Optimization in Industry

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Optimization in Industry

• Xinhui Zhang
• Assistant Professor of Industrial Engineering
• Wright State University
• xinhui.zhang_at_wright.edu

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My Background

• About Me
• Ph.D., The University of Texas at Austin
• Assistant Professor of Industrial Engineering
• Research Interest Projects
• Research with Local Community

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Research Interest

• Mathematical Programming/Optimization
• Linear Programming, Integer Programming
• Applications
• Manufacturing/Production Planning
• Logistics/Transportation
• Resource Allocation and Management
• Design Optimization

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Research Projects

• Equipment Scheduling at USPS Mail Processing
  Facilities Manufacturing Service Industry
• Expected to be implemented 275 Facilities
  Nationwide
• Crew Management During Airline Irregular
  Operations Logistic and Transportation Industry
• Implemented in Northwest, American Airlines
• Advertising Allocation for Television Networks
  Media Industry such as NBC, CBS
• The Testing of VLSI Semiconductor
• Intel, Lucent, AMD,

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Equipment Scheduling

• Equipment Scheduling in Mail Processing Center
• Background 275 Facilities, 800,000 employee,
  million dollars worth of equipments
• Problem -- How to run the facility efficiently
• How to optimally schedule the use of equipment
• How to schedule the various category of workers
  to run the equipment
• Inventory Control and Flow of Materials
• Approach Production Planning Optimization that
  combines machine scheduling, inventory control
  and work force scheduling
• Applicable to any general manufacturing system

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Crew Recovery Under Airline Irregular Operations

• Crew Management in Airline Irregular Operations
• Disruptions snow storm, mechanical failures, no
  show
• Effects could propagate through the system
• Problem How to bring crew (pilot and flight
  attendant) back to their published schedule and
  to cover as many flights as possible with minimum
  cost and disruption
• Approach
• A set covering model with side constraints
• A Simulated Annealing Algorithm
• Airline, Railways, Transportation/Logistics,
  Service Industry (Hospitals)

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Advertising Allocation Problems

• Advertising Allocation For TV Networks
• Expensive perishable asset (advertising slots) to
  be sold to competing advertiser
• Problem How to determine the winning advertiser
  as well as assignment of advertisement slots to
  winners
• Approach
• A two-step hierarchical approach A Winner
  Selection Problem and A Pod Adjust Problem
• A column generation algorithm
• Media Industry TV, Radio

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VLSI Testing through Optimization

• VLSI Testing
• A essential part of design, manufacturing, and
  testing
• Time consuming and expensive as VLSI become
  complicated
• VLSI Testing using Optimization
• Linear Integer Programming Optimization for
  Multi-Sequence Test Generator in Built-In
  Self-Test
• Submitted to IEEE trans. on Aerospace and
  Electronic Systems
• The Reduction of VLSI Test Signals through
  Optimization
• To be submitted to INFORMS Journal of Computing
• Semiconductor Industry such as Intel, Lucent and
  Air Force

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Research Impact

• Equipment Scheduling in Mail Processing Centers
• Being implemented in 275 PDCs nationwide
• Annual saving in the order of 1.6 millions
  expected per facility
• Crew Management in Airline Irregular Operations
• Used in Northwestern, American, Continental
  Airlines
• Millions saving, customer goodwill were achieved
• Franz Edelman Prize , INFORMS, 2002

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Illustration of Impact Equipment Scheduling --
Result
Comparison of Weekly Staffing Cost

• If half of the saving is realized ? 1.6
  million/year
• 275 Facilities Nationwide

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Short Term Equipment Scheduling

• Short Term Equipment Scheduling and Overtime
  Management
• Disruptions employee absenteeism, fluctuation in
  volume, Machine Breakdowns
• Problem how to re-adjust the equipment schedule
  with minimum staff overtime cost
• Short Term/Daily Production Management
• (USPS is thinking of pursuing this early next
  year. )

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Research with Local Community

• Applicable in any General Manufacturing such as
  auto assembly systems
• Lot Sizing Inventory Control
• Production Planning and Machine Scheduling
• Workforce Scheduling and Overtime Management
• Logistics and Supply Chain Management

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Research with Local Community

• Welcome All Optimization Problems in Other
  Industries
• Supply Chain Management
• Logistics / Transportation
• Design Optimization, not limited in Semiconductor
• Resource Allocation and Management in Service
  Industry

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Thanks