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    Publication
    A blood bank network design problem with ıntegrated facility location, ınventory and routing decisions
    (Springer, 2020) Kaya, Onur; N/A; Özkök, Doğuş; Master Student; Graduate School of Sciences and Engineering; N/A
    We aim to design an effective supply chain network for a blood distribution system to satisfy the needs of hospitals in a certain region. In the analyzed current system, each hospital keeps a certain level of inventory, received at certain time periods by the shipments from a main blood bank. We propose an alternative system, in which some of the hospitals are selected as local blood banks (LBB) and all other hospitals will be assigned to an LBB. More frequent shipments will be made from LBBs to these hospitals, leading to lower inventory levels to be kept at each hospital. The inventories kept separately at the hospitals in the current system will be pooled at the selected LBBs in the proposed system. We develop a mixed integer nonlinear programming (MINLP) model to determine the optimal selection of LBBs, assignment of hospitals to LBBs, optimal inventory levels at each LBB and routing decisions among the facilities in order to minimize total system costs. We also propose a piecewise linear approximation method and a simulated annealing heuristic approach to find the solution of this problem. The proposed model and the solution techniques are applied on a real life case study for the blood distribution network in Istanbul. It is observed that significant improvements can be obtained by the proposed system when compared to the current design. Performances of the solution methods are also compared and a sensitivity analysis related to system parameters is presented via detailed numerical experiments.
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    A lab-scale manufacturing system environment to investigate data-driven production control approaches
    (Elsevier Sci Ltd, 2021) N/A; N/A; Department of Business Administration; Khayyati, Siamak; Tan, Barış; PhD Student; Faculty Member; Department of Business Administration; Graduate School of Sciences and Engineering; College of Administrative Sciences and Economics; N/A; 28600
    Controlling production and release of material into a manufacturing system effectively can lower work-inprogress inventory and cycle time while ensuring the desired throughput. With the extensive data collected from manufacturing systems, developing an effective real-time control policy helps achieving this goal. Validating new control methods using the real manufacturing systems may not be possible before implementation. Similarly, using simulation models can result in overlooking critical aspects of the performance of a new control method. In order to overcome these shortcomings, using a lab-scale physical model of a given manufacturing system can be beneficial. We discuss the construction and the usage of a lab-scale physical model to investigate the implementation of a data-driven production control policy in a production/inventory system. As a datadriven production control policy, the marking-dependent threshold policy is used. This policy leverages the partial information gathered from the demand and production processes by using joint simulation and optimization to determine the optimal thresholds. We illustrate the construction of the lab-scale model by using LEGO Technic parts and controlling the model with the marking-dependent policy with the data collected from the system. By collecting data directly from the lab-scale production/inventory system, we show how and why the analytical modeling of the system can be erroneous in predicting the dynamics of the system and how it can be improved. These errors affect optimization of the system using these models adversely. In comparison, the datadriven method presented in this study is considerably less prone to be affected by the differences between the physical system and its analytical representation. These experiments show that using a lab-scale manufacturing system environment is very useful to investigate different data-driven control policies before their implementation and the marking-dependent threshold policy is an effective data-driven policy to optimize material flow in manufacturing systems.
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    A learning based algorithm for drone routing
    (Pergamon-Elsevier Science Ltd, 2022) N/A; N/A; Department of Industrial Engineering; Department of Industrial Engineering; Ermağan, Umut; Yıldız, Barış; Salman, Fatma Sibel; Master Student; Faculty Member; Faculty Member; Department of Industrial Engineering; Graduate School of Sciences and Engineering; College of Engineering; College of Engineering; N/A; 258791; 178838
    We introduce a learning-based algorithm to solve the drone routing problem with recharging stops that arises in many applications such as precision agriculture, search and rescue, and military surveillance. The heuristic algorithm, namely Learn and Fly (L&F), learns from the features of high-quality solutions to optimize recharging visits, starting from a given Hamiltonian tour that ignores the recharging needs of the drone. We propose a novel integer program to formulate the problem and devise a column generation approach to obtain provably high-quality solutions that are used to train the learning algorithm. Results of our numerical experiments with four groups of instances show that the classification algorithms can effectively identify the features that determine the timing and location of the recharging visits, and L&F generates energy feasible routes in a few seconds with around 5% optimality gap on the average.
