wright state university, dayton, oh, 45459 · wright state university, dayton, oh, 45459...
TRANSCRIPT
Xinhui Zhang, Ph.D.
2013 INFORMS Edelman Laureate
207 Russ Center, 3640 Colonel Glen Hwy,
Wright State University, Dayton, OH, 45459
(937) 775 5151 (office) (937) 775 7364 (fax)
Education
Ph. D. The University of Texas at Austin, August, 2003
Operations Research and Industrial Engineering Program
M. S. Huazhong University of Science and Technology, China, May, 1998
Mechanical Engineering
B.S. Huazhong University of Science and Technology, China, May, 1994
Mechanical Engineering
Academic Appointment
03/16– Professor of Industrial Engineering
Department of Biomedical, Industrial and Human Factors Engineering
Wright State University, Dayton, OH 45435
06/09–03/2016 Associate Professor of Industrial Engineering
Department of Biomedical, Industrial and Human Factors Engineering
Wright State University, Dayton, OH 45435
09/03–06/09 Assistant Professor of Industrial Engineering
Department of Biomedical, Industrial and Human Factors Engineering
Wright State University, Dayton, OH 45435
Academic Award and Recognition
Nominee for the Brage Golding Distinguished Professor of Research Award
Wright State University, May, 2013
Early Career Achievement Award Wright State University, May, 2008
Professional Award
2014 QueVision – Real Time Queuing Management System for Kroger System
Semi-Finalist, One of Twelve World Wide
2014 Franz Edelman Award for Excellence in Operations Research and Management Science
by INFORMS
2013 Kroger Pharmacy Inventory Simulation and Optimization
Edelman Laureate, One of the Six Finalists World Wide,
2013 Franz Edelman Award for Excellence in Operations Research and Management Science
by INFORMS
2012 Inventory Simulation and Optimization
Semi-Finalist, One of Twelve World Wide
The Daniel H. Wagner Prize for Excellence in Operations Research Practice by INFORMS
Outstanding Young Member INFORMS (Dayton – Cincinnati Chapter), 2008
Media Recognition
Day Daily News, Jan 31, 2013, “WSU prof saves Kroger more than $170 million”
Stores Magazine, Jan/2014, “Business analytics punch up Kroger pharmacy operations”
Industrial Experience
06/01~08/01 Operations Research Analyst, Net Exchange Corp., San Diego, CA
03/00~05/01 Operations Research Analyst, Caleb Technology Corp. Austin, TX,
Publications
Journal Publications
1. Kellar, G., G. Polak* and X. Zhang (2015), “Lot Sizing and Synchronization of the Mean for
Supply Chain Networks,” International Journal of Production Research, in press.
2. Khambhampati, S., X Zhang* and P. Calyam, (2015) “A Tabu Search Algorithm for a
Capacitated Clustering Problem,” International Journal on Operations Research, in press.
3. Luo, K., X. Zhang (2015), “A Simple Proof Technique for Scheduling Models With Learning
Effects,” Optimization Letters, accepted, online version appeared on March, 9(7), 1411-1420.
4. Sainathuni, B., P.J. Parikh*, X. Zhang, and N. Kong (2014), “The Warehouse-Inventory-
Transportation Problem for Multi-Echelon Supply Chain," European Journal of Operational
Research, 237:690-700.
5. Zhang, X.*, D. Meier, Y. Liu, B. Bonner, and L. Lin (2013), “Kroger Uses Simulation and
Optimization to Enhance Pharmacy Inventory Management”, Interface. 44(1):74-80.
6. Liu, Q., X. Zhang*, Y. Liu and L. Lin (2013), “Spreadsheet Inventory Simulation and
Optimization Models and its application in a National Pharmacy Chain”, INFORMS
Transactions on Education, Special Issue Dedicated to the Memory of Paul A. Jensen. 14(1):13–25.
7. Liu, Q., X. Zhang* and X Chen, (2013), “Inter-Fleet and Intra-Fleet Models for Crew Recovery
Problems,” Transportation Research Record (TRR), Journal of the Transportation Research Board,
2336, 75-82.
8. Liu, Q.*, X. Zhang, X. Chen and L. Wang (2013) “ The Resource Access Authorization Problem
in a Collaborative Manufacturing System,” Journal of Intelligent Manufacturing, 25:413-425.
