PhD SUMMER ACADEMY 2013

June 25 - July 25, 2013Zaragoza Logistics Center

Zaragoza (Spain)

WELCOME TO THE PHD SUMMER ACADEMY 2013It is with great pleasure that we invite you to attend the PhD Summer Academy 2013 at the Zaragoza Logistics Center for an intense period of learning, debating, and discovering the fundamental concepts and recent trends in supply chain management, in addition to meeting your future colleagues and having a great time in Zaragoza, Spain.

This is the sixth summer academy to be organized at our center, and we are happy to announce that we have a group of distinguished professors from prestigious academic institutions taking part. The topics range from queues and inventories, location modeling, dynamic programming, financing operations, networks in supply chain management and tactical planning models.

In addition to being introduced to different topics in the field by a group of distinguished professors, you will also have the opportunity to meet doctoral students from different institutions and exchange ideas. Although we expect applicants to come from different institutions, countries and backgrounds, one thing you will all have in common is excellence. You will be selected to be part of a discussion forum of outs-tanding scholars in the area of logistics and supply chain management.

Read this brochure and apply for admission. Please note that the program is free of charge. We are loo-king forward to meeting and working with you, and to helping you during your stay in Zaragoza. We hope that you are as excited and eager as we are here in Spain to start this knowledge exchange journey!

Jianjun Xu, PhDPhD Summer Academy DirectorZaragoza Logistics Center

David Gonsalvez, PhDDirector

Zaragoza Logistics Center

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INDEXCALENDAR (1 - 2)

INSTRUCTORS BIOGRAPHIES (3 - 5)

· FIKRI KARAEŞMEN

· MARK DASKIN

· GUILLERMO GALLEGO

· VOLODYMYR BABICH

· THOMAS CHOI

· STEPHEN C GRAVES

PROGRAM DESCRIPTION (6 - 13)

· QUEUES AND INVENTORIES

· LOCATION MODELING

· DYNAMIC PROGRAMMING

· FINANCING OPERATIONS

· NETWORKS IN SUPPLY CHAIN MANAGEMENT

· TACTICAL PLANNING MODELS

CERTIFICATE (14)

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· ·

1

CALENDAR

JUNE

Monday Tuesday Wednesday Thursday Friday

24 25 26 27 28

10:1513:15 Fikri Karaeşmen Mark Daskin Fikri Karaeşmen

14:1517:15 Mark Daskin Mark Daskin Fikri Karaeşmen

JULY

Monday Tuesday Wednesday Thursday Friday

01 02 03 04 05

Full day Research Fest Research Fest ---- ---- ----

08 09 10 11 12

10:1513:15 G. Gallego G. Gallego G. Gallego

14:1517:15 V. Babich V. Babich

15 16 17 18 19

10:1513:15 Thomas Choi Thomas Choi Thomas Choi

14:1517:15 V. Babich V. Babich V. Babich

22 23 24 25 26

10:1513:15 S.C. Graves S.C. Graves S.C. Graves

The aim of the summer academy school is to create a strong knowledge discussion forum to boost research results and advances in supply chain management.

Get ready for intense sessions of studies and research!

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Professor Course Hours

Fikri Karaeşmen Queues and Inventories 9

Mark Daskin Location modeling 9

Guillermo Gallego Dynamic Programming 9

Volodymyr Babich Financing Operations 15

Thomas Choi Networks in Supply Chain Management 9

Stephen C Graves Tactical Planning Models 9

2

Professor From Starting Date Ending Date

Fikri Karaeşmen College of Engineering at Koç University 25/06/2013 28/06/2013

Mark Daskin University of Michigan 25/06/2013 27/06/2013

Guillermo Gallego Columbia University 08/07/2013 12/07/2013

Volodymyr Babich McDonough School of Business, Georgetown University 10/07/2013 19/07/2013

Thomas Choi Arizona State University 15/07/2013 19/07/2013

Stephen C Graves Massachusetts Institute of Technology - MIT 23/07/2013 25/07/2013

INSTRUCTORS’ BIOGRAPHIES

3

MARK DASKIN

Mark S. Daskin is the Department Chair of the Industrial and Operations Engineering Department at the University of Michigan. He holds the Clyde W. Johnson Collegiate Professorship in the College of Engineering at Michigan. Prior to joining the Michi-gan faculty, he was a Walter P. Murphy Professorship in the Department of Industrial Engineering and Management Sciences at Northwestern University. He received his Ph.D. from the Civil Engineering Department at M.I.T. in 1978.

