INE 544

Lebanese American University

School of Engineering Inventory Analysis Elective

Department of Industrial & Mechanical Engineering 3 lecture credits Zakhem 503
Course syllabus Instructor: W. Abillama Fall 2021
Syllabus prepared by: W. Abillama Revised: August 2021

1. Academic Catalogue Description and Course Prerequisites

This course covers continuous/periodic/deterministic/stochastic inventory models, materials

requirement planning, just-in-time production systems, assembly systems, and flexible
manufacturing distribution systems.
Prerequisistes : INE446 Production Systems II or Consent of Instructor

2. Course Learning Outcomes

Upon successful completion of the course, the student is expected to be able to build and interpret the
solution of an analytical inventory model that minimizes inventory cost according to organization
objectives, demand information, decision framework, cost structure, product structure and production
capabilities by analyzing the following inventory optimization models using various optimization techniques
including linear and nonlinear programming, dynamic programming and bounding relaxation techniques
for mixed integer programming models:

1. Single Product Deterministic Demand Infinite Horizon Models;

2. Single Product Deterministic Demand Finite Horizon Models;
3. Multiple Product Deterministic Demand Models;
4. Single Product Stochastic Demand Continuous Review Models;
5. Single Product Stochastic Demand Periodic Review Finite Horizon Models;
6. Single Product Stochastic Demand Periodic Review Infinite Horizon Models;
7. Quick Response Stochastic Demand Models;
8. Yield Management Models;

3. Relationship of Course to Student Outcomes (SO)

The course contributes to the delivery of the following student outcomes and performance indicators with
different degrees of emphasis placed on each outcome.

1) An ability to identify, formulate, and solve complex engineering problems by applying principles of
engineering, science, and mathematics
1.1) Identify complex engineering problems
1.2) Formulate complex engineering problems by identifying constraints, variables, and possible
solution methods
1.3) Solve complex engineering problems by applying principles of engineering, science, and math

2) An ability to apply engineering design to produce solutions that meet specified needs with
consideration of public health, safety, and welfare, as well as global, cultural, social,
environmental, and economic factors
2.1) Extract design specifications
2.2) Select and apply appropriate models, or simulations of the real world and analyze outputs of
models/simulations to provide information for design decisions
2.3) Generate solutions that meet the specifications and satisfy the stated constraints
2.4) Evaluates solutions and identifies the most desirable solution and justifies the choice

4) An ability to recognize ethical and professional responsibilities in engineering situations and make
informed judgments, which must consider the impact of engineering solutions in global,
economic, environmental, and societal contexts
4.1 ) an ability to recognizes ethical and professional responsibilities in engineering situations
4.2 ) An ability to make informed judgments, considering the impact of engineering solutions in
global, economic, environmental, and societal contexts
 Student outcomes are achieved through structuring and focusing the course on the
course learning outcomes. The course learning outcomes are attained by the students
when 70% or more of the students (not counting withdrawals) pass the course

4. Contribution of course to meeting the professional component

Professional Component Credits

Mathematics and Basic Sciences 0
Engineering Topic 3
General Education 0

5. Course Outline

Relevant Chapters Course Content

3 One item constant demand models: EOQ, planned shortages, backlog and lost
sales, constrained models, finite production rate, setup time quantity discounts
4 One item variable demand models: demand rate, dynamic economic lot size
model, capacity constraints
5 Multiple product models: series systems, tree systems, economic lot
scheduling problem, multiple facility models
6 Continuous review models and (Q,r) policies
9 Periodic review models: single period models with and without setup cost,
multiple period models and (S,s) policies
Instructor’s notes Quick Response production systems
Instructor’s notes Single period yield management systems

6. Required tools / software / skills

LINGO will be introduced in solving assignments.

7. Textbook[s]

Foundations of Inventory Management by Paul Zipkin, McGraw Hill

8. Additional References

9. Grade Distribution

The final grade will be determined based on the following percentages:

Assignments - Due Wednesday 10%
Exam I – Wednesday Sep 29, 2021 25%
Exam II - Wednesday Nov 17, 2021 25%
Final Exam 40%

10. General Comments

11. Course Policies

There will be weekly homework assignments, on which students are to work alone. Assignments will
be due on the assigned date, at the beginning of the class. A late homework will not be accepted.
The course will be delivered during the following times:

Wednesday 14:00 – 15:15 in person

Friday 14:00 – 15:15 using Webex

Webex sessions are recorded and available on Blackboard. I am available on email:

walid.abilllama@lau.edu.lb, devmkt@mea.com.lb. Handouts are brought to class the first time. After that,
it will be your own responsibility to get a copy either from me or from your classmates. All students must
take exams as scheduled. Failure to take an exam or the final exam during the assigned class period will
result in a grade of zero. If it is found according to University Rules and Regulations that a student is
eligible for a make up exam, the make up exam will be more difficult than the regular exam.
 12. General Rules & Regulations

University Rules and Regulations regarding attendance and plagiarism apply.

In order to improve the effectiveness of the educational process, all students are expected to submit their
course evaluations by the last day of classes.

Students who fail to complete the evaluation of ALL registered courses by the set deadline:

1. Will not be able to access their course grades from Banner or Portal until two weeks after the end
of the final exams period; and

2. Will not be able to request transcripts. 

The anonymity of the process and the students will be maintained at all times.