L. Jeff Hong (CV)

 

Professor of Industrial Engineering and Logistics Management

Associate Director, Logistics and Supply Chain Management Institute

Director, Financial Engineering Laboratory

The Hong Kong University of Science and Technology

 

Room 5543, Academic Building, HKUST

Clear Water Bay, Kowloon, Hong Kong

Phone: (852) 23587096

Email: HONGL at UST dot HK

 

Education

 

Ph.D. (2004), M.S. (2002), Industrial Engineering and Management Sciences, Northwestern University

M.S. (2001), Applied Mathematics, University of Cincinnati

B.E. (1999), Industrial Engineering, and B.E. (1999), Automotive Engineering, Tsinghua University, China

 

Publications

 

1.          Hu, Z., Cao, J., and L. J. Hong. Robust simulation of global warming policies under parameter uncertainty. Management Science, forthcoming.

2.          Chang, K.-H., L. J. Hong, and H. Wan. Stochastic trust-region response-surface method (STRONG) – A new response surface framework for simulation optimization. INFORMS Journal on Computing, forthcoming.

3.          Xu, J., B. L. Nelson, and L. J. Hong. An adaptive hyperbox algorithm for high-dimensional discrete optimization via simulation problems. INFORMS Journal on Computing, forthcoming.

4.          Zhang, J., L. J. Hong, and R. Q. Zhang. 2012. Fighting strategies in a market with counterfeits. Annals of Operations Research, 192:49-66.

5.          Hong, L. J., Y. Yang, and L Zhang. 2011. Sequential convex approximations to joint chance constrained programs: A Monte Carlo approach. Operations Research, 59:617-630.

6.          Liu, G. and L. J. Hong. 2011. Kernel estimation of the Greeks for options with discontinuous payoffs. Operations Research, 59:96-108.

7.          Hong, L. J., B. L. Nelson, and J. Xu. 2010. Speeding up COMPASS for high-dimensional discrete optimization via simulation. Operations Research Letters, 38:550-555.

8.          Sun, L. and L. J. Hong. 2010. Asymptotic representations for importance-sampling estimators of value-at-risk and conditional value-at-risk. Operations Research Letters, 38:246-251..

9.          Hong, L. J. and G. Liu. 2010. Pathwise estimation of probability sensitivities through terminating and steady-state simulations. Operations Research, 58:357-370.

10.      Xu, J., B. L. Nelson and L. J. Hong. 2010. Industrial Strength COMPASS: A comprehensive algorithm and software for optimization via simulation. ACM Transactions on Modeling and Computer Simulation, 20: 3/1-3/29. (Computer programs and user instructions of Industrial Strength COMPASS Algorithm can be freely downloaded from http://www.iscompass.net.)

11.      Fu, M. C., L. J. Hong and J. Q. Hu. 2009. Conditional Monte Carlo estimation of quantile sensitivities. Management Science, 55: 2019-2017.

12.      Liu, G. and L. J. Hong. 2009. Revisit of stochastic mesh method for pricing American options. Operations Research Letters, 37:411-414.

13.      Liu, G. and L. J. Hong. 2009. Kernel estimation of quantile sensitivities. Naval Research Logistics, 56: 511-525.

14.      Hong, L. J. and G. Liu. 2009. Simulating sensitivities of conditional value-at-risk. Management Science, 55: 281-293.

15.      Hong, L. J. 2009. Estimating quantile sensitivities. Operations Research, 57: 118-130.

16.      Hong, L. J. and B. L. Nelson. 2007. Selecting the best system when systems are revealed sequentially. IIE Transactions, 39:723-734.

17.      Hong, L. J. and B. L. Nelson. 2007. A framework of locally convergent random search algorithms for discrete optimization via simulation. ACM Transactions on Modeling and Computer Simulation, 17: 19/1-19/22.

18.      Hong, L. J. and B. L. Nelson. 2006. Discrete optimization via simulation using COMPASS. Operations Research, 54:115-129.

19.      Hong, L. J. 2006. Fully sequential indifference-zone selection procedures with variance-dependent sampling. Naval Research Logistics, 53:464-476.

20.      Pichitlamken, J., B. L. Nelson and L. J. Hong. 2006. A sequential procedure for neighborhood selection-of-the-best in optimization via simulation. European Journal of Operational Research, 173:283-298.

21.      Hong, L. J. and B. L. Nelson. 2005. The tradeoff between sampling and switching: New sequential procedures for indifference-zone selection.  IIE Transactions, 37:623-634.

22.      Hong, L. J., B. C. Shultes, and S. Anand. 2001. Robust evaluation of flatness and straightness tolerance using simulated annealing. Transactions of NAMRI/SME, 29:553-560.

 

Conference Papers

 

1.          Hong, L. J. and G. Liu. Monte Carlo estimation of value-at-risk, conditional value-at-risk and their sensitivities. Proceedings of the 2011 Winter Simulation Conference, forthcoming. (invited advanced tutorial talk)

2.          Luo, J. and L. J. Hong. Large-scale ranking and selection using cloud computing. Proceedings of the 2011 Winter Simulation Conference, forthcoming.

3.          Sun, L., L. J. Hong and Z. Hu. Optimization via simulation using Gaussian process-based search. Proceedings of the 2011 Winter Simulation Conference, forthcoming.

