Hui Zhao

Color portrait of Hui Zhao

Professor of Supply Chain Management, Center for Supply Chain Research

Department Center for Supply Chain Research
Office Address 419 Business Building
Phone Number 814-863-1940
Email Address huz10@psu.edu

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Professor Zhao’s research applies analytics to the healthcare systems with particular interests in pharmaceutical supply chains, public policy, and innovative design of healthcare systems (such as telehealth, online platforms, and using new technology such as machine learning to address healthcare problems). Most of her work looks at the incentive misalignment in the healthcare value chain, seeking solutions to resolve such problems. She works on high-impact problems such as the US drug shortages, high drug pricing, illicit online pharmacy, using telehealth to help sexual assaulted victims, accelerated drug approval. She is keenly interested in applying new technology in study these problems to overcome data challenges in the industry. Her work has been published in the top journals in her field and has received multiple awards including a finalist for the prestigious Pierskalla award by INFORMS in 2015, the runner-up for the Ralph Gomory Best Industry Studies Paper Award by the Industry Studies Association (ISA) in 2018, winner of the SCOR innovation award from Smeal/Penn State in 2018, and finalist for the Industry Studies Dissertation award for her PhD student in 2020. In addition to academic contributions, her work also seeks to help government agencies and industry to make informed decisions. She has been invited by FDA on expert panel for drug shortages and has gone to the Department of Health and Human Services multiple times to make presentations. Zhao is also actively involved with industry consortiums such as Xavier Health’s Artificial Intelligence Applications in Healthcare Initiative.

Expertise

Healthcare Analytics
Pharmaceutical Supply Chain
Health Public Policy
Innovative Design of Healthcare Systems
Incentives and Contracts

Education

Ph D, Industrial Engineering, Purdue University, 2003

MS, Industrial Engineering, Purdue University, 2002

CERT, Applied Management Principles (Mini-MBA), Purdue University, 2001

MS, Mechanical & Manufacturing Engineering, Tianjin University, 1997

BE, Mechanical & Manufacturing Engineering, Tianjin University, 1994

BS, Industrial Economics and Systems Engineering, Tianjin University, 1994

Courses Taught

SCIS 501 – Business Analytics (3)
SCIS 501 develops students¿ understanding of and ability to apply a variety of business analytic tools and techniques to describe data, make predictions, and prescribe optimal solutions. Students will explore some of the following topics: Data Visualization, Exploring Data with R, Regression simple and multiple, Logistic regression, Classification trees, Machine learning for regression (data adaptive), Deterministic optimization (linear, integer, nonlinear), Monte Carlo Simulation, Decision Analysis. These topics enable students to address issues in descriptive, predictive, and prescriptive business analytics. Students will learn how to bridge descriptive, predictive, prescriptive analytics across a variety of business scenarios. Software packages, concepts, and business applications will vary and evolve to keep pace with technology, theory, and instructor interest. This course is focused more on the methodological aspects of business analytics.

SCIS 596 – Individual Studies (Variable)
Creative projects, including nonthesis research, that are supervised on an individual basis and which fall outside the scope of formal courses. A specific title may be used in each instance and will be entered on the student's transcript.

SCM 421 – Sc Analytics (3)
Models and Methodologies for supply chain analysis. SCM 421 Supply Chain Analytics (3) This course provides a spreadsheet-based, example-driven approach to learn about important supply chain models, problems, and solution methodologies. The objectives of this course are: (1) to develop valuable modeling skills that students can appreciate and use effectively in their careers (2) reinforce and enrich your understanding of supply chain theories, principles, and concepts studied previously in foundation courses. Student evaluation is based on: (1) individual and team group performance on problem-based exercises (2) individual performance on examinations (3) class participation.

SCM 494H – Research Project (Variable)
Supervised student activities on research projects identified on an individual or small-group basis.

BA 597 – Special Topics (2)
Formal courses given on a topical or special interest subject which may be offered infrequently.

SCM 596 – Individual Studies (Variable)
Creative projects, including nonthesis research, that are supervised on an individual basis and which fall outside the scope of formal courses.

