Risk Aversion in Inventory Management

Traditional inventory models focus on risk-neutral decision makers, i.e., characterizing replenishment strategies that maximize expected total profit, or equivalently, minimize expected total cost over a planning horizon. In this paper, we propose a framework for incorporating risk aversion in multi-period inventory models as well as multi-period models that coordinate inventory and pricing strategies. In each case, we characterize the optimal policy for various measures of risk that have been commonly used in the finance literature. In particular, we show that the structure of the optimal policy for a decision maker with exponential utility functions is almost identical to the structure of the optimal risk-neutral inventory (and pricing) policies. Computational results demonstrate the importance of this approach not only to risk-averse decision makers, but also to risk-neutral decision makers with limited information on the demand distribution.

Algebraic Functions For Recognition

In the general case, a trilinear relationship between three perspective views is shown to exist. The trilinearity result is shown to be of much practical use in visual recognition by alignment --- yielding a direct method that cuts through the computations of camera transformation, scene structure and epipolar geometry. The proof of the central result may be of further interest as it demonstrates certain regularities across homographies of the plane and introduces new view invariants. Experiments on simulated and real image data were conducted, including a comparative analysis with epipolar intersection and the linear combination methods, with results indicating a greater degree of robustness in practice and a higher level of performance in re-projection tasks.

On the Relationship Between Generalization Error, Hypothesis Complexity, and Sample Complexity for Radial Basis Functions

In this paper, we bound the generalization error of a class of Radial Basis Function networks, for certain well defined function learning tasks, in terms of the number of parameters and number of examples. We show that the total generalization error is partly due to the insufficient representational capacity of the network (because of its finite size) and partly due to insufficient information about the target function (because of finite number of samples). We make several observations about generalization error which are valid irrespective of the approximation scheme. Our result also sheds light on ways to choose an appropriate network architecture for a particular problem.

Presentation Based User Interface

A prototype presentation system base is described. It offers mechanisms, tools, and ready-made parts for building user interfaces. A general user interface model underlies the base, organized around the concept of a presentation: a visible text or graphic for conveying information. Te base and model emphasize domain independence and style independence, to apply to the widest possible range of interfaces. The primitive presentation system model treats the interface as a system of processes maintaining a semantic relation between an application data base and a presentation data base, the symbolic screen description containing presentations. A presenter continually updates the presentation data base from the application data base. The user manipulates presentations with a presentation editor. A recognizer translates the user's presentation manipulation into application data base commands. The primitive presentation system can be extended to model more complex systems by attaching additional presentation systems. In order to illustrate the model's generality and descriptive capabilities, extended model structures for several existing user interfaces are discussed. The base provides support for building the application and presentation data bases, linked together into a single, uniform network, including descriptions of classes of objects as we as the objects themselves. The base provides an initial presentation data base network graphics to continually display it, and editing functions. A variety of tools and mechanisms help create and control presenters and recognizers. To demonstrate the base's utility, three interfaces to an operating system were constructed, embodying different styles: icons, menu, and graphical annotation.

Priors Stabilizers and Basis Functions: From Regularization to Radial, Tensor and Additive Splines

We had previously shown that regularization principles lead to approximation schemes, as Radial Basis Functions, which are equivalent to networks with one layer of hidden units, called Regularization Networks. In this paper we show that regularization networks encompass a much broader range of approximation schemes, including many of the popular general additive models, Breiman's hinge functions and some forms of Projection Pursuit Regression. In the probabilistic interpretation of regularization, the different classes of basis functions correspond to different classes of prior probabilities on the approximating function spaces, and therefore to different types of smoothness assumptions. In the final part of the paper, we also show a relation between activation functions of the Gaussian and sigmoidal type.