Papers for
supply chain optimization teams
Papers whose findings have a practical use for this group, as judged from the abstract. Open a paper to read what it means in practice.
Parallel tempering improves solution quality in graph optimization models
Parallel Tempering for Diffusion-Based Combinatorial Optimization
Abstract: Discrete diffusion models have emerged as a powerful paradigm for solving combinatorial optimization (CO) problems on graphs by learning to sample high-quality solutions. A common inference-time approach is to generate multiple candidate solutions independently and return the best-performing sample, improving solution quality at the expense of an increase in computational cost. In this work, we introduce PT-Denoise, an inference-time procedure that allows these concurrent denoising trajectories to interact through parallel tempering, without requiring retraining or fine-tuning of the underlying denoiser. Our method assigns a temperature to each diffusion process and allows processes to swap temperatures based on their relative performance. This dynamically reallocates promising, low-energy trajectories to colder, more concentrated sampling regimes while allowing higher-energy states to escape local minima through randomized exploration. Experiments on canonical graph-structured CO problems show that our approach consistently improves the quality of the best solution found, while only adding minimal computational overhead.
Pretrained offline reinforcement learning improves job shop scheduling results
PORL: Pretrained Offline Reinforcement Learning for the Job Shop Scheduling Problem
Abstract: The Job Shop Scheduling Problem (JSSP) is a fundamental combinatorial optimization problem in industrial optimization. This work introduces Pretrained Offline Reinforcement Learning (PORL), a hybrid approach that combines simulation-based online pretraining with offline fine-tuning on production-specific data. Reinforcement learning through online interaction enables exploration of general scheduling strategies, but typically relies on simulation environments and may suffer from a simulation-to-reality gap. In contrast, offline RL avoids direct interaction with the environment by learning from historical data, but its performance is strongly influenced by dataset quality and coverage. PORL combines the strengths of both paradigms by first learning a general scheduling policy through online interaction and subsequently adapting it offline to a target distribution. A KL-divergence-based policy constraint is introduced to limit deviations from the pretrained policy during fine-tuning. The approach is evaluated on JSSP instances with distribution shift and datasets generated from heuristic, noisy-expert, and random behavioral policies. The results show that PORL consistently achieves lower optimality gaps than standalone offline RL and the considered general scheduling baselines. Furthermore, its advantage over standalone offline RL increases as dataset quality decreases, indicating reduced sensitivity to the quality and coverage of the available offline data. The results suggest that offline adaptation of pretrained policies is a promising approach for industrial scheduling environments where direct online exploration is impractical.
Spare parts network design improved with graph neural network and optimization
Learning-Augmented Optimization for Strategic Two-Echelon Spare Parts Network Design
Abstract: We study the strategic design of a two-echelon spare-parts inventory network where evaluating each candidate topology requires an expensive inventory optimization model. The design partitions hundreds of sites into feasible clusters and selects a central replenishment site for each cluster to reduce costs while maintaining service levels. Because the optimizer favors candidates with high predicted savings, it can exploit optimistic surrogate errors. We develop a conservative framework combining a graph neural network ensemble, variable neighborhood search, and set-partitioning recombination. The surrogate is trained on exact cluster evaluations, while a lower quantile of ensemble-predicted savings guides the search to limit optimism. Clusters found during the search are recombined through set partitioning using surrogate-based objective coefficients. The resulting network is evaluated with the exact inventory model, and only this evaluation is used to report performance. In a case study of 246 fulfillment centers in Amazon's North American network, the framework improves combined savings by 30.5% over an optimization baseline based entirely on exact cluster evaluations, while maintaining approximately 99.8% service across six independent replications. Under equal computational budgets, graph-surrogate-guided search achieves higher mean exact savings than a tabular alternative under both scoring schemes. Conservative scoring improves mean savings for both surrogate classes and reduces the share of final-network clusters overestimated by the graph surrogate from 68% to 28%. Predictive and ranking accuracy deteriorate among search-generated candidates with high surrogate scores, indicating that random holdout performance can incompletely characterize surrogate quality during optimization.