Intel uses O.R. in Corporate Decision-making, Realizing $25 Billion in Benefits


Best known for its semiconductors driving countless computers around the world, U.S. tech corporation Intel uses operations research to maximize revenue and minimize cost in a multiphase project that has realized a total benefit of $25.4 billion since 2009.

Due to its scale, the complexity of its products and manufacturing processes, and the capital-intensive nature of the semiconductor business, efficient product architecture design integrated with supply chain planning is critical to Intel’s success. In response to an exponential increase in complexities, Intel has used advanced analytics to develop an innovative capability that spans product architecture design through supply chain planning with the dual goals of maximizing revenue and minimizing costs. Intel’s approach integrates the generation and optimization of product design alternatives using genetic algorithms and device physics simulation with large-scale supply chain planning using problem decomposition and mixed-integer programming. This corporate-wide capability is fast and effective, enabling analysis of many more business scenarios in much less time than previous solutions, while providing superior results, including faster response time to customers. Implementation of this capability over the majority of Intel’s product portfolio has increased annual revenue by an average of $1.9 billion and reduced annual costs by $1.5 billion, while also contributing to Intel’s sustainability efforts.