ISyE NEWS 2016

ISyE N E W S

D E PA R T M E N T O F

Industrial and Systems Engineering

Vo l . 1 , I s s u e 1

FALL 2016

Educating young engineers is ISyE top priority

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n 2012, the College of Science and Engineering created the Department of Industrial and Systems Engineering (ISyE) by “spinning-off” seven seasoned faculty members from the Department of Mechanical Engineering.

In four years, ISyE has developed a culture of innovation, collaboration, and creativity with a small but strong team of people who are doing pioneering work.

Responding to an ever-increasing nationwide demand for industrial and systems engineers, ISyE is developing a strategic plan that blends together the priorities of the nation with the talents of faculty and students. Key research areas identified will focus teaching on topics that include: operations research, optimization, decision analysis, systems engineering, engineering management, project management, production, inventory, and logistic systems.

Faculty research focus

Preparing students for complex challenges ISyE’s top priority is to educate young engineers who are prepared to address complex challenges. The undergraduate program provides students with a solid foundation in industrial and systems engineering, analytical engineering skills, as well as hands-on research experience.

The graduate program trains master and doctoral students at the highest level. ISyE graduate students are engaged in cutting-edge, interdisciplinary research to become the next leaders in the field. In addition to an M.S. degree in a broad array of application areas such as health informatics, nano-engineering, biomedical engineering, and financial mathematics, the department offers dual M.S. degrees in mechanical engineering and civil engineering.

Ph.D. students specialize in one or more of the following areas: inventory and distribution systems, supply chain and revenue management, healthcare systems, operations research, complex systems and large scale optimization, simulation and stochastic modeling, incentives and computational game theory. They often collaborate with affiliated faculty in the Electrical and Computer Engineering Department, the Carlson School of Management, and the School of Kinesiology.

ISyE faculty members are active in several research areas specifically: operations research and its applications, including supply chains and logistics; health care; revenue management; transportation; and service and manufacturing operations.

The priority areas for hiring new faculty include: business analytics, energy and the environment, healthcare and medical applications, transportation and logistics, supply chain management, financial engineering, service operations, quality and reliability. With eight recent faculty hires, ISyE plans to build on the legacy of its founding faculty—Yechiel Shulman, Tarald Kvalseth and Sant Arora—as well as bolster its existing strengths and venture into new areas.

Class of 2016

ISyE News • Department of Industrial and Systems Engineering • College of Science and Engineering

From the Department Head

A department can only be born once, however great it may eventually become. As the founding head of Department of Industrial and Systems Engineering, I take pride in introducing to you the newest department within the College of Science and Engineering. This year we celebrate our 5th birthday.

As a result of our rapid growth, nine of our current 14 faculty members joined the department after its inception. Last year we graduated our first cohort of 12 undergraduates. This year we graduated 46. Forecasting future demand is our specialty; however, no mathematical model is required here. In my view, the future is in the people. We have a team of worldclass researchers and educators in Industrial Engineering and Operations Research, covering areas such as Data Analytics, Supply Chain Management, Service and Manufacturing Operations, Production and Inventory Systems, Healthcare Operations, Revenue Management, Stochastic Models, Optimization, Networks, Financial Engineering, Risk Management, and Incentives and Game Theory. Our curriculum is optimally designed —taking advantage of a brand new program, and dynamically adapted—by nature of a young faculty.

ISyE faculty members are all actively involved in the latest developments in their fields. The senior faculty members are leaders of their respective research areas. Professor Saif Benjaafar is a Distinguished McKnight University Professor, and served as founding Head (Dean) of the Pillar (School) of Engineering Systems and Design, at the Singapore University of Technology and Design. He received the Harold Kuhn Award in 2012, the MSOM Best Paper Award in 2011, and was the Program Chair of the International INFORMS Conference. Professor

Diwakar Gupta received numerous best paper awards, and was president of the Health Applications Society. He was also Program Director of Service, Manufacturing and Operations Research Program of the NSF (2014-2016).

Professor Bill Cooper was Chair of INFORMS Revenue Management and Pricing Section, Program Chair of INFORMS Annual Conference 2013, Department Editor of Production and Operations Management, and Associate Editor of Operations Research, and Management Science. Professor Kevin Leder received 2010 Best Publication Prize from the INFORMS Simulation Society, and NSF CAREER Award in 2016.

