Course Introduction

Manufacturing Logistics
 About HJ KIM
Hwa-Joong KIM
• Professor, Ph.D.
• Tel: 032-860-8238
• e-mail: hwa-joong.kim@inha.ac.kr

[Research area]

• Logistics System Optimization

✓ Network design: Drone depots, Electric vehicle charging stations
✓ Vehicle routing: Ship, EV, Drone-Truck
✓ Scheduling: Air crew, Crane
✓ Green logistics: Ship speed
✓ Reverse logistics: Disassembly inventory control
✓ Production logistics

• Logistics Policy
✓ TKR (Trans-Korea Railway)
✓ Belt and road initiative

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 Course Overview
Textbook
• Schroeder R.G., Goldstein S.M., Rungtusanatham M.J., Operations Management
in the Supply Chain: Decisions and Cases. 6th ed., McGraw-Hill

Reference book
• Krajewski L., Ritzman L., Malhotra M. Operations Management: Process and
value chains. Pearson Education

Grade
• Midterm exam: 35 %
• Final exam: 35 %
• H/W: 20 %
• Participation: 10 %

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Course Overview
Long-term decisions • S&OP: Sales and
Facility planning operations planning
• JIT: Just-In-Time system
• Smart factory
• TOC: Theory of
Facility layout constraints

Mid-term decisions
Aggregate planning

Material requirement Inventory management

planning

Short-term decisions
Operations scheduling

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 Neural networks
Tree Search

https://www.youtube.com/watch?v=WXuK6gekU1Y A.I. ?

OR
methods

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 What is OR ?
• Management Science
• Operations Research, Operational Research

O.R. & Analytics enable

organizations to turn complex
challenges into substantial opportunities
by transforming data into
information, & information into
insights for making better
decisions & improving results.
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 What is OR ?
• Techniques to help efficient decision • Finding the optimal solution or
making using mathematical and approximate solution in complex
statistical models decision problems

• Mainly use mathematical modeling, • Used to solve real-world problems

statistical analysis, optimization that maximize profits,
techniques, etc. performance, and returns, or
minimize losses, risks, and costs.
• Much research in Mathematics,
Industrial engineering, Business • Linear programming
administration • Dynamic
programming
• Can find applications in almost all • Queuing theory
disciplines (computer science, • Analytic
electrical engineering, electronics hierarchical analysis
engineering, chemical engineering, • Combination
materials science, mechanical optimization
engineering, economics, biology, • Simulation
biotechnology, • Network theory
• Game theory
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 WWW.SCIENCEOFBETTER.ORG

A New View of Analytics and Operations Research

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 OR Techniques
• LP: Linear Program
• IP: Integer Program
• NLP: Nonlinear Program
• Network Opt.: e.g., Tree Search
• Combinatorial Opt.

• Algorithm
✓ Heuristics: Greedy algorithm, local search
✓ Meta-Heuristics: Genetic algorithms, Simulated annealing algorithm, etc.
✓ Optimal algorithms
• Stochastic Process
• Queuing theory
• Simulation
• Forecasting
• Game theory

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 History of Linear Programming
Leonid Kantorovich George B. Dantzig

• Mathematician & economist in Soviet • American mathematician

Union • Developed Simplex method in 1947
• Founder of Linear Programming
• Use LPs during World War II to minimize https://www.youtube.com/watch?v=Bylkoiyz7Ww
the cost and loss of the army
• Nobel Prize in Economics (1975)
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 Linear Programming Model
A mathematical model that optimizes a linear objective function while
satisfying given linear constraints as a kind of optimization model

Objective function: Maximize Z = 8X1 + 10X2

Nonlinear Constraints: s.t.
8X1 + 10X2 ≤ 480
X1 + X2 ≤ 100
X1, X2 ≥0
Linear

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Air Container Loading Planning Model

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Applications of LP and IP
[TMS] [WMS]

[Sabre Crew Scheduling System]

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