Award-winning research helps companies keep products where they're needed most

In today's interconnected supply chains, companies must strategically decide where to store extra inventory to meet customer demand without incurring unnecessary costs. A recent study by Georgia Tech researchers has developed a faster mathematical method to solve this complex problem, earning the 2026 INFORMS Computing Society Harvey J. Greenberg Research Award.

The Guaranteed Service Model (GSM) has been used by major companies like Procter & Gamble and Intel for decades to guide inventory placement decisions. However, the new approach developed by Andre Calmon and his co-authors makes these decisions significantly faster. By breaking down the large supply chain network into smaller, overlapping sections and solving them more efficiently, the method can identify the optimal inventory plan much quicker.

In tests involving real-world supply chains, the researchers found optimal inventory plans in every case they studied. Median computing time dropped from around nine and a half minutes to just 14 seconds, compared to the previous leading method. This speed allows businesses to quickly test various scenarios, such as increased demand or delayed shipments, and update their plans as needed. This capability could prove invaluable during disruptions like pandemics, natural disasters, or sudden changes in demand.

The research expands beyond traditional inventory management, with potential applications in circular supply chains where products and materials are recovered, reused, and recycled. Calmon envisions using this planning and optimization approach to make circular business models more practical.