SAP Supply Chain Optimization

SAP, a global leader in Supply Chain Management Software, offers a wide range of cloud and on-premise solutions for supply chain planning, logistics, manufacturing, and more. For over 25 years, optimization algorithms have been a crucial component of SAP's supply chain solutions. However, applying these algorithms to real-world, large-scale supply chains presents significant challenges in terms of functionality and performance. To address this, SAP utilizes a variety of optimization algorithms, often in combination with (meta-)heuristics, to improve scalability and performance. In this talk, we will provide an overview of the algorithms used in different solution areas and present examples of the challenges faced in solving real-world planning problems for SAP customers. We will cover areas such as supply chain network planning, inventory optimization, production planning, scheduling, and vehicle routing in various SAP solutions. Additionally, we will discuss planned future innovations, including the transition from batch-oriented to online optimization, the application of quantum computing to optimization problems, and the use of Artificial Intelligence (AI) in supply chain management. Overall, this talk will offer insights into the current research focus areas and the exciting developments on the horizon for supply chain optimization.