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    PublicationOpen Access
    A machine learning approach for implementing data-driven production control policies
    (Taylor _ Francis, 2021) Department of Business Administration; N/A; Tan, Barış; Khayyati, Siamak; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; Graduate School of Sciences and Engineering; 28600; N/A
    Given the extensive data being collected in manufacturing systems, there is a need for developing a systematic method to implement data-driven production control policies. For an effective implementation, first, the relevant information sources must be selected. Then, a control policy that uses the real-time signals collected from these sources must be implemented. We analyse the production control policy implementation problem in three levels: choosing the information sources, forming clusters of information signals to be used by the policy and determining the optimal policy parameters. Due to the search-space size, a machine-learning-based framework is proposed. Using machine learning speeds up optimisation and allows utilising the collected data with simulation. Through two experiments, we show the effectiveness of this approach. In the first experiment, the problem of selecting the right machines and buffers for controlling the release of materials in a production/inventory system is considered. In the second experiment, the best dispatching policy based on the selected information sources is identified. We show that selecting the right information sources and controlling a production system based on the real-time signals from the selected sources with the right policy improve the system performance significantly. Furthermore, the proposed machine learning framework facilitates this task effectively.
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    A matheuristic for the generalized order acceptance and scheduling problem
    (Elsevier, 2022) N/A; Department of Industrial Engineering; Tarhan, İstenç; Oğuz, Ceyda; PhD Student; Faculty Member; Department of Industrial Engineering; Graduate School of Sciences and Engineering; College of Engineering; N/A; 6033
    In make-to-order production systems, manufacturer can have limited capacity and due to the order de-livery time requirements, it may not be possible to accept all orders. This leads to the order acceptance and scheduling problem with release times and sequence dependent setup times that determines which orders to accept and how to schedule them simultaneously to maximize the revenue (GOAS). The aim of this study is to develop an effective and efficient solution methodology for the GOAS problem. To achieve this aim, we develop a mixed integer linear programming model, a constraint programming model, and a matheuristic algorithm that consists of a time-bucket based mixed integer linear programming model, a variable neighborhood search algorithm and a tabu search algorithm. Computational results show that the proposed matheuristic outperforms both the proposed exact models and previous state-of-the-art al-gorithms developed for the GOAS problem. The boundary of optimally solved instance size is pushed further and near optimal solutions are obtained in reasonable time for instances falling beyond this boundary.
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    A newsvendor problem with markup pricing in the presence of within-period price fluctuations
    (Elsevier, 2022) Canyakmaz, Caner; Department of Industrial Engineering; Department of Industrial Engineering; Özekici, Süleyman; Karaesmen, Fikri; Faculty Member; Faculty Member; Department of Industrial Engineering; College of Engineering; College of Engineering; 32631; 3579
    We consider a single-item single-period joint inventory management and pricing problem of a retailer selling an item that has selling price uncertainties. Unlike most of the literature on the newsvendor problem, we assume that price-dependent demand arrives randomly according to a stochastic arrival process whose rate depends on the fluctuating market input price process. The retailer's problem is to choose the order quantity and a proportional price markup over the input price to maximize the expected profit. This setting is mostly encountered by retailers that trade in different currencies or have to purchase and convert commodities for seasonal sales. For this setting, we characterize both the optimal inventory and markup levels. We present monotonicity properties of the expected profit function with respect to each decision variable. We also show that more volatile input price processes lead to lower expected profits.
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    An extended formulation of moldable task scheduling problem and its application to quay crane assignments
    (Pergamon-Elsevier Science Ltd, 2021) Ünsal, Özgür; PhD Student; Graduate School of Sciences and Engineering; N/A
    In this paper, we study an extended formulation of moldable task scheduling problem (MTSP) motivated by the assignments of quay cranes to vessels. In container terminals, handling time of a vessel depends on the number of quay cranes assigned to that vessel. This characteristic allows us to model quay crane assignment problem (QCAP) as a variant of MTSP. By considering the modeling requirements of various properties of QCAP, we develop an extended formulation of MTSP with specific task to machine assignments. Even though this formulation brings modeling flexibility, it can only be solved for small instances because of its size. For this reason, we provide a generic solution algorithm based on a logic based Benders decomposition by utilizing the extended formulation. There are various characteristics of QCAP observed in different terminals. Accordingly, we implement the proposed decomposition algorithm for contiguous assignments of QCs, uniform QCs as well as the availability of QCs. Computational experiments show that the proposed algorithm is able to solve instances of considerable sizes to optimality and provides a modeling flexibility that allows implementation to different terminal settings.
