M&L 781: Analysis & Design of Logistics Systems - Winter 09
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1 M&L 781: Analysis & Design of Logistics Systems - Winter 09 The Professor: John Saldanha Phone: Fisher Hall saldanha_8@fisher.osu.edu (please put 781 in the Subject line) The Classes: Classes will be held on Mondays and Wednesdays from 8:30-10:18 PM SB 215. Office Hours: The Course: M, W 10:45 12:15 PM 524 Fisher Hall 781 can be described as a modeling course in logistics. We will cover a variety of logistics issues and discuss modeling approaches for solving them. The course is organized into four application modules (Forecasting, Routing & Scheduling, Facility Location, and Network Design) and one methods module (Modeling). Each application module will consist of a series of lectures on modeling and solution approaches to a class of problems, followed by a special lecture on case-studies and/or implementation issues. By the end of the course, you will: be familiar with several modeling problems commonly faced in logistics, understand the uses of, and the appropriateness of solving problems with, heuristics, optimization and simulation, be able to solve many of these problems using efficient heuristics (i.e. methods for finding good solutions to a problem) or optimization techniques (i.e. methods for finding the best solution), understand how companies address these problems in the real world. Readings and Texts: There is no course packet or text book for this course. There is no single textbook dedicated to the material we cover. All required readings for the in-class discussion are available on-line through the course web-site on Carmen or through Business Source Premier (see the reading list). The Grade: The final grade will be determined by the weighted average of the following: 50% 2 Exams (25% each) 36% Homework (9% each) 9% Network Modeling Case 5% Logistics Outside the Classroom The following is the grade distributions: A A- B+ B B- C+ C C- D+ D E [90, 100] [86, 90) [83, 86) [79, 83) [76, 79) [69, 76) [66, 69) [64, 66) [62, 64) [60, 62) [0,60) <60 Homework: There will be 6 homework assignments assigned during the quarter. You are encouraged to do them all, but you are expected to complete and hand-in any 4. You may work on the homework assignments in teams of 2. Please hand-in one assignment with both names on it. 1
2 Logistics Outside the Classroom (LOC): 5% of your grade is based on learning about logistics outside the classroom. There are several ways to obtain points towards this (each point is 1%): 1. Logistics in the News. You can write a one page review of a logistics-related news item. This can come from a current newspaper, or logistics trade magazine. Please do not submit writeups of web-articles or company web-sites. If you use a web article or a web-site as your source you will receive an automatic zero (see LOC tips below). Each write-up is worth 1 point. 2. Article Presentation: You can also present the topic to the class (a 3-5 minute interpretive review) and receive an additional point. A particular article, however, can only be presented by one student. 3. TLA Meetings. The Transportation and Logistics Association (TLA) meets at 7:30 pm on Tuesdays. You will receive 1 point each time you attend a meeting featuring a visiting speaker and then submit a one page write-up on what you learned from the talk. Submitting a write-up for a meeting you did not attend will be treated as academic misconduct so make sure you sign the meeting attendance sheet. NOTE: Attending a social meeting does not qualify, there has to be an invited speaker at the meeting making a presentation on logistics issues. TIPS about write-ups. Use the LOC document template from the Carmen course web-site. Type a full page (double-space) using 1 inch margins (I give partial credit for write-ups that are not a full page. Writing more than a page is fine). Use the reference style in the document footer. Incorrectly cited articles will be given partial credit. You may access electronic full-text articles of news papers and trade journals through Business Source Complete. You can also access hard copy logistics trade magazines from the business library. More details will be provided in the lecture notes. Write about logistics issues and draw your own conclusions on how events affect logistics. Don t tell me about announcements that were made at meetings, or what kind of pizza you had. ALL ASSIGNMENTS SHOULD BE TURNED IN BEFORE THE END OF CLASS ON THE DUE DATE LATE ASSIGNMENTS WILL NOT BE ACCEPTED NO ASSIGNMENTS WILL BE ACCEPTED BY Exams: All exams will be closed-book and closed-notes. The exams are not cumulative although some materials will carry-over. Should you be sick on an exam day, you must contact the professor more than 8 hours before the exam and schedule a make-up exam that must be taken within 2 days. You will also need to provide a doctor s note. I take academic misconduct very seriously see university policies attached below. Never represent someone else s work as your own. If I suspect any violation of the Code of Student Conduct, I will bring it to the attention of the Committee on Academic Misconduct who will determine and impose an appropriate sanction. This can range from a formal reprimand to dismissal. Trust me, I m good at catching misconduct and cheating isn t worth the risk. 2
