Lecture01.

IntroductiontoSupply
Chains,theClass,andtheInstructor
ISYE4210/ISYE6600
SupplyChainDesign
JenniferPazour,Ph.D.
1

Announcements
OfficeHours:(CII5217)
Mondays10:30am 11:30am
Thursdays10:30am 11:30am
Orbyappointment(pazouj@rpi.edu)

TeachingAssistant:LuCheng
LuCheng
chengl5@rpi.edu
OfficeHoursinCII5007onMondayandWednesday3:00 5:00pm

ThursdaysClass:InClassActivity
SupplyChainandYouActivity;IntroductorySurvey
ISYE6600Students(Cachon,2012)ReadingAssignment

Lecture01 Agenda

Welcome Introductions
MotivationforthestudyofSupplyChains
CourseGoals
CourseInformation,Syllabus,Schedule

JenniferA.Pazour,Ph.D.
AssistantProfessorofIndustrialandSystems
EngineeringatRPI(August2015 current)
AssistantProfessorofIndustrialEngineeringand
ManagementSystemsatUCF(20112015)
Ph.D.inIndustrialEngineering,
UniversityofArkansas,May2011
Dissertation:AnAnalyticalExaminationof
PharmaceuticalDistributionandtheRoleof
OrderFulfillmentTechnology
M.S.inIndustrialEngineering,
UniversityofArkansas,May2008
Thesis:AModeltoDesignaNational
HighSpeedNetworkforFreightDistribution
B.S.inIndustrialEngineering,(mathematicsminor)
SouthDakotaSchoolofMines&Technology,
4
May2006

ResearchInterests
Developmentanduseofanalyticalmodelstoguide
decisionmakinginserviceindustries.
Primaryfocusonapplyingoperationsresearch
methodologiestologistics challengesin:

DistributionCenters

Transportation

Healthcare

Emergingfocuson:
PeertoPeerResource
5
SharingSystems

Military

ResearchInterestsin
AnalyticalModelingofLogistics
SystemDesign
Thats Logistics

Logisticsisconcerned
withtheefficientflow
andstorageofgoods
frompointoforiginto
pointofconsumption

LogisticsMagicTrick

Fundamentally,IamaModeler
Developmathematical
representations ofrealworld
systemsandprocesses.
Studythestructure ofthemodeland
develop solutionapproaches.
Usemodelstostudy andunderstand
thedynamics andproperties ofthe
systemandprocesses.
Recommendstrategies andpolicies
thatoptimizeperformance
measures.
8

AppliedOperationsResearch
OperationsResearchisthedisciplineof
applyingadvancedanalyticalmethodsto
helpmakebetterdecisions.
OperationsResearchMethodologies:
PrescriptiveMethods
LinearProgramming
IntegerProgramming
InventoryTheory

DescriptiveMethods
QueuingModels
ProbabilisticModels
MarkovChains
9

IhaveAppliedOperationsResearchwith:

Routing&SchedulingofTrucks
DesigningaHighSpeedRailNetworkforFreight
DecisionSupportTooltoSelectTechnologyfora
Warehouse
PharmaceuticalApplicationswithinaHospital
ImpactofInventoryonLaborRatesinaWarehouse
LogisticsModelingwiththeUSNavyandMarine
Corps
10

KeepupwithmyResearch&Teaching
Interests
http://jenpazour.wordpress.com/

Twitter:jpazour

11

DoesanyofthisSoundInteresting?
AlwaysLookingforGoodUndergraduateand
GraduateStudentstoWorkWith
ResearchInterestsinAppliedOperations
Research,

Interested?
Talktomeafterclass,
Stopbymyoffice(CII5217)
Sendmeanemail:pazouj@rpi.edu
12

Alittlemoreaboutme
GrewuponafarminMiddleofNowhere,
SouthDakota
Reallylikelogicandefficiency
MarriedtoanIE
Liketotravel,sleep,
read&run.
Morelater...