SCIS 597 – Special Topics (3)
Formal courses given on a topical or special interest subject which may be offered infrequently; several different topics may be taught in one year or semester.

SC&IS 596 – Individual Studies (7)
Creative projects, including nonthesis research, that are supervised on an individual basis and which fall outside the scope of formal courses. A specific title may be used in each instance and will be entered on the student's transcript.

Selected Publications

Zhao H., "Pharmaceutical Supply Chain and Drug Shortages." 2023
Xu L., Mani V., Zhao H., "Not a Box of Nuts and Bolts: Distribution Channel Choice for Specialty Drugs.." Production and Operations Management, 2023
Xu L., Li H., Zhao H., "Outcome-Based Drug Reimbursement: The Solution to High Drug Spending?." Manufacturing & Service Operations Management, vol. 24, no. 4, 2022
Zhu X., Ninh A., Zhao H., Liu Z., "Demand Forecasting With Supply Chain Information and Machine Learning: Evidence in the Pharmaceutical Industry." Production and Operations Management, vol. 30, no. 9, 2021, pp. 3231-3252
First published: 29 March 2021 ​​​​
Zhao H., Xu L., Siemsen E., "Inventory Sharing and Demand-Side Underweighting." Manufacturing & Service Operations Management, vol. 23, no. 5, 2021, pp. 1217-1236
Xu L., Zhao H., Petruzzi N., "Inducing Compliance with Post-market Study for Drugs under FDA’s Accelerated Approval Pathway." Manufacturing & Service Operations Management, vol. 23, no. 1, 2021, pp. 170-190
Zhao H., Muthupandi S., Kumara S., "Managing Illicit Online Pharmacies Through Web Analytics and Predictive Models." Journal of Medical Internet Research, vol. 22, no. 8, 2020
[The methodology developed in this paper was granted a U.S. patent No. 10,672,048. This journal (JMIR) is ranked #1 in Health informatics by Google scholar.]
Jia Z., Zhao H., "Reflection on “Mitigating the U.S. Drug Shortages through Pareto-Improving Contracts”." Production and Operations Management, vol. 28, no. 11, 2019, pp. 2716-2718
Thomas D., Zhao H., "From Stuffing to Streamlining: Pharmaceutical Distribution." 2019
Cho S., Zhao H., "Healthcare Supply Chains." Handbook of Healthcare Analytics: Theoretical Minimum for Conducting 21st Century Research on Healthcare Operations. Edited by S. Tayur and T. Dai., 2018
Jia Z., Zhao H., "Mitigating The US Drug Shortage: Contract Design and Operational Strategies." Production and Operations Management, vol. 26, no. 8, 2017, pp. 1463-1480
[-This paper was a Runner up (second-place) for the Ralph Gomory Best Industry Studies Paper Award, awarded by Industry Studies Association (ISA), 2017.
-This paper was a Finalist for the Pierskalla Award 2015, the prestigious healthcare research award by INFORMS.]
Zhao H., "Supply Chain Optimization in Healthcare." Advances and Trends in Optimization with Engineering Applications, (SIAM), 2016
Yan X., Zhao H., "Inventory Collaboration and Coordination among n-Independent Retailers with Asymmetry Demand Information." European Journal of Operations Research, vol. 243, no. 2, 2015, pp. 576-587
Yan X., Zhao H., Tang K., "Requirement or Promise? Quality-Based Supplier Selection with Quality Improvement." Production and Operations Management, vol. 24, no. 6, 2015, pp. 917-933
Zeng B., Zhao H., Lawley M., "The Impact of Overbooking on Primary Care Patient No-show." IIE Transaction on Healthcare Systems Engineering, vol. 3, no. 3, 2013, pp. 147-170
[This paper was selected as a featured article for Industrial Engineers Magazine in Oct. 2013.]
Zhao H., Xiong C., Gavirneni S., Fein A., "Fee-for-Service Contracts in Pharmaceutical Distribution Supply Chains: Design, Analysis, and Management." Manufacturing and Service Operations Management, vol. 14, no. 4, 2012, pp. 685-699
Schwarz L., Zhao H., "The Unexpected Impact of Information-Sharing on US Pharmaceutical Supply-Chains." Interfaces, vol. 41, 2011, pp. 354-364
Yan X., Zhao H., "Decentralized Inventory Sharing with Asymmetric Information." Operations Research, vol. 59, no. 6, 2011, pp. 1528-1538
Zhao H., Arnab B., "Optimal Operating Policies in A Commodity Trading Market with the Manufacturer’s Presence." Naval Research Logistics, vol. 57, no. 2, 2010, pp. 127-148
Zhao H., Ryan J. K., Deshpande V., "Optimal Dynamic Production and Inventory Transshipment Policies for Multi-Location Make-to-Stock Systems." Operations Research, vol. 56, no. 2, 2008, pp. 400-410
Zhao H., Deshpande V., Ryan J. K., "An Analysis of Emergency Transshipment in Decentralized Dealer Networks." Naval Research Logistics, vol. 53, 2006, pp. 547-567
Zhao H., Deshpande V., Ryan J. K., "Inventory Sharing and Rationing in Decentralized Dealer Networks." Management Science, vol. 51, no. 4, 2005, pp. 531-547
Zhao H., "Simulation and Analysis of Dealer Returns Distribution Strategy." Proceedings of the Winter Simulation Conference 2001, vol. 2, 2001, pp. 1109-1116

