Stochastic transportation networks arise in various real world applications, for which the probability of the existence of a feasible flow is regarded as an important performance measure. Although the necessary and sufficient condition for the existence of a feasible flow represented by an exponential number of inequalities is a well-known result in the literature, the computation of the probability of all such inequalities being satisfied jointly is a daunting challenge. The state-of-the-art approach of Prékopa and Boros, *Operat Res* 39 (1991) 119–129 approximates this probability by giving its lower and upper bounds using a two-part procedure. The first part eliminates all redundant inequalities and the second gives the lower and upper bounds of the probability by solving two well-defined linear programs with the inputs obtained from the first part. Unfortunately, the first part may still leave many non-redundant inequalities. In this case, it would be very time consuming to compute the inputs for the second part even for small-sized networks. In this paper, we first present a model that can be used to eliminate all redundant inequalities and give the corresponding computational results for the same numerical examples used in Prékopa and Boros, *Operat Res* 39 (1991) 119–129. We also show how to improve the lower and upper bounds of the probability using the multitree and hypermultitree, respectively. Furthermore, we propose an exact solution approach based on the state space decomposition to compute the probability. We derive a feasible state from a state space and then decompose the space into several disjoint subspaces iteratively. The probability is equal to the sum of the probabilities in these subspaces. We use the 8-node and 15-node network examples in Prékopa and Boros, *Operat Res* 39 (1991) 119–129 and the Sioux-Falls network with 24 nodes to show that the space decomposition algorithm can obtain the exact probability of these classical examples efficiently. © 2016 Wiley Periodicals, Inc. Naval Research Logistics, 2016

This article considers a multistage channel with deterministic price-sensitive demand. Two systems for pricing decisions, that is, the bargaining system and the leader-follower system, are compared. We characterize the necessary and sufficient conditions on the power structure, under which the solution of the bargaining system Pareto dominates that of the leader-follower system. Also, under such conditions, we give a tight upper bound of channel efficiency of the bargaining system, which converges to 100% channel efficiency as the number of stages increases to infinity.© 2016 Wiley Periodicals, Inc. Naval Research Logistics, 2016

We study an admission control model in revenue management with nonstationary and correlated demands over a finite discrete time horizon. The arrival probabilities are updated by current available information, that is, past customer arrivals and some other exogenous information. We develop a regret-based framework, which measures the difference in revenue between a clairvoyant optimal policy that has access to all realizations of randomness a priori and a given feasible policy which does not have access to this future information. This regret minimization framework better spells out the trade-offs of each accept/reject decision. We proceed using the lens of approximation algorithms to devise a conceptually simple regret-parity policy. We show the proposed policy achieves 2-approximation of the optimal policy in terms of total regret for a two-class problem, and then extend our results to a multiclass problem with a fairness constraint. Our goal in this article is to make progress toward understanding the marriage between stochastic regret minimization and approximation algorithms in the realm of revenue management and dynamic resource allocation.© 2016 Wiley Periodicals, Inc. Naval Research Logistics, 2016

In this article, we consider shortest path problems in a directed graph where the transitions between nodes are subject to uncertainty. We use a minimax formulation, where the objective is to guarantee that a special destination state is reached with a minimum cost path under the worst possible instance of the uncertainty. Problems of this type arise, among others, in planning and pursuit-evasion contexts, and in model predictive control. Our analysis makes use of the recently developed theory of abstract semicontractive dynamic programming models. We investigate questions of existence and uniqueness of solution of the optimality equation, existence of optimal paths, and the validity of various algorithms patterned after the classical methods of value and policy iteration, as well as a Dijkstra-like algorithm for problems with nonnegative arc lengths.© 2016 Wiley Periodicals, Inc. Naval Research Logistics, 2016

A Markov population decision chain concerns the control of a population of individuals in different states by assigning an action to each individual in the system in each period. This article solves the problem of finding policies that maximize expected system utility over a finite horizon in Markov population decision chains with finite state-action space under the following assumptions: (1) The utility function exhibits constant risk posture, (2) the progeny vectors of distinct individuals are independent, and (3) the progeny vectors of individuals in a state who take the same action are identically distributed. The main result is that it is possible to solve the problem with the original state-action space without augmenting it to include information about the population in each state or any other aspect of the system history. In particular, there exists an optimal policy that assigns the same action to all individuals in a given state and period, independently of the population in that period and such a policy can be computed efficiently. The optimal utility operators that find the maximum of a finite collection of polynomials (rather than affine functions) yield an optimal solution with effort linear in the number of periods.© 2016 Wiley Periodicals, Inc. Naval Research Logistics, 2016

In this article, we study a class of Quasi-Skipfree (QSF) processes where the transition rate submatrices in the skipfree direction have a column times row structure. Under homogeneity and irreducibility assumptions we show that the stationary distributions of these processes have a product form as a function of the level. For an application, we will discuss the -queue that can be modeled as a QSF process on a two-dimensional state space. In addition, we study the properties of the stationary distribution and derive monotonicity of the mean number of the customers in the queue, their mean sojourn time and the variance as a function of for fixed mean arrival rate. © 2016 Wiley Periodicals, Inc. Naval Research Logistics, 2016

