Fisheries management and operations research

Fisheries are subject to a deep-rooted problem of economic inefficiency, often referred to as the fisheries problem. The fisheries problem derives fundamentally from inappropriate social institutions controlling the fishing activity, the foremost of which is the common property arrangement. Fisheries management consists of replacing these institutions with more appropriate ones. Which institutions are most appropriate depends on the social objectives of the fisheries. There are strong economic arguments for the view that there should be only a single objective, namely to maximize the present value of the flow of benefits from the fisheries. In reality, different interest groups often push for several, often conflicting, objectives. In that case a multi-objective programming approach may be appropriate.     

Perspectives on operations research in data and knowledge management

A number of problems in the design and management of database systems and knowledge base systems (KBSs) can be addressed using techniques from operations research (OR). This article provides a perspective on these problems and the types of models that have been applied to them, and identifies some areas that pose interesting modeling and analysis questions for researchers working in areas such as mathematical programming, stochastic modeling, dynamic programming and simulation.     

Strategic financial management in a multinational financial conglomerate: A multiple goal stochastic programming approach

The paper discusses a multi-stage stochastic programming approach to the strategic financial management of a multi-company financial conglomerate. The planning system creates a comprehensive strategy which simultaneously covers a number of future scenarios within a multi-period planning horizon. Multiple conflicting goals may be specified for the group level, company level or individual business area level, and the decision maker’s preferences are allowed to change over time to reflect changing operating conditions and trade-off relationships between the goals. Special features include, among other things, full market valuation throughout the model, integrated treatment of different types of risks, explicit modelling of various types of intra-group transactions and relationships, extensive structures to deal with distressed assets and the covering of losses within the group, as well as consideration of potential portfolio effects of a diversified group structure on the cost of funding.     

OR/MS research in disaster operations management

Disasters are large intractable problems that test the ability of communities and nations to effectively protect their populations and infrastructure, to reduce both human and property loss, and to rapidly recover. The seeming randomness of impacts and problems and uniqueness of incidents demand dynamic, real-time, effective and cost efficient solutions, thus making the topic very suitable for OR/MS research. While social sciences and humanities literatures enjoy an abundance of articles on disaster management, the OR/MS community is yet to produce a critical mass. In this paper, we survey the literature to identify potential research directions in disaster operations, discuss relevant issues, and provide a starting point for interested researchers.     

Strategic foreign reserves risk management: Analytical framework

We present an analytical framework for active foreign exchange reserves management that integrates risk-return objectives with macroeconomic, macro-prudential and sovereign debt management concerns. Our framework allows for very general objective functions, does not restrict the class of eligible stochastic processes or limit the investment universe, and can incorporate many types of macroeconomic concerns. It incorporates several kinds of risk constraints in order to obtain benchmarks satisfying possible central bank requirements of safety, liquidity, returns, and stability. Feedback between outcomes and decisions is easy using tools that reshape distributions and functions of the outcomes. And the model can be run on a PC-based platform. We apply the framework to several common reserves management problems focusing especially on the formulation of model equations, generation of trees and estimation of density functions of outcomes. We compare our approach to those used by many central banks and discuss advantages to our approach.     

Implementation of the operations research/management science process

The aim of this article is to point out some basic aspects of the OR/MS implementation problem and to outline a frame of reference for dealing with the OR/MS process. The model proposed includes a decomposition of the OR/MS process. Phases, interest groups, strategies, and variables in the OR/MS process are considered as being important. The first part of the article is a summary of some important recent contributions by others, whereas the second part represents contributions resulting from the author's own research.     

The limit profitability of financial operations

We consider a family of financial operations admitting the so-called limit profitability, a natural index for effectiveness. The properties of limit profitability are analyzed.     

Teaching communication in an MBA operations research/management science course

This paper discusses the inclusion of a writing requirement within a first-year Operations Research/Management Science (OR) course of a Masters of Business Administration (MBA) curriculum. The inclusion of a writing requirement addresses the importance of communication in OR. It is the authors’ supposition that many of the recent criticisms of OR teaching have their roots in poor OR communication. Although OR faculty members can well argue relative values, we have failed to adequately prepare our students to communicate relevant insights from OR studies. The integration of a writing requirement, consisting of short executive summary-style reports and a major term project, within an MBA OR course can do much in promoting further OR study and OR work. This paper describes our experience in instituting a writing requirement within a first-year MBA course in OR.     