Daskin’s research focuses on the application and development of operations re-search techniques for the analysis of health care problems, as well as transporta-

tion, supply chain, and manufacturing problems. He is the author of over 75 refereed papers and of two books: Network and Discrete Location: Models, Algorithms and Applications (John Wiley, 1995) and Service Science (John Wiley, 2010).

Daskin is a Fellow of both INFORMS and IIE and has received the Technical Innovation Award and the Fred C. Crane Award for Distinguished Service from IIE. He is a past editor-in-chief of both IIE Tran-saction and Transportation Science. In 2006, he was the president of INFORMS. He served as the chair of the Department of Industrial Engineering and Management Sciences from 1995-2001. In 2009, he received the Kimball Medal for service to the society and the profession from INFORMS.

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FIKRI KARAEŞMEN

Fikri Karaeşmen is a Professor in the Department of Industrial Engineering and Acting Dean of the College of Engineering at Koç University, Turkey. He received his B.S. degree from Middle East Technical University, Ankara, Turkey, in 1990, and M.S. and Ph.D. de-grees from Northeastern University, Boston, MA, USA, in 1992 and 1996, respectively. Prior to joining Koç University, he was a faculty member at Ecole Centrale Paris, France. He spent the 2009-2010 academic year as a visiting professor at Northwestern Uni-versity, Evanston, IL, USA. His main research interests are in operations research and stochastic modeling with applications to production, inventory and service systems. Please visit http://home.ku.edu.tr/~fkaraesmen/ for more information.

4

GUILLERMO GALLEGO

Professor Gallego is the Liu Family Chair of the Industrial Engineering and Operations Research Department at Columbia University. He obtai-ned his PhD in Operations Research and Industrial Engineering from Cor-nell University in 1988. He has consulted extensively in the areas of Ma-nufacturing, Supply Chain, Revenue Management and Distance Learning. He has been Associate Editor, Departmental Editor and Senior Editor of several of the flagship journals of his field. Professor Gallego has been the recipient of six NSF grants and of several industrial grants to support his research activities.

He has published over sixty papers in prestigious journals including seminal papers in Supply Chain, Inventory Theory and Revenue Management. His 1994 Management Science pa-per is considered to be one of the fifty most influential papers in the first fifty years of the jour-nal. He won the Revenue Management and Pricing award (2005), the Revenue Management Historical Price (2011) and the Revenue Management Practice Prize (2012) all from Informs. He was a member of the von Neumann prize committee (2007-2009) and was elected as an Informs Fellow (2012). His graduate students have been associated with prestigious universities including Stan-ford University, University of Michigan, McGill, University of Toronto, and the Chinese University of Hong Kong. Prof. Gallego served as a Visiting Scientist at IBM from 1999-2003, as Chairman of the IEOR De-partment at Columbia University from 2002-2008. He spent his 1996-1997 sabbatical at the Graduate School of Business at Stanford University and his 2008-2009 sabbatical doing research at Hewlett Pac-kard Laboratories.

VOLODYMYR BABICH

Volodymyr Babich is an associate professor of Operations and Information Manage-ment at the McDonough School of Business, Georgetown University. He earned his Ph.D. in Operations Research from Case Western Reserve University, Weatherhead School of Management, in 2003. He also holds M.S. degrees in Management Science and Mathematics, both from Case Western Reserve University. Prior to joining George-town University, he was an assistant professor at the University of Michigan, Ann Arbor, Industrial and Operations Engineering department, and worked for Penske Logistics.

His research interests are the interface of operations and finance, supply risk ma-nagement, supply chain management, inventory management, stochastic modeling, and risk mana-gement. His research has been supported by grants from the National Science Foundation, University of Michigan, and industry. His papers have been published leading Operations Research, Operations Management, and Industrial Engineering journals, such as Management Science, Operations Research, M&SOM, IIE Transactions, European Journal of Operations Research, and Naval Research Logistics.

Volodymyr Babich serves as an associate editor for Management Science and M&SOM and as a senior editor for Production and Operations Management. He is an active member of INFORMS, POMS, and the MSOM societies, and the Chair of the MSOM Special Interest Group on the “Interface of Finance, Opera-tions, and Risk Management (iFORM)”.

5

INSTRUCTORS’ BIOGRAPHIES

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THOMAS CHOI

Thomas Y. Choi is Professor of Supply Chain Management and Bob Herberger Ari-zona Heritage Chair at Arizona State University. He directs the Center for Supply Networks (http://wpcarey.asu.edu/casn/index.cfm) and serves as co-Editor-in-Chief for the Journal of Operations Management (http://wpcarey.asu.edu/jom/). He has been recognized as the 2012 Distinguished OM Scholar from the OM Division in the Academy of Management.