13

Lookingforwardtogettingtoknow
youthroughoutthecourse.
Whereareyouinyour
academiccareer?
Background,IndustryPositions,
ResearchTopics

Anupcomingassignment SupplyChainandYou
14

TheCourse(s)
ISYE4210 DesignandAnalysisofSupply
Chains
ISYE6600:DesignofManufacturingSystems
andSupplyChains

15

WhatisaSupplyChain?
Allstagesinvolved,directlyorindirectly,infulfillinga
customer request
Includesmanufacturers,suppliers,transporters,
warehouses,retailers,andcustomers
Withineachcompany,thesupplychainincludesall
functionsinvolvedinfulfillingacustomerrequest
(productdevelopment,marketing,operations,
distribution,finance,customerservice)

16

TheSupplyChainNetwork

*FromSimchiLevi,Kaminsky,SimchiLevi,2007,DesigningandManagingtheSupplyChain:Concepts,Strategies&CaseStudies,
3rded.,McGrawHill/Irwin
17

CourseTopics
5.Pricing,Coordination,andOthers

1.NetworkDesign

2.DemandForecasting

3.InventoryModels
4.RoutingandScheduling
inTransportation
*FromSimchiLevi,Kaminsky,SimchiLevi,2007,DesigningandManagingtheSupplyChain:Concepts,Strategies&CaseStudies,
3rded.,McGrawHill/Irwin
18

WhatisSupplyChainManagement?
Supplychainmanagementisasetofapproachesconcerned
withtheefficientintegration ofsuppliers,manufacturers,
warehousesandstoressothatmerchandiseisproducedand
distributed:

intherightquantities
totherightlocations
attherighttime
Inorderto

minimizesystemwide costs,AND
satisfycustomerservicelevelrequirements.
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HowmanyCountriesDoesItTaketoMake
aCoat?

*FromSimchiLevi,Kaminsky,SimchiLevi,2007,DesigningandManagingtheSupplyChain:Concepts,Strategies&CaseStudies,
20
3rded.,McGrawHill/Irwin

Terminology
SupplyChainNetworkconsistofthephysicalfacilities
(manufacturing,distributioncenters,retailers)
Logisticsisconcernedwiththeefficientflowandstorage
ofgoodsfrompointoforigintopointofconsumption.
SupplyChain(nouns)
Logistics(verbs)

21

TwoReasonstoTakethisClass
Application
Area

Methods

1. Interestedinasupply
chain/logistics/material
handling/distribution
careerorresearch.
2. Interestedinapplied
operationsresearchasa
careerorresearcharea.

22

WhyFocusonSupplyChainsandLogistics?
MaterialHandlingandLogistics
arethebackboneoftheUS
Economy.
MakesUp8.5%ofGrossDomestic
Product($1.33Trillion)[Material
Handling&LogisticsUSRoadMap,2013]

TransportationandLogisticsisthe
2nd LargestEmploymentSectorin
theUS(6millionpeople
employed)[TheBureauofLaborStatistics]
23

Itsanexcitingtimeforsupplychainandlogistics
ECommerce
TheNewYorkTimes(Dec,2013)GooglePutsMoney
onRobots,UsingtheManBehindAndroid
UrbanLogistics
Social/CrowdSourcedLogistics

24

AnalyticalModeling
Structural Results
Computational Experiments

Maximize

New Insights
Policy & Design Recommendations

Determine what to model

Trade-Off Analysis
Mathematical Modeling

25

CourseDetails

26

CourseDetails

InstructorJenniferA.Pazour,Ph.D.
OfficeCII5217
Emailpazouj@rpi.edu
OfficePhone:(518)2766486
OfficeHours:(inCII5217)
Mondays10:30am 11:30am
Thursdays10:30am 11:30am
Orbyappointment(pazouj@rpi.edu)

ClassMeetingMon/ThursNoon 1:20pminRussell
SageLab2707
CourseWebpage:https://lms9.rpi/edu
27