Strategic multi-store opening under financial constraint

This paper analyzes strategic store openings in a situation in which firms can open multiple stores depending on the financial constraints of the firm. Specifically, given any upper limit of the number of store openings that two potentially symmetric firms can open, they sequentially determine the number of store openings, including their locations, to maximize their profits. As a result of our analysis in a microeconomic framework, we show that the equilibrium strategy can be wholly classified into only two following opposite strategies according to the level of their financial constraints involved. When firms can afford to invest significant amounts of money in the market, the leader chooses “segmentation strategy,” in which a part of the market can be monopolized by opening a chain of multiple stores and deterring the follower’s entry. In contrast, when the leader has a severe financial constraint so that it can only monopolize less than half of the market, the leader chooses “minimum differentiation strategy,” where firms open each of their stores at exactly the same point as the rival’s. Under this strategy, the leader necessarily captures just half of the market. Furthermore, we show that regardless of potential symmetry between firms, both first and second mover advantages in terms of profit can occur in the equilibrium.     

Aspects of the theory of financial risk management for natural disasters

We analyze two aspects of the theory of financial risk management for natural disasters such as earthquakes. First, we use the theory of Poisson processes to construct a model of an earthquake. We then use this model to provide an index of the monetary damage from an earthquake with aftershocks. Second, we study the question of business failure, i.e., the likelihood that an insurance provider will become insolvent in the event that earthquake insurance is provided and a major earthquake does in fact occur.     

Modelling and analysis of sustainable operations management: certain investigations for research and applications

Sustainable operations management (SOM) can be defined as the operations strategies, tactics and techniques, and operational policies to support both economic and environmental objectives and goals. The subject of sustainability has gained much attention from both researchers and practitioners in the past 6–8 years. Most of the articles deal with sustainability from environmental perspectives, but a limited number of them integrate both economic and environmental implications or focus on trading-off between profitability, competitiveness and environmental dimensions. Moreover, there is a limited focus on modelling and analysis (MA) of SOM integrating and balancing the interests of both economic and environmental interests. Therefore, an attempt has been made in this paper to review the extant literature on SOM. The objective is to understand the definition of SOM and present the current status of research in MA, as well as future research directions in the field. Considering the recent focus of the subject, we review the literature on MA of SOM beginning in 2000 in order to make our study current and more relevant for both researchers and practitioners. Finally, a summary of findings and conclusions is reported.     

战略风险评估7步走

“对大多数公司而言,董事会倾注注意力和时间的重心是理解战略及关联风险并提供指导……以及对高管实施战略和风险管理两方面的业绩进行监管。”由美国全国公司董事协会（NACD）出版的《加强美国上市公司监管的关键议定原则》中如是表示。     

The changing role of analysts in effective implementation of operations research and management science

The implementation of operations research findings is a major obstacle to increased use of operations research by management. A number of researchers have used a research approach called the factor paradigm. We appear to need an approach which focuses on the dynamics of implementation. A recognition of the different roles of the analyst would help improve the interplay between analyst and client system. A number of roles are discussed in the article, including the role of the expert, systemizer, sparring partner, process consultant, and communicator.     

Strategic operational research

Operational researchers have been slow to define and claim a strategic role for operational research (OR). This article discusses the OR activities of a number of leading-edge organisations, and argues that in several instances these activities have sustained a competitive advantage over a significant period of time, and are seen as a ‘strategic asset’ to the parent corporation. Finally, it is argued that OR people should begin talking about OR as a strategic asset, and that recognition of this strategic role provides a vision of a very exciting future for OR.     

Review of recent developments in OR/MS research in disaster operations management

Potential consequences of disasters involve overwhelming economic losses, large affected populations and serious environmental damages. Given these devastating effects, there is an increasing interest in developing measures in order to diminish the possible impact of disasters, which gave rise to the field of disaster operations management (DOM). In this paper we review recent OR/MS research in DOM. Our work is a continuation of a previous review from Altay and Green (2006). Our purpose is to evaluate how OR/MS research in DOM has evolved in the last years and to what extent the gaps identified by Altay and Green (2006) have been covered. Our findings show no drastic changes or developments in the field of OR/MS in DOM since the publication of Altay and Green (2006). Additionally to our comparative analysis, we present an original evaluation about the most common assumptions in recent OR/MS literature in DOM. Based on our findings we provide future research directions in order to make improvements in the areas where lack of research is detected.     

Supply chain network operations management of a blood banking system with cost and risk minimization

Blood service operations are a key component of the healthcare system all over the world and yet the modeling and the analysis of such systems from a complete supply chain network optimization perspective have been lacking due to their associated unique challenges. In this paper, we develop a generalized network optimization model for the complex supply chain of human blood, which is a life-saving, perishable product. In particular, we consider a regionalized blood banking system consisting of collection sites, testing and processing facilities, storage facilities, distribution centers, as well as points of demand, which, typically, include hospitals. Our multicriteria system-optimization approach on generalized networks with arc multipliers captures many of the critical issues associated with blood supply chains such as the determination of the optimal allocations, and the induced supply-side risk, as well as the induced cost of discarding the waste, while satisfying the uncertain demands as closely as possible. The framework that we present is also applicable, with appropriate modifications, to the optimization of other supply chains of perishable products.