This course will provide students to learn the management and engineering characteristics of production systems, understand the microeconomics theory, and evaluate the performance using the frontier methodologies for productivity improvement. The models include data envelopment analysis (DEA), network DEA, directional distance function with undesirable outputs, marginal productivity, convex nonparametric least squares (CNLS), stochastic semi-nonparametric envelopment of data (StoNED), and Nash equilibrium identified by mixed complementarity problem, etc. The course integrates the knowledge domains of the management, engineering and economics, and solves the real problem systematically using statistics or optimization methods.