Decentralised supply chain formation:a belief propagation-based approach

Decentralised supply chain formation involves determining the set of producers within a network able to supply goods to one or more consumers at the lowest cost. This problem is frequently tackled using auctions and negotiations. In this paper we show how it can be cast as an optimisation of a pairwise cost function. Optimising this class of functions is NP-hard but good approximations to the global minimum can be obtained using Loopy Belief Propagation (LBP). Here we detail a LBP-based approach to the supply chain formation problem, involving decentralised message-passing between potential participants. Our approach is evaluated against a well-known double-auction method and an optimal centralised technique, showing several improvements: it obtains better solutions for most networks that admit a competitive equilibrium Competitive equilibrium as defined in [3] is used as a means of classifying results on certain networks to allow for minor inefficiencies in their auction protocol and agent bidding strategies. while also solving problems where no competitive equilibrium exists, for which the double-auction method frequently produces inefficient solutions.

Semantic linking through spaces for cyber-physical-socio intelligence:a methodology

Humans consciously and subconsciously establish various links, emerge semantic images and reason in mind, learn linking effect and rules, select linked individuals to interact, and form closed loops through links while co-experiencing in multiple spaces in lifetime. Machines are limited in these abilities although various graph-based models have been used to link resources in the cyber space. The following are fundamental limitations of machine intelligence: (1) machines know few links and rules in the physical space, physiological space, psychological space, socio space and mental space, so it is not realistic to expect machines to discover laws and solve problems in these spaces; and, (2) machines can only process pre-designed algorithms and data structures in the cyber space. They are limited in ability to go beyond the cyber space, to learn linking rules, to know the effect of linking, and to explain computing results according to physical, physiological, psychological and socio laws. Linking various spaces will create a complex space — the Cyber-Physical-Physiological-Psychological-Socio-Mental Environment CP3SME. Diverse spaces will emerge, evolve, compete and cooperate with each other to extend machine intelligence and human intelligence. From multi-disciplinary perspective, this paper reviews previous ideas on various links, introduces the concept of cyber-physical society, proposes the ideal of the CP3SME including its definition, characteristics, and multi-disciplinary revolution, and explores the methodology of linking through spaces for cyber-physical-socio intelligence. The methodology includes new models, principles, mechanisms, scientific issues, and philosophical explanation. The CP3SME aims at an ideal environment for humans to live and work. Exploration will go beyond previous ideals on intelligence and computing.

Interactive semantics

Much research pursues machine intelligence through better representation of semantics. What is semantics? People in different areas view semantics from different facets although it accompanies interaction through civilization. Some researchers believe that humans have some innate structure in mind for processing semantics. Then, what the structure is like? Some argue that humans evolve a structure for processing semantics through constant learning. Then, how the process is like? Humans have invented various symbol systems to represent semantics. Can semantics be accurately represented? Turing machines are good at processing symbols according to algorithms designed by humans, but they are limited in ability to process semantics and to do active interaction. Super computers and high-speed networks do not help solve this issue as they do not have any semantic worldview and cannot reflect themselves. Can future cyber-society have some semantic images that enable machines and individuals (humans and agents) to reflect themselves and interact with each other with knowing social situation through time? This paper concerns these issues in the context of studying an interactive semantics for the future cyber-society. It firstly distinguishes social semantics from natural semantics, and then explores the interactive semantics in the category of social semantics. Interactive semantics consists of an interactive system and its semantic image, which co-evolve and influence each other. The semantic worldview and interactive semantic base are proposed as the semantic basis of interaction. The process of building and explaining semantic image can be based on an evolving structure incorporating adaptive multi-dimensional classification space and self-organized semantic link network. A semantic lens is proposed to enhance the potential of the structure and help individuals build and retrieve semantic images from different facets, abstraction levels and scales through time.

Designing a successful adaptive agent for TAC Ad auction

This paper describes the design and evaluation of Aston-TAC, the runner-up in the Ad Auction Game of 2009 International Trading Agent Competition. In particular, we focus on how Aston-TAC generates adaptive bid prices according to the Market-based Value Per Click and how it selects a set of keyword queries to bid on to maximise the expected profit under limited conversion capacity. Through evaluation experiments, we show that AstonTAC performs well and stably not only in the competition but also across a broad range of environments. © 2010 The authors and IOS Press. All rights reserved.

Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector

Guest editorial Ali Emrouznejad is a Senior Lecturer at the Aston Business School in Birmingham, UK. His areas of research interest include performance measurement and management, efficiency and productivity analysis as well as data mining. He has published widely in various international journals. He is an Associate Editor of IMA Journal of Management Mathematics and Guest Editor to several special issues of journals including Journal of Operational Research Society, Annals of Operations Research, Journal of Medical Systems, and International Journal of Energy Management Sector. He is in the editorial board of several international journals and co-founder of Performance Improvement Management Software. William Ho is a Senior Lecturer at the Aston University Business School. Before joining Aston in 2005, he had worked as a Research Associate in the Department of Industrial and Systems Engineering at the Hong Kong Polytechnic University. His research interests include supply chain management, production and operations management, and operations research. He has published extensively in various international journals like Computers & Operations Research, Engineering Applications of Artificial Intelligence, European Journal of Operational Research, Expert Systems with Applications, International Journal of Production Economics, International Journal of Production Research, Supply Chain Management: An International Journal, and so on. His first authored book was published in 2006. He is an Editorial Board member of the International Journal of Advanced Manufacturing Technology and an Associate Editor of the OR Insight Journal. Currently, he is a Scholar of the Advanced Institute of Management Research. Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector This special issue aims to focus on holistic, applied research on performance measurement in energy sector management and for publication of relevant applied research to bridge the gap between industry and academia. After a rigorous refereeing process, seven papers were included in this special issue. The volume opens with five data envelopment analysis (DEA)-based papers. Wu et al. apply the DEA-based Malmquist index to evaluate the changes in relative efficiency and the total factor productivity of coal-fired electricity generation of 30 Chinese administrative regions from 1999 to 2007. Factors considered in the model include fuel consumption, labor, capital, sulphur dioxide emissions, and electricity generated. The authors reveal that the east provinces were relatively and technically more efficient, whereas the west provinces had the highest growth rate in the period studied. Ioannis E. Tsolas applies the DEA approach to assess the performance of Greek fossil fuel-fired power stations taking undesirable outputs into consideration, such as carbon dioxide and sulphur dioxide emissions. In addition, the bootstrapping approach is deployed to address the uncertainty surrounding DEA point estimates, and provide bias-corrected estimations and confidence intervals for the point estimates. The author revealed from the sample that the non-lignite-fired stations are on an average more efficient than the lignite-fired stations. Maethee Mekaroonreung and Andrew L. Johnson compare the relative performance of three DEA-based measures, which estimate production frontiers and evaluate the relative efficiency of 113 US petroleum refineries while considering undesirable outputs. Three inputs (capital, energy consumption, and crude oil consumption), two desirable outputs (gasoline and distillate generation), and an undesirable output (toxic release) are considered in the DEA models. The authors discover that refineries in the Rocky Mountain region performed the best, and about 60 percent of oil refineries in the sample could improve their efficiencies further. H. Omrani, A. Azadeh, S. F. Ghaderi, and S. Abdollahzadeh presented an integrated approach, combining DEA, corrected ordinary least squares (COLS), and principal component analysis (PCA) methods, to calculate the relative efficiency scores of 26 Iranian electricity distribution units from 2003 to 2006. Specifically, both DEA and COLS are used to check three internal consistency conditions, whereas PCA is used to verify and validate the final ranking results of either DEA (consistency) or DEA-COLS (non-consistency). Three inputs (network length, transformer capacity, and number of employees) and two outputs (number of customers and total electricity sales) are considered in the model. Virendra Ajodhia applied three DEA-based models to evaluate the relative performance of 20 electricity distribution firms from the UK and the Netherlands. The first model is a traditional DEA model for analyzing cost-only efficiency. The second model includes (inverse) quality by modelling total customer minutes lost as an input data. The third model is based on the idea of using total social costs, including the firm’s private costs and the interruption costs incurred by consumers, as an input. Both energy-delivered and number of consumers are treated as the outputs in the models. After five DEA papers, Stelios Grafakos, Alexandros Flamos, Vlasis Oikonomou, and D. Zevgolis presented a multiple criteria analysis weighting approach to evaluate the energy and climate policy. The proposed approach is akin to the analytic hierarchy process, which consists of pairwise comparisons, consistency verification, and criteria prioritization. In the approach, stakeholders and experts in the energy policy field are incorporated in the evaluation process by providing an interactive mean with verbal, numerical, and visual representation of their preferences. A total of 14 evaluation criteria were considered and classified into four objectives, such as climate change mitigation, energy effectiveness, socioeconomic, and competitiveness and technology. Finally, Borge Hess applied the stochastic frontier analysis approach to analyze the impact of various business strategies, including acquisition, holding structures, and joint ventures, on a firm’s efficiency within a sample of 47 natural gas transmission pipelines in the USA from 1996 to 2005. The author finds that there were no significant changes in the firm’s efficiency by an acquisition, and there is a weak evidence for efficiency improvements caused by the new shareholder. Besides, the author discovers that parent companies appear not to influence a subsidiary’s efficiency positively. In addition, the analysis shows a negative impact of a joint venture on technical efficiency of the pipeline company. To conclude, we are grateful to all the authors for their contribution, and all the reviewers for their constructive comments, which made this special issue possible. We hope that this issue would contribute significantly to performance improvement of the energy sector.

