Presenter Bio:

Dr. Muharremoglu obtained his BS (1997) in Industrial and Operations Engineering from the University of Michigan and his MS (2000) and PhD (2002) in Operations Research from MIT. After that, he spent 15 years in academia as a faculty member, first as an Assistant Professor at Columbia Business School and later as an Associate Professor at the University of Texas at Dallas’s Naveen Jindal School of Management. In 2017, Dr. Muharremoglu joined the Supply Chain Optimization Technologies group at Amazon, where he is a Senior Principal Scientist.

Abstract:

We develop a method to determine inventory policies in a network, under capacity constraints. A distinguishing feature of the problem is that fulfillment is not determined a priori, and different nodes in the network can satisfy demand in different regions depending on inventory availability, which is important to model in an online retailing environment. We develop a scalable algorithm using Lagrangian decomposition. The model has been launched at Amazon and has led to improvements in important metrics including profitability.