Application of or for industrial engineers

OR

1. Application of Operations Research Techniques for Industrial Engineers Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 1 Operations Research techniques for Industrial Engineers “OR:THE SCIENCE OF BETTER” Presented By: Hakeem–Ur– Rehman PhD (Scholar)–Management Science & Engineering Major in (Logistics & Operations Management) Antai College of Economics & Management, Shanghai Jiao Tong University, Shanghai, China

2. Operations Research techniques for Industrial Engineers Outline: Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 2 Defining Industrial Engineering (IE) & Operations Research (OR) Application of OR techniques (with few examples) Research Journals Societies & Professional Bodies Optimization / Simulation Software

3. Operations Research techniques for Industrial Engineers What is Industrial Engineering : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 2 Industrial Engineering is concerned with the design, improvement, and installation of integrated systems of men, materials, equipment and energy. It draws upon specialized knowledge and skill in the mathematical, physical and social sciences together with the principles and methods of engineering analysis and design to specify, predict, and evaluate the results to be obtained from such systems. ( American Institute of Industrial Engineers) Industrial Engineering at the Undergraduate L evel is generally seen as a composition of four areas.

4. Operations Research techniques for Industrial Engineers What is Operations Research : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 4 Optimal decision-making in, and modeling of, deterministic and probabilistic systems that originate from real life . These applications, which occur in government, business, engineering, economics, and the natural and social sciences, are largely characterized by the need to allocate limited resources . In these situations, considerable insight can be obtained from scientific analysis, such as that provided by Operations Research. (Hiller–Lieberman) Linear Programming Integer Programming Network Analysis Dynamic Programming Non-linear Programming … Queuing Theory Decision Theory Monte Carlo Markov Chain Markov Decision Process Simulation … Problem Based Simulated Annealing Neural Network Genetic Algorithms Ant Colony Optimization … OR: a new field which started in the late 1930's and has grown and expanded tremendously in the last 30 years

5. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 5 LINEAR PROGRAMMING Resource Allocation Problems: A ttempt to allocate a limited resource so as to optimize the consequence of that allocation .   Subject to:   General Resource Allocation Model: Parameters: n = # of activities (e.g.: products etc.) m = # of Resources (e.g. Machines etc.) = Profit for activity ‘ ’ = Amount available of resource ‘ ’ = Amount of resource ‘ ’ used by a unit of activity ‘ ’ Decision Variables: = Amount of activity ‘ ’ selected   Machine Quantity Prodcut-1 Prodcut-2 Prodcut-3 Prodcut-4 Prodcut-5 M1 4 1.2 1.3 0.7 0.0 0.5 M2 5 0.7 2.2 1.6 0.5 1.0 M3 3 0.9 0.7 1.3 1.0 0.8 M4 7 1.4 2.8 0.5 1.2 0.6 Unit Profit ($) 18 25 10 12 15 EXAMPLE: Machine data and processing requirements (hrs./unit) Number of hours available on each machine type = 40

6. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 6 LINEAR PROGRAMMING … Data Envelopment Analysis: ( developed by Charles, Cooper and Rhodes (1978 ) ) is an application of linear programming that deals with the comparison of different decision making units (DMUs), with respect to their efficiencies such as branches of a fast-food chain, automobile dealerships selling the same brand, etc. General Basic DEA (CCR) Model:   Subject to:     Examples: DMU: Banks, schools, … Input: Labor , Capital, … Output: Revenues, Profit … DEA Vs Regression line

7. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 6 LINEAR PROGRAMMING … Data Envelopment Analysis: … Example: DMU Output (Units/day) Inputs Material (cost ‘$’) Labor (Hours) Factory-1 100 10 2 Factory-2 80 8 4 Factory-3 120 12 1.5   For Factory-1: S.t. :       Similarly do it for factory-2 & factory-3; then compare the objective function values

8. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 7 LINEAR PROGRAMMING… Cutting Stock Problems: Cutting the material in certain shapes and sizes, in order to generate certain desired shapes and sizes, so as to minimize cost etc. One–dimensional, Two–dimensional & Three–dimensional cutting stock problem Example: A stock roll is cut into given sizes so that demand of each product is satisfied. A solution is specified by Cutting Patterns: a pattern is a set of products whose total length is not more than ‘L’ Frequency: the number of times each cutting pattern is applied.

9. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 9 LINEAR PROGRAMMING… (Cutting Stock Problems ) Parameters: ‘ ’ available lengths for which there are supplies of ‘ ’, ‘ ’ ‘ ’ desired lengths for which demands are ‘ ’, ‘ ’ ‘ ’ distinct cutting patterns ( ‘ ’) = # of desired lengths ‘k’ according to pattern ‘j’ = A set of all patterns ‘j’ that use the available length ‘ ’ = cost of cutting pattern ‘j’ = cost per unit of length ‘k’   General Model: Subject to:   Decision Variables: Number of time we cut the j th pattern Number of desired length ‘k’ purchased  

10. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 10 LINEAR PROGRAMMING… (Cutting Stock Problems )… EXAMPLE EXAMPLE: A firm has an inventory of one hundred and twenty (120), 20-ft rods, one hundred and sixty (160), 15ft rods, and forty (40), 8-ft rods. Their customers demand two hundred 10-ft rods, and two hundred and fifty 6-ft rods. Each cut costs 30¢, while buying the rods costs 50¢ and 25¢, respectively, for the 10-ft and 6-ft rods. Given the above information, we can now determine the cutting plan shown in figure…

11. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 11 LINEAR PROGRAMMING… Production & Inventory Planning: minimizing production & inventory holding cost subject to meeting the customer demand & Take care of Capacity constraint. Employee Scheduling Problems: Scheduling problem that assigns employees to shifts Transportation & Transshipment Problems Assignment Problem Many Many More…

12. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 12 Integer Programming: Knapsack Problem: Given a set of items, each with a mass and a value, determine the number of each item to include in a collection so that the total weight is less than or equal to a given limit and the total value is as large as possible . Maximize: Subject to:   Few Examples: Cargo loading Problem Flyaway kit problem Project Selection Problem

13. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 13 Integer Programming: … Capacitated Lot Sizing Problem: Minimize Setup & Holding cost subject to Capacity Constraint. CLSP Model : Minimization Subject to: = + Inventory Balances Const. Production of Item ‘j’ if machine is setup Const. Capacity Const. ;  

14. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 14 Integer Programming: … Workload Balancing Problem: Allocation of tasks to employees, so as to ensure that none of the employees is overworked, while others are partially idle. Facility Location Problem: ‘n’ sites in a region require a product; manufactured by plants in the same region at most ‘m’ sites (of ‘n’ sites) can be selected; How to locate the manufacturing facilities ? Traveling Salesman Problem: Given a list of cities and the distances between each pair of cities, what is the shortest possible route that visits each city exactly once and returns to the origin city? Vehicle Routing Problem: Many Many More…

15. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 15 Network Analysis: Maximum Flow Problem, Shortest Path Problem & Minimum Spanning Tree: Many Many More… NODES ARCS FLOW Communication systems phone exchanges, computers, Transmission facilities, Satellites Cables, fiber optic links, microwave relay links Voice messages, Data, Video transmissions Hydraulic systems Pumping stations Reservoirs, Lakes Pipelines Water, Gas, Oil, Hydraulic fluids Mechanical systems Joints Rods, Beams, Springs Heat, Energy Integrated computer circuits Gates, registers, processors Wires Electrical current Transportation systems Intersections, Airports, Rail yards Highways, Airline routes Rail birds Passengers, cargo, vehicles,

16. Operations Research techniques for Industrial Engineers Application O.R. Techniques : Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 16 Dynamic Programming Knapsack Problem Shortest Path Problem (Stage Coach Problem) Assembly line balancing Problem Flow Shop Problem Many Many More… Simulation: Waiting Line Management / Queuing Systems: Inventory System Many Many More… …

17. Operations Research techniques for Industrial Engineers Research Journals: Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 17 Few Important Research Journals: Operations Research Management Science Mathematics of Operations Research IIE Transactions Mathematical Programming European Journal of Operational Research Journal of the Operational Research Society Naval Research Logistics Operations Research Letters Interfaces (applications oriented ) Production & Operations Management International Journal of Production Economics International Journal of Production Research

18. Operations Research techniques for Industrial Engineers Some Societies & Professional Bodies: Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 18 IIE (Institute of Industrial Engineering): http://www.iienet2.org/ INFORMS ( Institute for Operations Research and the Management Sciences): https://www.informs.org/ POMS (Production & Operations Management Society: http ://www.poms.org / APICS (Professional association for supply chain and operations management) : http://www.apics.org /

19. Operations Research techniques for Industrial Engineers Optimization / Simulation Software: Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 19 Optimization Software CPlex , Gurabi , AIMMS, Matlab , etc. Simulation Software Arena, Simlu8, Simio , Flexsim , etc. Computer Programming C++, Java, Python etc.

20. Operations Research techniques for Industrial Engineers Shanghai Jiao T ong Universi t y Hakeem-Ur- Rehman 20 ANY QUESTION? THANKS FOR LISTENING ( ) Questions & Answers : E-mail: [email protected]