We consider a dynamic pricing model in which the instantaneous rate of the demand arrival process is dependent on not only the current price charged by the concerned firm, but also the present state of the world. While reflecting the current economic condition, the state evolves in a Markovian fashion. This model represents the real-life situation in which the sales season is relatively long compared to the fast pace at which the outside environment changes. We establish the value of being better informed on the state of the world. When reasonable monotonicity conditions are met, we show that better present economic conditions will lead to higher prices. Our computational study is partially calibrated with real data. It demonstrates that the benefit of heeding varying economic conditions is on par with the value of embracing randomness in the demand process. © 2015 Wiley Periodicals, Inc. Naval Research Logistics, 2015

We present the green telecommunication network planning problem with switchable base stations, where the location and configuration of the base stations are optimized, while taking into account uncertainty and variability of demand. The problem is formulated as a two-stage stochastic program under demand uncertainty with integers in both stages. Since solving the presented problem is computationally challenging, we develop the corresponding Dantzig-Wolfe reformulation and propose a solution approach based on column generation. Comprehensive computational results are provided for instances of varying characteristics. The results show that the joint location and dynamic switching of base stations leads to significant savings in terms of energy cost. Up to 30% reduction in power consumption cost is achieved while still serving all users. In certain cases, allowing dynamic configurations leads to more installed base stations and higher user coverage, while having lower total energy consumption. The Dantzig-Wolfe reformulation provides solutions with a tight LP-gap eliminating the need for a full branch-and-price scheme. Furthermore, the proposed column generation solution approach is computationally efficient and outperforms CPLEX on the majority of the tested instances. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 351–366, 2016

The warehouse problem with deterministic production cost, selling prices, and demand was introduced in the 1950s and there is a renewed interest recently due to its applications in energy storage and arbitrage. In this paper, we consider two extensions of the warehouse problem and develop efficient computational algorithms for finding their optimal solutions. First, we consider a model where the firm can invest in capacity expansion projects for the warehouse while simultaneously making production and sales decisions in each period. We show that this problem can be solved with a computational complexity that is linear in the product of the length of the planning horizon and the number of capacity expansion projects. We then consider a problem in which the firm can invest to improve production cost efficiency while simultaneously making production and sales decisions in each period. The resulting optimization problem is non-convex with integer decision variables. We show that, under some mild conditions on the cost data, the problem can be solved in linear computational time. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 367–373, 2016

On the surface of a sphere, we take as inputs two points, neither of them contained in any of a number of spherical polygon obstacles, and quickly find the shortest route connecting these two points while avoiding any obstacle. The WetRoute method presented here has been adopted by the US Navy for several applications. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 374–385, 2016

In various scenarios, consumers may become satiated with products, and the degree of satiation is directly associated with their prior experiences. Confronted with consumer satiation, the seller is unable to either identify consumers who have a higher likelihood of being satiated ex ante or distinguish satiated from non-satiated consumers ex post. Therefore, the seller should address dynamic selling, valuation uncertainty, and quantity decisions, all of which are important operational issues. We consider a two-period problem in which consumer types are influenced by their prior consumption experiences. Faced with these consumers, the seller intends to optimize quantities and adjust the prices of the products in each period to maximize revenue. We find that the seller may reduce ex ante production quantity as some consumers become satiated. Moreover, the ex ante quantity is first decreasing and then increasing with regard to the satiation rate. Furthermore, two-period information asymmetries may provide a rationale for upward distortion in quantity when consumer preferences are highly sensitive to first-period consumption. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 386–400, 2016

This article treats an elementary optimization problem, where an inbound stream of successive items is to be resequenced with the help of multiple parallel queues in order to restore an intended target sequence. Whenever early items block the one item to be currently released into the target sequence, they are withdrawn from their queue and intermediately stored in an overflow area until their actual release is reached. We aim to minimize the maximum number of items simultaneously stored in the overflow area during the complete resequencing process. We met this problem in industry practice at a large German automobile producer, who has to resequence containers with car seats prior to the assembly process. We formalize the resulting resequencing problem and provide suited exact and heuristic solution algorithms. In our computational study, we also address managerial aspects such as how to properly avoid the negative effects of sequence alterations. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 401–415, 2016

We consider scheduling problems involving two agents (agents *A* and *B*), each having a set of jobs that compete for the use of a common machine to process their respective jobs. The due dates of the *A*-jobs are decision variables, which are determined by using the common (*CON*) or slack (*SLK*) due date assignment methods. Each agent wants to minimize a certain performance criterion depending on the completion times of its jobs only. Under each due date assignment method, the criterion of agent *A* is always the same, namely an integrated criterion consisting of the due date assignment cost and the weighted number of tardy jobs. Several different criteria are considered for agent *B*, including the maxima of regular functions (associated with each job), the total (weighted) completion time, and the weighted number of tardy jobs. The overall objective is to minimize the performance criterion of agent *A*, while keeping the objective value of agent *B* no greater than a given limit. We analyze the computational complexity, and devise polynomial or pseudo-polynomial dynamic programming algorithms for the considered problems. We also convert, if viable, any of the devised pseudopolynomial dynamic programming algorithms into a fully polynomial-time approximation scheme. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 416–429, 2016