Logistics Systems Planning and Design (IE 430)

2023 Fall
Faculty of Engineering and Natural Sciences
Industrial Engineering(IE)
─░hsan Sadati msadati@sabanciuniv.edu,
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Formal lecture,Interactive lecture
Interactive,Communicative,Discussion based learning,Project based learning
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Planning and analysis of logistics systems; data collection methods; facility location/allocation; comparative analysis of different transportation modes and intermodal transportation; fleet planning and vehicle allocation; vehicle routing; other issues such as third party logistics; reverse logistics; vendor managed inventory; collaborative planning, forecasting, and replenishment; e-business and its impact on logistics.


The objective of the course is to give the students a solid understanding of the analytical modeling and solution approaches in logistics planning problems and design issues in logistics systems. We will use mathematical programming approaches to model and solve the planning and control problems arising in transportation and distribution logistics, including (but not limited to) single and multiple facility location/allocation problems, logistics networks design for long-haul freight transportation, transportation modes and multi-modal transport, and vehicle routing and scheduling. We will develop and employ both exact and approximate methods to solve optimization problems and implement computerized applications. Proficiency in operations research and capability of using an optimization solver (preferably Gurobi) and coding with a computer programming language (Python or C++) are required.


  • (1) identify and state the basic principles and concepts of logistics systems design;
  • (2) model location problems and solve them using optimization software and tools;
  • (3) develop her/his own algorithms to efficiently solve location problems;
  • (4) model long-haul freight transportation problems and solve them using optimization software and tools;
  • (5) develop her/his own algorithms to efficiently solve long-haul freight transportation problems;
  • (6) model short-haul freight transportation problems and solve them using optimization software and tools;
  • (7) develop her/his own algorithms to efficiently solve short-haul freight transportation problems;
  • (8) conduct challenging technical projects that involve modeling and algorithmic solution approaches;
  • (9) work in a team in managing challenging logistics systems design projects.


1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 1

2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 1

3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 3

4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 4

5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 5

1. Possess sufficient knowledge of mathematics, science and program-specific engineering topics; use theoretical and applied knowledge of these areas in complex engineering problems. 4

2. Identify, define, formulate and solve complex engineering problems; choose and apply suitable analysis and modeling methods for this purpose. 5

3. Develop, choose and use modern techniques and tools that are needed for analysis and solution of complex problems faced in engineering applications; possess knowledge of standards used in engineering applications; use information technologies effectively. 5

4. Have the ability to design a complex system, process, instrument or a product under realistic constraints and conditions, with the goal of fulfilling specified needs; apply modern design techniques for this purpose. 3

5. Design and conduct experiments, collect data, analyze and interpret the results to investigate complex engineering problems or program-specific research areas. 3

6. Possess knowledge of business practices such as project management, risk management and change management; awareness on innovation; knowledge of sustainable development. 3

7. Possess knowledge of impact of engineering solutions in a global, economic, environmental, health and societal context; knowledge of contemporary issues; awareness on legal outcomes of engineering solutions; knowledge of behavior according to ethical principles, understanding of professional and ethical responsibility. 3

8. Have the ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions. 3

1. Applying fundamental and advanced knowledge of natural sciences as well as engineering principles to develop and design new materials and establish the relation between internal structure and physical properties using experimental, computational and theoretical tools. 1

2. Merging the existing knowledge on physical properties, design limits and fabrication methods in materials selection for a particular application or to resolve material performance related problems. 1

3. Predicting and understanding the behavior of a material under use in a specific environment knowing the internal structure or vice versa. 1

1. Formulate and analyze problems in complex manufacturing and service systems by comprehending and applying the basic tools of industrial engineering such as modeling and optimization, stochastics, statistics. 5

2. Design and develop appropriate analytical solution strategies for problems in integrated production and service systems involving human capital, materials, information, equipment, and energy. 5

3. Implement solution strategies on a computer platform for decision-support purposes by employing effective computational and experimental tools. 5


  Percentage (%)
Final 40
Midterm 25
Assignment 15
Participation 5
Group Project 15



Introduction to Logistics Systems Management. G. Ghiani, G. Laporte and R. Musmanno. John Wiley & Sons, 2013. (eBook available online at the Information Center)


Introduction to Logistics Systems Planning and Control. G. Ghiani, G. Laporte and R. Musmanno. John Wiley & Sons, 2004. [TS161 .G45 2004]

Facilities Design, 3rd edition. S. Heragu. CRC Press, 2008. [TS177 .H47 2008]

Supply Chain Engineering. M. Goetschalckx. Springer, 2011. [HD38.5 .G586 2011 ] (eBook available online)