The Analytic Network Process (ANP) is a multicriteria theory of measurement used to derive relative priority scales of absolute numbers from individual judgments (or from actual measurements normalized to a relative form) that also belong to a fundamental scale of absolute numbers. These judgments represent the relative influence, of one of two elements over the other in a pairwise comparison process on a third element in the system, with respect to an underlying control criterion. Through its supermatrix, whose entries are themselves matrices of column priorities, the ANP synthesizes the outcome of dependence and feedback within and between clusters of elements. The Analytic Hierarchy Process (AHP) with its independence assumptions on upper levels from lower levels and the independence of the elements in a level is a special case of the ANP. The ANP is an essential tool for articulating our understanding of a decision problem. One had to overcome the limitation of linear hierarchic structures and their mathematical consequences. This part on the ANP summarizes and illustrates the basic concepts of the ANP and shows how informed intuitive judgments can lead to real life answers that are matched by actual measurements in the real world (for example, relative dollar values) as illustrated in market share examples that rely on judgments and not on numerical data.

Large-scale multicommodity facility location problems are generally intractable with respect to standard mixed-integer programming (MIP) tools such as the direct application of general-purpose Branch & Cut (BC) commercial solvers i.e. CPLEX. In this paper, the authors investigate a nested partitions (NP) framework that combines meta-heuristics with MIP tools (including branch-and-cut). We also consider a variety of alternative formulations and decomposition methods for this problem class. Our results show that our NP framework is capable of efficiently producing very high quality solutions to multicommodity facility location problems. For large-scale problems in this class, this approach is significantly faster and generates better feasible solutions than either CPLEX (applied directly to the given MIP) or the iterative Lagrangian-based methods that have generally been regarded as the most effective structure-based techniques for optimization of these problems. We also briefly discuss some other large-scale MIP problem classes for which this approach is expected to be very effective.

This paper considers rearrangeable multihop lightwave networks whereby each network node is equipped with a number p of transmitters and receivers, and a spectrum of wavelengths is accessible by, and shared among, all nodes by using the Wavelength Division Multiplexing (WDM). Depending on input traffic flow, nodal transmitters and receivers can be re-tuned to create virtual connectivity best suited with respect to a given optimization criterion. We present an efficient heuristic algorithm that combines two criteria for optimization: throughput maximization, as well as total flow minimization. Throughput maximization criterion is equivalent to congestion minimization, while minimizing total flow under the assumption of having links with equal lengths implies minimization of the average number of hops. Taking into account lengths of the links (i.e. link costs proportional with distances), the total flow minimization becomes equivalent to the total delay minimization. Tabu search is implemented as a two-phase strategy dealing with diversification as well as intensification of search. Computational experiments include consecutive runs with different sets of weights associated with the two criteria. Results for a benchmark set of problems are presented.

In this paper we consider a group-buying online auction (GBA) model for a monopolistic manufacturer selling novel products in the uncertain market. Firstly, we introduce the bidder’s dominant strategy, after which we optimize the GBA price curve and the production volume together. Finally, we compare the GBA with the traditional posted pricing mechanism and find that the GBA is highly probable to be advantageous over the posted pricing mechanism in some appropriate market environments.

This paper reviews enterprise risk management practices in the context of supply chains. Starting with the importance of managing supply chain risks, the paper established the benefits of managing risks using an enterprise-wise integrated approach. The rest of the paper then presents a practical framework for enterprises to manage risks in their extended supply chains.

Roadway design usually involves choices regarding grade selection and earthwork (transportation) that can be solved using linear programming. Previous work considered the road profile as series of interconnected linear segments. In these models, constraints are included in the linear programming formulation to insure continuity of the road, which cause sharp connectivity points at the intersection of the linear segments. This sharp connectivity needs to be smoothed out after the linear programming solution is found and the earth in the smoothed portion of the roadway has to be moved to the landfill. In previous research, the smoothing issue is dealt with after an optimal solution is found. This increases the work required by the design engineer and consequently increases the construction cost; furthermore, the optimal solution is violated by this smoothing operation. In this paper, the issue of sharp connectivity points is resolved by representing the road profile by a quadratic function. The continuity constraints are dropped (unneeded) and global optimality is guaranteed. Moreover, no violation is incurred to implement the optimum results. Although a quadratic function is used to represent the road profile, the mathematical model is purely linear in nature.