Text
SupplyChainManagement:Strategy,
Planning,andOperation,6/E

SunilChopra, PeterMeindl
ISBN10:0133800202
ISBN13: 9780133800203
PrenticeHall

*Note,Ifyoudouseadifferentedition,itisyourresponsibilitytofindafriend,orcome
tomineortheTA'sofficehours,toensurereadingsand/orhomeworkassignments
matchwithwhat'sassignedbasedonthe6thedition.
28

iClickers
iclicker remotes (required):
Deviceforiclicker classroom
responsesystem,whichis
availablefromthebookstore.
Pleasealsostockextra
batteries,aswewillbeusing
theremotesinanumberof
classperiodforactivitiesthat
countforgradepoints.
29

(Some)GoalsofthisClass
Design asystem,componentorprocesstomeetdesiredneeds
withinrealisticconstraintssuchaseconomic,environmentalsocial,
political,ethical,healthandsafety,manufacturability,and
sustainability.(IMESO3)
ApplyAnalyticalTools tounderstand,design,andcontrol
supplychainsystemsandprocesses.
Haveknowledgeofcontemporaryissues.(IMESO10)
Beabletodevelopandusemathematicalmodels toguide
decisionmakinginsupplychainsystemsandprocesses.
(6600Students)DiscussAcademicResearchinSupplyChain
Management.
(6600Students)IdentifyResearchContributionstounderstand
whyJournalArticlesarePublishedinSupplyChainManagement
Learnandhavefun!
30

LMS:https://lms9.rpi.edu
LMSisthemandatorycommunicationtoolin
thisclass.
Allclassrelatedmaterialsarepostedthere.
Studentsareresponsibleforall
announcementsandchangesintheschedule
thatarepostedontheclasswebsite.
Studentsareresponsibleformakingsurethat
LMSgradesarecorrect.
31

CourseAssessments
Assessment
HomeworkAssignments
(5total)
ActivityAssignments
JournalArticle
Assignments
Project
MidtermExam
FinalExam
Total

PercentageofGrade PercentageofGrade
(ISYE4210)
(ISYE6600)
25%
15%
10%
N/A

5%
10%

10%
25%
30%
100%

15%
25%
30%
100%

32

CourseModulesandHwk
A:UnderstandingSupplyChains
B:NetworkDesignintheSupplyChain
C:DemandForecastinginaSupplyChain
D:PlanningandCoordinationinaSupplyChain
E:InventoryManagement
F:RoutingandSchedulinginTransportation
G:PricingandRevenueManagement

(Hwk 1)
(Hwk 2)
(Hwk 3)
(Hwk 4)
(Hwk 5)

Studentsmaycollaborateontheassignments,meaningstudentscandiscusstheassignments,
buteverystudentmustcompleteandturninhis/herownwrittensolutionsinhis/herown
words(unlessotherwisestatedintheassignmentinstructions).Thehomeworkassignments
aredueatthebeginningofclass.Homeworkismeanttobealearningtool.Ifyouarehaving
difficulty,findhelprightaway dontwaituntilyoufallevenfurtherbehind!
33

ActivityAssignments
ActivityAssignments:Theseassessments,whichare
meanttoprovideopportunitiesforstudentstotesttheir
knowledgethroughoutthecourse,willtakemultipleforms,
includingcasestudies,inclassactivities,inclassquizzes
andassignments,iClicker responses,onlineactivitiesand
onlinequizzes,etc..
Moreinformationwillbeprovidedaboutthese
assignmentsduringthecourse.Assignmentweightswill
varydependingontheeffortrequiredofstudents.
Pleasenote,iclickers arerequiredforthisclassandare
availablefromthebookstore. Pleasealsostockextra
batteries,aswewillbeusingtheremotesinanumberof
classperiodforactivitiesthatcountforgradepoints.
34

CourseProject
Exploreacontemporaryissuesinsupplychain
design
ISYE4210:Selfselectedteams(< 2students)
ISYE6600:IndividualEffort
Moredetails,plusgradingrubrics,infuture
lectures(afteradd/dropdate).