Professor Zizhuo Wang published intensively in top journals such as Operations Research, Management Science, Mathematics of Operations Research. Since joining ISyE in 2012, he has received two NSF research grants, published 15 papers, with a further eight papers under review, all in top journals. Other faculty members joined ISyE fewer than four years ago, and I shall refrain from introducing them one by one here, for fear that this introduction may become the newsletter itself.

ISyE is well-balanced. Other than academic affairs, the department closely works with industry. In fact, Professor Lisa Miller worked at Target Corporation (2007-2012), and Professor Darin England worked for IDeaS Revenue Solutions, Savvy Sherpa, UnitedHealth Group, KiehlHendrickson Group, and Norfolk Southern Railroad from 1995 to 2015. Professor Saif Benjaafar serves on the Keppel Technology Advisory Board, and Professor Diwakar Gupta has been working with the Minnesota Department of Transportation, Metro Transit, and Health Resources and Services Administration. Such experience is invaluable to our students. I hope you are as excited as I am about this new department.

I end my introduction by inviting you to read on.

Shuzhong Zhang

ISyE Department Head and Professor

A LU MN I

S P OT L I G H T

MEGAN WACHOWIAK (ISyE M.S. ’15)

I thoroughly enjoyed my time in the Industrial and Systems Engineering program. The flexibility of the program allowed me to tailor my coursework toward my areas of interest and choose electives that supplemented the technical knowledge I gained in my core courses. I also had the opportunity to be both a teaching assistant and a research assistant, both of which presented me with even more exposure to different areas within the field. It also gave me an opportunity to work one-on-one with some of the well-renowned professors in the department.

In addition to many phenomenal opportunities I was exposed to during the school year, I was able to work on a unique project during the summer months where one of the department faculty members served as my advisor. In this project, I worked with University of Minnesota Physicians to build simulations to help determine optimal workforce staffing models for a new clinical facility on campus.

Since graduating this past December, I have worked for Andersen Windows Corporation as a transportation logistics analyst. Every day I work to solve optimization problems determining the best delivery routes given a number of different constraints. I have also been able to work on a number of continuous improvement initiatives and participate in projects where I get to apply many of the concepts I learned in the ISyE program. My experiences in the ISyE program also provided me with new ways of thinking and best practices in the field—which I bring to my position every day.

JOHN CWODZINSKI (ISyE B.S. ’15)

I can’t believe it’s already been one year since I graduated. Of course, college life is more fun than working, but having an income is fantastic. I am currently traveling between New York City and Bentonville, Ark. for work, and have become efficient at packing.

Currently, I am a business analyst for the world’s largest retailer. I have worked with teams that support new generation vending machines and design new alert systems when things go wrong with lighting, HVAC, energy, etc. As a business analyst, I work with a variety of teams and have to bridge the gap between the business and the technical side of the company. All of the group projects I was part of in college have really enriched these skills. I also think one of the most important skills to have in the workplace is have the ability to explain things to people with different backgrounds.

The courses that best prepared me for my position were Senior Design and Project Management. The professors did a great job of showing how to create business documents for a client. Knowing the right questions to ask is just as important as having the right answers. Gathering requirements seems second nature to me after what I learned in the ISyE program.

I really enjoyed the diverse courses available in the ISyE program. With so many options, finding your interests and trying different areas was easy. If your passion is human factors or project management, you will encounter those! If your passion is only taking one semester of chemistry, that’s all you need! I wasn’t sure what I wanted to be when I grew up and I still don’t (modeling hasn’t quite panned out), but the ISyE program prepared me for so many different fields that I am confident I can do whatever I choose.

ISyE News • Department of Industrial and Systems Engineering • College of Science and Engineering

FAC U LT Y

U P DAT E S

WILLIAM COOPER, PROFESSOR AND DIRECTOR OF GRADUATE STUDIES

This past year, William L. Cooper focused on his long-running research program that centers on revenue management and pricing. Highlights include publication of three papers on the topic in the journal Operations Research and the start of a new NSF-funded project titled, “Revenue management with network effects,” with Professor Zizhuo Wang. He recently completed a four-year term as the Department Editor for Revenue Management for the Production and Operations Management journal and continues to serve as an Associate Editor for the Operations Research journal.

