition is that the travel times of all the used paths between any given origin–destination pair are equal and less than those of the unused paths. The underlying assumption of the UE definition is that road users have full information on the available transportation paths and can potentially use any path if the currently used path is overly congested. However, a more practical scenario is that each road user has a limited path set within which she/he can choose routes from. In this new scenario, we call the resulting user equilibrium an N-path user equilibrium (NPUE), in which each road user has only N paths to select from when making route choices in the network. We introduce a new formulation of the NPUE and derive optimality conditions based on this formulation. Different from traditional modeling framework, the constraints of the proposed model are of linear form, which makes it possible to solve the problem with conventional convex programming techniques. We also show that the traditional UE is a special case of an NPUE and prove the uniqueness of the resulting flow pattern of the NPUE. To efficiently solve this problem, we devise path-based and link-based solution algorithms. The proposed solution algorithms are empirically applied to networks of various sizes to examine the impact of constrained user path sets. Numerical results demonstrate that NPUE results can differ significantly from UE results depending on the number of paths available to road users. In addition, we observed an interesting phenomenon, where increasing the number of paths available to road users can sometimes decrease the overall system performance due to their selfish routing behaviors. This paradox demonstrates that network information should be provided with caution, as such information can do more harm than good in certain transportation systems.     

Monotonicity of solutions converging to a saddle point equilibrium

If a difference equation has a saddle point equilibrium, then there are solutions which converge to this equilibrium. For second order equations, conditions are given which imply that these solutions are monotone. These results are used to analyze a rational difference equation which possesses a saddle point equilibrium.     

Monotonicity properties of interpolation spaces

For any interpolation pair (A ₀ A ₁), Peetre’sK-functional is defined by: $$K\left( {t,a;A_0 ,A_1 } \right) = \mathop {\inf }\limits_{a = a_0 + a_1 } \left( {\left\| {a_0 } \right\|_{A_0 } + t\left\| {a_1 } \right\|_{A_1 } } \right).$$ It is known that for several important interpolation pairs (A ₀,A ₁), all the interpolation spacesA of the pair can be characterised by the property ofK-monotonicity, that is, ifa∈A andK(t, b; A₀, A₁)≦K(t, a; A₀, A₁) for all positivet thenb∈A also. We give a necessary condition for an interpolation pair to have its interpolation spaces characterized byK-monotonicity. We describe a weaker form ofK-monotonicity which holds for all the interpolation spaces of any interpolation pair and show that in a certain sense it is the strongest form of monotonicity which holds in such generality. On the other hand there exist pairs whose interpolation spaces exhibit properties lying somewhere betweenK-monotonicity and weakK-monotonicity. Finally we give an alternative proof of a result of Gunnar Sparr, that all the interpolation spaces for (L _v ^p , L _w ^q ) areK-monotone.     

A framework for user equilibrium dynamic traffic assignment

Several analytic approaches have been developed to describe or predict traffic flows on networks with time-varying (dynamic) travel demands, flows and travel times. A key component of these models lies in modelling the flows and/or travel times on the individual links, but as this is made more realistic or accurate it tends to make the overall model less computationally tractable. To help overcome this, and for other reasons, we develop a bi-level user equilibrium (UE) framework that separates the assignment or loading of flows on the time–space network from the modelling of flows and trip times within individual links. We show that this model or framework satisfies appropriate definitions of UE satisfies a first-in-first-out (FIFO) property of road traffic, and has other desirable properties. The model can be solved by iterating between (a) a linear network-loading model that takes the lengths of time–space links as fixed (within narrow ranges), and (b) a set of link flow sub-models which update the link trip times to construct a new time–space network. This allows links to be processed sequentially or in parallel and avoids having to enumerate paths and compute path flows or travel times. We test and demonstrate the model and algorithms using example networks and find that the algorithm converges quickly and the solutions behave as expected. We show how to extend the model to handle elastic demands, multiple destinations and multiple traffic types, and traffic spillback within links and from link to link.     

Monotonicity of optimal flow control for failure-prone production systems

In this paper, we consider the problem of the optimal flow control for a production system with one machine which is subject to failures and produces one part type. In most previous work, it has been assumed that the machine has exponential up and down times, i.e., its state process is a Markov process. The system considered in our study has general machine up and down times. Our main result is establishing monotone properties for the optimal control policy.This work was partially supported by the National Science Foundation under Grants DDM-9215368 and EDI-9212122. The authors thank two anonymous reviewers for helpful comments and suggestions.     

