Business Track

The conference includes a dedicated stream with speakers from practice. In these sessions, industry experts present OR & Analytics case studies and success stories. The talks should be no marketing or product shows, nor do they need to focus on the scientific background, but they should mainly discuss business cases for OR & Analytics. The main purpose is to demonstrate the value of OR, its impact and its usefulness in general. Presentations may but need not be technical and should be accessible to participants from other industries. The presentations may serve as showcases for the classroom. Talks are focused and should last no longer than 20-25 minutes incl. discussion. We invite industry experts to contribute to this stream of presentations, which will take place on Wednesday (Aug. 31) in Hörsaal 5.

Schedule of Presentations

Wednesday (Aug 31), 11:00-12:40 - Hörsaal 5, Chair: Marco Lübbecke

Thomas Schmall, Daimler AG
E2E NetSim: Daimler Trucks’ Approach Using OPTANO to Manage the Global Powertrain Network
This talk presents the recent challenge of managing Daimler Trucks’ global powertrain network at the tactical level. The goal of the project is to shift from local factory planning to centralized network planning. Challenges include data integration of master data and live data from different mainframe data sources, particularly SAP. A linear network model with hierarchical optimization is chosen to match the management target picture. It is integrated in a user friendly planning software and is able to cover operational details such as weekly time periods, inventory and transit times.

Bianca Springub, Aurubis AG
End-to-end value-based supply chain optimization at Aurubis
Aurubis is one of the leading copper producers and the world’s largest copper recycler. Our core business is the production of marketable copper cathodes from copper concentrates, copper scrap and recycling raw materials. In order to manage the associated supply chain complexity, Aurubis decided to introduce an end-to-end value-based optimization tool that supports purchasing and production planning decisions. We give an overview how Aurubis modeled its supply chain incorporating technical restrictions, market restrictions and all relevant financial terms. We will highlight the key success factors that ensured a successful implementation in Aurubis’ supply chain organization.

Werner Heid, PTV Planung Transport Verkehr AG
Detecting location routing problems in geomarketing, sales force optimisation and task planning; specific challenges of real-life instances
When companies attempt to optimise their sales force and task planning many decisions have to be taken and related operations must be carried out. Wrong decisions generally result in high costs and competitive disadvantages. High quality solutions allow the sales representatives to spend less time on the roads and more time with the customers. Professional applications for supporting decision-making in practice need to meet a wide range of different requirements: - Sales and delivery areas must be optimised. Desired results are characterised by geographically compact areas that are equally balanced regarding e.g. turnover potential or workload. - Solutions have to provide daily and weekly visit schedules for the planning period and exact visit sequences taking into account all relevant restrictions and customer specifications. - Alternative scenarios must be assessable in cases of business expansion and consolidation. - All results are based on reliable travel time and distance calculations My presentation examines the specific location routing aspects in this target system. The range of related problems comprises different types and characteristics of location routing problems, e.g. periodic problems or multiple objectives. Successful algorithmic approaches have to cope with these conditions. The talk provides an evaluation of our applied methods based on their typical behavior, observed strengths and weaknesses in day-to-day business.

Sven Spieckermann, SimPlan AG
State-of-the-art in industrial application of discrete-event simulation
Discrete-event simulation is an operations research method, which is widely accepted in industrial practice with a variety of applications. The presentation gives an overview of the state of simulation applications in production and logistics and considers the extent of the simulated systems (entire factory sites, supply chain) as well as different sectors (automotive, chemical industry, intralogistics, shipbuilding). The importance of different simulation tools and current trends in the tool development will be discussed. We will also describe the interplay of simulation and optimization in practical applications. Finally, the presentation illustrates the importance of the provision of a broad theoretical foundation with basics in computer science, operations research and statistics for the professional use of simulation in practice.

Wednesday (Aug 31), 13:30-15:10 - Hörsaal 5, Chair: Sven Crone

Malte Tichy, Blue Yonder GmbH
Price Optimization: From prediction to decision with Gurobi
In prescriptive analytics, optimization is a key part to turn predictions into decisions. At Blue Yonder, we are using Gurobi to deliver a large number of daily pricing decisions to our customers based on our price elasticity and demand models. In this talk, we will discuss the variety of high dimensional optimization problems that emerge in price optimization and give examples on how they can be solved using Gurobi. Furthermore we will address the question of balancing precision against computation time. This is a significant part of the optimization problem for us, as our problems are large and pricing decisions need to be done almost in real time.

Julien Darlay and Frédéric Gardi, LocalSolver
Extension of Bouygues Telecom’s ADSL network
Bouygues Telecom is a leading Internet service provider in France. His broadband clients are connected by optical fiber or via an ADSL service by the telephone line. This line has one end at the subscriber and one end in a subscribers connecting nodes (NRAs). The customer is then connected either to Bouygues Telecom’s equipment or a third party’s equipment. In the first case, Bouygues Telecom must invest to install its equipment in the NRA and connect it to the core network, while in the second case he has to pay lease to the third party. Bouygues Telecom wants to expand his network by choosing NRAs to unbundle, in order to maximize his income under different constraints and economic assumptions.
In this presentation, we will study the problem modeled as prize collecting Steiner forest problem with additional constraints. These constraints may affect the local structure of the solution, for example by limiting the maximum degree of some nodes. They can also affect the global structure of the solution, for example by eliminating paths with too much clients to limit the impact of an incident. This resulting problem is NP-hard, while instances to solve in practice have a large scale: 15,000 nodes, 180,000 edges. Then, we present a heuristic solution approach based on LocalSolver.
The software was used by Bouygues Telecom to plan and optimize unbundling campaigns. Since our optimization software was delivered in July 2014, Bouygues Telecom has unbundled 500 new NRAs in addition to the 700 ones they already operated. This unbundling strategy allows Bouygues Telecom to offer low-cost ADSL to a much larger customer base, contributing to gain 500,000 new clients over the last year and then to reach a total number of 2.5 million ADSL clients.

Daniel Binkele-Raible, BEONTRA GmbH
Airport Resource Management using the 'BEONTRA Scenario Planning Suite'
Due to ongoing growth of traffic airports are constantly struggling to provide a sufficient service level for passengers. This primarily boils down to having an efficient strategy of sharing the given resources at an airport. Among these resources we find ’gates’, ’stands’, ’check-in desks’, ’baggage belts’, ’security lanes’, ’busses’, ’towing trucks’ and ’runways’. In this talk we will give a brief overview of how BEONTRA tackles these different resource-allocation-problems. We focus on two of those problems, the allocation of airplanes to gates and stands and the allocation of airlines to check-in desks. For both problems a short outline of a ’Column Generation Approach’ will be given.

Josef Feigl, Otto (GmbH & Co KG) Hamburg
A Collaborative Filtering Approach to Fit Prediction is one of the largest online retailer for fashion in Germany. The fashion segment suffers from high return rates, often caused by customers choosing an inappropriate size or by orders of the same product in different sizes. The decision process to find the correct size is often difficult and fuzzy. Typical instruments to help customers, like conversion tables, are often complicated or simply not very helpful. The Otto Group’s Business Intelligence unit developed a service based on collaborative filtering techniques to help customers in this difficult decision process to find their correct size. This talk will give a walkthrough on the modelling, evaluation and deployment process of this service.

Wednesday (Aug. 31), 15:30-16:15 - Hörsaal 5, Chair: Alf Kimms

GOR Company Award 2016: Deutsche Post DHL Group
Presentation by Dr. Christoph Hempsch:
How OR supports Deutsche Post DHL Group optimizing mail and parcel logistics


Business in Hamburg
Foto: / C. O. Bruch