Dell saves 60% on shipping by using complex predictive models
- August 19th, 2008
- 1 Comment
If ever anyone tells you that math is all theory and no application, slap them in the face. Then tell them that in just the latest example of applied mathematics having real-world effects, Dell has employed a complex mathematical model to predict shipping rates, inventory problems, and so on, with phenomenal success. Professor of Operations Management Jérémie Gallien says:
“Before our model, the company would use forecasts, but the reality is that forecasts are never right. By using probability theory to quantify the uncertainty of demand forecasts and projected inventory, we have been able to vastly improve and speed up the decision-making process.”
I guess when you have such a huge amount of data, it makes sense to hire some serious crunchers (MIT in this case) to break it down and make sense of it. [Thanks for the tip, Paul!]
dean bare (Who am I?)
4 weeks ago
I orderd a “refurbished” laptop on monday, 20 (oct 2008). I requested and paid for next day service which should have had me my laptop no later than thursday, 23. the person who took my order did not inform me that the laptop would not be able to be here in time if shipped by “DHL”_which is dell’s refurbs shipper of choice (DHL has informed me that dell was informed on june or july that they would be dropping locations from from their normal shipping areas, and that this information comes up on dells computer screens when the operator is making the order) nor did he offer me any other shipping options to get my laptop to me on time. After hours on the phone with dell and dhl I really felt like i was just talking to a bunch of robots who just wanted the day to end so they could go get paid for the day and go home. I really fill like dell expects me to pay for their mistakes. dell computers rock and dell shipping sucks if it uses dhl, the other items i ordered with this laptop arrived on time (thanx FED-EX I have never had a problem with FED-EX). dell was at least friendly on the phone (just unwilling to pay for their mistakes,dell expected me to pay for its mistake) dhl is flat rude and unwilling to help the customer at all.
point_ its not what you got its how you use it.