Spring 2006 UMASS Amherst
Operations Research / Management Science Seminar Series

Date: Friday, April 21, 2006

Time: 11:00 AM
Location: Isenberg School of Management, Room 112

Speaker: Professor Vernon Hsu

School of Management
George Mason University
Fairfax, VA

Biography: Vernon Hsu is an Associate Professor of Operations Management at George Mason University’s School of Management. He has been with George Mason University since 1994. He received his Ph.D. in Operations Management from The University of Iowa in 1993. Professor Hsu has offered courses and lectures in undergraduate, graduate, and executive programs in the areas of logistics and supply chain management, e-business and supply chain integration, operations management, and management information systems.  

Prof. Hsu’s research has been published in such journals as: IIE Transactions, Journal of Industrial Economics, Management Science, Manufacturing and Service Operations Management, Naval Research Logistics, and Operations Research. He is currently a member of the editorial review board of the Production and Operations Management Journal.

TITLE: Inventory and Production Decisions for an Assemble-to-Order System with Uncertain Demand and Limited Assembly Capacity
Abstract: In this presentation, we consider a production and inventory problem faced by a contract assembler who needs to respond to an order of a single product with multiple components to be procured from component suppliers. Late confirmation of order quantity from the customer, long component procurement lead times, and limited in-house assembly capacity may leave the manufacturer insufficient time to produce the total order quantity. One strategy to meet this challenge is to procure components or even assemble some quantity of the finished product before receiving actual order quantity from the customer. We develop a quantitative model that will evaluate the optimal decisions under this strategy. The overall objective of the model is to determine optimal quantity of components procured and finished product assembled prior to the confirmation of actual order quantity in order to minimize the total overstocking costs of components/finished product as well as the shortage cost of the finished product. An efficient solution procedure and some sensitivity results will be presented.
This series is organized by the UMASS Amherst INFORMS Student Chapter. Support for this series is provided by the Isenberg School of Management, the Department of Finance and Operations Management, INFORMS, and the John F. Smith Memorial Fund. The Chapter wishes to thank Professor Anna Nagurney, its Faculty Advisor, for her help and  support of this series.

For questions, please contact the INFORMS Student Chapter Representative, Ms. Tina Wakolbinger, wakolbinger@som.umass.edu