University at Buffalo, The State University of New York
Rakesh Nagi
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Information Fusion

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Facility Layout (Re)Design

Agile Manufacturing

Real-Time Visualization

Sensor Networks

Facilities Design and Cellular Manufacturing

Operations of Production Systems

Variant Design


IE 684: Networks, Routing, and Logistics

IE 661: Scheduling Theory

IE 620: Agile Manufacturing

IE 505: Production Planning and Control

IE 504: Facilities Design

IE 500: Special Topics: Logistics and Supply-Chain Management

IE 327: Facilities Design

IE 320: Engineering Economy

Professional Activities

Teaching Interests

IE 320: Engineering Economy

Course Overview and Objectives
Course Topics
Basic Requirements
Required Work and Grading Policy
Lectures and Handouts
Assignments and Projects
Quizes and Solutions
Tentative Lecture/Assignment Schedule

Course Overview

Catalog Description
    An introduction to concepts of economic decision making including present worth analysis, cash flow equivalence, replacement analysis, equipment selection. Three lecture periods per week. This course is required of all Industrial Engineering students and is open to students in any discipline.

Course Overview
    This undergraduate level course is a comprehensive coverage of concepts in engineering economics. It presents mathematical techniques and practical advice for evaluating decisions in the design and operation of engineering systems. These procedures support both selection and justification of design alternatives, operating policies, and capital expenditure. The topics covered include time value of money, financial evaluation methods, depreciation and inflation, income taxes, project financing, replacement analysis, notions on capital budgeting and sensitivity, and risk analysis. At a more personal note, it will help you make financially prudent decisions in your day-to-day life. It will help you in your EIT / PE examinations in future.

Course Objectives
    Students completing this course will be able to understand:
•    the concepts of interest and time value of money; product/project costs and financial statements
•    how to evaluate engineering projects with economic decisions using present worth, annual worth and rate of return analyses
•    the impact of depreciation and taxation on project decisions
•    how to make financially prudent decisions in everyday life (car/home loans or investments).

Course Topics

1. Engineering Economic Decisions 1
2. Understanding Financial Statements 2
3. Cost Concepts and Behaviors 3
4. Time Value of Money and Money Management 4 & 5
5. Present and Annual Worth Analysis 7 & 8
6. Rate of Return Analysis 9
7. Depreciation 10
8. Income Taxes 11
9. Replacement Decisions 15
10. Inflation 13
11. Project Sensitivity and Risk Analysis 12 & 14


Dr. Rakesh Nagi, Associate Professor
Department of Industrial Engineering
State University of New York at Buffalo
342 Bell Hall Box 602050
Buffalo, NY 14260-2050
Telephone: (716) 645-2357
FAX: (716) 645-3302
Office Hours: M 1-2:30 p.m., W  1-2 p.m. (and by appointment)

Teaching Assistant:
Mr. Xiaofeng Nie
Office:    333 Bell Hall
Office hrs.:    Tu, Th  3:30 p.m. – 5:00 p.m. (and by appointment)

Basic Requirements
  • Algebra and Basic calculus
  • Notions of financial matters - banks, interest
  • General understanding of engineered objects
Required Work and Grading Policy

1.  Homework    -  (bi-)weekly assignments    20%
2.  Quizes/Class participation    -    5%
3.  Project (Group of 5)    -    10%
Option 1: Group study of a real-life engineering case is to be performed during the semester. A report will be due at the end of the semester defining the problem, establishing the data collected, and the engineering economic decisions made. Formal application of concept learnt must be demonstrated. Consider that you are making your recommendations to a management team.
Option 2: Group programming projects that are similar to EzCash are to be developed. End semester submission will include the software and a report that details the system architecture, users and reference guides.
4.  Exams    -  two midterms (20% each), comprehensive final (25%)    65%
(+/- Grading scheme will be in effect)


Course Text and Software
[1]   Park, Chan S., Contemporary Engineering Economics, 3rd Ed., Prentice Hall (2002).
[2]   EzCash, Park, Chan S., Download from
[3]   JavaScript codes on the web.

Lectures and Handouts
Assignments and Projects

IE 320 Homework Assignments (see schedule page for due dates)

IE 320 Project Information

Quizes and Solutions

Tentative Lecture/Assignment Schedule

Contact information: Phone: (716) 645-2427 • Fax: (716) 645-3302 • E-mail:

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