Supply Chain Inventory Management 26:799:685 Rutgers Business School Newark and New Brunswick Fall 2014

Transcription

1 Supply Chain Inventory Management 26:799:685 Rutgers Business School Newark and New Brunswick Fall 2014 Instructor: Dr. Yao Zhao Office: 1 Washington st., yaozhao@andromeda.rutgers.edu Lecture: Wednesdays, 1-3:50pm, at 1WP 528 Tel: Office Hours: by appointment Course Description: Inventory management is the cornerstone of supply chain management. The goal of this course is three-fold: (1) identify problems and challenges in inventory management, (2) introduce the main stream literature that mathematically models and solves these problems, (3) bring students to the frontier of this active research area. The course is targeted at graduate (M.S. or Ph.D.) students in the areas of operations management, operations research, industrial engineering and management science. To prepare students to do research and to train students for the job market, this course combines lectures, literature reading and seminars. Topics covered (tentative) Economic lot sizing and lot scheduling models Basics of stochastic processes and Markov Decision Process Single and multi-echelon inventory models Game theory in inventory management Seminars research frontiers Prerequisite: It is recommended that students are familiar with the basic concepts of linear/non-linear optimization, probability and statistics. Related Courses: Supply Chain Modeling & Algorithms, Supply Chain Marketing Interfaces, Stochastic Models in Supply Chains. Text Books: Inventory Control, 2 nd edition. By Sven Axsater Springer. ISBN-10: Modeling and Analysis of Stochastic Systems. By Vidyadhar G. Kulkarni Chapman & Hall. Reference Book: Foundations of Stochastic Inventory Theory. By E. Porteus Stanford Business Books, Stanford, CA.

2 Course Policy Course Requirement: Class grade is based on the following components with the stated weights: Homework 30% Mid-term 30% Presentations 30% Referee/Discussant 10% Class Participation: Class participation is necessary. If you cannot attend a class, please notify me in advance with a good reason and a solid proof, such as interviews and illness. Active Learning: To prepare you for a successful career in either academic or industry, this course is planned so that you can get involved in research activities. You will prepare and make presentations, serve as a discussant, search and review literature. Presentations: depending on enrollment, each student will read several research papers and present these papers as if you were the author. Some of the papers are selected by me while others are picked by you (it could be your own research paper) with my permission. In the presentation, you need to highlight the motivation and the potential social and/or economic impact, explain the research problem, the models, and the solution to the problem. You also need to compare to existing results and point out the contribution. The time limit for a presentation is 1 hour (including Q&A, prepare it as if it is your job talk!). The presentations will be graded based on how well you motivate the research, how clear is the model and results, and how significant is the contribution. Discussants: Besides presenters, each paper will have a discussant. The main task of a discussant is to provide a critique of the papers presented: the significance of the problem, the suitability of the model, the limitations of modeling assumptions and the role that those assumptions play in obtaining results, the significance of the results, and possible extensions. In addition, discussant should look for common themes or key issues that link the papers and enhance our understanding of the topic. Lastly, discussant is expected to raise challenging questions that would guide class discussion. The discussants will prepare a referee report to the paper presented. Referee Report: Papers submitted to refereed journal typically goes through a peer-review process, during which an associated editor (AE) assigns the paper to (at least) two referees. The referees will read the paper and provide suggestions to AE on either accepting or revising or rejecting the paper. A good referee provides constructive suggestions that allow the author to improve the paper. When you serve as a referee, remember one thing: it is too easy to criticize a paper; ask yourself two questions: what did I learn from this paper? How can I help the author(s) to improve the paper?

3 Judging Criteria on Papers 1. Potentially significant economical and/or social impact A research that matters! 2. Insights and solutions are effective but not common sense it is sophisticated. 3. New challenges, ideas and approaches it is novel.

4 Weekly Schedule (Tentative) 1. Introduction (9/3) Content: What Makes a Great Business Research? Course Policy & Overview. Two Basic Models & Literature Tree. S. Axsater 2006, Chapters 1 & 3 E. Porteus 2002, Two Basic Models Chapter 1 of Foundations of Stochastic Inventory Theory. Stanford Business Books, Stanford, CA. 2. Deterministic Models Economic Lot Scheduling Problems (9/10) Content: EOQ Models. S. Axsater 2006, Chapter 4 ( ). 3. Discrete-Time-Markov-Chain (9/17) Content: Discrete-Time Markov Chains with Finite Space State. Inventory Management Applications. V. G. Kulkarni 1995, Chapter 2 ( ), Chapter 3 (3.1, 3.2, 3.3, 3.5) 4. Poisson Process (9/24) Content: Exponential Random Variables, Poisson Process, Little s Law. V. G. Kulkarni 1995, Chapter 5 (5.1, 5.2, 5.4) 5. Continuous-Time Markov Chain (10/1) Content: Continuous-Time Markov Chains. Inventory Management Applications V. G. Kulkarni 1995, Chapter 6 (6.1, 6.2, 6.3, 6.6), Chapter 7 (7.3). 6. Markov Decision Process (10/8) Content: Markov Decision Process. Optimal Inventory Policies.