9. Xiao. R.*, Z., Cai, and X. Zhang(2012), “An Optimization Approach to Risk Decision-Making of
Closed-Loop Logistics Based on SCO Model,” Optimization, 61:10, 1221-1251.
10. Xiao, R.*, Z., Cai and X. Zhang (2012) “A Production Optimization Model of Supply Driven
Chain with Quality Uncertainty” Journal of System Science and System Engineering, 21(2): 144-160.
11. Zhang, X.* ,M. Prajapati and E. Peden (2011). “Stochastic Production Planning Under Demand
and Market Uncertainty,” International Journal of Production Research, 49:7, 1957-1975.
12. Aleman, R., X. Zhang and R. Hill (2010), “An Adaptive Memory Algorithm for the Split
Delivery Vehicle Routing Problem,” Journal of Heuristics, 16:3, 441-473.
13. Aleman, R., X. Zhang and R. Hill (2009) “A Ring-Based Diversification Scheme for Routing
Problems,” International Journal of Mathematics of Operational Research, 1:1, 163-190.
14. Zu, Y., R. Xiao and X. Zhang (2009) “Automated Conceptual Design of Mechanism Using
Enumeration and Functional Reasoning,” International Journal of Material and Production
Technology, 34:3 273-294.
15. Xiao, R.*, Z. Cai and X. Zhang (2009) “An Optimization Approach to Cycle Quality Network
Chain Based on Improved SCOR Model,” Progress in Natural Science, 19, 881-890.
16. Zhang, X.*, A. Chakravarthy and Q. Gu (2009). “Review of Model and Methodologies for
Scheduling Problems at USPS Mail Processing and Distribution Centers,” International Journal
of Operations Research, 5:4 445-467.
17. Zhang, X.*, A. Chakravarthy and Q. Gu (2009). “Equipment Scheduling under Disruptions at
USPS Mail Processing and Distribution Centers” Journal of Operational Research Society, 60(5),
598-610.
18. Zhao, Q., X. Zhang* and R. Xiao (2008). “PSO Algorithm for Partner Selection in Virtual
Enterprise”, Progress in Natural Science, 18:11, 1445-1552.
19. Zhang, X.*, H. Chen and A. Chakravarthy (2008). “Structure Design and Optimization for 2D
LFSR Based Multi-Sequence Test Generator in Built-In Self-Test,” IEEE Transactions on
Instrumentation and Measurement, 57:3, 651-663.
20. Zhang, X.*, (2006) “A Mathematic Model for the Television Primetime Advertising Allocation
Problem,” International Journal of Operations Research, 1:3, 302-322.
21. Zhang, X.* and J. F. Bard, (2006) “A Multi-Period Machine Assignment Problem,” European
Journal of Operational Research, 170:2, 398-415.
22. Zhang, X.* and J. F. Bard, (2006) “Comparative Approaches to Equipment Scheduling in High
Volume Factories”, Computer and Operations Research, 37:1, 132-157.
23. Zhang, X.* and J. F. Bard, (2005) “Equipment Scheduling at Mail Processing and Distribution
Centers,” IIE Transactions on Scheduling and Logistics, 37:2, 175-187.
Journal Publications (Under Review)
1. G. K. Taskirans, X. Zhang*. (2015) “Staffs Scheduling with Cross Training,” Computer and
Operations Research, under review
2. S. Lin, J. Bard*, A. I. Jarrah, and X. Zhang(2015), “Route Design for Delivery Vehicles with
Backhauling.” submitted to Computer and Operations Research,
3. Q. Liu*, X. Chen, X. Zhang and L. Wang, (2015), “A Group Based Heuristic Search Algorithm
for the Two-Dimensional Strip Cutting Problem”, European Journal of Operations Research
(under review)
Journal Publications (Working Paper)
1. L. Zheng, X. Zhang and Y. Liu, (2012) “Mathematical Models for Indoor RSS Location
Optimization”, submitted to Engineering Applications of Artificial Intelligence
2. G. K. Taskiran, K. Luo, and X. Zhang. “A Genetic Algorithm with LP Based Diversification
Schemes to Solve Knapsack Problems,” To be submitted to Computer and Operations Research
3. S. Wang, X. Zhang and Y. Liu (2016), “Enrollment Management Simulation and Optimization
Model for Financial Aid Policies at WSU,”
4. L. Lin, X. Zhang (2016), “Fred Meyer Jewelry Market Campaign Optimization,” To be
submitted to Interfaces
Referred Conference Proceedings
Ballester. N., Guthrie, B., Martens, S., Mowrey, C., Parikh, P., and Zhang, X. (2014), “Effect of Retail Layout on Traffic Density and Travel Distance, ” Proceedings of the 2014 Industrial and Systems Engineering Research Conference, May 31-June 3rd, Montreal, Canada
Sainathuni, B., Parikh, P. J., Zhang, X., and Kong, N. (2011), ``The Effect of Picker Blocking on
Warehousing and Distribution Decisions," Proceedings of 2011 Industrial Engineering Research
Conference, May 21-25, Reno, NV
Parikh, P. J., Zhang, X., and Sainathuni, B. (2010), “Distribution Planning Considering
Warehouse Decisions,” Progress in Material Handling Research, 351-365, Material Handling
Institute, Charlotte, NC
Gu, Q., X. Zhang and S. Narayanan. (2008) “A Genetic Algorithm with LP Based
Diversification Schemes to Solve Knapsack Problems,” 12th WSEAS International Conference on
Computers, Heraklion, Greece, July 2008.