Polynomial function intervals for floating-point software verification

The focus of our work is the verification of tight functional properties of numerical programs, such as showing that a floating-point implementation of Riemann integration computes a close approximation of the exact integral. Programmers and engineers writing such programs will benefit from verification tools that support an expressive specification language and that are highly automated. Our work provides a new method for verification of numerical software, supporting a substantially more expressive language for specifications than other publicly available automated tools. The additional expressivity in the specification language is provided by two constructs. First, the specification can feature inclusions between interval arithmetic expressions. Second, the integral operator from classical analysis can be used in the specifications, where the integration bounds can be arbitrary expressions over real variables. To support our claim of expressivity, we outline the verification of four example programs, including the integration example mentioned earlier. A key component of our method is an algorithm for proving numerical theorems. This algorithm is based on automatic polynomial approximation of non-linear real and real-interval functions defined by expressions. The PolyPaver tool is our implementation of the algorithm and its source code is publicly available. In this paper we report on experiments using PolyPaver that indicate that the additional expressivity does not come at a performance cost when comparing with other publicly available state-of-the-art provers. We also include a scalability study that explores the limits of PolyPaver in proving tight functional specifications of progressively larger randomly generated programs. © 2014 Springer International Publishing Switzerland.

Unsupervised KDD to creatively support managers' decision making with fuzzy association rules:a distribution channel application

To be competitive in contemporary turbulent environments, firms must be capable of processing huge amounts of information, and effectively convert it into actionable knowledge. This is particularly the case in the marketing context, where problems are also usually highly complex, unstructured and ill-defined. In recent years, the development of marketing management support systems has paralleled this evolution in informational problems faced by managers, leading to a growth in the study (and use) of artificial intelligence and soft computing methodologies. Here, we present and implement a novel intelligent system that incorporates fuzzy logic and genetic algorithms to operate in an unsupervised manner. This approach allows the discovery of interesting association rules, which can be linguistically interpreted, in large scale databases (KDD or Knowledge Discovery in Databases.) We then demonstrate its application to a distribution channel problem. It is shown how the proposed system is able to return a number of novel and potentially-interesting associations among variables. Thus, it is argued that our method has significant potential to improve the analysis of marketing and business databases in practice, especially in non-programmed decisional scenarios, as well as to assist scholarly researchers in their exploratory analysis. © 2013 Elsevier Inc.

Fitness and novelty in evolutionary art

In this paper the effects of introducing novelty search in evolutionary art are explored. Our algorithm combines fitness and novelty metrics to frame image evolution as a multi-objective optimisation problem, promoting the creation of images that are both suitable and diverse. The method is illustrated by using two evolutionary art engines for the evolution of figurative objects and context free design grammars. The results demonstrate the ability of the algorithm to obtain a larger set of fit images compared to traditional fitness-based evolution, regardless of the engine used.

Expert System for Decision-Making Problem in Economics

An expert system (ES) is a class of computer programs developed by researchers in artificial intelligence. In essence, they are programs made up of a set of rules that analyze information about a specific class of problems, as well as provide analysis of the problems, and, depending upon their design, recommend a course of user action in order to implement corrections. ES are computerized tools designed to enhance the quality and availability of knowledge required by decision makers in a wide range of industries. Decision-making is important for the financial institutions involved due to the high level of risk associated with wrong decisions. The process of making decision is complex and unstructured. The existing models for decision-making do not capture the learned knowledge well enough. In this study, we analyze the beneficial aspects of using ES for decision- making process.

Analogous Reasoning and Case-based Reasoning for Intelligent Decision Support Systems

Methods of analogous reasoning and case-based reasoning for intelligent decision support systems are considered. Special attention is drawn to methods based on a structural analogy that take the context into account. This work was supported by RFBR (projects 02-07-90042, 05-07-90232).

