NVIDIA’s AI Agent Revolutionizes Supply Chain Optimization

On Jul 17, 2024

Zach Anderson
Jul 17, 2024 03:05

NVIDIA introduces an AI agent using cuOpt and NIM to tackle supply chain optimization challenges, enhancing decision-making and efficiency.

Enterprises face significant challenges in making supply chain decisions that maximize profits while adapting quickly to dynamic changes. Optimal supply chain operations rely on advanced analytics and real-time data processing to adapt to rapidly changing conditions and make informed decisions.

Linear Programming with NVIDIA cuOpt

With NVIDIA cuOpt and NVIDIA NIM inference microservices, companies can harness the power of AI agents to improve optimization, with supply chain efficiency being one of the most compelling and popular domains for such applications. In addition to the well-known vehicle routing problem (VRP), cuOpt can optimize linearly constrained problems on the GPU, expanding the set of problems that cuOpt can solve in near-real time.

The cuOpt AI agent uses multiple LLM agents and acts as a natural language front end to cuOpt, enabling seamless transformation of natural language queries into code and optimized plans.

Revolutionizing Supply Chain Management

Supply chains are complex and increasingly challenging to manage due to dynamically changing factors such as inventory shortages, demand surges, and price fluctuations. Yet supply chain optimization yields significant benefits.

According to research, organizations expect to save $37M by being able to react faster to supply chain disruptions. This equates to 45% of the average cost of supply chain disruptions in 2022. Disruptions in the supply chain pose substantial economic challenges, costing organizations globally an average of $83M annually. Larger organizations naturally incur greater costs.

On average, companies with between $500M and $1B in annual revenue incurred costs of $43M, whereas firms with $10-50B in revenue faced costs of $111M.

Optimized Decision-Making

With dramatic improvements in solver time, linear programming enables significantly faster decision-making, which can be applied to numerous use cases across various industries, including:

Resource allocation
Cost optimization
Scheduling
Inventory planning
Facility location planning

Here are some example use cases for industries that require running what-if scenarios through data retrieval and mathematical optimization:

Manufacturing, Transportation, and Retail

A customer requests an additional 30 units, but there will be a delay in the supply delivery by a week due to weather conditions. What is the impact on the fulfillment rate, and how would this impact your allocation plan to minimize production, transportation, and holding costs?

Healthcare and Pharmaceutical

The global demand for healthcare providers and medications is growing faster than estimated. How can a hospital and pharmaceutical company dynamically re-assess the impact of medical supplies to maximize profit?

City Planning

As a consequence of urban development planning, there is an influx of residents in certain neighborhoods, causing traffic congestion. How can the city determine how many public transportation stops to add to maximize public transportation usage and reduce the number of individual cars?