Li, Y., X. Zhang and R. Xiao, “Research on the Hybrid Ant Colony Labor Division Algorithm
with Optimization and Its Application,” The 6th International Conference in Management, August
10th~12th, Wuhuan, Hubei, China
Zhang, X. and R. Hill (2006), “A Novel LP-Based Neighborhood Search for General Integer
Programs,” The 2nd International Symposium on Management, Engineering and Informatics, July 16th
~ 19th, Orlando, Florida.
Li, T., B. Wang, C. Xin and X. Zhang (2005), “On Survivable Service Provisioning in WDM
Optical Networks under a Scheduled Traffic Model,” Proceedings of IEEE Globecom'05, St. Louis,
MO USA, November/December, 1900 – 1904, 2005
Grant Awarded
Grants From Provost Office ($60K)
1. Wright State University, “Enrollment Management for Wright State University”, PI, $36,000
plus tuition for One Ph.D., and two course-buyout per year for two years ($24,000), total
$100,000K
External Grants Awarded (Total $895,000 for PI and Co-PI, if Co-PI as 33%, $630,000)
1. National Science Foundation, “GOALI/Collaborative Research: Warehouse Integration in
Enterprise-Wide Supply Chain Planning Under Uncertainty”. Co-PI (PI: Pratik Parikh) (Total:
345,000, 2012-2015, WSU account: 668929)
2. Advanced Consulting Systems Inc, “Forecasting Algorithms in ERP Systems”, $5,000, 2011/01
3. GE Energy (Lineage Corp). “ Responsive Manufacturing in a Global Environment – Part II,” PI,
additional $84,000, 08/01/2010 – 07/31/2011, (WSU Account, 668151)
4. Peco II Powered by Lineage Corp. “ Responsive Manufacturing in a Global Environment,” PI,
$84,000, 08/01/2010 – 07/31/2011, (WSU Account, 668151)
5. OpSimplex, LLC and Kroger Inc, “ Data Mining, Simulation and Optimization of Service
Centers”, PI, $75,000, 10/27/2009 ~ 10/26/2010, subcontract to Wright State University $33,650
(WSU Account 667933)
6. OpSimplex, LLC and Kroger Inc, “Integrated Supply Chain Planning and Optimization”,
subcontract to Wright State University, $2,875 (WSU Account 668062)
7. Peco II Inc, “Integrated Supply Chain Management: Sales Forecast, Product Pricing,
Manufacturing Planning, Procurement Management, Inventory Control and Lean
Manufacturing Strategies,” PI, $72,000 08/01/2008 ~08/31/2009 (WSU Account #667265)
8. Peco II Inc, “Inventory Control, Forecast, Facility Layout, Assembly to Order, Lean
manufacturing and Supply Chain management,” PI, $54,000 11/01/2007 ~08/31/2008 (WSU
Account #667111)
9. The David J. Joseph Company, “Transportation Consolidation Optimization (Phase I)”, PI,
11/01/2007~03/31/2008, $7,500 (WSU Account #667104)
10. Rittal Corporation, “Warehouse Management, Inventory, Logistics and Supply Chain
Optimization”, $70,000, PI, 01/01/2007 ~ 12/30/2007, (WSU Account #666773)
11. Rittal Corporation, “Raw Material Warehouse Management : Warehouse-within-Warehouse
Identification and Location, Fast/Medium/Slow Mover Identification, Warehouse Layout, and
Order Picking Route Optimization to Maximize Space Utilization, Increase Operation
Efficiency and Lead to Best Practice In Industry”, $15,000, PI, 08/1/2006 ~ 12/15/2006, (WSU
Account #666656)
12. The Wright Brothers Institute Inc., “Wright Innovation and Collaboration (WICC) Virtual
Hub”, CO-PI. (PI: Dr. S. Narayanan) $122,000, 10/01/06~09/30/07 (WSU Account #666651)
13. The Wright Brothers Institute Inc., “Support for Wright Innovation and Collaboration (WICC)
