Trade determination in multi-attribute exchanges

Electronic exchanges are double-sided marketplaces that allow multiple buyers to trade with multiple sellers, with aggregation of demand and supply across the bids to maximize the revenue in the market. Two important issues in the design of exchanges are (1) trade determination (determining the number of goods traded between any buyer-seller pair) and (2) pricing. In this paper we address the trade determination issue for one-shot, multi-attribute exchanges that trade multiple units of the same good. The bids are configurable with separable additive price functions over the attributes and each function is continuous and piecewise linear. We model trade determination as mixed integer programming problems for different possible bid structures and show that even in two-attribute exchanges, trade determination is NP-hard for certain bid structures. We also make some observations on the pricing issues that are closely related to the mixed integer formulations.

Application of Mathematical Programming to the Plywood Design and Manufacturing Problem

Plywood manufacture includes two fundamental stages. The first is to peel or separate logs into veneer sheets of different thicknesses. The second is to assemble veneer sheets into finished plywood products. At the first stage a decision must be made as to the number of different veneer thicknesses to be peeled and what these thicknesses should be. At the second stage, choices must be made as to how these veneers will be assembled into final products to meet certain constraints while minimizing wood loss. These decisions present a fundamental management dilemma. Costs of peeling, drying, storage, handling, etc. can be reduced by decreasing the number of veneer thicknesses peeled. However, a reduced set of thickness options may make it infeasible to produce the variety of products demanded by the market or increase wood loss by requiring less efficient selection of thicknesses for assembly. In this paper the joint problem of veneer choice and plywood construction is formulated as a nonlinear integer programming problem. A relatively simple optimal solution procedure is developed that exploits special problem structure. This procedure is examined on data from a British Columbia plywood mill. Restricted to the existing set of veneer thicknesses and plywood designs used by that mill, the procedure generated a solution that reduced wood loss by 79 percent, thereby increasing net revenue by 6.86 percent. Additional experiments were performed that examined the consequences of changing the number of veneer thicknesses used. Extensions are discussed that permit the consideration of more than one wood species.

Design of logical topologies for wavelength-routed optical networks

his paper studies the problem of designing a logical topology over a wavelength-routed all-optical network (AON) physical topology, The physical topology consists of the nodes and fiber links in the network, On an AON physical topology, we can set up lightpaths between pairs of nodes, where a lightpath represents a direct optical connection without any intermediate electronics, The set of lightpaths along with the nodes constitutes the logical topology, For a given network physical topology and traffic pattern (relative traffic distribution among the source-destination pairs), our objective is to design the logical topology and the routing algorithm on that topology so as to minimize the network congestion while constraining the average delay seen by a source-destination pair and the amount of processing required at the nodes (degree of the logical topology), We will see that ignoring the delay constraints can result in fairly convoluted logical topologies with very long delays, On the other hand, in all our examples, imposing it results in a minimal increase in congestion, While the number of wavelengths required to imbed the resulting logical topology on the physical all optical topology is also a constraint in general, we find that in many cases of interest this number can be quite small, We formulate the combined logical topology design and routing problem described above (ignoring the constraint on the number of available wavelengths) as a mixed integer linear programming problem which we then solve for a number of cases of a six-node network, Since this programming problem is computationally intractable for larger networks, we split it into two subproblems: logical topology design, which is computationally hard and will probably require heuristic algorithms, and routing, which can be solved by a linear program, We then compare the performance of several heuristic topology design algorithms (that do take wavelength assignment constraints into account) against that of randomly generated topologies, as well as lower bounds derived in the paper.

A combinatorial procurement auction for QoS-aware web services

Business processes and application functionality are becoming available as internal web services inside enterprise boundaries as well as becoming available as commercial web services from enterprise solution vendors and web services marketplaces. Typically there are multiple web service providers offering services capable of fulfilling a particular functionality, although with different Quality of Service (QoS). Dynamic creation of business processes requires composing an appropriate set of web services that best suit the current need. This paper presents a novel combinatorial auction approach to QoS aware dynamic web services composition. Such an approach would enable not only stand-alone web services but also composite web services to be a part of a business process. The combinatorial auction leads to an integer programming formulation for the web services composition problem. An important feature of the model is the incorporation of service level agreements. We describe a software tool QWESC for QoS-aware web services composition based on the proposed approach.