As Director of Graduate Studies for the department, he is involved with undergraduate and graduate education, and teaches IE 3521 Statistics, Quality, and Reliability and IE 4011 Stochastic Models. In addition to the undergraduate degree, ISyE offers a Ph.D. degree and two Master’s degrees (Industrial Engineering and Systems Engineering). Cooper reports the graduate program has grown to an enrollment of 30 with 24 graduates in 2016. Graduate students are conducting research projects in areas of healthcare, revenue management, transportation, supply chain management, and sustainability. Recent master’s graduates have found employment at Andersen Windows, Groupon, 3M, St. Jude Medical, and Walt Disney Co. Ph.D. graduates have taken faculty positions at Tianjin University (in China), Singapore Management University, and Northeastern University in Boston, as well as a postdoctoral position at University of Toronto. For 2016-17, the graduate curriculum will create separate core courses for M.S. and Ph.D. students in both optimization and stochastic models, which will better serve the needs of both M.S. IE Track and Ph.D. students.

KEVIN LEDER, ASSISTANT PROFESSOR

During the past decade, there have been incredible advances in our ability to collect detailed data about individual cells within tumors. Indeed, recent studies have revealed that tumors are comprised of strikingly heterogeneous, evolving populations of cells with distinct genotypes, morphologies, proliferation behaviors, and response to drug. This heterogeneity has direct clinical implications on disease classification and prognosis, and is thought to be a major cause of treatment failure. To deal with this, new treatment strategies must be designed to control these complex, dynamic tumor cell populations.

Kevin Leder’s research agenda involves two steps (1) build mathematical models for understanding the complexities of cancer evolution and treatment response, and (2) use these tools to optimize cancer treatment and prevention strategies.

His approach to these problems involves constructing mathematical models of the biological dynamics and then using rigorous mathematical analyses to obtain simplified forms for clinically relevant quantities of interest (e.g. tumor burden, tumor response to therapy) and a deeper qualitative understanding of tumor evolutionary dynamics.

He then applies optimization techniques such as dynamic programming and non-linear programming to identify treatment strategies that achieve optimal clinical outcomes. I collaborate closely with radiation oncologists and tumor biologists to design and validate these models.

Important phenomena emerging in the cancer biology literature as major drivers of treatment failure are: cellular plasticity (the ability of cancer cells to transform into more primitive, aggressive states), metastatic disease, and intratumor heterogeneity. Although it is widely acknowledged that these phenomena impact clinical response to therapies, they have not yet been incorporated quantitatively in the design of treatment schedules. These problems also motivate new methodological developments in the areas of stochastic analysis and optimization.

DIANA NEGOESCU, ASSISTANT PROFESSOR

Diana Negoescu tailors operations research and systems engineering methodology to address health policy and medical decision making problems impacting both developed and developing countries.

In collaboration with medical and public health experts, she develops mathematical models that describe disease evolution in patients, and uses them to optimize, simulate and evaluate health interventions to improve population health outcomes and save costs. She has worked on problems such as: optimizing the timing of HIV treatment initiation in the U.S. to balance immunological benefits with potential longterm cardiologic side effects; simulating and evaluating the cost-effectiveness of rapid diagnosis of tuberculosis in prisons of the former Soviet Union; and developing algorithms to learn patient response types and optimizing treatment in chronic illnesses such as multiple sclerosis where treatments are only effective in subgroups of patients and where there are no biomarkers available to accurately measure treatment effectiveness.

An active area of her research involves optimizing monitoring intervals to better target individualized patient risk factors. This problem is especially important in resource-limited settings, where too much monitoring takes away funds from life-saving treatment of other patients, and too little monitoring can have serious risks to patients and their community. In collaboration with clinicians who have gathered data on HIV patients in Switzerland over many years, she has analyzed patient data to build a model of HIV progression in individuals and develop optimal monitoring strategies for HIV patients in resource-limited settings such as Uganda. Preliminary results indicate that focusing monitoring resources on the patients most at risk of treatment failure, rather than employing “one-size-fits-all” monitoring policies that do not take advantage of differentiated risk information, could achieve significant cost savings.

With the recent advent of electronic health records and large data being collected on patient outcomes, a wide range of opportunities and challenges has been uncovered. Industrial & systems engineers—and their powerful methodologies in modeling and optimization—are well positioned to help answer some of the most impactful questions in health policy design and evaluation.