In memoriam: Dimitar Shishkov

Bulgarian and world computer science lost a prominent colleague: Dimitar Petrov Shishkov 22th January 1939, Varna – 8th March 2004, Sofia D. Shishkov graduated mathematics at Sofia University in 1962. In the last year of his studies he started a specialization as a programmer at the Joint Institute of Nuclear Research – Dubna which lasted three years. Then he worked at the Institute of Mathematics for two years. In 1966 D. Shishkov together with a group of experts transferred to the newly created Central Laboratory for Information Technologies. In 1976 he defended his PhD dissertation. He has been an associate professor in computer science at Sofia University since 1985 and a professor in computer science since 2000. His scientific interests and results were in the fields of computer architectures, computational linguistics, artificial intelligence, numerical methods, data structures, etc. He was remarkable with his teaching activities. D. Shishkov was the creator of high-quality software for the first Bulgarian electronic calculator “ELKA” – one of the first calculators in the world as well as for the series of next calculators and for specialized minicomputers. He was the initiator of the international project “Computerization of the natural languages”. He was a member of a range of international scientific organizations. Among his numerous activities was the organization of the I-st Programming competition in 1979. D. Shishkov was the initiator of sport dancing in Bulgaria (1967) and founder of the first sport-dancing high school education in the world. D. Shishkov was a highly accomplished person with a diversity of interests, with a developed social responsibility and accuracy in his work. In 1996 D. Shishkov was awarded with the International Prize ITHEA for outstanding achievements in the field of Information Theories and Applications. We are grateful to D. Shishkov for the chance to work together with him for establishment and development of IJ ITA.

Application of Fuzzy Logic on Image Edge Detection

In this paper a novel method for an application of digital image processing, Edge Detection is developed. The contemporary Fuzzy logic, a key concept of artificial intelligence helps to implement the fuzzy relative pixel value algorithms and helps to find and highlight all the edges associated with an image by checking the relative pixel values and thus provides an algorithm to abridge the concepts of digital image processing and artificial intelligence. Exhaustive scanning of an image using the windowing technique takes place which is subjected to a set of fuzzy conditions for the comparison of pixel values with adjacent pixels to check the pixel magnitude gradient in the window. After the testing of fuzzy conditions the appropriate values are allocated to the pixels in the window under testing to provide an image highlighted with all the associated edges.

Self Evolving Character Recognition Using Genetic Operators

In this paper, a novel approach for character recognition has been presented with the help of genetic operators which have evolved from biological genetics and help us to achieve highly accurate results. A genetic algorithm approach has been described in which the biological haploid chromosomes have been implemented using a single row bit pattern of 315 values which have been operated upon by various genetic operators. A set of characters are taken as an initial population from which various new generations of characters are generated with the help of selection, crossover and mutation. Variations of population of characters are evolved from which the fittest solution is found by subjecting the various populations to a new fitness function developed. The methodology works and reduces the dissimilarity coefficient found by the fitness function between the character to be recognized and members of the populations and on reaching threshold limit of the error found from dissimilarity, it recognizes the character. As the new population is being generated from the older population, traits are passed on from one generation to another. We present a methodology with the help of which we are able to achieve highly efficient character recognition.

A mixture density network approach to modelling and exploiting uncertainty in nonlinear control problems

In nonlinear and stochastic control problems, learning an efficient feed-forward controller is not amenable to conventional neurocontrol methods. For these approaches, estimating and then incorporating uncertainty in the controller and feed-forward models can produce more robust control results. Here, we introduce a novel inversion-based neurocontroller for solving control problems involving uncertain nonlinear systems which could also compensate for multi-valued systems. The approach uses recent developments in neural networks, especially in the context of modelling statistical distributions, which are applied to forward and inverse plant models. Provided that certain conditions are met, an estimate of the intrinsic uncertainty for the outputs of neural networks can be obtained using the statistical properties of networks. More generally, multicomponent distributions can be modelled by the mixture density network. Based on importance sampling from these distributions a novel robust inverse control approach is obtained. This importance sampling provides a structured and principled approach to constrain the complexity of the search space for the ideal control law. The developed methodology circumvents the dynamic programming problem by using the predicted neural network uncertainty to localise the possible control solutions to consider. A nonlinear multi-variable system with different delays between the input-output pairs is used to demonstrate the successful application of the developed control algorithm. The proposed method is suitable for redundant control systems and allows us to model strongly non-Gaussian distributions of control signal as well as processes with hysteresis. © 2004 Elsevier Ltd. All rights reserved.

An Open Virtual World for Professional Development

The paper presents a study that focuses on the issue of sup-porting educational experts to choose the right combination of educational methodology and technology tools when designing training and learning programs. It is based on research in the field of adaptive intelligent e-learning systems. The object of study is the professional growth of teachers in technology and in particular that part of their qualification which is achieved by organizing targeted training of teachers. The article presents the process of creating and testing a system to support the decision on the design of training for teachers, leading to more effective implementation of technology in education and integration in diverse educational contexts. ACM Computing Classification System (1998): H.4.2, I.2.1, I.2, I.2.4, F.4.1.