Optimal design of multiproduct batch chemical plant using NSGA-II

The optimal design of a multiproduct batch chemical plant is formulated as a multiobjective optimization problem, and the resulting constrained mixed-integer nonlinear program (MINLP) is solved by the nondominated sorting genetic algorithm approach (NSGA-II). By putting bounds on the objective function values, the constrained MINLP problem can be solved efficiently by NSGA-II to generate a set of feasible nondominated solutions in the range desired by the decision-maker in a single run of the algorithm. The evolution of the entire set of nondominated solutions helps the decision-maker to make a better choice of the appropriate design from among several alternatives. The large set of solutions also provides a rich source of excellent initial guesses for solution of the same problem by alternative approaches to achieve any specific target for the objective functions

Filter design using radial basis function neural network and genetic algorithm for improved operational health monitoring

The problem of denoising damage indicator signals for improved operational health monitoring of systems is addressed by applying soft computing methods to design filters. Since measured data in operational settings is contaminated with noise and outliers, pattern recognition algorithms for fault detection and isolation can give false alarms. A direct approach to improving the fault detection and isolation is to remove noise and outliers from time series of measured data or damage indicators before performing fault detection and isolation. Many popular signal-processing approaches do not work well with damage indicator signals, which can contain sudden changes due to abrupt faults and non-Gaussian outliers. Signal-processing algorithms based on radial basis function (RBF) neural network and weighted recursive median (WRM) filters are explored for denoising simulated time series. The RBF neural network filter is developed using a K-means clustering algorithm and is much less computationally expensive to develop than feedforward neural networks trained using backpropagation. The nonlinear multimodal integer-programming problem of selecting optimal integer weights of the WRM filter is solved using genetic algorithm. Numerical results are obtained for helicopter rotor structural damage indicators based on simulated frequencies. Test signals consider low order polynomial growth of damage indicators with time to simulate gradual or incipient faults and step changes in the signal to simulate abrupt faults. Noise and outliers are added to the test signals. The WRM and RBF filters result in a noise reduction of 54 - 71 and 59 - 73% for the test signals considered in this study, respectively. Their performance is much better than the moving average FIR filter, which causes significant feature distortion and has poor outlier removal capabilities and shows the potential of soft computing methods for specific signal-processing applications.

Filter design using radial basis function neural network and genetic algorithm for improved operational health monitoring

The problem of denoising damage indicator signals for improved operational health monitoring of systems is addressed by applying soft computing methods to design filters. Since measured data in operational settings is contaminated with noise and outliers, pattern recognition algorithms for fault detection and isolation can give false alarms. A direct approach to improving the fault detection and isolation is to remove noise and outliers from time series of measured data or damage indicators before performing fault detection and isolation. Many popular signal-processing approaches do not work well with damage indicator signals, which can contain sudden changes due to abrupt faults and non-Gaussian outliers. Signal-processing algorithms based on radial basis function (RBF) neural network and weighted recursive median (WRM) filters are explored for denoising simulated time series. The RBF neural network filter is developed using a K-means clustering algorithm and is much less computationally expensive to develop than feedforward neural networks trained using backpropagation. The nonlinear multimodal integer-programming problem of selecting optimal integer weights of the WRM filter is solved using genetic algorithm. Numerical results are obtained for helicopter rotor structural damage indicators based on simulated frequencies. Test signals consider low order polynomial growth of damage indicators with time to simulate gradual or incipient faults and step changes in the signal to simulate abrupt faults. Noise and outliers are added to the test signals. The WRM and RBF filters result in a noise reduction of 54 - 71 and 59 - 73% for the test signals considered in this study, respectively. Their performance is much better than the moving average FIR filter, which causes significant feature distortion and has poor outlier removal capabilities and shows the potential of soft computing methods for specific signal-processing applications. (C) 2005 Elsevier B. V. All rights reserved.