ZIZHUO WANG, ASSISTANTPROFESSOR

Over the 2015-16 school year, Zizhuo Wang focused his research on pricing and revenue management. Specifically, he has been investigating revenue management problems with specific types of customer behaviors, including reference price effects, network effects, and more. He has also studied revenue management problems where the demands functions are unknown and have to be learned during the selling process.

In the past year, his work has been published in top journals such as Management Science, Operations Research, Manufacturing and Operations Management, as well as Transportation Science and has been recognized by the community.

His work “Pricing Personalized Bundles: A New Approach and An Empirical Study,” was a finalist for the 2015 INFORMS Revenue Management and Pricing Section Practice Award. Also, his work “A Composite Risk Measure Framework for Decision Making under Uncertainty,” with an undergraduate student from Peking University, was a finalist for the INFORMS Best Undergraduate Research Award. Wang was awarded an NSF grant over the next three years (as a co-PI) with professor William Cooper on the topic of “Revenue Management with Network Effects.” He has also been invited more than 15 times to present his work at various international conferences or seminars at other universities.

ISyE News • Department of Industrial and Systems Engineering • College of Science and Engineering

FAC U LT Y

U P DAT E S SAIF BENJAAFAR, DISTINGUISHED MCKNIGHT UNIVERSITY PROFESSOR

Saif Benjaafar is an internationally renowned leader in the field of operations management and supply chains. He has published pioneering research that investigates how complex global supply chains and service systems should be designed and managed. His work on sustainable supply chains introduced innovative ideas for reducing the environmental footprint of supply chains through supply chain design and operation. It also offered guidance on how government policies that aim to mitigate supply chain emissions should be designed and demonstrated how poorly designed policies can backfire. His recent work on peer-to-peer collaborative consumption lays out the foundation for the economic and environmental analysis of the sharing economy. In particular, his work examines the implication of collaborative consumption of physical assets (the ability of individuals to offer physical assets they own for rent on a temporary basis to others who do not own) on the ownership and usage of these assets. The research identifies conditions under which collaborative consumption does and does not improve consumer surplus and environmental sustainability (contrary to popular views, the research shows that collaborative consumption can lead to both higher ownership and higher usage and thus lower environmental sustainability). In related work, he is studying labor platforms for on-demand services such as Uber and Instacart, and evaluating their impact on labor welfare.

He currently leads the university-wide Initiative on the Sharing Economy (http://sharingeconomy.umn.edu) with participating faculty from engineering, management, public policy, industrial ecology, and law and with support from the Office of the Vice President for Research and the Center for Transportation Studies. He is also involved in a collaborative effort with several colleagues to explore how innovative business models in transportation finance, and employment can be deployed to mitigate social inequity in low-income communities and communities of color.

ANKUR MANI, ASSISTANT PROFESSOR

Ankur Mani joined the department as an assistant professor in 2015. He serves as director of the Laboratory for Information and Operations in Health and Networks (LIOHN) at the University of Minnesota. Ankur received his Ph.D. degree from Massachusetts Institute of Technology in 2014, and was a research scientist at NYU Stern School of Business before coming to the University.

Ankur’s research explores questions at the intersection of social networks, learning and mechanism design and applies it to business operations and public policy. His main research contributions have in the areas of: (i) distribution product experimentation in supply chain and sales networks (ii) generalized matching problems in two-sided networks (iii) peer-pressure and mechanism design for networked societies. His work on peer-pressure has been applied to managing consumer energy demand and improving physical activity.

At present, he is studying the following three problems: (i) how does communication among experimenters in a network effect the innovation and learning? (ii) how should companies use the information about the consumer social network to improve their performance through customized prices and services? (iii) what is the design of an efficient distributed peer-to-peer market in which the participating agents share resources?

He works collaboratively with several businesses and public agencies and runs large-scale social experiments. Over the years, several companies including Microsoft, IBM, Yahoo, Intel, Avaya, and Natura have supported his work. His doctoral thesis was supported by Army Research Lab and Martin Family Fellowship.