His research interests reside in the upstream supply chains where a buying com-pany interfaces many suppliers organized in various forms of networks. His articles

have been published in the Academy of Management Executive, Decision Sciences, Harvard Business Review, Journal of Operations Management, Production and Operations Management and others. He has co-authored two trade books on purchasing and supply management, both for the Institute for Supply Management. He has consulted with or conducted executive workshops for Accenture, Avnet, Caterpillar, Chrysler, Honda, Honeywell, Intel, LG Electronics, Motorola, Samsung, SAP, Toyota, Volvo, and others. He is presently consulting with the US Department of Energy and Lawrence Berkeley National Laboratory.

STEPHEN C GRAVES

Stephen C. Graves is the Abraham J. Siegel Professor of Management Science at MIT. Graves received his A.B. and M.B.A. from Dartmouth College and completed his Ph.D. in operations research from the University of Rochester. Since 1977 he has been a faculty member at the MIT Sloan School of Management. He has ser-ved as a deputy dean at the MIT Sloan School, 1990 – 1993 and the co-direc-tor of the MIT Leaders for Manufacturing (LFM) Program (1989- 1990 and 1994 – 2001) and the System Design and Management (SDM) Program (1999 – 2001). He served a two-year term as the Chair of the MIT Faculty, 2001 – 2003. He has joint faculty appointments with both the Mechanical Engineering Department

and the Engineering Systems Division at MIT. He is a Faculty Fellow of the Singapore-MIT Alliance.

He teaches classes in supply chain planning and design, and in mathematical modeling and analysis, as applied to manufacturing, supply chains and distribution systems. His primary research interests are in the design and planning of manufacturing systems and supply chains; recent efforts have considered supply-chain optimization, the evaluation of manufacturing flexibility and various tactical issues arising in e-retailing. He has authored over 60 refereed papers and is the co-editor of two handbooks: Logis-tics of Production and Inventory and Supply Chain Management: Design, Coordination and Operation. Graves has served on several editorial boards for journals in operations management and management science, and is currently the editor-in-chief of Manufacturing & Services Operations Management, the INFORMS journal for operations management. He has conducted industry-based research projects with numerous companies, including AT&T, IBM, Monsanto, Eastman Kodak, Amazon.com, Intel, General Motors, Boeing, Teradyne and Staples. He has been a member of the Board of Advisors to Optiant and Invistics, and the chief science advisor to JDA Software. He has been selected as an INFORMS Fellow, a MSOM Fellow and a POMS Fellow.

6

QUEUES AND INVETORIES

Professor: Fikri Karaeşmen

Dates: 25/06, 27/06, 28/06

This short course aims to introduce some basic concepts for two important classes of stochastic mo-dels in Operations Research: queues and inventories. In particular, we will elaborate on how the some of the results from queueing theory help modeling and analyzing production and inventory systems. Some background in applied probability (Markov Chains) is useful but no prior knowledge of queueing is required.

The lecture is intended as a targeted overview of two areas of research with the goal of motivating the participants to eventually complete the necessary background and providing some pointers to recent re-search problems of interest. The topics are tentatively organized as six 90 minute lectures. The first two lectures cover some basic background and convey some of the challenges in the analysis of queueing systems. The third lecture introduces the concept of strategic customers in queues and presents some design problems. Lectures 4 and 5 apply some of the fundamental models and ideas from queueing to a simple production/inventory system (a make-to-stock queue). Finally, lecture 6 introduces some central control problems and some results for queues and inventories and outlines the challenges for this class of problems.

Tentative Course Outline:

· Lecture 1 Markovian Queues, Basic Single Server Results· Lecture 2 Non-Markovian Queues, Approximations· Lecture 3 Multi-Server and Multi-Class Queues, Strategic Customers and Some Design Problems· Lecture 4 Make-to-Stock Queues: Analyzing Base Stock Policies· Lecture 5 Make-to-Stock Queues: Other Problems· Lecture 6 Some basic concepts in optimal control of queueing and inventory systems

References:

1. D. Gross and C.M. Harris, Fundamentals of Queueing Theory, Wiley, 1985.

2. H.C. Tijms, Stochastic Models: An Algorithmic Approach, Wiley, 1994.

3. S. Stidham, Optimal Design of Queueing Systems, CRC Press, 2009

4. J.A. Buzacott and J.G. Shanthikumar, Stochastic Models of Manufacturing Systems, Prentice-

Hall, 1993

5. M. Puterman, Markov Decision Processes, Wiley, 1994.

6. P.H. Zipkin, Foundations of Inventory Management, Mc-Graw Hill, 2000

PROGRAM DESCRIPTION

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7

LOCATION MODELING

Professor: Mark Daskin

Dates: 25/06, 26/06, 27/06

This module, to be taught over three 3-hour sessions, will introduce students to facility location mode-ling. The course will expose students to four basic types of location models. The focus of most of the course, however, will be on the modeling, formulation and solution of discrete facility location models.

