JOURNAL ARTICLE

Optimizing Walmart's Supply Chain from Strategy to Execution.

  • Published In: INFORMS Journal on Applied Analytics, 2024, v. 54, n. 1. P. 5 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Mehrotra, Prakhar; Mingang Fu; Jing Huang; Mahabhashyam, Sai Rajesh; Minghui Liu; Ming (Arthur) Yang; Xiaojie Wang; Hendricks, Joseph; Moola, Ranjith; Morland, Daniel; Krozier, Kim; Tiantian Nie; Ou Sun; Adbesh, Fereydoun; Ti Zhang; Shrivastav, Monika; Jiefeng Xu; Rajan, Sudarshan; Turner, Michael; Tucker, Samuel 3 of 3

Abstract

The article focuses on Walmart's development and deployment of next-generation optimization capabilities to holistically enhance its U.S. grocery supply chain from strategic network design to operational execution. Walmart integrates three key components: long-term network planning and transformation models, a routing and loading system called Load Planner, and a simulation platform that connects strategic and executional decisions. These advanced optimization engines address complex challenges such as multi-temperature trailer loading, Department of Transportation Hours-of-Service compliance, and dynamic route adjustments, enabling significant cost savings ($91.5 million) and environmental benefits (preventing 98.6 million pounds of CO2 emissions) in fiscal year 2023. The solutions improve operational efficiency, associate experience, and customer service while supporting Walmart's Every-Day-Low-Price (EDLP) promise, and the underlying models and algorithms are adaptable to other supply chain contexts and industries.

Additional Information

  • Source:INFORMS Journal on Applied Analytics. 2024/01, Vol. 54, Issue 1, p5
  • Document Type:Article
  • Subject Area:History
  • Publication Date:2024
  • ISSN:2644-0865
  • DOI:10.1287/inte.2023.0093
  • Accession Number:175519324
  • Copyright Statement:Copyright of INFORMS Journal on Applied Analytics is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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