10/24/24 | 4:15pm | E51-149
Liron Yedidsion
Principal Research Scientist
Amazon
Abstract: Capacity planning deals with planning, hiring and training Amazon associates to match demand for a given horizon. While the plan is finalized weeks in advance, the volume is realized hours before operation day. We extend the Newsvendor (NV) model to calculate the target volume for each station that would minimize the cost expectancy under stochastic demand. The model considers the costs and capacities of each overage and underage scenario, In most cases, expected overage costs are higher than the expected underage costs, and thus the optimal target volume is usually smaller than the 50th percentile (P50). Using a segmented newsvendor logic, more volume is allocated to flexible means of delivery even though they are costlier per package. The plan accounts for in-station and on-the-road capacity throughout the supply chain (first mile, middle mile, and last mile), as well as week over week volume fluctuations.
Bio: Liron Yedidsion is a principal research scientist at Amazon Logistics, conducting applied science on supply chains at the earth leading company in this field. His research lies in optimization and design of last mile operations; Re-imagining how doorstep deliveries should be done. He did his PhD at Ben-Gurion University of the Negev, Israel, and his Post Doc at MIT – Massachusetts Institute of Technology. He was a faculty member at the Technion – Israel Institute of Technology for 10 years. In 2016 Liron won the ORSIS prize in memory of Prof. Uriel Rothblum for best research. Liron is a Kreitman Fellow and a Fulbright Fellow. Liron was acknowledged numerous times as an outstanding lecture and won the very prestigious Yanai prize for excellence in teaching. He acted as a visiting professor at MIT, teaching at MIT LGO, the engineering MBA dual degree program for four consecutive summers. Liron was a member of the Israeli IE&M conference and acted as the chair of the 19th Israeli Industrial Engineering and Management Conference and the Operation Research Conference for research students in memory of Prof. Uriel Rothblum. Liron taught courses in Logistics and Supply Chain Management, Production and Service Operation, Operations Management and Algorithms in Scheduling.