3 ACADEMIC INTEGRITY (ACADEMIC MISCONDUCT) Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and scholarly activities. Thus, The Ohio State University and the Committee on Academic Misconduct (COAM) expect that all students have read and understand the University s Code of Student Conduct, and that all students will complete all academic and scholarly assignments with fairness and honesty. Students must recognize that failure to follow the rules and guidelines established in the University s Code of Student Conduct and this syllabus may constitute Academic Misconduct. The Ohio State University s Code of Student Conduct (Section ) defines academic misconduct as: Any activity that tends to compromise the academic integrity of the University, or subvert the educational process. Examples of academic misconduct include (but are not limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student, and possession of unauthorized materials during an examination. Ignorance of the University s Code of Student Conduct is never considered an excuse for academic misconduct, so I recommend that you review the Code of Student Conduct and, specifically, the sections dealing with academic misconduct. If I suspect that a student has committed academic misconduct in this course, I am obligated by University Rules to report my suspicions to the Committee on Academic Misconduct. If COAM determines that you have violated the University s Code of Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct could include a failing grade in this course and suspension or dismissal from the University. If you have any questions about the above policy or what constitutes academic misconduct in this course, please contact me. Other sources of information on academic misconduct (integrity) to which you can refer include: The Committee on Academic Misconduct web pages (oaa.osu.edu/coam/home.html) Ten Suggestions for Preserving Academic Integrity (oaa.osu.edu/coam/ten-suggestions.html) Eight Cardinal Rules of Academic Integrity ( 3
4 BUS M&L 781 Winter '09 Schedule Date Lecture Subject Readings Due Jan 5 Jan 7 Lecture 1: Course Overview and Intro to Forecasting Lecture 2: Intro to Time Series Approaches Jan 12 Lecture 3: Dealing with Trend & Seasonality LOC #1 Jan 14 Jan 19 Jan 21 Forecasting Lecture 4: Forecasting in Practice / Demand Management #1, #2 HW #1 Martin Luther King Day - no classes Lecture 5: Modeling Solution Methods - Heuristics, Optimization & Simulation #3, #4, #5 LOC #2 Jan 26 Lecture 6: Optimization: Formulating and Solving Integer Programs HW #2 Jan 28 Intro to Modeling Lecture 7: Simulation: Concepts and Software (Demo) Feb 2 EXAM 1 8:30-10:18 SB 215 HW #3 Feb 4 Feb 9 Feb 11 Routing & Scheduling Lecture 8: Building Blocks Lecture 9: Vehicle Routing (issues, using the sweep and savings methods) Guest Lecture Topic TBA LOC #3 HW #4 Feb 16 Lecture 10: Facility Location (issues, grid methods, median problem) HW #5 Feb 18 Lecture 11 The Next Step: Intro to Network Design LOC #4 Feb 21 Guest Lecture from Logictools (To be confirmed) HW #6 Feb 25 Mason 345 Feb 27 Mason 345 LOC #5 Mar 2 Mar 4 Facility Location & Network Design Open Mason 345, 3:30-5:30 PM Mason 345 Mar 9 Discuss Readings #6, #7, #8 Case Mar 11 Course Review Mar 16 FINAL EXAM TBA # Required Readings (see list on p. 5) 4
5 Required Course Readings Forecasting #1 Demand Forecasting: Reality vs. Theory Steve Robeano Carmen Intro to Modeling #2 The Demand Management Process Croxton, Lambert, Garcia and Rogers Carmen #3 Heuristics: Rules of Thumb for Logistics Decision Making Ballou JBL, Vol. 10, #1 #4 Simulation in Logistics: A Review of Present Practice and a Look to the Future Bowersox & Closs JBL, Vol. 10, #1 #5 Optimization Models for Logistics Decisions Powers JBL, Vol. 10, #1 Network Modeling #6 Designing an Integrated Distribution System at DowBrands, Inc. Robinson, Gao & Muggenborg Interfaces, Vol. 23, #3 #7 Strategic Service Network Design for DHL Hong Kong Cheung, Leung & Wong Interfaces, Vol. 31, #4 #8 Global Supply Chain Management at Digital Equipment Corporation Arntzen et al Interfaces, Vol. 25, #1 Note: JBL is the Journal of Business Logistics All articles (except #1, #2) can be found in the library or on-line. If you want to access these on-line from off-campus you first need to open the libraries home use the Off-Campus Sign-in to sign in to the libraries. After signing in from offcampus leave this window open and open Carmen in another window. Then, go to the course web-site on Carmen at If you choose to access the articles through Business Source Complete go to and click on "Research Databases", go to "B" and click on "Business Source Premier." From there you can conduct a search using any combination of the author, the article title, or the journal title. Once you find the article, you should be able to click on "PDF Full Text" to download the article in PDF format. 5
6 Optional Readings If you choose to study the topics we cover in greater depth these are some recommended sections of texts that will contain additional material to supplement what s covered in class. Note that there is no single textbook dedicated to the material we cover, especially the material on routing and facility location. Makridakis, Spyros G.; Wheelwright, Steven C.; and, Hyndman, Rob J. (1998), Forecasting Methods and Applications, 3 rd ed., John Wiley and Sons: New York, NY. 1. Chapter 2 Lecture 2 Section 2/4: Measuring Forecast Error Section 2/5: Prediction Intervals Section 2/6: Least Square Estimates Section 2/7 : Transformations and Adjustments Appendix 2-A: Notation for Quantitative Forecasting Appendix 2-B: Summation Sign some rules. 2. Chapter 4 Exponential smoothing methods Lecture 2 Section 4/1: The Forecasting Scenario Section 4/2: Averaging Methods Section 4/3: Exponential Smoothing Section 4/4: A Comparison of Methods Section 4/5: General Aspects of Smoothing Methods Ballou, Ronald H. (1992), Business Logistics Management, 3 rd ed., Prentice Hall Inc.: NJ. Lecture 3 3. Classic Time-Series Decomposition (pp ) Lawrence, John A. Jr.; Pasternack, Barry A. (1998), Applied Management Science A Computer-Integrated Approach for Decision Making, John Wiley and Sons: New York, NY. 4. Chapter 9: Forecasting Lecture 1 5. Chapter 3: Linear Programming Lecture 6 6. Chapter 4: Linear Programming Applications Lecture 6 7. Chapter 5: Integer Linear Programming Lecture 6 8. Chapter 6: Network Models Section 6.4: The Traveling Salesman Problem Lecture 9 Section 6.5: The Shortest Path Problem Lecture 8 Section 6.6: The Minimal Spanning Tree Problem Lecture 8 6
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