Workshop”, CO-PI. (PI: Dr. S. Narayanan) $63,108.18, 08/24/06~09/30/07 (WSU Account
#666670)
14. Rittal Corporation, “Raw Material Availability, Forecasting, and Inventory Policies Analysis”,
$33,326, PI, 02/01/2006 ~ 05/31/2006, (WSU Account: 666457)
Internal Grants Awarded (6 Total, $131,000)
15. $45,000, “UAV Platform Routing, Target Tracking, Optimization and Simulation,” Principal
Investigator, 08/1/2007 ~ 08/30/2008 (WSU account #: 666885)
16. $25,000, “Write Research Initiative for the Technology Evolution with RFID (WRITER),” Co-PI,
08/1/2007 ~ 08/30/2008 (WSU account #: 666965)
17. $14,000, 1 year, “A Quick, Effective Neighborhood Search for Integer Programs and Its
Applications in Defense Logistics, Supply Chain Management, and Airline Scheduling
Problems,” Research Challenge Grant, Wright State University, Principal Investigator,
January,2006 (WSU Account: 666412)
18. $10,000, 1 year, “Mathematical Model and Solution Approaches to the Systematic Design of
Linear Feedback Shift Register with Embedded Test Patterns for BIST,” Research Initiation
Grant, Wright State University, Principal Investigator, June, 2005 (WSU Account: 285027)
19. $12,000, 1 year, “Integrated Production Planning and Workforce Scheduling In Processing
Industries,” Research Challenge Grant, Wright State University, Principal Investigator,
January,2005 (WSU Account: 666035)
20. $25,000, 1 year, “An Investigation of Mathematical Programming Techniques to Solve Large
Scale Optimization Problems”, Research Challenge Grant, Wright State University, Principal
Investigator, August 2003, (WSU Account: 665589)
Ph.D. Thesis Supervision
Arvind Chakravarthy, “Model and Solution Approaches for Equipment Scheduling Problem
under Disruption in USPS Mail Processing and Distribution Centers,” Ph.D. Thesis, Oct, 2008
Chair: Dr. Xinhui Zhang.
Lei Zheng, “A Propagation Based Mathematic Model for Indoor Location Problem,” Co-Chair:
Dr. Xinhui Zhang, (Co-Chair, Yan Liu) December 2012.
Program Qualification, Spring 2010; Candidacy Exam, Fall, 2010
G. K. Taskiran, “Mathematical Models and Solution Approach for Staff Scheduling With Cross
Training at Call Centers,” Chair: Xinhui Zhang, August 2015.
Program Qualification, Spring, 2010; Candidacy Exam, Fall, 2012
Lebin Lin, “Market Analysis Models for Jewelry Chains ,” Chair: Dr. Xinhui Zhang, Summer,
2016 (Expected).
Shuai Wang, “Data Mining and Optimization Models for Enrollment Management at Wright
State University,” Chair: Dr. Xinhui Zhang, Summer, 2017 (Expected).
Master Thesis (Major Advisor) (3 total)
Rafael E. Aleman, “Application of Multi-Period General Assignment Problem in UAV
Planning,” Master Thesis, December, 2005, Chair: Dr. Xinhui Zhang.
Surya S. Khambhampati, “A Tabu Search Heuristic for Multi-Period Capacited Clustering
Problem in Vendor Managed Inventory,” Master Thesis, May, 2008, Chair: Dr. Xinhui Zhang
Meenakshi Prajapati, “A Stochastic Production Planning Model Under Uncertain Demand,”
Master Thesis, September, 2008, Chair: Dr. Xinhui Zhang
Gamze Kilincli Taskiran, “An Improved Genetic Algorithm for Multi-Dimensional Knapsack
Problem,” Master Thesis, March, 2010, Chair: Xinhui Zhang
Academic Research Summary
My research is in the field of mathematical programming, data mining, simulation, and
optimization, and their applications in Manufacturing, Logistics, Transportation and Retail Industries.