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    An online optimization approach to post-disaster road restoration
    (Pergamon-Elsevier Science Ltd, 2021) Akbari, Vahid; Shiri, Davood; Department of Industrial Engineering; Salman, Fatma Sibel; Faculty Member; Department of Industrial Engineering; College of Engineering; 178838
    Natural disasters impact transportation networks adversely and cause road sections to be damaged or blocked. The road network may even become disconnected, impeding accessibility between disaster-stricken areas and critical locations such as hospitals, relief aid depots and transportation hubs. In the immediate response phase, a set of blocked edges should be selected and restored to reconnect the transportation network. While locations of the disrupted roads can be identified using drone or satellite images, an accurate estimation of time to restore a road segment can be carried out only after expert observations on the field. In this article, we study a post-disaster road restoration problem modeled on an undirected edge-weighted graph with k blocked edges, where the unblocking time of a blocked edge is revealed online once the road restoration team visits an end-node of that blocked edge. The objective is to minimize the time at which the road network is reconnected. We first investigate the worst-case performance of online algorithms against offline optimal solutions by means of the competitive ratio. We prove that any online deterministic algorithm cannot achieve a competitive ratio better than 2k-1. We also provide an optimal online algorithm that is proven to achieve this lower bound. In addition, to achieve good performance on realistic instances, we implement an algorithm that solves a mixed integer programming model each time new information is revealed. Since model solution is prohibitively time-consuming, we also propose a novel polynomial time online algorithm. We compare these two algorithms with two other benchmark online algorithms on both Istanbul road network instances and several other city instances from the literature. Our experiments show that the proposed polynomial time online algorithm performs superior to the benchmark ones and obtains solutions close to the offline optimum on all the tested instances.
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    Asymptotically optimal energy consumption and inventory control in a make-to-stock manufacturing system
    (Elsevier B.V., 2025) Tan, Barış; Department of Business Administration; Özkan, Erhun; Department of Business Administration; College of Administrative Sciences and Economics
    We study a make-to-stock manufacturing system in which a single server makes the production. The server consumes energy, and its power consumption depends on the server state: a busy server consumes more power than an idle server, and an idle server consumes more power than a turned-off server. When a server is turned on, it completes a costly set-up process that lasts a while. We jointly control the finished goods inventory and the server's energy consumption. The objective is to minimize the long-run average inventory holding, backorder, and energy consumption costs by deciding when to produce, when to idle or turn off the server, and when to turn on a turned-off server. Because the exact analysis of the problem is challenging, we consider the asymptotic regime in which the server is in the conventional heavy-traffic regime. We formulate a Brownian control problem (BCP) with impulse and singular controls. In the BCP, the impulse control appears due to server shutdowns, and the singular control appears due to server idling. Depending on the system parameters, the optimal BCP solution is either a control-band or barrier policy. We propose a simple heuristic control policy from the optimal BCP solution that can easily be implemented in the original (non-asymptotic) system. Furthermore, we prove the asymptotic optimality of the proposed control policy in a Markovian setting. Finally, we show that our proposed policy performs close to optimal in numerical experiments. © 2024
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    Bounded rationality in clearing service systems
    (Elsevier, 2020) Department of Industrial Engineering; Canbolat, Pelin Gülşah; Faculty Member; Department of Industrial Engineering; College of Engineering; 108242
    This paper considers a clearing service system where customers arrive according to a Poisson process, and decide to join the system or to balk in a boundedly rational manner. It assumes that all customers in the system are served at once when the server is available and times between consecutive services are independently and identically distributed random variables. Using logistic quantal-response functions to model bounded rationality, it first characterizes customer utility and system revenue for fixed price and degree of rationality, then solves the pricing problem of a revenue-maximizing system administrator. The analysis of the resulting expressions as functions of the degree of rationality yields several insights including: (i) for an individual customer, it is best to be perfectly rational if the price is fixed; however, when customers have the same degree of rationality and the administrator prices the service accordingly, a finite nonzero degree of rationality uniquely maximizes customer utility, (ii) system revenue grows arbitrarily large as customers tend to being irrational, (iii) social welfare is maximized when customers are perfectly rational, (iv) in all cases, at least 78% of social welfare goes to the administrator. The paper also considers a model where customers are heterogeneous with respect to their degree of rationality, explores the effect of changes in distributional parameters of the degree of rationality for fixed service price, provides a characterization for the revenue-maximizing price, and discusses the analytical difficulties arising from heterogeneity in the degree of bounded rationality. (C) 2019 Elsevier B.V. All rights reserved.