Supply Chain Optimization Engine Earns Operations Research Award

The Taotian Group self‑operated business unit’s algorithm team, in partnership with Zhejiang University’s School of Management, developed the "E‑commerce Supply Chain Operation Optimization Decision Support System" and was nominated for the China Operations Research Society’s prestigious Operations Application Award.

The project tackled classic supply‑chain questions—warehouse location, inventory placement, stock levels, inter‑warehouse transfers, and consumer‑experience‑driven decisions—formulating them as NP‑hard problems with uncertainty. By applying deep learning, distributionally robust optimization, and game‑theoretic methods, the team reduced the problem to three core areas: multi‑scenario sales forecasting, dynamic network planning, and multi‑level inventory optimization.

After two years of collaboration, the team delivered the Taotian Inventory Optimization Engine (IOS), integrated into the ICP system. IOS provides real‑time, cost‑optimal warehouse and inventory plans, automating decision‑making, lowering costs, improving efficiency, and enhancing consumer experience.