Research topics ranges from USPS equipment scheduling, staff scheduling, simulation and optimization for
inventory, data mining and marketing optimization,
The research projects were selected as the 2012 Wagner Semifinalist, 2013 Edelman finalist Award, and
2014 Edelman semi-finalist.
2013 Franz Edelman Award for Excellence in Operations Research and Management Science: The
project --Simulation and Optimization for Inventory Management for the Kroger Corp was selected as
one of the six finalists worldwide, with BaoSteel, Chevron, Dell, Delta Commissioner and
McKesson, for the 2013 Franz Edelman Prize for Excellence in Operations Research and
Management Science. The INFORMS press release, dated on Deb 18th, 2012, stated that the entry --
Kroger, with Wright State University,
“Simulation and Optimization Improves Pharmacy Inventory Management at the Kroger Co. has
reduced out-of-stocks by 1.5 million prescriptions, lowered inventory by more than $100M, and yielded
additional revenue of more than $70M since Oct 2011."
Due to Dr. Zhang’s research award, Wright State University is inducted into the Franz Edelman
Academy, and the story has been published in Dayton Daily News, dated on Jan 31st, 2013. It has
significantly increased the reputation of the department and university for practical research
2014 Franz Edelman Award for Excellence in Operations Research and Management Science: The
project – QueVision Improves Front End Customer Queue Management at the Kroger Co is again
selected as a semifinalist for 2014 Edelman Award for Excellence in Operations Research and Management
Science. The research uses predictive analysis (regression analysis, queuing theory) and infrared
camera (Kroger R&D) to predict the number of lanes to be opened currently, how long it has been
under the current state, and the number of lanes required in 30 minutes increment at the frontend
(a picture is shown below). The system reduces the customer waiting time at Kroger from 4
minutes to 30 seconds and has generated a sale lift of $1.5 Billions per year for Kroger. This
research has appeared on leading media such as USA today and The Wall Street Journal.
2014: Breaking Ground Research on Enrollment Management for Wright State University. At the
request of the University administration, a series of research have been conducted to help the
University on its enrollment management. The research combines cluster analysis and logistic
regression to find matriculation and graduation rate by varying scholarships. This is followed by a
simulation and optimization model, which aims to optimize revenue under budget constraints for
upcoming years. The result is then followed by a decision tree analysis to obtained the policies
that will be used for implementation. For example, the graphs below shows the optimal
scholarship award under 2.8M based on a combined measure defined as GPA * 10 + ACT.
This research has resulted in the university wide scholarship redesign, the APS calculator, see
http://www.wright.edu/raider-connect/loans-scholarships-and-grants/first-year-scholarships, that
matches the scholarship with a combined GPA and ACT, the creation of three more scholarship,
the design of proactive marketing – award scholarship before student even apply; and has
resulted a 11% increase in direct admit students in 2014 (see below). The corresponding financial
benefits (tuition – scholarship + SSI is expected to be millions for Wright State University.
Year 2013 2014 # of increase % of increase Application 6,101 6,068 - 43 - 0.7%
Matriculation 2,001 2,222 221 11.0%
In the following, some specific projects that I have worked or is working on are listed as follows.
1) 2001-2002: Crew Management in Airline Irregular Operations
An airline schedule rarely operates as planned due to various disruptions. These disruptions, if
not managed quickly and correctly, could propagate and amplify through the system. In this
project, we investigated how to quickly bring the crew back to their published schedule. The basic
problem was modelled as a set covering with side constraints and variations were investigated to
allow robust schedule. Several algorithms including simulated annealing and Tabu search
heuristics, customized branching together adaptive improving techniques were developed to
achieve faster convergence. I assisted with the implementation in Northwest Airlines. The project
was later awarded the Franz Edelman Prize from INFORMS in 2002.
