Optimization: A notorious road to Structured Inefficiency and transition to Combinatorial…

Title of the article is very oxymoronic: having an optimization and inefficiencies in the same context. But it is very true looking at the trend and current practices in the logistics industries. In this article, we are going to discuss how current practice of optimization is contributing significant inefficiencies for the organizations. And, how big firms (Like Amazon, Shopify, Uber) are taking an advantage of advancements in the field of combinatorial/mathematical optimization to identify the new opportunities, and winning the competition over thin margin, by creating a little wiggle room for the profit. Few months ago, I was discussing with my friend about an idea of mathematical formulation for a kitchen which can be efficient enough to make 1500 entirely different recipes (not just a vegetables, sauces and cheese on bread or bun), with less than 100 ingredients in inventory, with the use of minimal kitchen appliances.