M&L 881: Analysis & Design of Logistics Systems - Winter ’09

The Professor: J ohn Saldanha Phone: 247-8003
524 Fisher Hall saldanha_8@fisher.osu.edu
The Classes: Classes will be held on Mondays and Wednesdays from 1:30-3:18 pm GE 305.
Office Hours: Mondays and Wednesdays from 11:30 am – 1:00 pm 524 Fisher.
The Course: 881 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.”
Course Packet: There is no course packet for this course. Additional readings that will supplement some of
the lectures are listed on page 4. The relevant books are on a two hour reserve at the front desk of the business
library. All required readings are available on-line through the course web-site on Carmen or through Business
Source Premier (see required reading list on page 3).
The Grade: The final grade will be determined by the weighted average of the following:
Projects (4) 10% each
Mid-term 30%
Final 30%
There will be 4 small projects assigned. These can be worked on in teams of three. Each assignment will have
a due-date. Late assignments will be accepted with 20% deducted off the total score for each day late.
Exams will be closed-book and closed-notes. You will be provided a formula sheet with all the required
formulas on it for the first exam. 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. 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.
BUS M&L 881 Winter '09 Schedule


Date Lecture Subject Readings Due
J an 5

Course Overview and Intro to Forecasting


J an 7 Intro to Time Series Approaches


J an 12 Dealing with Trend & Seasonality


J an 14 F
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Forecasting in Practice / Demand Management #1, #2
J an 19 MLK Day – Holiday
J an 21 Modeling Solution Methods - Heuristics, Optimization & Simulation #3, #4, #5
Project
#1
J an 26 Optimization: Formulating and Solving Integer Programs


J an 28
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Simulation: Concepts and Software (Demo)


Feb 2

EXAM 1 – 1:30-3:18 PM @ 305 GERLACH

Feb 4 Building Blocks


Feb 9 Vehicle Routing (issues, using the sweep and savings methods)
Feb 11
R
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Guest Lecture Topic TBA
Project
#2
Feb 16 Facility Location (issues, grid methods, median problem)
Feb 18 The Next Step: Intro to Network Design
Feb 21 Guest Lecture from Logictools (To be confirmed)
Project
#3
Feb 25 Lab @ Mason 345

Feb 27 Lab @ Mason 345


Mar 2 Open Lab @ Mason 345, 3:30-5:30 PM


Mar 4
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Lab @ Mason 345 #6, #7, #8
Mar 9


Discuss Readings
Project
#4
Mar 11

Course Review
Mar 16

FINAL EXAM – TBA
# Required Readings (see list on p. 3)






BUS M&L 881 Course Readings

Forecasting #1 Demand Forecasting: Reality vs. Theory Steve Robeano Carmen
#2 The Demand Management Process Croxton, Lambert, Garcia
and Rogers
Carmen
Intro to
Modeling
#3 Heuristics: Rules of Thumb for Logistics Decision Making Ballou J BL, Vol. 10, #1
#4 Simulation in Logistics: A Review of Present Practice and a Look to the
Future
Bowersox & Closs J BL, Vol. 10, #1
#5 Optimization Models for Logistics Decisions Powers J BL, 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: J BL is the J ournal of Business Logistics

All articles (except #1, #2) can be found in the library or on-line. To find them on-line, go to the course web-site on Carmen at
http://carmen.osu.edu. If you choose to access the articles through Business Source Complete go to http://www.lib.ohio-state.edu/ 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.
BUS M&L 881 Optional Readings
(On reserve in the Business Library)
Makridakis, Spyros G.; Wheelwright, Steven C.; and, Hyndman, Rob J . (1998), Forecasting Methods and
Applications, 3
rd
ed., J ohn Wiley and Sons: New York, NY.
1. Chapter 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
 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 .
3. Classic Time-Series Decomposition (pp. 125-130)
Lawrence, J ohn A. J r.; Pasternack, Barry A. (1998), Applied Management Science – A Computer-Integrated
Approach for Decision Making, J ohn Wiley and Sons: New York, NY.
4. Chapter 9: Forecasting
5. Chapter 3: Linear Programming
6. Chapter 4: Linear Programming Applications
7. Chapter 5: Integer Linear Programming
8. Chapter 6: Network Models
 Section 6.4: The Traveling Salesman Problem
 Section 6.5: The Shortest Path Problem
 Section 6.6: The Minimal Spanning Tree Problem