Business Case Study: Optimizing Packaging

Bayesian optimization is a very diverse and thorough optimization approach that works on a variety of problems and, therefore, is very widely used in the engineering industry. Here, one specific case study of Bayesian optimization is considered in the packaging industry.

Business case study

Tracky Consumer Goods is a global e-commerce retailer that specializes in selling a wide range of products. Because they have a significant volume of shipments, Tracky is focused on optimizing its packaging process to reduce material waste, lower packaging costs, and enhance sustainability while ensuring the safe delivery of products. To tackle this challenge, Tracky decides to utilize Bayesian optimization, a powerful optimization technique, to identify optimal packaging configurations that align with their objectives.

Problem statement

Tracky Consumer Goods faces two main challenges in its packaging process: excessive material usage and high packaging costs. The current packaging configurations are not fully optimized, leading to unnecessary waste and increased expenses. The objective is to find the best combination of packaging materials, including box sizes, padding materials, and wrapping techniques, to minimize waste, reduce packaging costs, and maintain product safety standards during transportation.