5 S. Axsater (2006). Chapter 10 (10.1). E. Porteus 2002, Chapters 3-4 of Foundations of Stochastic Inventory Theory. Stanford Business Books, Stanford, CA. Clark and Scarf (1960). Optimal Policies for a Multi-Echelon Inventory Problem. Management Science, 6, Single and Multi-Echelon Inventory Systems (10/15) Content: Inventory System Evaluation and Optimization for Centralized Supply Chains. S. Axsater (2006). Chapter 5 ( , 5.7). S. Axsater (2006). Chapter 5, Chapter 10 ( , 10.6) D. Simchi-Levi and Y. Zhao (2007). Three Generic Methods for Evaluating Stochastic Multi-Echelon Inventory Systems. 8. Game Theory & Decentralized Supply Chains (10/22) Content: Information, Gaming and Contracts in Decentralized Supply Chains. S. Axsater (2006). Chapter 10 (10.6) Lee, H. L., V. Padmanabhan and S. Whang (1997). Information Distortion in a Supply Chain: The Bullwhip Effect. Management Science 43, Cachon, G. (2002). Supply Chain Coordination with Contracts. Chapter 6 in the Handbooks in Operations Research and Management Science: Supply Chain Management, edited by Steve Graves and Ton de Kok and published by North- Holland. 9. Mid-term (10/29) 10. Seminar 1: Project and Supply Chain Interfaces (11/5) Content: Collaboration, Development, Planning for One-Time Projects/Events. Xu, X., Y. Zhao Incentives and Coordination in Collaborative Projects. (Speaker Xin, Referee Irene Gerlovin) Johnson, A., X. Xu, Y. Zhao Transportation Planning for Special Olympics. (Speaker Andy, referee Boni) Gerlovin, I., Y. Zhao The Joint-Strike Fighter: Supply Chain Program Management to the Rescue! (Speaker Irene Gerlovin, refeee Irene Akaab) 11. Seminar 2: Socially Responsible Supply Chains (11/12) Content: Supply Chain Management for a Social & Economic Impact.

6 Rafique, R., K.G. Mun, Y. Zhao Energy Supply Chain Design: Breaking the Vicious Cycle. (Speaker Kwon Gi, Referee Olena Rudna) Shi, J., R.K. Kiwanuka, Y. Zhao Managing Inventory for Agricultural Products: The Optimal Selling Policies. (Speaker Theek, referee Shailesh Pagare) Rafique, R., Y. Zhao Terrorist and Counter-Terrorists: A Big-Data Perspective. (Speaker Raza, no referee) 12. Seminar 3: Healthcare Operations (11/19) Content: Operations Research and the Future of Healthcare. Khan, A., R. Rafique, Y. Zhao A Markov Model to Evaluate Breast Cancer Treatments in Resource-Constrained Countries. (Speaker Raza, Referee Theek) Pentland, A. D. Lazer, D. Brewer, T. Heibeck Improving Public Health and Medicine by use of Reality Mining. A Whitepaper for the Robert Wood Johnson Foundation. (Speaker Theek, Referee Arim Park) Horner, P., A. Basu Analytics and the Future of Healthcare. Analytics Jan/Feb (Speaker Irene Gerlovin) Basu, R., N. Archer, B. Mukherjee Intelligent Decision Support in Healthcare. Analytics Jan/Feb (Speaker Irene Gerlovin) 13. Seminar 4: Innovation and Supply Chain Management (12/3) Content: Innovation vs. Supply Chain Management. Rafique, R., K.G. Mun, Y. Zhao Apple vs. Samsung: Partner or Competitor? (Speaker Arim Park, referee -- Boni) Hill, C. W., Rothaermel, F. T The performance of incumbent firms in the face of radical technological innovation. Academy of Management Review, 28(2): (speaker Irene Akaab, referee -- Shailesh) Teece, D. J., Profiting from technological innovation: Implications for integration, collaboration, licensing, and public policy. Research Policy 15: (speaker Arim Park, referee Theek) 14. Seminar 5: Big Data and Supply Management (12/10) Content: Big-data, Supply Management Simchi-Levi, D. (2014). OM Research: From Problem Driven to Data Driven Research. Manufacturing and Service Operations Management. Volume 16, No 1, pp (speaker Irene Akaab, referee -??) Krumme, C., M. Cebrian, A. Pentland Patterns of Individual Shopping Behavior. The Media Lab., MIT. (Speaker Shailsh, referee -- Olena)

7 Liker, J.K., The Toyota Way: Fourteen Management Secrets from the World s Greatest Manufacturer, McGraw-Hill, (Speaker Shailesh, Referee Arim) 15. Seminar 6: Sustainability and Social Networks (12/17) Content: Sustainable Supply Chains, and Social Networks Zhang, H., Y. Zhao (2014). Re-use versus Recycle: Win-win Strategies for Supply Chains. (Speaker Boni, referee Theek) Hill, Y., E. Toth (2013). Supply Chain Sustainability Shift: embedding sustainability into supply chain management. Corporate Citizenship, November (Speaker Olena, referee Arim) Lovejoy, W.S., A. Sinha (2010). Efficient structures for innovative social networks. Management Science 56 (7): (Speaker Boni, referee Irene Akaab) An experiment: Draw the social network of all students (linkedin), identify patterns (topologies), and predict the productivity and career of each one. Department coauthor network, productivity and tenure.