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This paper introduces a hybrid optimization framework combining high-speed GPU-accelerated simulations with integer programming to solve large-scale supply chain problems efficiently. By decoupling operational logic from global optimality constraints, the approach addresses computational intractability and builds executive trust through transparent, verifiable results. The method represents a significant advancement in applying advanced machine learning and operations research techniques to real-world logistics challenges.
SPORD: A Simulation-Propose-then-OR-Dispose Approach for Supply Chain Planning
arXiv:2607.21354v1 Announce Type: new Abstract: For years, supply chain planning at e-commerce firms has operated as a collection of isolated projects. Each planning task from static network planning to dynamic warehouse assortment planning requires analysts to spend weeks building models from scratch, calibrating and persuading executives to act on outputs they cannot verify. Three barriers drive this: bespoke models proliferate because standardization is difficult (operational fragmentation); once unified, the combinatorial scale of millions of SKUs, thousands of nodes, and intricate routing logic exceeds what solvers can handle within a tight window (computational intractability); and a mathematically optimal solution still fails to be implemented if the executives do not trust it (implementation hurdle). To bridge this gap, we propose and implement the Simulation-Propose-then-OR-Dispose method, deployed as JD.com's NetSim platform. The central insight is decoupling: simulation proposes by generating and evaluating the full set of operationally valid candidate paths-absorbing all idiosyncratic business logic, while an integer program disposes by selecting the globally optimal subset. Computationally, matrix-vectorized CPU/GPU accelerated simulation achieves a 10-100 times speedup over serial methods, and a list scheduling algorithm reduces coupled-order processing from hours to minutes. Operationally, we establish a closed loop via an intelligent diagnosis engine. Since 2025, NetSim has optimized end to-end services for over 20,000 suppliers, the cross-regional fulfillment rate dropped from 6.1% to 4.9%, and the average monthly carbon reduction is approximately 5,745 tCO2e. SPORD moves simulation from monitoring to active planning. The transparent outputs turn skeptical executives into engaged collaborators, and the modular architecture ensures that the next planning requires just configuration, not reconstruction.
Abstract:For years, supply chain planning at e-commerce firms has operated as a collection of isolated projects. Each planning task from static network planning to dynamic warehouse assortment planning requires analysts to spend weeks building models from scratch, calibrating and persuading executives to act on outputs they cannot verify. Three barriers drive this: bespoke models proliferate because standardization is difficult (operational fragmentation); once unified, the combinatorial scale of millions of SKUs, thousands of nodes, and intricate routing logic exceeds what solvers can handle within a tight window (computational intractability); and a mathematically optimal solution still fails to be implemented if the executives do not trust it (implementation hurdle). To bridge this gap, we propose and implement the Simulation-Propose-then-OR-Dispose method, deployed as this http URL's NetSim platform. The central insight is decoupling: simulation proposes by generating and evaluating the full set of operationally valid candidate paths-absorbing all idiosyncratic business logic, while an integer program disposes by selecting the globally optimal subset. Computationally, matrix-vectorized CPU/GPU accelerated simulation achieves a 10-100 times speedup over serial methods, and a list scheduling algorithm reduces coupled-order processing from hours to minutes. Operationally, we establish a closed loop via an intelligent diagnosis engine. Since 2025, NetSim has optimized end to-end services for over 20,000 suppliers, the cross-regional fulfillment rate dropped from 6.1% to 4.9%, and the average monthly carbon reduction is approximately 5,745 tCO2e. SPORD moves simulation from monitoring to active planning. The transparent outputs turn skeptical executives into engaged collaborators, and the modular architecture ensures that the next planning requires just configuration, not reconstruction.
Artificial Intelligence (cs.AI)
arXiv:2607.21354 [cs.AI]
(or arXiv:2607.21354v1 [cs.AI] for this version)
https://doi.org/10.48550/arXiv.2607.21354 Focus to learn more arXiv-issued DOI via DataCite (pending registration)
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