SHUZHONG ZHANG, DEPARTMENT HEAD AND PROFESSOR

Common wisdom tells us that our perceptions are all derived from what we see, what we hear, what we smell, what we taste, and how we feel a touch. Is that all? Not exactly. Meet the sixth sense of data analytics. The idea of sensing the world with data is not new. However, the sensing faculty - in this case the brain - was hardly strong enough to do anything useful with the data, not until recently. What changed? On the demand side, the IT technology has developed at an unprecedented rate, producing an enormous amount of data. Suddenly, now we find Big Data all around us: from social networks, consumer behavior records, planet-hunting, to gene expression profiling. On the supply side, data science has emerged as a new engineering discipline, essentially trying to answer the question: how do we process data so as to extract useful information from it? When demand meets supply, then there is an opportunity for new discoveries.

Let me focus on one specific project to illustrate the point. In the recent years I have been working with a group of scientists in bioinformatics. The goal is to ‘read’ the information from gene expression data regarding the health of a patient. In that case, we attempt to better diagnose early-stage lung cancer, determining whether or not a patient contracted lung cancer, and if so, what is the subtype. Note that lung cancer is the most deadly cancer in the US and worldwide. Fortunately, modern technology allows us to measure the expression level of all 23,000 protein-coding genes relatively easily. The information about the cancer is most definitely contained in that data set. But how do we ‘see’ the information from chaotic data arrays? We observe that useful information is often not bulky - or putting it more technically - it is often in the form of sparse signal if we see it right, much like a miniature needle in a haystack. How do we find it? It is crucial to remove the bulky and boring background pattern. In sparse optimization, the technique is known as robust principal component analysis. It turns out that after we filter out the background patterns, the sparse signals regarding lung cancer can be spotted more easily. If analyzing the data is likened to reading under the sunlight, then the approach can be thought of as putting on sunglasses if the light is too strong. In fact, this helps diagnose lung cancer patients.

In optimization, which is my research area, often times it is all about extracting useful information from data, much like drawing nutrition from food. As Sun Tzu put it more than 2500 years ago: “Knowing thy self and knowing thy enemy lead to a hundred victories in a hundred battles.” I am confident that ‘knowing’ through data will become as routine as seeing with eyes. It just takes some non-artificial intelligence to create this artificial sixth sense.

DIWAKAR GUPTA, PROFESSOR

My research focuses on building and solving operations research models for applications in the delivery of health care, supply chain nance, procurement and revenue management, and state transportation agency operations. I am involved in several projects, two of which are supported by the National Science Foundation with research awards. In these projects, I use data to develop customized models and solution techniques utilizing modeling frameworks such as Markov Decision Processes, Competitive Analysis, Robust Optimization, and Queueing Theory. I also use tools from Econometrics and Data Mining.

I am also leading a pilot project that will test an unconventional model of stakeholder engagement in academic research.

In a program sponsored by the Office of the Vice President for Research, I am involved in a collaborative project with Metro Transit, the largest public transportation agency in the Twin Cities area, providing both bus and light-rail services. Metro Transit personnel will be embedded in my research lab and my students will have direct access to their institutional know-how and data. The primary research objective of our partnership is to develop scientific methods that Metro Transit’s operations personnel can use to optimally size workforce, assign contingent work to reserve drivers, and determine when to use planned and unplanned overtime. Such decisions not only involve tradeoffs between cost and reliability, but they also affect operators’ morale, attendance trends, overtime capacity, and employee satisfaction.

ISyE News • Department of Industrial and Systems Engineering • College of Science and Engineering

FAC U LT Y

U P DAT E S DANIEL MITCHELL, ASSISTANT PROFESSOR

Daniel Mitchell focuses on the intersection of engineering and finance; specifically, on optimization problems in the world of finance. Seeking to maximize profits or minimize risk are classical optimization problems that frequently arise in this context.

Let’s pretend that you own a large number of shares in a company that you would like to sell. If you simply dump all those shares on the market immediately, there will be a massive price drop and you won’t get very much money for your shares. On the other hand, if you slowly sell off one share at a time you open yourself up to the risk that the price might move a lot over the time you’re slowly selling. In one scenario you’ll have small profits, but very little risk. In the other scenario you might get a better price, but there’s lots of uncertainty, so you might get an even worse price than the first scenario. This then brings up the question of how to balance these two scenarios to optimally sell all your shares to get as much money as possible while taking as little risk as possible. This is just one example of the type of problem that Professor Mitchell works on; others include systemic risk measurement, principal-agent problems, and asset pricing.