2) 2003-2004: US Postal Equipment and Staff Scheduling
U.S.P.S. is the second largest employer in the U.S. with over 800,000 personnel. More than 1/3 of
these employees work at around 275 mail processing centers nationwide. The central problem
here is how to run these facilities efficiently with minimum labor cost. The problem is modeled as
a mixed flow shop and job shop problem with multiple criteria and is solved sequentially. The
core of this optimization scheme is the inclusion of a surrogate constraint in the form of worker
shifts that must cover daily labor costs. The inclusion of this constraint is vital and provides a way
to combine equipment and labor scheduling. Several computational improvements, including
pre-processing, the use of target solution and decomposition have been elegantly combined to find
high quality solutions efficiently. A decision support system is developed and is now being tested
at several facilities. It is estimated that annual savings on the order of $1.6 million can be achieved
per facility (there are 275 facilities nationwide).
3) 2003-2004: Advertising Allocation for TV Networks
Television networks depend on selling a limited number of advertisement slots in their
entertainment programs to advertisers to sustain their operations and to deliver programs to
homes free of charge. The problem here is how to efficiently allocate these slots to achieve
maximum profits and to meet the advertisers’ demographic coverage requirements. A two-step
hierarchical approach, composed of a winner selection problem and a pod adjustment problem,
was designed. The winner selection problem was then solved using an efficient column
generation-based algorithm. The methodology is applicable to similar advertising allocation
problems in other areas, such as cable networks and radio stations.
4) 2005- 206: Design and Optimization of LFSR Based VLSI Testing Structure
Testing of digital circuits includes performing test pattern generation and output analysis and is a
major portion of the effort in the design, production and usage. One of a major scheme in VLSI
testing is to perform test pattern generation and output response analysis through built-in
hardware such as Linear feedback shift registers (LFSR). This research investigates the
mathematical model and methodologies to the structure design and optimization of 2D LFSR
based VLSI Built-in Self-Test. Preliminary results show that hardware reduction nearly 80% was
achieved -- the optimal size of the testing hardware is only 1/6 as that used reported in the
literature. This research, coupled with the study of test relaxation technique, will provide a novel
and direct route to the design of VLSI system with high fault coverage and is expected to reduce
testing hardware by orders of magnitudes.
5) 2009-2010 Staff Scheduling at Call Centers.
This study is designed to optimize Kroger Call Center staff scheduling problem. This research
utilizes mathematical models to matches demand and staff and is aimed to provide better
customer service, dramatically reduce staff cost, and improves staff satisfaction. The model
integrates many features such as a) full-time, part-time, and extended shift options, b) daily break
assignments, c) consecutive and non-consecutive days-off options, d) cross-training of staff for
different groups, e) preference-based scheduling which aims to satisfy staff preferences, f) staff
scheduling under disruptions, g) bidding process, h) an easy-to-use interface design. The model
takes into account all possible options that can be encountered in call center staff scheduling to
provide an efficient comprehensive and flexible tool than commercial scheduling packages.
6) 2009-2012: Inventory Simulation and Optimization for Pharmacy products at Kroger Corp.
An simulation and optimization algorithm for inventory management to decide the min-max
levels for pharmacy where a simulation is used to evaluate given parameters and a perturbation
analysis and iterative search is used to find the optimize min-max levels. The system is
implemented in 2,000 Kroger Pharmacy Stores in November 2011. The system has dramatically
decreased out of stock, from 3.4% before the implementation to 2.3%, after the implementation, see
the figure below, notice the slight increase in OOS is due to the failure of the system to upload the
solution. This translates into $80M of additional revenues, $120M of inventory reductions, nearly
10M of cost reduction, and annually 1.7M customers getting prescriptions when they need them.
2.2
2.4
2.6
2.8
3.0
3.2
3.4
2011 2012 2013
Pe
rcen
tage
3.4 3.4 3.4
3.1
2.9 2.9
3.1
2.8
2.7
2.6
2.5
2.4 2.4 2.4
2.7
2.6
2.8 2.8
2.9
2.7
2.5
2.3
8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3
10.7
10.9
11.5 11.5
11.4
11.7
11.9
12.4 12.4
12.1 12.1
11.9
11.7
11.8
12.6
12.5
12.4
12.6
12.9
12.8
12.7
12.4
10.5
11.0
11.5
12
.012.5
13.0
Mill
ion
s
OOS # of Prescriptions
The project was selected as one of the six finalists worldwide for the 2013 Franz Edelman Prize
for excellence in Operations Research. This is the highest award from Institute of Operations
Research and Management Science (INFORMS) – the super bowl of Operations Research.
