The Arkansas Academy of Industrial Engineering (AAIE) was established in the spring of 1986 thanks largely in part to Bob Emerson, then head of the Department of Industrial Engineering and Larry Stephens, then President of Mid South Engineering. Stephens then became the first president of the AAIE.

Fourteen students were selected as charter members of the Arkansas Academy of Industrial Engineering in 1986. These charter members established the Academy's objectives to recognize graduates of the departments for contributions to the field of industrial engineering, to display the credentials of the Academy in such a manner as to stimulate and motivate the student body, to provide advisory guidance and counsel at the call of the Department chairman, and to encourage the giving of gifts and grants for the benefit of the Department of Industrial Engineering.

The Academy's second president, Dr. Rick Malstrom, solidified the bond between the AAIE and the Industrial Engineering Department. Small scholarships were supported through contributions between $500 and $5,000. In 1992, AAIE member David Foust received a $50,000 contribution from the Bekaert Corporation. This generous gift became the seed money for the establishment of the AAIE Endowed Scholarship Fund. Today, that scholarship fund has achieved a balance of over $2.5 million providing numerous scholarships for the department's undergraduate and graduate students.