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Reading Assignment: Pinedo and Chao Chapters 1 to 3 Problem Set 3: Bertsekas 5.5.1, 5.5.9, 6.1.3, 6.3.1, 6.3.3, and 6.3.5 Term Project Proposal due Friday October 12 in English What is the problem? Why is the problem important? Why is the problem urgent? Why is the problem difficult? What are the state-of-art and practice? Planed method of attack Expected results Three major references Mid term: The week of October 15. Date?;Last Lecture;Bundle methods: an ?-ascent algorithm If a d with f?(x; d) 0 can be found, then f(x) can be increased by at least ?. Otherwise, ?-optimal is reached Find d to maximize the ?-directional derivative f?(x; d) d* is a point within ??f(x) with the minimum norm Approximate the ??f(x) by a convex combination of ?-subgradients in a bundle accumulated over past iterations The bundle needs to be updated over the iterations Surrogate subgradient methods The surrogate dual function and subgradients are defined similar to standard dual function and subgradients without exact minimization of the relaxed problem Under simple conditions on approximate optimization and step sizing, a surrogate subgradient direction is always in an acute angle with the direction towards ?*, and the multipliers move closer to ?* step by step. ;Today: Operations Scheduling with Applications in Manufacturing and Services Basic Types of Manufacturing Systems Planning Production Managing capacity Managing demand Managing inventory Planning and scheduling Scheduling and Dispatching MRP with Local Dispatching and Computer Simulation Just-in-Time and Synchronous Manufacturing Next time: Optimization-based Scheduling. Pinedo and Chao Sections 2.4, 2.5, and Chapter 5 ;BASIC TYPES OF MANUFACTURING SYSTEMS ;Cellular layout: Arrange machines in small cells;PLANNING PRODUCTION ;Managing Demand. How? Make-to-order – Adjusting bids for orders (price and time) Make-to-stock, e.g., air conditioners – Buffer with inventory ;Modulating Capacity. How? Having over-time – Hi