Monotonicity properties of wholesale price contracts

This paper contributes to the supply chain contracts literature in economics and operations by performing qualitative sensitivity analysis of a wholesale price contract in a two-echelon supply chain setting. Order-theory tools are used to derive sufficient conditions for monotonicity of contract parameters.The upstream supplier is modeled as a Stackelberg leader. The supplier is assumed to have complete information about the costs and revenue function of the downstream retailer. It is shown that an equilibrium wholesale price weakly increases with an increase in the supplier production cost rate, but it may increase or decrease with an increase in the retailer cost rate. As either the supplier production cost or the retailer cost increases, the supplier profit decreases weakly. Additional sensitivity analysis is performed assuming certain properties of the retailer revenue function.Several well-known results in the supply chain contracting literature can be considered as special cases of the more general theorems developed here. In particular, this paper reexamines the analysis of a newsvendor supply chain problem by Lariviere and Porteus [Lariviere, M.A., Porteus, E.L., 2001. Selling to the newsvendor: An analysis of price-only contracts. Manufacturing & Service Operations Management 3, 293–305]. This paper generalizes and extends their work, by establishing properties of the newsvendor demand distribution that guarantee monotonicity of the contract parameters, without requiring a unique contract solution.     

Geometric equilibrium distributions for queues with interactive batch departures

Gelenbe et al. [1, 2] consider single server Jackson networks of queues which contain both positive and negative customers. A negative customer arriving to a nonempty queue causes the number of customers in that queue to decrease by one, and has no effect on an empty queue, whereas a positive customer arriving at a queue will always increase the queue length by one. Gelenbe et al. show that a geometric product form equilibrium distribution prevails for this network. Applications for these types of networks can be found in systems incorporating resource allocations and in the modelling of decision making algorithms, neural networks and communications protocols.In this paper we extend the results of [1, 2] by allowing customer arrivals to the network, or the transfer between queues of a single positive customer in the network to trigger the creation of a batch of negative customers at the destination queue. This causes the length of the queue to decrease by the size of the created batch or the size of the queue, whichever is the smallest. The probability of creating a batch of negative customers of a particular size due to the transfer of a positive customer can depend on both the source and destination queue.We give a criterion for the validity of a geometric product form equilibrium distribution for these extended networks. When such a distribution holds it satisfies partial balance equations which are enforced by the boundaries of the state space. Furthermore it will be shown that these partial balance equations relate to traffic equations for the throughputs of the individual queues.     

Monotonicity of stable solutions in shadow systems

A shadow system appears as a limit of a reaction-diffusion system in which some components have infinite diffusivity. We investigate the spatial structure of its stable solutions. It is known that, unlike scalar reaction-diffusion equations, some shadow systems may have stable nonconstant (monotone) solutions. On the other hand, it is also known that in autonomous shadow systems any nonconstant non-monotone stationary solution is necessarily unstable. In this paper, it is shown in a general setting that any stable bounded (not necessarily stationary) solution is asymptotically homogeneous or eventually monotone in .

     

Monotonicity properties of operations on generalized topologies

Summary In the paper [5], several operations on generalized topologies are considered. They are not monotone in general, but an old result on monotonicity may be sharpened.     

Optimal control for parallel queues with a single batch server

We consider a queueing system with multiple Poisson arrival queues and a single batch server that has infinite capacity and a fixed service time. The problem is to allocate the server at each moment to minimize the long-run average waiting cost. We propose a Cost-Arrival Weighted (CAW) policy for this problem based on the structure of the optimal policy of a corresponding fluid model. We show that this simple policy enjoys a superior performance by numerical experiments.     

Monotonicity properties of ‐functions

We present some monotonicity results for a class of Dirichlet series generalizing previously known results. The fact that is in that class presents a first example of an arithmetic function for which the associated Dirichlet series is completely monotonic, but not logarithmically completely monotonic. Lastly, we use similar techniques to prove another formulation of the Riemann hypothesis for the L‐function associated to the Ramanujan‐tau function.     

Bounding the inefficiency of logit-based stochastic user equilibrium

Bounding the inefficiency of selfish routing has become an emerging research subject. A central result obtained in the literature is that the inefficiency of deterministic User Equilibrium (UE) is bounded and the bound is independent of network topology. This paper makes a contribution to the literature by bounding the inefficiency of the logit-based Stochastic User Equilibrium (SUE). In a stochastic environment there are two different definitions of system optimization: one is the traditional System Optimum (SO) which minimizes the total actual system travel time, and the other is the Stochastic System Optimum (SSO) which minimizes the total perceived travel time of all users. Thus there are two ways to define the inefficiency of SUE, i.e. to compare SUE with SO in terms of total actual system travel time, or to compare SUE with SSO in terms of total perceived travel time. We establish upper bounds on the inefficiency of SUE in both situations.     

Rationing policies for some inventory systems

This paper considers inventory systems which maintain stocks to meet various demand classes with different priorities. We use the concept of a support level control policy. That is rationing is accomplished by maintaining a support level, say K, such that when on hand stock reaches K, all low priority demands are backordered. We develop four analytical and simulation models to improve the existing models. Firstly, multiple support levels are used instead of using a single support level. Secondly, a simulation model with a more realistic assumption on the demand process has been provided. Thirdly, a single period deterministic cost minimisation model has been developed analytically. Finally, we address a continuous review (Q, r) model with a compound Poisson process.