4.          Hu, Z., J. Cao, and L. J. Hong. Robust simulation of environmental. Proceedings of the 2010 Winter Simulation Conference, pp.1295-1305.

5.          Hong, L. J. and B. L. Nelson. A brief introduction to optimization via simulation. Proceedings of the 2009 Winter Simulation Conference, pp.75-85. (invited introductory tutorial talk).

6.          Hong, L. J. and S. Juneja. Estimating expectations of nonlinear functions. Proceedings of the 2009 Winter Simulation Conference, pp. 1223-1236.

7.          Sun, L. and L. J. Hong. The asymptotic expansions of value-at-risk and conditional value-at-risk. Proceedings of the 2009 Winter Simulation Conference, pp.415-422.

8.          Liu, G. and L. J. Hong. Revisit of stochastic mesh method for pricing American options. Proceedings of the 2008 Winter Simulation Conference, pp.594-601.

9.          Liu, G. and L. J. Hong. Kernel estimation of quantile sensitivity. Proceedings of the 2007 Winter Simulation Conference, pp. 941-948.

10.      Chen, N. and L. J. Hong. Monte-Carlo method in financial engineering. Proceedings of the 2007 Winter Simulation Conference, pp. 919-931. (invited advanced tutorial talk)

11.      Chang, K. H., L. J. Hong and H. Wan. Stochastic trust region gradient-free method: A new response-surface-based algorithm for simulation optimization. Proceedings of the 2007 Winter Simulation Conference, pp. 346-354.

12.      Hong, L. J. Discrete optimization via simulation using coordinate search. Proceedings of the 2005 Winter Simulation Conference, pp. 803-810.

13.      Hong, L. J. and B. L. Nelson. An indifference-zone selection procedure with minimum switching and sequential sampling. Proceedings of the 2003 Winter Simulation Conference, pp. 474-480.

 

Awards and Honors

 

Siyuan Chair Professorship, Nanjing University, 2010-2013

Visiting Senior Financial Economist, Shanghai Stock Exchange, 2010

IIE Transactions Best Paper Award – Operations Engineering, 2009

Meritorious Service Award, Operations Research, 2008

The School of Engineering Distinguished Teaching Award, HKUST, 2008

INFORMS Junior Faculty Interest Group (JFIG) Paper Competition, Second Prize, 2007

 

Editorial Services

 

Associate Editor (2008-present), Operations Research

Associate Editor (2007-present), ACM Transactions on Modeling and Computer Simulation

Associate Editor (2006-present), Naval Research Logistics

Guest Editor, Special issue on Service Science, Annals of Operations Research, Published on 2012

 

Ongoing Research Grants

 

1.           “Discrete optimization via simulation using stochastic kriging based random search algorithms” (PI), Hong Kong Research Grant Council, General Research Fund, Project No. 613011, 2012-2015.

2.          “Combing simulation and optimization with applications in financial risk management” (Hong Kong PI; China PI: Jian-Qiang Hu, China Co-I: Xiaoling Sun and Shushang Zhu). Joint NSFC/RGC (Natural Science Foundation of China / Hong Kong Research Grant Council) Grant, Project No. N_HKUST626/10, 2011-2014.

3.          “Exploring the linkage between smoothed perturbation analysis and the kernel method in pathwise sensitivity estimation with applications in credit risk management” (PI, CI: Michael C. Fu and Jian-Qiang Hu), Hong Kong Research Grant Council, General Research Fund, Project No. 613410, 2010-2013.

4.          “The impacts of environmental policies on global supply chains” (PI, CI: Jing Cao, Chung-Yee Lee, Qing Li, Hoi-yin Mak), HKUST Research Project Competition, Project No. RPC10EG11, 2010-2012.

 

Courses Taught

 

At HKUST

 

IELM313 System Simulation

IELM320 Facilities Layout and Material Handling

IELM610A Design and Analysis of Simulation Experiments

EEMT512 Operations/Production Management

EEMT516 Transportation and Logistics Management

EEMT550 Engineering Statistics and Simulation

 

At Northwestern University

 

IEMS 315 Stochastic Models and Simulation

 

Postgraduate Students

 

Guangwu Liu, Ph.D., June 2009

Thesis: Sensitivity Analysis for Expectations of Discontinuous Functions.

Currently an assistant professor at Department of Management Science at City University of Hong Kong

 

Lihua Sun, Ph.D., August 2010, co-supervised by Prof. Ning Cai

Thesis: Essays on Monte Carlo Simulation and Financial Engineering.

Currently an assistant professor at Department of Economics and Finance at Tongji University, China

 

Zhaolin Hu, Ph.D., August 2011

Thesis: Nonconvex Stochastic Optimization and Its Applications in Environmental Economics and Risk Management.

Currently an assistant professor at Department of Management Science and Engineering at Tongji University, China

 

Yi Yang, M.Phil., August 2008

Richard Wong, M.Phil., August 2010

 

Jun Luo, Ph.D. student, started 2009, co-supervised by Prof. Jiheng Zhang

Jin Fang, Ph.D. student, started 2010, co-supervised by Prof. Jiheng Zhang

Weiwei Fan, Ph.D. student, started 2011

Tao Yang, M.Phil. student, started 2010

Yang Wu, M.Phil. student, started 2012