The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Supply Chain Management
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and at CMU
Assignment 5
Assignment 5 has been posted on canvas.
Due at 5 pm, Friday, Nov 25.
2
Agenda
SupplyChain Management
Bull
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
IELM 2010
Industrial Engineering and Modern Logistics
Introduction to Industrial
Engineering
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Ajay Joneja and Prof. Jeff Hong
Who is Xin Wang? A Bit about Myself
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n
2001
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
IELM 2010 Industrial Engineering and Modern Logistics Name:
Fall 2015, Exam II
SID:
Max time: 2 Hours, Max Score: 50
Q1. Short Questions
[2+2+4+2+2=12]
(a) Give two reasons why we use the concept of sampling in statistical quality control.
For each case,
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
IELM 2010 Industrial Engineering and Modern Logistics Name:
Spring 2015, Exam I
SID:
Max time: 2 Hours, Max Score: 50
Q1. Main concepts in IE & LM
[2+2+2+2=8]
(a) Even before the invention of the steam engine, it was still possible to operate
machines lik
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Tutorial 07
News Vendor Model
TA of IELM 2010
IELM Dept, HKUST
Spring 2014
1
The News Vendor Model
n
The difficulty of inventory management mainly comes
from the uncertain and fluctuating demand.
n
In the newsvendor model, we consider random demand
(with
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Microsoft Excel 14.0 Answer Report
Worksheet: [integer linear program.xlsx]Sheet1
Report Created: 30/1/2013 17:19:30
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time:
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Tutorial 05 Littles Law
TA of IELM2010
IELM Dept, HKUST
Spring 2014
1
Three Key Performance Measures
Throughput (TH)
The number of units that pass through the system per unit of time
Workinprocess (WIP)
The total number of units present within the bound
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Tutorial 09
Logistic Network Design
Problems
TA of IELM 2010
IELM Dept, HKUST
Spring 2014
1
PCenter problem
Locate P new facilities, called centers, on a network with
respect to m users with vertex locations, so as to minimize the
maximum of the distance
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
IELM2010 Industrial Engineering and Modern Logistics
Intended Learning Outcomes and Course Objectives
Students who complete this course will obtain a basic ability to apply mathematics and
engineering knowledge to fo
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Midterm Review (a)
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
Course Logistics
No tutorials in the next week.
Office hours every week
q
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q
q
Prof. Xin Wang: Friday, 3
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Game Theory: A Beautiful Mind
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Ajay Joneja and Prof. Jeff Hong
Pick a Number
n
Pick a number between 0 and 100. The person whose
number is closest to the twothirds of the class
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Optimization: Linear
Programming and Beyond
Prof. Xin Wang
IELM Dept, HKUST
Fall 2016
*Some materials adapted from Prof. Ajay Joneja and Prof. Jeff Hong
Course Logistics
n
Office Hour: 3:30 4:30 pm, every Friday
n
Homework Assignment 1 is posted.
q
q
q
q
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Revenue Management
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
What is Revenue Management?
Revenue management is a technique to maximize the
revenue earned from a fixed
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Inventory Management (c)
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
Motivating Question
A.
B.
C.
D.
A newsboy is ordering todays newspaper. The demand
for the newspape
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Project Management
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and at CMU
Learning Objective
Basic project management concepts:
q
q
q
q
What is a project?
Structuring projects
Phases of project mana
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Process Analysis and Process
Selection
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
Course Logistics
Assignment 3 is posted on Canvas.
Due at 11 am, Friday, Oct 14.
Turn
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Waiting Line Analysis Queueing Theory (a)
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
We Wait in Line Everyday!
iPhone 5 Queue
2
We Wait in Line Everyday!
GTA IV queue
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Midterm Review (b)
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
Midterm Exam
The midterm exam time is Oct 17, 4:30 pm  5:50 pm.
The exam locations are 2306 and 2303. Ea
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Waiting Line Analysis Queueing Theory (b)
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
Review
Servicing System
Servers
Customer
Arrivals
Waiting Line
Exit
Utilization =
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Inventory Management (a)
IELM 2010
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Mustafa Akan and Prof. Sunder Kekre at CMU
Inventory
Definition: The stock of any item or resource used
in an organization
Previously, we also
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Probability Basics
Prof. Xin WANG
IELM Dept, HKUST
Fall, 2016
*Some materials adapted from Prof. Ajay Joneja and Prof. Jeff Hong
Motivating Questions
How many students have registered for this class?
105
How many students will attend the next class?
The n
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Tutorial03: Market Competition
Models
TA of IELM2010
IELM Dept, HKUST
Spring 2013
Concepts
Nash Equilibrium
If there is a set of strategies with the property that no player can
benefit by changing his strategy while the other players keep his
strategies u
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
IELM 2010 Solution to Assignment 1
1. The corporate vice president will decide how much batteries in three grades should be
produced in three locations. Let xi , yi and zi denote the amount to produce in location i for
i=1,2,3. Then we can formulate op
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Supply Chain Management in a
Nutshell
Prof. Jeff Hong
IELM Dept, HKUST
Spring 2014
Note09: Supply Chain Management
1
Outlines
An overview of supply chain management
Newsvendor model
Inventory pooling
Variability and flexibility
Bullwhip effect and supply
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Production Management:
From Mass Production to JIT
Prof. Jeff Hong
IELM Dept, HKUST
Spring 2014
Note08: Production Management
1
Production
n
Production is a scientific process which involves
transformation of raw material (input) into desired
product by a
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Queueing and Basics of
Operations Management
Prof. Jeff Hong
IELM Dept, HKUST
Spring 2014
Note07: Queueing and OM
1
Operations Management
Operations management is an area of industrial
engineering concerned with management of production
or service process
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
What Is IE?
And a Bit of Early History
Prof. Jeff Hong
IELM Dept, HKUST
Spring 2014
Note01: IE and Early History of IE
1
What Is IE?
n
Common perceptions about engineering disciplines
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Chemical engineers: They know how to make shampoo.
Civil en
The Hong Kong University of Science and Technology
Industrial Engineering and Modern Statistics
IELM 2010

Spring 2014
Conditional Probability, Markov
Chains, and Google
Prof. Jeff Hong
IELM Dept, HKUST
Spring 2014
Note05: Conditional Probability
1
An Important Question
We face uncertain outcomes when we make decisions
Uncertainty in final grades affects our choice of maj