Some background in linear programming and formulating mixed-integer optimization models will be as-sumed. Students should have access to a laptop computer with Microsoft Excel installed as well as the Solver add-in. Excel as well as other software will be used during the class exercises.

1. Introduction to Location Models · Why are location models important? · Objectives in location modeling

· Taxonomy of location models

2. Simple Analytic Models

3. Simple Continuous Models

4. Example Network Models

5. Simple Discrete location models · Taxonomy of location models · Covering models - Set covering model - Maximum covering model - Maximum expected covering model ·Median models - P-median model - Uncapacitated fixed charge location model - P-center model (really a covering model)

· Selected other discrete location models

6. Multi-objective Location Models · Multi-objective optimization - Weighting method - Constraint method · Covering-median model

· Center-median model

7.Extensions of location models · Location-inventory models · Reliability and facility location - The expected failure case - Modeling a malevolent attacker

PROGRAM DESCRIPTION

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8

READINGS

Review papers:Daskin, M. S., 2008, “What You Should Know About Location Modeling,” Naval Research Logistics, Naval Research Logistics, 55:4, 283-294.ReVelle, C. S., Eiselt, H.A., and M. S. Daskin, 2008, “A Bibliography for Some Fundamental Problem Ca-tegories in Discrete Location Science,” European Journal of Operational Research, 184:3, 817-848.Snyder, L. V. 2006, “Facility location under uncertainty: A review,” IIE Transactions, 38:7, 537-554.Snyder, L. V., M. P. Scaparra, M. S. Daskin, and R. Church, 2006, “Planning for Disruptions in Supply Chain Networks,” Invited Tutorial, INFORMS Annual Meeting, Pittsburgh, PA.Current, J., Daskin, M. and D. Schilling, 2002, “Discrete Network Location Models,” chapter 3 in Facility Location Theory: Applications and Methods, Z. Drezner and H. Hamacher eds., Springer-Verlag, Berlin, pp. 81-118.Owen, S. H. and M. S. Daskin, 1998, “Strategic Facility Location: A Review,” European Journal of Ope-rational Research, 111, 423-447.

Covering models:Daskin, M. S., K. Hogan and C. ReVelle, 1988, “Integration of Multiple, Excess, Backup and Expected Covering Models,” Environment and Planning B, 15, pp. 15-35.Daskin, M. S., 1983, “A Maximum Expected Covering Location Model: Formulation, Properties and Heu-ristic Solution,” Transportation Science, 17, pp. 48-70.Church, R. L. and C. ReVelle, 1974, “The Maximal Covering Location Problem,” Papers of the Regional Science Association, 32, 101-118.Toregas, C, R. Swain, C. ReVelle, and L. Bergman, 1971, “The Location of Emergency Service Facilities,” Operations Research, 19, 1363-1373.

Median models:Hakimi, S. L., 1964, “Optimum Location of Switching Centers and the Absolute Centers and Medians of a Graph,” Operations Research, 12, 450-459.Hakimi, S. L., 1965, “Optimum Distribution of Switching Centers in a Communication Network and Some Related Graph Theoretic Problems,” Operations Research, 13, 462-475.

Location-inventory models:Shen, Z.-J. M., C. Coullard and M. S. Daskin, 2003, “A joint location-inventory model,” Transportation Science, 37(1), pp. 40-55.Shen, Z.-J. M., C. Coullard and M. S. Daskin, 2003, “A joint location-inventory model,” Transportation Science, 37(1), pp. 40-55.Daskin, M. S., C. Coullard, and Z.-J. M. Shen, 2002, “An Inventory-Location Model: Formulation, Solu-tion Algorithm and Computational Results,” Annals of Operations Research, 110, 83-106.

Reliability in facility location models:Snyder, L. V. and M. S. Daskin, 2005, “Reliability Models for Facility Location: The Expected Failure Case,” Transportation Science, 39, 3, 400-416.Church, R. L., M. P. Scaparra and R. S. Middleton, 2004, “Identifying Critical Infrastructure: The Median and Covering Facility Interdiction Problems,” Annals of the Association of American Geographers, 94:3, 491-502.