Research Impact and Media Mentions

"Invited by the FDA to present in the Third Online Opioid Summit 2021 (invited attendance only) and participate in the discussion of innovative solutions to combat illicit online pharmacies an", www.fda.gov/drugs/news-events-human-drugs/online-opioid-summits
"Invited by INFORMS Communications and Outreach for an expert interview on supply chain issues for prescription drugs."
"Participated, as a co-investigator (Evaluation and Research) for the Penn State Sexual Assault Forensic Examination Telehealth Center (SAFE-T Center), in its State Advisory Meeting for a disc"
"Invited for a 25-min Podcast on “Drug shortages, pandemic, and their impact on the US healthcare system” with FreightWaves (the #1-traffic supply chain and logistics news site).", www.freightwaves.com/news/drug-shortages-still-plague-health-care-supply-chain-medically-necessary
"Invited to speak on “Coping with illicit online pharmacies through analytics” at the Alliance for Safe Online Pharmacies Global Annual All-hands Strategy Meeting (US, EU, Canada). Other speak"
"Presented research on Medicare drug reimbursement policy and its linkage to drug shortages to the FDA staff through a zoom platform"
"Invited as an expert interviewee by MITRE for the U.S. Department of Health and Human Services (HHS) Office of the Assistant Secretary for Preparedness and Response (ASPR)'s research project "
"Served, from August 2017 to August 2018, as a co-lead on the pharmaceutical industry sub-team for the Artificial Intelligence in Healthcare Initiative, a joint effort by Xavier health and the"
"Invited by the FDA as one of the 4 expert panelists for a listening session organized by the FDA Drug Shortages Taskforce in Washington DC. The other three panelists are from MIT economics, D"
"Invited to present research on Inducing Compliance with Post-market Study for Drugs under the FDA’s Accelerated Approval Pathway to the FDA staff in Washington DC"
"Started and organized the Pharmaceutical Research Focus Group with the Center for Supply Chain Research Sponsors in 2016 and 2017. The focus group attracted top pharmaceutical industry player"
"Invited to present research on mitigating the US Drug Shortages to FDA/HHS (the US Department of Health and Human Services) in July 2014 in Washington DC. Immediately following this, FDA pres", The US Department of Health and Human Services
"Paper 'The Impact of Overbooking on Primary Care Patient No-show' (Zeng, et al. 2013) was selected as a featured article for Industrial Engineers Magazine in Oct. 2013 which was sent to all I"
"Paper "Fee-for-Service Contracts in Pharmaceutical Distribution Supply Chains: Design, Analysis, and Management" was circulated in the pharma industry and used by top pharma consultants in de"

Editorships

Manufacturing and Service Operations Management, Associate Editor, January 2021 - Present
Production and Operations Management, Associate Editor, April 2020 - Present
Naval Research Logistics, Associate Editor, July 2019 - Present
Decision Sciences Journal, Associate Editor, January 2018 - Present