35

Exams
Therewillbetwoexams:amidtermexamanda
comprehensivefinalexam(givenduringthe
scheduledfinalexamperiod).Examsarean
individualeffort.Moreinformationwillbe
provideabouttheformat:
ConceptualQuestions
ApplicationofAnalyticalMethods

Midterm:Monday,November2nd
Final:DuringFinalsWeek
36

JournalReadingAssignments
(6600StudentsOnly)
StudentsenrolledintheISYE6600sectionofthecourseare
requiredtoreadandanalyzeanumberofjournalarticlesin
thefieldofsupplychain.
Thepurposeofthesereadingsistogetstudentsfamiliar
withthetypeofresearchconducted inthisarea,aswellto
understandwhyarticlesarepublished,andthevarietyof
journals thatpublishsupplychainresearch.
EachstudentisresponsibleforturninginawrittenReading
Assignment.OnetypeofreadingassignmentisaLevel3
Assignment,whichisanapproachtoefficientlyreadjournal
articlesandwillbediscussedfurtherinclass,alongwith
otherreadingassignmentformats.

37

AcademicHonesty
PlagiarismandCheatingofanykindonanexamination,quiz,or
assignmentswillresultatleastinan"F"forthatassignment(and
may,dependingontheseverityofthecase,leadtoan"F"forthe
entirecourse).
SeetheRensselaer HandbookofStudentsRightsand
Responsibilities.Iwillassumeforthiscoursethatyouwilladhereto
theacademiccreedofthisUniversityandwillmaintainthehighest
standardsofacademicintegrity.
Inotherwords,don'tcheatbygivinganswerstoothersortaking
themfromanyoneelse.
Iwillalsoadheretothehigheststandardsofacademicintegrity,so
pleasedonotaskmetochange(orexpectmetochange)your
gradeillegitimatelyortobendorbreakrulesforonepersonthat
willnotapplytoeveryone.

38

Afewhighlights
PleasereadtheSyllabuscarefullyandinitsentirety!

ExcusalPolicy:Ifyouknowaheadoftimethatyouwillmissan
exam/assignmentdeadline,thenyoumustmakearrangementsbeforethe
assessmentisdue.Failuretodosowillresultin25%offforeach24hour
periodtheassessmentislate.
Ifanemergencyarisesandastudentcannotsubmitassignedworkonor
beforethescheduledduedateorcannottakeanexamonthescheduled
date,thestudent(ortheStudentExperienceOffice)MUSTgivenotification
totheinstructorNOMORETHAN48HOURSAFTERthescheduleddate.If
youhaveanemergency,thecampusisheretohelp,pleasecoordinatewith
theStudentExperienceOffice 4th floorofAcademyHall,x8022,se@rpi.edu
ReGradingPolicy: Documentinwritingwhichpartyouwantregradedand
why,andturninthisdocumentwithyouroriginalassignment.Youwillbe
givenonechance(perassignment)torequestaregrade.Noregradewillbe
acceptedmorethanoneweekafteranexamoranassignmenthasbeen
returnedtothestudent.Regradesmadeafterthisperiodhaselapsedwill
NOTbeconsidered.
39

LMS
Syllabus(Contents)
Syllabus(Schedule)
Modules

40

Announcements
OfficeHours:(CII5217)
Mondays10:30am 11:30am
Thursdays10:30am 11:30am
Orbyappointment(pazouj@rpi.edu)

TeachingAssistant:LuCheng
LuCheng
chengl5@rpi.edu
OfficeHoursinCII5007onMondayandWednesday3:00 5:00pm

ThursdaysClass:InClassActivity
SupplyChainandYouActivity;IntroductorySurvey
ISYE6600Students(Cachon,2012)ReadingAssignment

41

NextTime
InClassActivitytoExploreSupplyChains
(Inclassactivitypoints)
Chapter1 3intext

42