9

DYNAMIC PROGRAMMING

Professor: Guillermo Gallego

Dates: 08/07, 10/07, 12/07 Course description: Dynamic Programming (D.P.) is an optimization technique that is especially suited for sequential decision problems, e.g., inventory control, production planning, portfolio analysis. The heart of D.P. is a surprisin¬gly simple principle: Belman’s principle of optimality. We will study stochastic models with finite and infinite horizons both in discrete and continuous time. In addition, we will study problems of optimal stopping.

- Puterman, M.L. Markov Decision Processes; Discrete Stochastic Dynamic Programming, WileyInterscience, 2005.

- Bertsekas, D.P. Dynamic Programming and Optimal Control Volumes I and II, Athena Scientic 2005.

Formulating and solving problems using D.P. is part art and part science. It is art because it takes more than an ounce of common sense to correctly formulate the problems. It is science because it uses mathematics. The mathematical prerequisite for the course is a good understanding of probability theory and stochastic processes.

Tentative Course Schedule:

1. Introduction

2. Finite Horizon Dynamic Programming The dynamic programming algorithm, applications

in specic areas.

3. Infinite Horizon Dynamic Programming Theory, applications, minimization of average cost

per stage, successive approximation, policy iteration.

4. Continuous Time Dynamic Programming Theory, applications, optimal stopping.

PROGRAM DESCRIPTION

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10

FINANCING OPERATIONS

Professor: Volodymyr Babich

Dates: 10/07, 12/07, 15/07, 17/07, 19/07

In this course, we will investigate the following research questions: (1) When is the separation between operational and financing decisions justified? and (2) How to combine these decisions in a meaningful way? We will review seminal contributions to both the operations and the finance fields, and learn from recent papers at the interface of these two fields. The course will emphasize quantitative models; howe-ver, we will draw motivation from the empirical studies, business cases, and the recent economic events. In seeking answers to these research questions, we will employ methodologies from optimization, sto-chastic processes, MPDs, game theory, contract theory, and information economics.

The course will be structured around “active learning.” To help you to prepare for a successful career as an academic or industry researcher, you will be immersed in research activities. You will have to prepare and make presentations, serve as a discussant, write abstracts, perform literature searches and reviews,evaluate other students’ work, and, most importantly, identify research problem and solve them.

Target audience:

The course is designed for doctoral students who are interested in conducting research at the interface of operations and finance, with the emphasis on quantitative models.

Prerequisites:

- An introductory course in corporate finance- An introductory course in operations management- Courses in optimization, stochastic processes, MPDs, game theory, information economics are desira-ble, but not required

11

NETWORKS IN SUPPLY CHAIN MANAGEMENT

Professor: Thomas Choi

Dates: 15/07, 17/07, 19/07

Supply chains are fundamentally networks. In this course, we will consider network related issues in supply chain management. We view supply networks as a complex adaptive system consisting of firms as agents.

Networks are made up of two elements—agents and their relationships (i.e. nodes and links), and the smallest unit that contains both of these elements is a dyad (i.e. buyer-supplier relationship, supplier-supplier relationship).

However, triads are the smallest unit in which we can consider how a link affects a link or a node affects a link once removed. Multi-tier consideration is proposed as the next frontier for supply chain managers.

Buyer-Supplier Relationships

Liker, Jeffrey and Thomas Y. Choi, “Building Deep Supplier Relationships,” Harvard Business Review, De-cember, 2004: 104-113.

Rungtusanatham, M, F. Salvador, C. Forza, and T. Choi, “Supply-Chain Linkages and Operational Perfor-mance: A Resource-Based-View Perspective.” International Journal of Operations and Production Mana-gement, 23, 9, 2003: 1084-1099.

Choi, Thomas Y. and Karen Eboch, “The TQM paradox: Relations among TQM practices, plant performan-ce, and customer satisfaction,” Journal of Operations Management, 17, 1998: 59-75.

Villena, Veronica, Elena Revilla, and Thomas Y. Choi, “The Dark Side of Collaborative Buyer-Supplier Re-lationships: A Social Capital Perspective,” Journal of Operations Management, 29, 2011: 561-576.

Supplier-Supplier Relationships

Choi, Thomas, “New Supply Management Frontier: Supplier-Supplier Relationship,” Supply Chain Mana-gement Review, 11, 5, 2007: 51-56.

Choi, Thomas Y., Zhaohui Wu, Lisa Ellram, and Balaji Koka, “Supplier-Supplier Relationships and Their Implications on Buyer-Supplier Relationships,” IEEE Transactions on Engineering Management, 49, 2,

2002: 119-130.

