In this paper we first prove the following combinatorial bound, concerning the complexity of the vertical decomposition of the minimization diagram of trivariate functions: Let F be a collection of n totally or partially defined algebraic trivariate functions of constant maximum degree, with the additional property that, for a given pair of functions f, f' epsilon F, the surface f(x, y, z) = f'(x: y, z) is xy-monotone (actually, we need a somewhat weaker property). We show that the vertical decomposition of the minimization diagram of F consists of O (n(3+epsilon)) cells (each of constant description complexity), for any epsilon > 0. In the second part of the paper, we present a general technique that yields faster randomized algorithms for solving a number of geometric optimization problems, including (i) computing the width of a point set in 3-space, (ii) computing the minimum-width annulus enclosing a set of n points in the plane, and (iii) computing the ''biggest stick'' inside a simple polygon in the plane. Using the above result on vertical decompositions, we show that the expected running time of all three algorithms is O (n(3/2+epsilon)), for epsilon > 0. Our algorithm improves and simplifies previous solutions of all three problems.