QIE HE, ASSISTANT PROFESSOR AND SEMINAR COORDINATOR

Qie He has been working on two projects in the past year. One project is on how smart operational decisions improve energy efficiency in transportation. He is developing an algorithmic framework that is able to find the best routes and speeds efficiently for a class of transportation problems. The other project is designing personalized optimal therapeutic schedules for cancer. With his department colleague Kevin Leder, mathematics professor Jasmine Foo, graduate student Junfeng Zhu, and Dr. David Dingli from the Mayo Clinic, they are developing a quantitative model to find the best combined target therapies for one type of leukemia.

As department seminar coordinator, He coordinates the ISyE Seminar Series, which focuses on recent advances in the areas of industrial engineering, operations research, and management science.

Topics covered range from theoretical research in areas such as optimization, probability, statistics, algorithms, and game theory to real world applications of these techniques to problems arising from transportation, manufacturing, energy, healthcare, and other industries. Speakers include leading scholars and young researchers from both academia and industry.

For a list of current seminars visit isye.umn.edu/events.

If you would like more information about the seminar series, please contact info@isye.umn.edu.

INDUSTRIAL AND SYSTEMS ENGINEERING DEPARTMENT

SEMINAR SERIES EVERY WEDNESDAY 3:30 TO 5 P.M. ALL FACULTY AND STUDENTS ARE INVITED LEARN MORE AT Z.UMN.EDU/ISYESEMINARS

UNDERGRADUATE PROGRAM DARIN ENGLAND, ASSISTANT TEACHING PROFESSOR

Update

LISA MILLER, DIRECTOR OF UNDERGRADUATE STUDIES

This year, 12 project groups were created from 46 ISyE seniors who worked with 10 local companies. Working with an industry sponsor and faculty advisor, each group worked to model and solve a practical problem important to the sponsor.

Projects and sponsors represented a broad mix of industries and problem types. A few examples include: manufacturing process improvement for medical device maker Boston Scientific; patient flow for Gillette Lifetime health clinic; optimal inventory levels of perishable food products for Hormel; and demand forecasting for HVAC systems manufacturer Daikin Applied.

This year is shaping up to be another successful year for the ISyE undergraduate program. The growing program continues to achieve exciting milestones.

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The second official ISyE class conferred 46 bachelor’s degrees!

Two students graduated with Honors, and more than 80 percent walked across the stage with a job offer or graduate school plans. This is a great testament to talented undergraduate students, as well as a huge vote of confidence for the program from local and national companies and universities.

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The ISyE program continues to grow, as 75 additional students were admitted to the major this fall. ISyE students continue to excel both in and outside of the classroom. During the past summer, students interned at Boston Scientific, Target Corporation, General Mills, and more. On campus, students are engaged in research, volunteer activities, and student organizations, including the recently launched Institute of Industrial and Systems Engineers (IISE) student chapter. ISyE students participate in leadership roles across campus including Anna Burneske, class of 2017, who received the prestigious 2016 President’s Student Leadership and Service Award.

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Thanks to a generous donor, the Industrial and Systems Engineering Community Scholarship was established and was awarded to its first two recipients. The department welcomes additional scholarship support for well-deserving students.

The senior design course is the most comprehensive design experience of the ISyE curriculum. Students are expected to use skills learned in core courses, which includes data analysis, mathematical modeling, computational solutions, process design and improvement, project management, and communicating results. Equally important, students are exposed to the realities of project work.

Groups overcame issues such as data availability and quality, general messiness in using data to model uncertainty, and finding the right abstractions for problems that do not fit neatly into a textbook model. They also experienced and overcame difficulties of communication nuances and understanding among group members, an aspect of engineering practice that is much different from individualized coursework. Collectively, the project experience, class discussions, and industry partner presentations served as a transition from life as a student to life as an engineer.

Each group project required significant time, planning, and effort, and all groups worked hard to ensure success.

Feedback from both students and sponsors indicate that the projects and overall experiences were valuable. The ISyE department congratulates the class of 2016 and thanks our industry partners for supporting our seniors.

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I am proud to see all of the accomplishments and growth across the undergraduate program over the past year, and I look forward to continuing to improve in the year to come.

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LISA MILLER

ISyE News • Department of Industrial and Systems Engineering • College of Science and Engineering

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