Wu, Zhaohui and Thomas Choi, “Supplier-Supplier Relationships in the Buyer-Supplier Triad: Building Theories from Eight Case Studies.” Journal of Operations Management, 24, 1, 2005: 27-52.

Wu, Zhaohui, Thomas Y. Choi, and Manus Rungtusanatham, “Supplier-Supplier Relationships in Buyer-Supplier-Supplier Triads: Implications for Supplier Performance.” Journal of Operations Management, 28,

2010: 115-123.

PROGRAM DESCRIPTION

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12

Triads in Supply Networks

Choi, Thomas, and Zhaohui Wu, “Triads in Supply Networks: Theorizing Buyer-Supplier-Supplier Rela-tionships.” Journal of Supply Chain Management, 45, 1, 2009: 8-25.

Li, Mei and Thomas Y. Choi, “Triads in Services Outsourcing: Bridge, Bridge Decay and Bridge Transfer,” Journal of Supply Chain Management, 45, 3, 2009: 27-39.

Debate articles

Choi, Thomas and Zhaohui Wu, “Taking the Leap from Dyads to Triads: Buyer-Supplier Relationships in Supply Networks.” Journal of Purchasing and Supply Management, 15, 2009: 263-266. (DEBATE LEAD ARTICLE)

Dubois, A. To Leap or Lot to Leap: Triads as arbitrary subsets of networks of connected dyads, Journal of Purchasing and Supply Management, 15, 2009: 267-268. (REBUTTAL ARTICLE)

Choi, Thomas and Zhaohui Wu, “Go Ahead, Leap: Triads and Their Practical and Theoretical Import.” Journal of Purchasing and Supply Management, 15, 2009: 269-270. (DEBATE REJOINDER ARTICLE)

Multi-Tier Supply Chain Management

Choi, Thomas Y. and Janet L. Hartley, “An exploration of supplier selection practices across the supply chain,” Journal of Operations Management, 14, 4, 1996: 333-344.

Rossetti, Christian and Thomas Y. Choi, “On the Dark Side of Strategic Sourcing: Experiences from the Aerospace Industry,” Academy of Management Executive, 19, 1, 2005: 46-60.

Mena, Carlos, Andrew Humphries, Thomas Choi, “Towards the Theory of Multi-Tier Supply Chain Ma-nagement,” Journal of Supply Chain Management, forthcoming.

Choi, Thomas and Tom Linton, “Don’t let your supply chain control your business,” Harvard Business

Review, December, 2011: 112-117.

Supply Networks

Choi, Thomas Y., Kevin Dooley, and Manus Rungtusanatham. “Supply Networks and Complex Adaptive Systems: Control Versus Emergence,” Journal of Operations Management, 19, 3, 2001: 351-366.

Choi, Thomas Y. and Daniel R. Krause, “The Supply Base and Its Complexity: Implications for Tran-saction Costs, Risks, Responsiveness, and Innovation,” Journal of Operations Management, 24, 2006: 637-652.

Choi, Thomas Y. and Yunsook Hong, “Unveiling the Structure of Supply Networks: Case Studies in Honda, Acura, and DaimlerChrysler.” Journal of Operations Management, 20, 5, 2002: 469-493.

Kim, Yusoon, Thomas Choi, Tingting Yan, Kevin Dooley, “Investigation of Supply Networks: A Social Network Analysis Approach,” Journal of Operations Management, 29, 2011: 194-211.

PROGRAM DESCRIPTION...................................................................

TACTICAL PLANNING MODELS

Professor: Stephen C Graves

Dates: 23/07, 24/07, 25/07

This short course will address a variety of tactical planning issues that arise in the planning of ma-nufacturing systems and supply chains. For the most part these tactics arise as countermeasures to uncertainties and inflexibilities in these systems. We will examine the use of strategic inventory across a supply chain, production smoothing and planned lead times in manufacturing systems, and process flexibility. We will emphasize the importance of modeling choices, with the intent of developing use-ful models that capture the key characteristics and tradeoffs in planning systems and with the “right” amount of complexity. Opportunities for research will be highlighted.

Each session will focus on a key paper or two. These should be carefully read prior to the session. We will also refer to some additional papers that are related and/or that extend the primary references for the session.

Tuesday:Planning tactics for manufacturing systems: planned lead times and production smoothing

Reading:Graves S.C. A Tactical Planning Model for a Job Shop. Operations Research, 34, 522-533, 1986.

Graves S., D.B. Kletter and W.B. Hetzel. A Dynamic Model for Requirements Planning with Application to Supply Chain Optimization. Operations Research, 46(3), S35-49, 1998.

