Nitheesh Yennampelly

AI-Driven Design of Agile E-Commerce Networks Under Demand Uncertainty

Abstract:

E-commerce delivery systems are under growing strain as U.S. online retail sales exceeded $1.1 trillion in 2023 and last-mile logistics now represent 41–53% of total supply-chain costs. This talk presents an AI-enabled, two-stage stochastic optimization framework that integrates facility location planning with dynamic vehicle routing under demand uncertainty.

The proposed approach combines stochastic programming with rolling-horizon decision-making to adapt routing plans in real time as orders evolve throughout the day. Real-world road-network distances from OpenStreetMap are embedded directly into the optimization process. The framework is evaluated using simulations over 50 ZIP-code regions, 10 candidate facilities, and 100 demand scenarios, reflecting realistic urban delivery conditions.
Results demonstrate clear advantages over deterministic and static planning methods. The integrated stochastic model reduces total travel distance by 20–30%, vehicle miles traveled by approximately 28%, and average service times by about 15%. Cost analyses show a 25% reduction in delivery costs compared to a single-depot system and a 7.5% lower cost per package relative to static multi-depot routing.

From a customer-centric perspective, nearly 80% of orders are delivered within four hours, compared to roughly 60% under static multi-depot operations and 40% in single-depot settings. The analysis also identifies an optimal network design of four facilities, balancing marginal distance savings against increasing fixed costs. With Stage-1 optimization solved in under two minutes and routing updates every 30 minutes, the framework demonstrates practical real-time tractability.

This session highlights how AI-driven optimization can enable resilient, scalable, and responsive e-commerce logistics for retailers, 3PLs, and urban distribution systems.

Profile:

Nitheesh Yennampelly is a dynamic supply chain and business analytics professional with proven expertise in strategic operations, automation, and data-driven optimization. Currently serving as a Supply Chain Specialist at Amazon in Nashville, Tennessee, Nitheesh leads initiatives that enhance operational efficiency and generate multimillion-dollar savings. His notable accomplishments include designing an automated build planning and forecasting system that achieved $7 million in cost savings, and developing a real-time QuickSight dashboard that drove a $6.4 million ROI.

A skilled innovator, Nitheesh has successfully integrated AI-powered solutions into operational workflows, such as creating an automated Q&A assistant for Amazon’s SOP management tool, now used across 4,000+ sites, and spearheading the hub-and-spoke topology optimization for an $85 million asset management system using advanced Python modeling. His ability to combine technical acumen with strategic insight makes him a trusted leader in logistics innovation and data analytics.

Previously, as an Area Manager at Amazon in California, Nitheesh managed teams of 30+ associates, implementing performance management systems that boosted productivity by 25% and reduced workplace incidents by 20%. Earlier in his career, he contributed to FedEx Services as a Strategy & Analytics Intern, where he developed Power BI dashboards and data validation processes that improved reporting accuracy by 25%.
Nitheesh began his professional journey at Unacademy in India, where he streamlined asset management processes and implemented CRM systems to enhance business operations.

He holds a Master’s degree in Management Science (Business Analytics & Supply Chain Management) from The University of Texas at Dallas, where he was recognized as a Dean’s Excellence Scholar and served as an Operations Lead for the Project Management Club. He also earned a Bachelor’s degree in Information Technology from Guru Nanak Institutions Technical Campus in Hyderabad, India.

An advocate for continuous improvement, Nitheesh is certified in Lean Six Sigma (Green Belt) and skilled in SQL, Alteryx, Power BI, Tableau, and advanced analytics tools. His leadership, technical expertise, and innovative mindset consistently drive measurable results in complex operational environments.