Nonnegative integral solution of linear equations

A method to obtain a nonnegative integral solution of a system of linear equations, if such a solution exists is given. The method writes linear equations as an integer programming problem and then solves the problem using a combination of artificial basis technique and a method of integer forms.

Vehicle Routing Problem with Load Compatibility Constraints

The major contribution of this paper is to introduce load compatibility constraints in the mathematical model for the capacitated vehicle routing problem with pickup and deliveries. The employee transportation problem in the Indian call centers and transportation of hazardous materials provided the motivation for this variation. In this paper we develop a integer programming model for the vehicle routing problem with load compatibility constraints. Specifically two types of load compatability constraints are introduced, namely mutual exclusion and conditional exclusion. The model is demonstrated with an application from the employee transportation problem in the Indian call centers.

Locating and sizing plants for bottling propane in south India

Shri Shakti LPG Ltd. (SSLPG) imports and markets propane (referred to as liquefied petroleum gas (LPG) in India) in south India. It sells LPG in packed (cylinder) form to domestic customers and commercial establishments through a network of dealers. Dealers replenish their stocks of filled cylinders from bottling plants, which in turn receive LPG in bulk from the cheaper of SSLPG's two import-and-storage facilities that are located on the Indian coast. We implemented integer programming to help SSLPG decide on the locations and long-run sizes of its bottling plants. We estimate that our recommended configuration of bottling plants is about $1 million cheaper annually than the one that SSLPG had initially planned.

An intelligent procurement marketplace for web services composition

This paper presents an intelligent procurement marketplace for finding the best mix of web services to dynamically compose the business process desired by a web service requester. We develop a combinatorial auction approach that leads to an integer programming formulation for the web services composition problem. The model takes into account the Quality of Service (QoS) and Service Level Agreements (SLA) for differentiating among multiple service providers who are capable of fulfilling a functionality. An important feature of the model is interface aware composition.

Scheduling a Burn-In Oven with Non-Agreeable Release Times and Due Dates

We consider the problem of scheduling semiconductor burn-in operations, where burn-in ovens are modelled as batch processing machines. Most of the studies assume that ready times and due dates of jobs are agreeable (i.e., ri < rj implies di ≤ dj). In many real world applications, the agreeable property assumption does not hold. Therefore, in this paper, scheduling of a single burn-in oven with non-agreeable release times and due dates along with non-identical job sizes as well as non-identical processing of time problem is formulated as a Non-Linear (0-1) Integer Programming optimisation problem. The objective measure of the problem is minimising the maximum completion time (makespan) of all jobs. Due to computational intractability, we have proposed four variants of a two-phase greedy heuristic algorithm. Computational experiments indicate that two out of four proposed algorithms have excellent average performance and also capable of solving any large-scale real life problems with a relatively low computational effort on a Pentium IV computer.

CAVVA: Computational Affective Video-in-Video Advertising

Advertising is ubiquitous in the online community and more so in the ever-growing and popular online video delivery websites (e. g., YouTube). Video advertising is becoming increasingly popular on these websites. In addition to the existing pre-roll/post-roll advertising and contextual advertising, this paper proposes an in-stream video advertising strategy-Computational Affective Video-in-Video Advertising (CAVVA). Humans being emotional creatures are driven by emotions as well as rational thought. We believe that emotions play a major role in influencing the buying behavior of users and hence propose a video advertising strategy which takes into account the emotional impact of the videos as well as advertisements. Given a video and a set of advertisements, we identify candidate advertisement insertion points (step 1) and also identify the suitable advertisements (step 2) according to theories from marketing and consumer psychology. We formulate this two part problem as a single optimization function in a non-linear 0-1 integer programming framework and provide a genetic algorithm based solution. We evaluate CAVVA using a subjective user-study and eye-tracking experiment. Through these experiments, we demonstrate that CAVVA achieves a good balance between the following seemingly conflicting goals of (a) minimizing the user disturbance because of advertisement insertion while (b) enhancing the user engagement with the advertising content. We compare our method with existing advertising strategies and show that CAVVA can enhance the user's experience and also help increase the monetization potential of the advertising content.