Tuesday, April 28, 2009

A new paper

We just have a new paper coming up in a journal. It's not a "cognitive decision science" paper. It's a "decision science" one. I first wrote the original version in 2003, and it's finally coming out, after some rounds of review. Should you be interested, please email me for a preprint.

Here's the full reference:

Theory of constraints and the combinatorial complexity of the product mix decision

A. Linhares

To appear in the International Journal of Production Economics

Abstract: The Theory of Constraints (TOC) proposes that, when production is bounded by a single bottleneck, the best product mix heuristic is to select products based on their ratio of throughput per constraint use. This is not true for cases when production is limited to integer quantities of final products. We demonstrate four facts which go directly against current thought in the TOC literature. For example, there are cases on which the optimum product mix includes products with lowest product margin and lowest ratio of throughput per constraint time, simultaneously violating the margin heuristic and the TOC-derived heuristic. Such failures are due to the NP-hardness of the product mix decision problem, also demonstrated here.