7) 2013-2015: Inventory Management for Perishable Products at Kroger Corp.
A set of regression and optimization model has been developed to find the underlying variables,
such as promotion, weather, days of the week, and dates of the month, and how they affect sales
of products in a Kroger stores. Simulation model has also been design the see the effect of these
variables on overall revenue and supply chain cost and proper setting on inventory to meet
customer demand while reducing shrinkage. A prototype is being built and piloted in 2 out of
the 16 divisions (with more than 100 stores in pilot) for Kroger.
8) 2012-2015: NSF GOALI on Warehouse Integration in Enterprise-wide Supply Chain Planning
The "Warehouse Integration in Enterprise-Wide Supply Chain Planning under Uncertainty”
project was supported as a NSF a GOALI project. The project will span three years with Wright
State University as the lead institution. The project will investigate the three-way relationship
between warehousing, inventory, and transportation decisions and develop novel optimization
models and solution approaches to solve this challenging real-world problem. This research will
facilitate innovation in decision analytics at over 600,000 warehouses in the U.S. with an annual
budget of $100 billion.
9) 2013-2015: Marketing Analysis, Direct Mail Campaign Optimization for Fred Meyer Jewelry
Fred Meyer Jewelers started in 1973 and is the 4th largest Jewelry store in US. Jewelry customer,
unlike any other business unit, such as grocery, makes only limited number of purchases, and
over long intervals. To grow the jewelry business, the key problems is how to effectively use
market campaigns to promote their products – what products to promote, whom to target, and
how to optimally allocate limited marketing budget over a year to maximize the positive return of
investment; A set of data mining models and optimization models have been developed and
implemented in 2013, and has seen a reduction rate increase of nearly 300% increase (see below)
Year # of Mailings # of Customer Redemption Rate Sales Profit 2013 499,068 2,247 0.45% $688,852 $306,057 2014 399,625 6,731 1.68% $2,200,796 $1,068,680
Increase 200% 274% 219% 249%
10) 2013-2015: Enrollment and Retention Study at Wright State University
At the request of the University administration, a series of research have been conducted to help
the University on its enrollment management. The research combines cluster analysis and logistic
regression to find matriculation and graduation rate by varying scholarships the acceptance rate
and optimizes revenue under budget constraints. This research has resulted in the university wide
scholarship redesign and an APS calculator that matches the scholarship with a combined GPA
and ACT, the creation of three more scholarship, the design of proactive marketing – award
scholarship before student even apply; The study has resulted a 11% increase in direct admit
students. which translates into million dollars of revenue for WSU annually.
11) 2013-2015: Revenue Management and Bid Optimization for Kroger Procurement
For bigger Enterprises, revenue management and bid optimization is a bigger part of procurement
management. A set of optimization tools have been developed for Kroger Purchasing Team to
consider various promotion plans such as sales projections, funding supports, assortment
decisions such as item introduction plans, and select a set of promotion plans over full-year
category promotion calendar to optimize Kroger’s Revenue without sacrificing customers’
shopping experience. The system, called Category Collaborative Optimization (CCO) is being
built in 2013 and has resulted in more than $50M of savings in cost for Kroger Corp.
12) QueVision -- Front End Customer Queue Management at the Kroger Co.
Kroger Cor. is selected as a semifinalist for 2014 Edelman Award for Excellence in Operations Research and
Management Science. The research uses predictive analysis (regression analysis, queuing theory)
and infrared camera (Kroger R&D) to predict the number of lanes to be opened currently, 15
minutes and 30 minutes increment at the frontend. The system reduces the customer waiting time
from 4 minutes to 30 seconds and has generated a sale lift of $4 Billions for Kroger. This
research has appeared on leading media such as popular science, USA today, The Wall Street
Journal.
13) 2013-2015: Rx Transfer from Store of Excess to Store of Need in Kroger
For the more than 2000 pharmacies, imbalance exists where stores have high inventory in certain
drugs; yet is in need of demand in other drugs. A mathematical model, a fixed charge network
models, has been built to transfer drugs from store of excess to the store of need; a fixed charge
network transportation model has been built aggregate shipment across stores to maximize the
reduction of obsolesce and with minimum transportation cost. Pilot study at Columbus Division
suggests that saving on the order of 50 million is expected for the Kroger Pharmacy Corp.
