The problem of optimally (re)allocating Navy personnel to combat units
is compounded by several considerations: availability of trained pers
onnel, staffing of positions by occupation groups or ranks, and mainta
ining an acceptable level of readiness. In this paper we model this pr
oblem as a nonlinear nondifferentiable optimization problem. A reformu
lation of the nonlinear optimization problem as a network flow problem
is then developed. The formulation results in a network flow problem
with side constraints. An additional, nonnetwork, variable measures th
e readiness level. This new formulation permits the use of network opt
imization tools in order to solve effectively very large problems. We
then develop two numerical methods for solving this problem. One metho
d is based on a heuristic that solves (approximately) the nondifferent
iable problem. The second method is based on a Linear-Quadratic Penalt
y (LQP) algorithm, and it exploits the embedded network structure by p
lacing the side constraints into the objective function. The resulting
nonlinear network program is solved using a simplicial decomposition
of the network constraint set. Numerical results indicate the viabilit
y of this approach on problems with up to 36,000 arcs and 17,000 nodes
with 3,700 side constraints.