Additional papers:Chhaochhria, P. and S. C. Graves, Forecast-driven Tactical Planning Models for Manufacturing Systems, working paper, 2012.

Cruickshanks, A. B., R.D. Drescher and S. C. Graves. “A Study of Production Smoothing in a Job Shop Environment,” Management Science, March 1984, Vol. 30, 368-380

Fine, C. and S. C. Graves. “A Tactical Planning Model for Manufacturing Subcomponents of Mainframe Computers,” Journal of Manufacturing and Operations Management., 1989, Vol. 2, No. 1, pp. 4-34.

Graves S. C., H. C. Meal, S. Dasu and Y. Qiu. “Two-Stage Production Planning in a Dynamic Environ-ment” in Axsater S., C. Schneeweiss and E. Silver, (Eds.), Multi-Stage Production Planning and Inven-tory Control, Lecture Notes in Economics and Mathematical Systems, Vol. 266, Springer-Verlag, Berlin, pp 9-43, 1986.

C. C. Teo, R. Bhatnagar and S. C. Graves. “Setting Planned Lead Times for a Make-To-Order Production System under Master Schedule Smoothing,” IIE Transaction, 2011, Vol. 43, No. 6, pp. 399-414.

C. C. Teo, R. Bhatnagar and S. C. Graves. “An Application of Master Schedule Smoothing and Planned Lead Time Control,” (with C.C. Teo, and R. Bhatnagar), Production and Operations Management, Vol. 21, No. 2, March-April 2012, pp. 211 – 223.

13

Wednesday:Planning tactics for supply chains: strategic placement of safety stocks

Reading:Simpson K.F. In-process inventories. Operations Research, 6(6), 863-873, 1958.

Graves S.C. and S.P. Willems. Optimizing strategic safety stock placement in supply chains. Manufac-turing & Service Operations Management, 2, 68-83, 2000.

Additional papers:Schoenmeyr T. and S.C. Graves. Strategic Safety Stocks in Supply Chains with Evolving Forecasts. Manufacturing and Service Operations Management, Vol. 11, No. 4, Fall 2009, pp. 657 – 673.

Schoenmeyr T. and S.C. Graves. Strategic Safety Stock Placements in Supply Chains with Capacity Constraints. May 2008, revised September 2012.

Graves S.C. and S.P. Willems. Strategic Inventory Placement in Supply Chains: Non-stationary De-mand. Manufacturing & Service Operations Management, 10(2), 278-287, 2008.

Inderfurth K. Safety stock optimization in multi-stage inventory systems. International Journal of Pro-duction Economics, 24, 103-113, 1991.

Inderfurth K. Valuation of lead-time reduction in multi-stage production systems. G. Fandel, T. Gulled-ge, A. Jones, eds. Operations Research In Production Planning and Inventory Control, Springer, Berlin, Germany, 413-427, 1993.

Inderfurth K. and S. Minner. Safety stocks in multi-stage inventory systems under different service measures. European Journal of Operational Research, 106, 57-73, 1998.

Magnanti T., Z.M. Shen, J. Shu, D. Simchi-Levi and C.P. Teo. Inventory placement in acyclic supply chain networks. Operations Research Letters, 34, 228-238, 2006.

Minner S. Dynamic programming algorithms for multi-stage safety stock optimization. OR Spektrum, 19, 261-271, 1997.

Willems S.P. 2008. Real-World Multiechelon Supply Chains Used for Inventory Optimization. Manufac-turing & Service Operations Management . Vol. 10, No. 1, Winter, 19-23.

Humair, S. and S. P. Willems. 2006. Optimizing Strategic Safety Stock Placement in Supply Chains with Clusters of Commonality, Operations Research, Vol. 54, No. 4, pp. 725-742.

Humair S., Willems S. P. 2011. Optimizing strategic safety stock placement in general acyclic net-works. , Operations Research, Vol. 59, No. 3, pp. 781-787.

Billington C., Callioni G., Crane B., Ruark J. D., Rapp J. U., White T. and Willems S.P., 2004. Accelera-ting the profitability of Hewlett-Packard’s supply chains. Interfaces. 34 59-72.

Farasyn, I., Humair, S., Kahn, J. I., Neale, J. J., Rosen, O., Ruark, J., Tarlton, W. Van de Velde, W., Wegryn, G. and Willems, S. P., Inventory Optimization at Procter & Gamble: Achieving Real Benefits Through User Adoption of Inventory Tools, INTERFACES January/February 2011 41:66-78.

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PROGRAM DESCRIPTION...................................................................

Thursday:Planning tactics for supply chains: process flexibility and chaining

Jordan, W. and S. C. Graves. Principles on the Benefits of Manufacturing Process Flexibility, Management Science, Vol. 41, No.4, 1995.

Additional papers: Graves S.C. and B.T. Tomlin, 2003. Process Flexibility in Supply Chains. Management Science, Vol.49 No.7 pp. 907-919

Gurumurthi S. and S. Benjaafar, 2004. Modeling and Analysis of Flexible Queueing Systems. Naval Re-search Logistics, Vol.51 No.54 pp. 755-782

Hopp W.J., E. Tekin, and M.P. Van Oyen, 2004. Benefits of skill chaining in serial production lines with cross-trained workers. Management Science, Vol. 50 No.1 pp. 83-98

Iravani S.M., M.P. Van Oyen, K.T. Sims, 2005. Sturctural Flexibility: A new perspective on the design of manufacturing and service operations. Management Science, Vol. 51 No.2 pp. 151-166

Chou M.C., G.A. Chua, C. Teo, and H. Zheng, 2010. Design for Process Flexibility: Efficiency of the Long Chain and Sparse Structure. Operations Research, Vol. 58, No.1, pp. 43-58

Simchi-Levi D. and Y. Wei. Understanding the Performance of the Long Chain and Sparse Designs in Process Flexibility. To appear on Operations Research.

Wallace R.B and W. Whitt, 2005. A staffing algorithm for call centers with skill-based routing. Manufac-turing and Service Operations Management, Vol. 7 pp. 276-294

Sheikhzadeh M., S. Benjaafar, and D. Gupta., 1998. Machine Sharing in manufacturing systems: Total flexibility versus chaining. International Journal of Flexible Manufacturing Systems, Vol.10 No.4 pp. 351-378

Bish E.K., A. Muriel, and S. Biller, 2005. Managing flexible capacity in a make-to-order environment. Management Science, Vol.51 No.2 pp. 167-180

Muriel A., A. Somasundaram, and Y. Zhang, 2006. Impact of partial manufacturing flexibility on produc-tion variability. Manufacturing Service Operations Management, Vol. 21 pp. 192-205

Mak H. and Z. Shen, 2009. Stochastic programming approach to process flexibility design. Flexible Services and Manufacturing Journal, Vol.21 pp.75-91

Bassamboo A., S.R. Randhawa, and J.A Van Mieghem, 2010. Optimal flexibility configurations in news-vendor networks: Going beyond chaining and paring. Management Science, Vol.56 No.8 pp. 1285-1303

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The PhD Summer Academy 2013 program is administered under the MIT-Zaragoza International Lo-gistics Program, one of the select MIT educational and research partnerships (http://www.zlc.edu.es/about-us/networks/mit-global-scale/). Upon completion of all courses to which you have enrolled, you will be awarded a certificate stating that you have completed a PhD summer course under the MIT-Zaragoza Program.

CERTIFICATE

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PhD Summer Academy students with Professor Elena Katok. July 2012

“The program is well structured, so that you can prepare the lectures and discussion materials in advance. Also, the program syllabus offers a balanced mix of topics, including theoretical and empiri-cal research approaches, allowing you to gain valuable insight from Professors of leading universities worldwide.”Mayolo A. Lopez, 3rd year PhD student at Hamburg University of Technology, Germany

“The summer academy at ZLC was a great opportunity for students of Operations Management to come in contact with some of the current research being done by one of the most prominent faculties

in the field.”Aadhaar Chaturvedi, 2nd year PhD Student at IESE Barcelona

“I enjoyed the summer school for three reasons; 1) we attended some very interesting courses from outstanding lecturers; 2) I had lecturers from the authors of recently published papers and 3) I got the chance to make some good friends among the students and lecturers.”Mahyar Eftekhar, 1st year PhD student at HEC School of Management - Paris in Operations Management

FONDO SOCIAL EUROPEO“Construyendo Europa desde Aragón”

PhD Summer Academy 2013MIT-Zaragoza International Logistics Program

Zaragoza Logistics CenterEdificio Náyade 5 · C/ Bari 55

50197 Zaragoza (Spain)Telephone: +34 976 077 605

Fax: +34 976 077 601phdacademy@zlc.edu.es

www.zlc.edu.es/phd-summer-academy

Jianjun XuPhD Summer Academy Director

jxu@zlc.edu.es

Marta RomeroPhD Coordinator: Registration, accommodation, visa requirements

mromero@zlc.edu.es

Guillermo OchoaIT Department: IT support, access cards to the ZLC building and facilities

gochoa@zlc.edu.es

In collaboration with: