1015: Mathematical Optimization in the Agentic AI Era, with Gurobi's Jerry Yurchisin

4 Aug 2026 · 1 h 18 min · 28 chapters

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In short

Mathematical optimization for agentic AI—how to formulate decision problems with hard constraints so solutions are guaranteed feasible and optimal, unlike LLM agents that may ignore constraints.

Guest backgrounds

Jerry Yurchisin, Manager of Decision Intelligence Strategy at Gurobi Optimization (decision intelligence/optimization strategy). He returns for an annual deep dive; Gurobi is used by many Fortune 100 companies.

Key claims

  • Optimization models decisions as decision variables, hard constraints, and an objective; solvers return values that satisfy constraints and optimize the objective.
  • LLM/agent systems can help draft formulations and code, but optimization engines provide deterministic, explainable, constraint-respecting solutions.
  • Nonlinear optimization is increasingly practical; Gurobi improvements reduce prior barriers (e.g., avoiding linearization blowups).
  • Infeasible models are common; Gurobi’s tooling (e.g., Feasibility Relax) helps diagnose and minimally relax constraints.

Notable examples

  • Energy: unit commitment and renewable dispatch optimization (including physics-based scheduling).
  • Finance: MyGoals (Toronto fintech) retirement planning using Gurobi; reported 2%–10% higher after-tax retirement income and 10%–20% greater income outcomes vs conventional tools.
  • Sports: USA Cycling women’s team—optimization of rider rotation/effort to minimize race time; linked to a Paris Olympics gold-medal performance.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Introduction to Jerry Yurchisin

0:57 to 2:25

Meet Jerry Yurchisin and the importance of optimization in data science.

“This episode of Super Data Science is made possible by Anthropic, Notion, and Excel Data.”

Understanding Mathematical Optimization

2:25 to 4:50

Discover what mathematical optimization is and how it differs from traditional approaches.

“So yeah, near DC, Northern Virginia, as always.”

Applying Optimization to Real Problems

4:50 to 7:19

Explore how mathematical optimization addresses problems not solvable by traditional methods.

“But if you have a problem that sort of checks those three boxes, I know the decisions that I can make.”

Optimization in Various Industries

7:19 to 9:19

Learn about the wide range of industries utilizing mathematical optimization.

“It allows you to, you talked about a scenario where you have lots of variables that you can model that you, and those are known variables.”

Educational Tools for Optimization

9:19 to 11:15

Discuss how Garobi's games help teach optimization concepts effectively.

“So yeah, it's all over the place and it's up, you know.”

Introducing the Grow Bean Game

11:15 to 14:01

Discover the new Grow Bean game that teaches optimization in a coffee shop setting.

“and then big, massive companies where you see the logos.”

Understanding Linear Optimization

14:01 to 16:13

Learn about visualizing feasible regions in linear programming and their significance.

“visual, a verbal sort of drawing of what a feasible region looks like in linear programming.”

Understanding Linear Optimization

16:19 to 17:04

Learn about visualizing feasible regions in linear programming and their significance.

“Most enterprises run their data across a sprawl of systems, snowflake, databricks, BigQuery, Hadoop, Iceberg, Lake Houses, on-prem clusters, ugh, and then stitch together a different operational tool for every layer.”

Nonlinear Optimization and Recent Advances

17:04 to 21:59

Explore the advancements in nonlinear optimization and how they enhance problem-solving.

“And you can kind of see some estimations of it.”

Mathematical Optimization in the Era of Agentic AI

22:04 to 28:00

Discuss the intersection of mathematical optimization and agentic AI, highlighting the importance of constraints.

“Certainly in the way that I've been curating content on the show and I've been experiencing the world.”
Show all 28 chapters

Understanding Optimization Limitations

28:00 to 29:05

Learn about the limitations of AI tools in providing optimal solutions.

“So help you identify the problem, help you actually write the code, help you to come up with the mathematical formulation, do all of that kind of stuff.”

Integration of AI and Mathematical Optimization

29:05 to 31:01

Explore how AI agents can assist in defining and solving optimization problems.

“You can, because essentially what can happen in that situation is it'll resolve with the Baltimore production facility there and say, this is the difference.”

Enhancing User Experience with Agentic AI

31:01 to 33:18

Discover how Gurobi's agents improve the modeling process for optimization.

“And it has several agents within there that mostly right now we have a lot of interaction, you know, sort of just with like a chat interface and stuff like that.”

Explaining Infeasible Models in Optimization

33:18 to 35:46

Understand the concept of infeasible models and how to address them.

“And that's sort of like our vision is having all these other agents do all those other parts or help with all those other parts.”

Case Studies in Optimization

35:46 to 39:26

Learn about real-world applications of mathematical optimization in energy and finance.

“actually really say, oh, to this group or to that group, what would need to change?”

Case Study: My Goals and Financial Optimization

42:00 to 44:48

Learn how the My Goals platform uses optimization to improve retirement planning.

“are a few of the problems in energy that we're seeing more adoption of optimization for.”

USA Cycling: Optimization in Competitive Sports

44:48 to 47:29

Explore how optimization strategies improved performance for USA Cycling's women's team.

“All of the other regulation stuff that happens is all stuff that, yeah, those are all hard constraints.”

Project 405: Mathematics and Gold Medal Success

47:29 to 50:37

Discover how mathematical optimization helped USA Cycling win a gold medal at the Olympics.

“Because if you think about going back to what I was talking about at the beginning and before, what are the building blocks of optimization models?”

Implementing Optimization in Organizations

50:37 to 56:03

Learn how to effectively communicate the benefits of optimization within your organization.

“So I'll have a link to this paper in the Informs journal on applied analytics.”

The Importance of Framing Optimization

56:03 to 1:00:44

Learn how to effectively communicate the benefits of optimization to different stakeholders.

“Hey, because if you talk about to sort of management and you say, oh, well, I'm able to increase productivity by a small percentage or something like that, they'd be like, well, OK, that's great.”

Training Resources for Optimization

1:00:44 to 1:02:55

Discover various training resources available for learning optimization techniques.

“you redirect you to another site where it has essentially all of the the training that that I've led over the past few years.”

Upcoming Events and Training Opportunities

1:02:55 to 1:06:05

Get details on upcoming training sessions and workshops focused on optimization and Gen AI.

“So I'd say that's kind of like your one-stop shop.”

The Decision Intelligence Summit Overview

1:06:05 to 1:09:47

An overview of the Decision Intelligence Summit, including its focus and schedule.

“We'll keep an ear out for that or reach out to Jerry as November approaches.”

Book Recommendation: Exploring Geometry

1:09:47 to 1:10:04

Learn about a unique book that delves into geometry and its conceptual relationships.

“This has been another fantastic episode.”

Book Recommendation: Flatland

1:10:04 to 1:12:03

Explore the unique geometrical insights from the book Flatland.

“Before I let you go, do you have another book recommendation for us?”

Following Jerry Yurchisin

1:12:03 to 1:13:34

Learn how to connect with Jerry Yurchisin on social media.

“a two dimensional line, how would, and somebody said, Oh, I have three dimensions.”

Mathematical Optimization Insights

1:13:34 to 1:14:58

Delve into the core principles of mathematical optimization discussed by Jerry.

“Well, thank you, Jerome or Jerry or whatever you'd like me to call you.”

Case Studies in Optimization

1:14:58 to 1:15:26

Discover real-world applications of mathematical optimization.

“write the formulation and generate the code, then hand off to a solver like Garobi, soon callable via MCP servers, for a defensible, explainable, guaranteed optimal solution.”
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Transcript

Automatic transcript. May contain errors.

0:00Jon Krohn:Large language models will confidently tell you they've optimized your entire business while quietly ignoring the one constraint that could cost you millions. Today's episode is about the AI technology that makes breaking a constraint mathematically impossible. Welcome to episode number 1015 of the Super Data Science Podcast. I'm your host, Jon Krohn. And today, Jerry Yurchison, Manager of Decision Intelligence Strategy at Garobi Optimization, returns for our annual deep dive into mathematical optimization, the decision-making technology relied on by the vast majority of Fortune 100 companies.

0:35Jon Krohn:In this episode, Jerry lays out where optimization fits in the agentic AI era, why LLMs formulating problems and solvers like Garobi guaranteeing the answers. And he shares striking mathematical optimization applications spanning energy grids, retirement planning, and the model that powered USA Cycling's women's team to a gold medal at the Paris Olympics. Enjoy. This episode of Super Data Science is made possible by Anthropic, Notion, and Excel Data. Jerry, welcome back to the Super Data Science Podcast. How's it going? Oh, it's going great. John, thanks for having me on again. I'm looking forward to diving into some more cool topics, optimization, and all around.

1:18Jon Krohn:For sure. For people who don't know Jerry, this is not his first time on the show. He's been here for a few years in a row. We do this kind of annual focus on mathematical optimization, which I hear from listeners is very important because we don't hear nearly enough kind of anywhere on any channel about mathematical optimization, which is a really important quiver to have in a data science role or in an AI engineering role. role. It can solve all kinds of problems that machine learning and statistics can't. And I know I relate to you just before when we were doing a prep call for this, that we have a regular listener to this show.

2:00Jon Krohn:I won't name him, but he's probably listening. He's in Philadelphia. And he told me that his favorite episode every year is the one with you in it because they use mathematical optimization in their business. And he always learns so much about it. So fantastic. I love it. You're back. I love it. You're probably calling in from Virginia again, as usual. I am. Yeah, I have yet to move. Don't plan on it anytime soon. So yeah, near DC, Northern Virginia, as always. Nice. And so for listeners who've never heard your previous episodes, quickly, what is mathematical optimization and how is it different from the machine learning or statistical approaches that usually get covered on a data science show?

2:41Jon Krohn:All right. Ready, set, go. It's when you think about solving a problem, there's a bunch of different angles or a bunch of different sort of sub problems. There's a bunch of different ways to approach it. And a lot of the typical methods that, you know, people are getting sort of shown or they're used to using, you know, be it machine learning or, you know, sort of pure statistics simulation. Nowadays, everything's agentic and stuff like that. They all solve a certain set of problems very well. Certain set of questions, certain given input, you want a certain type of output, you get that. What mathematical optimization does differently is it focuses on decision making.

3:25It focuses on what to do with the forecast, what to do with perfect knowledge of the future that we always get from all of our machine learning models. We all know that accuracy 100 % is there. But it focuses on, okay, what should I do next? How should I plan my business decisions in the next year, the next quarter, the next week, the next few hours? What types of decisions am I able to make? How am I restricted in those decisions? And what's my overall goal? And those three parts right there sort of outline the basic building blocks of a mathematical optimization model where you have what we call decision variables.

4:07What are the things I actually have control over? What decisions am I making? How much of this certain type of product am I going to order versus this type versus this type versus this type? What are my constraints? So how much money do I have available? How much budget do I have? How much maybe storage space do I have or things like that? How much of a diversity measures do I want to make sure that I I have at least 30 % of my product is this type and 20 % is this type or something like that. And then there's some sort of objective. I want to get all of the things I need to order all my products at minimal cost or maybe maximize some sort of anticipated customer satisfaction or something along those lines.

4:50But if you have a problem that sort of checks those three boxes, I know the decisions that I can make. I have control. I know what I have control over. They may be influenced by outside things or something like that, but I know what I can control. I know how they're constrained from like a sort of a business role perspective. Budgets, you know, if I do this, then I must do that. Or if I do this, I cannot do that type of things. And then I have some sort of objective that I want to maximize or minimize. So be it profit, revenue, or you're minimizing cost, or you're sort of minimizing something like carbon footprints or something like that for sustainability efforts.

5:30If you have any problem that has those three sort of characteristics, then you might be able to use mathematical optimization to solve it. And what that does is it essentially you as the modeler understand the business problem. you then translate it translate that business problem into a series of inequalities or equations and things like that and then that's when you code it up and that's when that's when you're sort of done and that's you let that's when you let a product like Garobi take over and what Garobi does is it gives you the value of those decision variables that are guaranteed to meet your constraints but then also push that objective function as high up as you can if that's what you're looking for or as low as you want if you're trying to minimize.

6:18So it's essentially just a different sort of problem solving framework. When you think about like a machine learning model, that's not what it's built to do the prediction. It's not built to understand your whole business system or your whole decision making system. It can help, but it doesn't do that natively. And it's sort of all that logic just isn't necessarily built into that. So it just solves a very different problem. These things work hand in hand together as, as they should. And, and, uh, any sort of, you sort of mentioned as a, as a, uh, an arrow in your quiver type of thing. That's how we view optimization as, as arrow in your quiver.

6:57Jon Krohn:I said that completely wrong. I was like, I was like quivering your, uh, what's the thing you put in quiver in? Um, Yeah. So to kind of recap, optimization allows you to solve problems that you wouldn't be able to solve with probabilistic approaches like statistics and machine learning. It allows you to, you talked about a scenario where you have lots of variables that you can model that you, and those are known variables. So you could have hundreds or thousands of variables, you code them all up, identify them, and then you have constraints on those. So, you know, I have this many trucks, I have this many truck drivers, I have this many pallets that need to be delivered.

7:42Jon Krohn:And so you could have hundreds or thousands of those kinds of different variables that could have a specific range and that can actually, you can model in a mathematical optimization problem, interplay between all of those different variables where like you were saying, okay, if this one is true, then this other one must be false. Those kinds of relationships. And ultimately, all of those input variables are to, as we often see in statistics and machine learning, to optimize some objective function, which could be maximizing a value like maximizing profitability or minimizing a value like minimizing time to delivery, something like that.

8:25Jon Krohn:Yeah, exactly. So yeah, so we definitely, we see mathematical optimizers based on episodes with you and some kind of real life experience I have that we see this the most with things like logistics, supply chain. Those are fields that use mathematical optimization all the time. But there are also, we're going to go into examples today in energy, financial services. I think you have a USA cycling example. We'll get to those much later in the show. So, but there's a very, very wide range of industries that could be making use of this approach. Yeah. And yeah, when I sort of went through my spiel about it, I, I, nothing about what the, you know, what the decision variables are and what the constraint, it's never industry specific, never a problem, you know, like, oh, I'm only doing this for supply chain.

9:11I'm only doing this for scheduling. No, it's, it's, if any problem that meets those characteristics that has those things, you can, you can use. So yeah, it's all over the place and it's up, you know. So your imagination sort of is the only limiter there.

9:26Jon Krohn:And we're also going to talk about as people think about, oh, like, wow, I imagine maybe this kind of problem that I have in my business or maybe even in your personal life that could use a solver like Aurobi could use a mathematical optimization approach. At the end of the episode, we're going to get into brass tacks about how people can be learning specific resources that you and others have created, Jupyter Notebooks, Python code, video courses, all those kinds of things. So stay tuned. We'll dig into the latest and greatest stuff in mathematical optimization in this episode, and then we'll have practical ways at the end for you to be able to learn all this stuff.

10:06Jon Krohn:um let's talk about groby a bit specifically because it's a business that once you hear of groby you start to notice it everywhere i find there it's a it's a b2b business so it's not like a consumer business that you see you know pepsi ads all the time or nike ads all the time uh because it's not a it's not typically considered to be a consumer product but in the b2b world pretty much everyone knows it, especially in big enterprises. We've talked about this before. It's something like 80 % of Fortune 100 businesses use Groby optimization, right? It's something up there. The statistic changes a lot and, or not a lot, but it changes and it changes enough to where I like, kind of like, okay, this is what it is now.

10:51But yeah, a ton, a ton of those businesses, big ones, middle one, midsize, we're sort of all over the place in terms of size and scale and everything, not just industry. You don't need to be a huge company. You don't need to be massive to use optimization. It definitely helps. But yeah, sort of we have use cases where it's sort of like mom and pop shops, bakeries, and then midsize marketing companies, and then big, massive companies where you see the logos. And you're like, oh, okay. I can see why they would be using something like this for their logistic needs or something like that. So, but yeah, all over the place in terms of size and scope.

11:32Jon Krohn:To teach people about how optimization works to sort of develop an intuition around it. In previous years, we've talked about a game that you had built at Garobi called the Burrito Game, which was free to use online. But Garobi has just released a new one, right? Do you want to tell us about that? This is about as hot off the press as you can get. We recently followed up the Burrito Optimization Game, which has been sort of super widely used by us as a teaching tool, but as a way to communicate optimization, as a way to sort of get into educational programs as well. We have a game that's called Grow Bean.

12:11And the point of Grow Bean is to, it sort of simulates a coffee shop where you're seeing customers come in and depending on what round you're in, they're going to come in, if you're familiar with queuing theory, it is built around that. So you have customers that arrive at a certain rate. And what your decision is, is sort of how much of certain types of coffee to have sort of prepared for a certain amount of time. So you can just like, I have my coffee ready to go. Someone orders a hot cup of coffee, you pour it for them, boom, it's there they they move on their way so how much do you want to brew at a certain time in order to make sure that your customers are satisfied but then you could sort of think about okay well if i if i brew one cup per person that comes in that says that's going to take forever they're going to be dissatisfied they may leave you know stuff like that but if i have too much just and i just have all this ready then you're going to probably might be wasting a lot of stuff so a lot of your sort of your raw product as in your beans and things like that.

13:20So it's all about finding that middle ground. And that's what sort of optimization kind of is, is like, yes, I want to make sure that I'm making my decisions that really affect the objective that I want. So in this case, it could be you want to make sure that we're maximizing profit. It could be then or it could be a different objective. The game does talk about sort of maximizing your profit and things like that. But again, you can also have different objectives in the real life, in the real world. I want to make sure that I'm maximizing my customer satisfaction or something like that. But the game focuses on the profit angle.

13:57And you can really sort of, what it really brings to life that I like is I sort of talked about, you know, maybe the first episode, I think I did like a visual, a verbal sort of drawing of what a feasible region looks like in linear programming. and this actually sort of puts some of those two-dimensional visualizations out there so you can see what's happening a little bit so it just sort of peels back the onion a little bit there so you can see what's going on a little bit and okay this is why i can't use all of my beans to make this type of coffee right now because there's this it runs up against this particular constraint and you sort of see it visually which is really cool yeah i got it i've got it up in front of me

14:35Jon Krohn:here it does look like fun i haven't had a chance to play yet but i will be as probably as soon as we finish recording this episode i see that the burrito optimization game is still live which is great so i'll have a link to the burrito game in the show notes as well as the new grobean coffee optimization game for sure the game that lets you optimize your own coffee shop from the grounds up very clever there is no shortage of puns that come from uh it is it is impossible to stop and you know i don't want to anyways why why would you so in your discussion right there at the end about Garobian, you mentioned linear optimization, non, and, and so that kind of begs the question about nonlinear optimization.

15:17Jon Krohn:I know that we talked about that on one of your episodes at some point, but really quickly, I feel like that might be an important aspect to share with the audience, uh, that will broaden their mind further around what's possible with mathematical optimization. With Garobian, I mentioned a lot of the linear stuff is, is about like kind of where the feasible region is the actual objective oh the feasible region is is um given all of your business rules you know sort of think about okay my budget is has this sort of equation to it or inequality and it like here's i must be below here and then now i have um a certain uh i only have a certain number of coffee beans like this i got you so here so go like this and then that's the area which this is, if you're in this area, you are guaranteed to meet your constraints.

16:07You're not going to be doing something that you physically cannot do with like your products or something like that.

16:13Jon Krohn:This episode is brought to you by Excel data, the leader in autonomous data and AI. Most enterprises run their data across a sprawl of systems, snowflake, databricks, BigQuery, Hadoop, Iceberg, Lake Houses, on-prem clusters, ugh, and then stitch together a different operational tool for every layer. ExcelData's Xlake changes all of that. Xlake provides a single architecture for hybrid compute, control, and intelligence, data and AI observability, agentic data management, AI data engineering, Kubernetes native compute, and more, all on one platform that runs where your data already live. xlake the architecture built for what data need to become see it at xeldata.io that's aceldata.io i see i see so jerry was making some gestures with his hands he's kind of created some charts with his arms that won't be visible to podcast to audio only listeners but basically the idea is the feasible region is kind of like the area in a graph like if you imagine you have two variables an x and y variable where it's like how many beans are reasonable to have and how many employees are reasonable to have those could be like two different axes and you have kind of a reasonable range for each of those axes then the feasible region is the part of that two-dimensional plane where reality can happen you know where things are feasible so you're trying to find which point in there actually maximizes your objective which is a different function altogether But that objective function in the Garobian game is actually nonlinear.

17:51And you can kind of see some estimations of it. It gets pretty complicated pretty fast. The difference between the optimization game and this Garobian game is pretty substantial, the complexity there. But that function is nonlinear. And the reason that we went that direction is because for Grobia as a company, we have really gotten into the nonlinear optimization space significantly. It's something that's, you know, just from a product perspective, it's something that our customers want, but it's something that we feel is much more attainable now. Because flashback to other episodes, I sort of would talk about like why optimization didn't take off as other technologies have.

18:28And part of it is because you can only like, you know, 20 years ago, you can only solve like pretty small problems. The computational effort was too much. But with advances in hardware and advances in the algorithmic side of things, you can now solve problems that are much larger than you could just a couple of years ago, five years ago. And some of those problems are nonlinear. And we're sort of really seeing improvements from our side, from the algorithm side of solving problems like five times faster now because of algorithmic purely own improvements. So one of the drawbacks that someone would have about using mixed integer programming, and that's sort of like Groby's bread and butter, but when you say mixed integer programming, that is where your decision variables can be continuous.

19:20They can be between A and B and anything in between, or they could be integer, 0, 1, or 1, 2, 3, 4, 5, 6, 7, something like that. That's what mixed integer programming is. But one of the downsides or people would say is a downsides. Oh, well, I can't have like an exponential function as part of my one of my constraints because that's clearly nonlinear. And then and then the typical process that you would have is like, OK, well, let's what we call linearize that. Let's build a piecewise representation of it that is all all lines itself. And people would be like, OK, well, that's cool. But sometimes it would really make your problem really, really large because you're adding sort of dummy variables for each of those things.

19:57and it was so you'd make your problem a lot larger and then and then you would also lose accuracy like it would not be a perfect representation of your exponential curve let's say so that would be a couple like people like oh well you know you can't use you know uh garobi you can't use mixture in your program because you'd have to you would lose those things or you would have those those issues now with the advance with just the improvement of of the solver Now you can just directly model that and say, okay, I have a constraint that is purely an exponential function. And then that's it. You're not doing a linear representation of it or anything like that.

20:34And so it provides the realism. And it also provides that realism within a more attainable sort of timeframe to solve these problems. So you're not taking, it's not taking forever. Because sometimes some of these problems, even problems that don't seem all that complicated, just from a computational perspective can take a really long time to solve. And it all depends on the context that you're looking for. If a problem takes three hours to solve and it's for annual planning, then that's probably okay. So that makes sense. But if a problem takes three hours to solve and you want those decisions for minute by minute sort of shipping of products or something like that, then obviously that's not good.

21:17So all that is to say is from a nonlinear perspective, we have a lot of improvements and sort of some of the drawbacks that people would say like, oh, you can't use Garobi. You can't use mathematical optimization because of X, Y, and Z. Those have become a lot less of a reason to at least try. so if if you're someone who has you know like five years ago like i couldn't solve my my mixed integer linear program with commercial solvers i couldn't do that so i stopped i'm not going to worry about it revisit it if you're like oh i try you know my problem is highly non-linear and i can't do it try it again can't guarantee any everything but then there's so much improvement that if you haven't tried within the last few years you're you're behind the times on it so So it's evolving just as fast as other technologies in terms of how it's improving.

22:04Jon Krohn:Cool. I love that. Speaking of the times changing rapidly, since you were last on the show last October, we're now constantly talking about agentic AI, obviously on a data science podcast that focuses on AI, which is more and more what data science is all about, I think. Certainly in the way that I've been curating content on the show and I've been experiencing the world. Yeah. And so, yeah, where does mathematical optimization fit into this new agentic world that we're in? From our perspective, that's the million dollar question, billion dollar question. Yeah, it's more than a million. Yeah, a million dollar question because that's the term that people used to use a lot.

22:45I don't know. But yeah, it's billion. It's massive now. But anyways, it's when you think about what and sort of I'm going to be a little bit sort of high level and not absolutely correct. But if you think about what an LLM does, LLM takes all the input tokens and then just produces more output tokens about, you know, text or something like that. Let's say if you're purely natural language type of stuff, like input tokens, your output tokens, that's it. That's all it really cares about is providing, providing the tokens that sort of, sort of give you a really good, really good response, a highly likely response.

23:26So you just something that is all about just that sort of input output flow that really doesn't jive with what I was talking about, the types of decisions that optimization can make and what it does and what it and sort of the rigor that it provides is it provides these you know the constraints are what we call hard constraints these are things that cannot be violated it's not like oh my context you know that i i you know i mentioned my constraints just outside of like a context window type of thing and now now the element

23:54Jon Krohn:is sort of forgetting this yeah or even if it's in the context window it's still very a very frequent occurrence that some piece of information that you say, you know, there's an example, Sinan Osdomer. Do you know that guy? No, I don't think so. Sinan Osdomer, I think he's been on this podcast more than anybody else. And he's a crazy prolific author of data science and AI books. I think he's younger than me. He might be in his mid thirties and he's written at least 10 books and he's created tons of online content. Recently, he started working at Fireworks AI. But the point that I'm getting to is that Sinan Ozdemir, I've seen him do a talk a couple of times where he shows surprising issues with even frontier LLMs where he would do something like have a tool available for an agent to call.

24:49Jon Krohn:And in his prompt, he would say, you must use this tool. And it was like single digit percentages, but some single digit percentage of the time, that very simple, very specific instruction, the LLM controlling the agent just wouldn't do it. It wouldn't call the tool. It would find some other way of doing the approach. And so yeah, Sanon's done lots of, he did a whole book on agentic AI where these kinds of experiments that he was running, he published them in there. um i will while you're talking i'll look up the name of that book yeah um yeah go ahead yeah if you think about exactly what you said right there when it comes to again like the the fate of my business do i want to trust decision making to something where that can happen where it can forget a let's say you have some sort of environmental constraint where you know if If you violate that, then you're going to be fined millions of dollars, something like that.

25:52And then you output a solution that is like, the one thing, all these agentic tools and everything, the confidence is so high. It's like, I got you, boss. Exactly. Just what you're looking for. We're 100 % good to go. But it misses this environmental constraint. And then all of a sudden, you put into production a solution that is not good. and then the bad things happen. And then all because of, of, you know, just forgetting, you know, just doing something that happening. And, and the contrast to mathematical optimization is if that is a constraint in your model saying that here's my, again, I'm going to do the, the arm thing again for everyone listening, uh, just purely video, here's my constraint.

26:38And all my decisions are in here. I cannot go past this. I cannot break this environmental constraint, you are guaranteed that. So that's what we think is a differentiator. First off, is that you have the trust of the model to actually do what it says. And what's really nice about it is what this line represents is something that you talked about. It is a constraint that the people who are designing the problem, who are talking about it, have hopefully agreed upon as an actual constraint. So it's not just like some generated like business rule type or something. It is something that as like if you and I were working on a problem, I'd be like, hey, I think this is an environmental constraint.

27:21You'd be like, yes, it is, but it should look more like this. And then we agree what that is. And then it's represented in there mathematically. So it's just a very different decision-making framework. But where I see this all fitting together is you start to mention that, okay, I have a, an agent that's going to call a tool. Okay. An agent should be able to, what an agent can do is help you develop the problem statement that you're really trying to solve, help you understand all of the, okay, all the other bits and pieces of all the other regulations. Hey, I have this environmental regulation and an LM or an agent can do like, Hey, this is what, these are other things that you may want to consider.

28:01And you might be like, holy crap. Yeah, I want to consider these. I forgot about them. So it can really help there. It can help you. So help you identify the problem, help you actually write the code, help you to come up with the mathematical formulation, do all of that kind of stuff. But it can't do the solving. It can't give you the optimal solution. It can't give you a solution that's close to optimal or and have the defendability, the explainability, all that sort of stuff that comes with these high stakes decisions. So how we sort of see it as, as agents should be able to call, develop all those things and then call an optimization engine like Garobi saying, here is the problem statement that we have.

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28:39Here is the model they're trying to solve. And then Garobi runs, gives you the output, you know, sort of gives the solution. And then you can dive deeper into why, why is this happening? You know, why, why did I decide to build a new production facility in Atlanta as opposed to Baltimore or something like that. And those are actual questions that you can get answers to with mathematical optimization. You can, because essentially what can happen in that situation is it'll resolve with the Baltimore production facility there and say, this is the difference. It is the difference because the cost is going to be this much higher, or you're going to have this much less demand or something, whatever it may be.

29:22You can actually sort of figure those things out and, and get to be able to answer questions that people are going to have when it comes to, you know, business problems and decision making is why this, why not that? Those are all things that can happen with mathematical optimization because of the, because of the structure and the rigor that's there.

29:39Jon Krohn:And so that kind of best of both worlds that you were describing there, where you can be having a conversation with a cutting edge LLM. You can be at the time of us recording this. Fable 5 is probably the most advanced LLM that the general public has access to. And so you could be having a conversation with Fable 5 about some business problem that you have, and it can be identifying potential gaps in your thinking. But then when it comes down to defining the mathematical optimization problem, it can also be helping you generate the code. And then you can review the code and say, okay, great. Nothing is missing here.

30:15Jon Krohn:and it seems like soon you're going to be able to have Groby provided MCP servers, model context protocol servers that allow that Claude agent or whatever agent, MCP is like a portable protocol that could be used by any LLM, any agent. And so a Groby optimization solver could then be called by the agent so that you get this flawless, deterministic, guaranteed optimal solution that the LLM on its own wouldn't be able to do. Yeah, we're working on a lot of things in that space. And one is MCP server. So how you can call our, we have a whole thing called the Groby Intelligence Hub now. And it has several agents within there that mostly right now we have a lot of interaction, you know, sort of just with like a chat interface and stuff like that.

31:09But it helps you really with that modeling part right there, that was just sort of just talking about how do I develop my problem statement? How do I write the code? How do I get the formulation and everything? We have a modeler agent that helps with that. So then you can then call that modeler agent within your IDE or wherever you want to work to help you sort of with all of that. Sort of say, okay, check my, I have this formulation now, can you check it? And this is what, you know, and so it's really cool where this is going and where we're trying to, what we're trying to take things next is we really want to streamline the modeling process.

31:45We want to streamline the support process as in like, hey, I have an optimization model. It's not running fast enough. Or I get like these issues or these errors. What can I do? First line of support is also we have an agent called Growbot that does that as well. And we're working on an explainer as well. So if one of the big issues that you get in optimization modeling, and if you don't get this, you consider yourself very lucky, is an infeasible model. It happens all the time. So if you're starting out and you get infeasible models, that's okay. It needs to happen. And what an infeasible model means is, so I've had all my arms so far, is essentially if that feasible region that I was describing has no points within it.

32:30So you have one constraint that points this way and another constraint that points that way, and there's nothing in between. So there's nothing that actually satisfies all of your constraints, that's an infeasible model happens all the time. How do I understand what that like, why is it infeasible? It could just be because somebody fat fingered a, you know, an extra digit somewhere and that's it. Or it could be because you literally have types of business rules that are legitimate, that are just, that just can't work together.

33:00Jon Krohn:Yeah. So, so yeah, helping you sort of identify and explain those things as well. So being able to call all of that type of stuff where you work, what we think is pretty important. And again, lowering the barrier to entry, that's what we want. We want more people to be able to use optimization. And so that's what we're working for. And that's sort of like our vision is having all these other agents do all those other parts or help with all those other parts. But when it just comes to the actual churning of getting that optimal solution, the wrong tool for the wrong job. Yeah, perfect. So agentic AI, LLMs, mathematical optimization, they can work perfectly together through these kinds of approaches that you're describing, MCP servers, chatbots, explainers that are helping you identify when you have created a model that is infeasible because you've added a bunch of constraints that you think maybe some, the business people in the organization.

34:01Jon Krohn:You talk to a bunch of different people in your business to identify where the constraints are on some problem. But when you put all those constraints together, you're like, wow, okay, there's no solution here because there's no place where, you know, there's no point in the space where reality can exist. And yeah, I love that. I love that, you know, you guys are kind of taking the best of what's been happening on the AI side, the LLM side, the agentic side, and allowing that to make using mathematical optimization easier than ever and increasingly more automated than ever. The explainer part of it is when you have people together and someone who says, oh, I'm on the planning side of things and this is going to be our budget for this or whatever.

34:48And then when you're able to clearly articulate, like say in this infeasible model, why it's infeasible and be like, oh, this is it's infeasible because these three constraints or these 20 constraints, one of which is a budget number, one of this is this and this, you're able to really sort of say, if we had more budget by this percentage, you can get very, very precise in this. There's tools that Garobi has that this explainer can help, one of which is called fees relax. Do you have an infeasible model? You run this sort of helper command and it essentially expands the model and makes it relaxes the model in a minimal way to sort of make it feasible.

35:31And it's a really helpful thing to then be able to say, oh, if you increased, if you increased our budget by 10%, then this is what we'd be able to do. So you can actually very specifically, like not just say, oh, well, it's infeasible. That's we're done here for today. No, you could actually really say, oh, to this group or to that group, what would need to change? And it just really helps with that process and say, oh, if I were to do this, then this is what would be able to happen. So it's a really cool way of, again, the whole framework of optimization and everything, it really brings that stuff to light.

36:07Jon Krohn:Does any of the functionality that you've been describing relate to, I know that a couple of years ago, we talked about on the podcast, Grobi building custom GPTs in chat GPT, which was a big trend for like a month, two years ago. And then I really haven't heard anybody talk about it since. And you've since brought that kind of custom GPT capability in-house as a standalone product. Is that product one of the things you were just discussing or something else? Yeah, that's it. Yeah, that's our intelligence hub. If you need to work through chat GPT or something like that, those custom GPTs still exist and they are helpful.

36:42But yeah, we decided to bring it in-house and really leverage the expertise of our technical teams to help guide these agents in their responses. We found that there's either sort of the best way to interact with an LLM or an agent about optimization is either using like the best of the best models out there from an agentic perspective or an LLM perspective. Or if you can't do that, then sort of like what is also equally as good, sometimes a little bit better, sometimes a little bit worse, you know, it all depends, is using information from like our sources. So using our, we have a ton of what we call knowledge-based articles.

37:26And these are articles that explain how to do things. I have this error. What do I do? I'm looking at my log file and this is this, this number that should be going down, isn't going down fast enough. Let's say, what should I do? All of that information, all of that knowledge is captured in what we call our, it's our grow bot is our, is, is essentially our product support agent. And all that information is there. So you can get, get as technical as you want. And And it should be able to help you improve your formulation or improve your runtime if you already have a model. And as I was talking about, the modeler agent before really, really helps you go from.

38:02I have a twinkle in my eye of an idea like, ah, yes, this would be great. And you could just sort of start with very basic stuff. And again, ask you all those interesting questions to help you really define a good problem statement. One thing that we noticed is if you were to go to, let's say you're not an optimization. expert and you were to go to any other, I'll call it vanilla agent or something like that, nothing that is sort of that has the knowledge of specifically that is looking at the knowledge of like Garobi or something like that. It likely won't follow sort of what we would call best practices of building an optimization model.

38:39And part of that is, you know, the iterative process of understanding the problem statement. But it's also building sort of test scenarios in which I know if I have a certain point that it should be a certain set of values for my decision variables, that it should be feasible at least. So you can then test that and it'll build tests that do that. I know this point should be infeasible. So it'll then test that. So it really helps you get that testing done that helps you get confidence in that the model that you're building is actually representative of the problem that you have. And which I think is as, as people who are probably not most of your audience is probably not optimization experts.

39:22That's an awesome thing to be able to do. It really just helps instill best practices. Garobot is the name of that, right? Garobot is the support agent. We just call the modeler, the modeler. I don't know. We didn't come up with a fancy name for that. Um, yeah, but it's all under the Groby, um, intelligence hub. Fantastic.

39:39Jon Krohn:All right, I'll have a link to the Groby Intelligence Hub for sure, and a specific link to the Grobot. I also just quickly, at some point while you were talking a while ago, I did look up the name of that Sinan Osdomar book where he has lots of experiments on LLMs not doing things that you specifically told them to do, which is a problem that you don't get with mathematical optimization. and that book is called Building Agentic AI and I can't believe I didn't remember the name of it because that book is in the John Crone signature series that Pearson publishes but I wasn't 100 % sure he has so many books that I wasn't 100 % sure that it was that book which is the first and only book that he's published so far in my series that Pearson does.

40:21Jon Krohn:I promised our listeners at the beginning of the episode that we would have case studies beyond supply chain examples which are kind of the bread and butter historically of optimization. Do you want to hit us with some of those energy and financial services examples? Yeah, energy and financial services are two of the areas that we're seeing a lot more adoption of mathematical optimization. And part of that is some of the stuff that I was talking about before, particularly with, actually for both of these, but particularly in energy, the nonlinear aspect of things was kind of like, oh, yeah, this isn't representative of what we want.

41:00So we're not going to do it. Or if we do try and linearize things, it goes with the one of two ways where it blows up the problem or becomes not representative enough. So there's a bunch of problems that more people are using optimization for in terms of what we call a unit commitment problem. So essentially, how do I sort of what power supplies should I be using in order to meet demand? How should they be scheduled? What units should I commit at certain times and things like that? And there's other problem variants that really take into consideration the physics of energy, of energy supply and everything like that.

41:35And we're seeing a lot of renewable dispatch optimization problems as well. So, OK, I'm able to have like solar panels or wind energy or something like that. and those can fill out batteries. How can I then dispatch that in order to, when should I do it, in order to make sure that you meet demand and minimize costs and things like that. So those are a few of the problems in energy that we're seeing more adoption of optimization for. And on the financial services part, there's a lot in sort of retirement planning is one where we have a pretty cool um case study um from a company called uh my goals uh i believe i believe they're called so uh definitely uh sort of hop on and check check out that that case study as well and what's really interesting about about that case study is there's just a lot of regulations that need to be met when it comes to planning for your retirement and i think i believe this is in it's a canadian company so this is from the canadian yeah yeah i looked it up while you were speaking so it said i could

42:40Jon Krohn:put a link in the show notes and my goals is a Toronto based fintech platform. And they use the Groby optimizer to help individuals balance competing life and financial goals. You talk about these constraints and you could imagine, uh, people, this is a really good example of like how you could as an individual kind of have an infeasible region, uh, in, in the way that you're thinking about your finances where you're like, all right, I'm going to have this sweet car, send my kids to private school and have these kinds of savings on this salary. And, uh, yeah, the optimizer is like, sorry, that's infeasible.

43:17Jon Krohn:That's rough. But then it could, uh, if you built this, you know, you have, if you have, uh, like this model, you can then see like, okay, well, what should, what changes should I make? Again, it's, it's, there's a lot of the explainability that I really want to sort of emphasize is like, okay, if it is infeasible, which kind of rough to say, okay, should I not send my kids to this school or should I not buy this card? I mean, but that's life. Yeah, that is, that is. And, and those, those decisions can be sort of brought to light and what changes you would then need to make. For sure. And so according to this case study, my goals using the Groby optimizer improved after tax retirement income by 2 % to 10 % compared to conventional planning tools, resulting in income outcomes, 10 to 20 % greater, which is a lot.

44:03Jon Krohn:Like if you think about how much more you'd have to work or the kinds of things you'd have to save on in order to, you know, to save 10 or 20 % more over your life. And then it also said that because of the kinds of things that you've been talking about throughout this episode, where you can run the mathematical optimization in different scenarios. Like you were talking about Baltimore versus Atlanta. And so that kind of thing applied to your own personal finances, your own life. It allows the My Goals platform powered by Groby Optimizer to, instead of generic rules of thumb, evaluate multiple goals simultaneously and build actionable, tailored strategies.

44:43So that's a really cool example that I bet a lot of our listeners are going to want to

44:47Jon Krohn:check out. All of the other regulation stuff that happens is all stuff that, yeah, those are all hard constraints. You don't want to run afoul of that. You don't want to mess that stuff up. Yeah, just make sure that the things that can't happen can't happen. The things that must happen will happen. Cool. And I believe you also have a fun USA Cycling example. Is that right? Yeah, this one's one of my favorite over the last year. So when you think about riding a bike in a competitive situation, how that's not at all like long term supply chain network design planning. You know, it's just like so different.

45:24I'm like, okay, how should I physically be riding a bike? And that is just, they're just so different. That's why I sort of really like this problem. There's a paper, an academic paper that was written about this as well. So you can look into it. You can find a video on our website. I think you need to put in some information to get to it. Yeah. So essentially there was USA Cycling, I believe the women's team, they were doing sort So the indoor, one of the indoor events. And there's a lot of interesting sort of decisions that can be made when you think about I have a four rider team and they're in certain positions.

46:04Each of those positions have different sort of like drag amounts and things like that in terms of like how much wind resistance there is. And you can think about how, okay, so I'm riding around in circles with my team. And then how can I conserve energy? How can I make sure that certain people are in certain positions at the right time? How can I make all these sort of types of decisions like rotation strategies and things like that while also making sure that you're adhering to the rules of the game? I think I use that as an analogy like the first or second time I was on. It's like optimization is like rules to a game.

46:39This is actually rules of the sport that need to be adhered to. But essentially with optimization, they were able to sort of develop a sort of like a prescriptive plan about how much, literally how much effort you're supposed to be putting forth at a certain time. What sort of order you're supposed to be in a rotation strategy between you and your teammates. What's the best way for us to run a race given all of these physical, like sort of the physics of air resistance, plus energy levels, plus all this sort of stuff. in order to minimize the race finishing time? How fast can we go? And it's just a really interesting and very different case study in which there's a lot of detail that happens in there, a lot of cool things.

47:26And it's just a very different perspective on optimization, which I think highlights the usefulness of it. Because if you think about going back to what I was talking about at the beginning and before, what are the building blocks of optimization models? I have decisions to make. Okay, who's going to be in the front at the beginning? When do they start swapping? how much energy, how much effort should I be giving at certain times? Those are my decisions. How are they constrained? Well, I need to have people in a line and then like other things that need to happen. And then what's my objective?

47:52I want to minimize the time it takes to finish a race given all of these things. Yeah. That problem has those characteristics and therefore is able to be solved with mathematical optimization. So it's a really cool case study and really interesting application of optimization in a way that you just wouldn't normally think. And I find myself part of the problem sometimes with that because like there's such big use cases this big case studies where tons of money has been saved and all this sort of stuff with these big companies doing big problems and it's like all supply chain logistics and all that yes that's awesome but then these things come around where something just very different is there and and the benefits are awesome and it led to i mean it led to a gold medal finish too so that's so that's the thing i also want to mention too it wasn't just like oh we got better it was like literally like Like they were like part of the process was regression analysis to sort of figure out what times that they would need in order to fit it in order to take the gold.

48:49And that set like their standard for the time. And then given this sort of like we need to be in this ballpark, like if our objective can get in this range, we have a shot. And it's just really interesting sort of how they put everything together. And I highly recommend reading the paper on it if you don't mind seeing a little bit of math in there. Even if you sort of gloss over those parts, it's still a really cool story. but then also heading over to our website to sort of check it out. And I know we'll probably hit on this a little bit but the presentation that you would see there was given at our Decision Intelligence Summit.

49:22So that's the type of stories we like to tell when you go to our summit event to sort of learn more about optimization. So I think we'll hit on that a little bit.

49:36Jon Krohn:On this podcast, I'm always going on about how Claude Code is mind-blowing, but now Claude Cowork is making my jaw drop as well. For example, I recently wanted to quantify how healthy my sales pipeline is for my AI consulting business. I simply asked Claude to estimate my sales for the coming quarter, and it brought info from relevant Google Sheets and my Gmail to create a professional spreadsheet of clients with estimated revenue for each one. Whoa, this might've taken me a day. Instead, it was done flawlessly with Claude Cowork in minutes. Claude is the AI for minds that don't stop at good enough.

50:07Jon Krohn:It's the collaborator that actually understands your entire workflow and thinks with you. Whether you're debugging code at midnight or strategizing your next business move, Claude extends your thinking to tackle the problems that matter. Ah, and you'll appreciate that I can ask Cowork to show me data, such as my sales spreadsheet, and it provides an interactive chart right in the conversation. For problems worth solving, get started with Claude at Claude.ai slash superdata. That's Claude.ai slash superdata. And check out Claude Pro, which includes access to all of the features mentioned in today's episode.

50:36Jon Krohn:claw.ai slash superdata. We will. We'll hit on that for sure. Yeah. So I'll have a link to this paper in the Informs journal on applied analytics. It's called Project 405, Optimizing USA Cycling, USA Cycling's Women's Team Pursuit Gold. It's a mouthful of a title. But the key thing is that in this project 405 uh the specific event that usa women's team won gold at was the paris 2024 olympics yeah and yeah so super cool we got the paper and they used uh python mixed integer programming and the groby optimization solver to be able to optimize and contribute to that gold medal results. So super cool.

51:23Jon Krohn:Um, it sounds like it even identified talent for the team, which is a wild kind of thing that I wouldn't have even thought was a possibility, but basically talent that wouldn't have even been in the team were identified by identifying optimal physiological profiles and matching cross training athletes to different cycling disciplines. That That is wild. That right there sort of just shows the multidisciplinary sort of approach that I always preach with this kind of stuff. A lot of that information, a lot of the data and a lot of that stuff is perfect for your traditional machine learning type of things.

52:06And that is so important. But then also, it is also so important to come up with this optimal strategy. So, yeah, these these types of of analytics are need to be working hand in hand, pretty much like for every problem, I think. So if you're not using both something that is like a prescriptive, it doesn't always have to be mathematical optimization. I'm not going to say it's it's the it is like the holy grail of prescriptive techniques. It does a lot. But, you know, but I just always encourage to make sure that you're using as many techniques to fill in the gaps as possible. Now you don't want to just throw, you know, everything at every, at every problem.

52:44You want to make sure that that it's actually applicable. But again, you know, we just always sell ourselves short. I think as many quivers as you can fit on your back. Yes. That's the same.

52:55Jon Krohn:Um, all right. So let's say we have a listener who's like, sweet, aeropy optimization sounds perfect for this situation that I have in my business. and then they go check out some of your tutorials, chat with Girobot or take advantage of Girobi Intelligence Hub materials and then they actually identify a problem that they're like, wow, look at this perfect situation. I'm pretty sure I identified an opportunity to save us money or increase profits or whatever. How do you get that change management to happen in your organization? How do you explain mathematical optimization to your boss, your boss's boss, and so on to actually get your solution implemented?

53:41Yeah, this has been a big effort on our part with internal Tegurovi to help our customers do this. Because that exact problem is something that we hear a lot of. There'll be someone who is like what you just described. We would describe them as an internal champion of optimization. They're sold. They know the benefits. They know what they can do. They know the problem they can solve. But they're not going to be able to do that. You can't just like go run off and spend half of your time solving a problem that your boss doesn't think is useful. So up the chain, you're going to get some resistance.

54:15And also in implementing things and down onto the more like planning level or something, the people actually doing the things that the model says, you might get some resistance there as well. So we've been putting together a lot of material, which is yet to be released, but we're working on it to really help with those questions to help people understand, OK, if I'm say I'm an optimization modeler now or your data scientist who's doing optimization and you've identified this. if I'm talking to, you know, like my CFO or CEO or, or maybe just like a couple levels up, it's like a, you know, a manager, a director, somebody up there, how do I talk to them?

55:00Like, what should I be bringing to their attention about the benefits of optimization? And a lot of that would be stuff like a big thing is the difference that I was talking about between sort of agentic sort of AI, LLMs, generative AI, what that's good for and what that's used for. versus optimization, what that's useful for, versus like sort of, again, traditional machine learning, what is that used for? So being able to clearly articulate those, like the benefits of each of those things, because you're, if you bring this up and you say, oh, you know, hey, I think I have a way to save us millions of dollars is using optimization and here's all the things that we need to do.

55:35Like probably a question is like, you know, we have a clause description, we have a chat GPT subscription, we have this, we have that. Why can't I just ask the LLM to do it? Because an LLM is going to be like, oh, yeah, I got you. Again, that confidence that it has is so misleading at times that it'll be like, yep, I'm optimizing your supply chain right now.

55:55Jon Krohn:And then it forgets all the stuff that we talked about before. So being able to clearly articulate the differences there is super important. Understanding the right terminology to use, how you should frame the business problem. Hey, because if you talk about to sort of management and you say, oh, well, I'm able to increase productivity by a small percentage or something like that, they'd be like, well, OK, that's great. But what does that really do for us? What what benefits is that, you know, from our maybe possibly probably likely the bottom line? Like what how much monetary value is this producing?

56:27So that's that's one way to think about it. And then also, but then down, you know, sort of downstream of things when you have the people who are actually who have 15 years of planning experience or something that they've been doing their job with, you know, with with their their brains, their gut and maybe an Excel spreadsheet or something like that. And they've been doing it that way for like 10 years and they have all this experience. All of a sudden you're like, oh, well, I'm going to I'm going to bring in this tool that is going to optimize things. And and they're going to be like, well, what the heck's going on?

56:56Like, how do I fit in? Am I being replaced? Those are lots of questions that you need to be able to answer. You're going to get pushback on that. Internally, when we talk to a big effort for us to understand this, is talking to our sales representatives, our leadership on the sales team, our technical sales folks as well. And that is a legitimate concern is if I implement an optimization model for like some scheduling problem and you have someone whose job it is to do the scheduling, they're going to be like, well, where does this leave me? What is this like? Are you forcing me out or what's happening there?

57:37And essentially, one of the big takeaways that I like to talk about from our NFL example, where again, Groby is used for as the engine to solve the NFL scheduling problem every year. It didn't replace the scheduling team. They're just able to be more like super more efficient instead of like trying to come up with like one schedule. Now they're able to analyze like thousands of them and they're all high quality schedules. So they're able to do their job differently. And I think that's what you want to articulate to the people who are, who's sort of quote unquote jobs, this might replace or something that is like, no human in the loop is always going to need to be there.

58:19There's always going to be, there's the saying of all models are wrong, but some are helpful, that type of thing. There's always going to be some sort of like human, like, well, maybe this one's slightly better than this one, or this is the thing, you know, we, I would rather go with this because of that, you know, something like that. There's going to need to be some sort of human in the loop. And optimization could still be teaming up with people in that respect. So when it comes to talking to sort of one audience about optimization, you need to be highlighting, hey, this is the value that it brings.

58:51This is how it affects the bottom line. This is how it helps us become maybe more robust as an organization. And then down the line, when you get to the implementers of the decisions, this is how it's going to make your job easier. This is how it's going to incorporate your expertise. Because one of the easiest things, you know, start poking holes in these tools and the arguments that these tools bring is, you know, you're on an optimization model and somebody with like their, you know, 15, 20 years of experience, like I'd never do that. That's stupid to do that. I would never make this decision.

59:27Well, now you just learned a new constraint. That is something that should be that that shows that you need to have these people involved in the in the modeling process to be like what is the thing that you would never do or why would you never do this and be like oh well because of x y and z we would never do that and now you just learn something about how your system needs to operate so so those types of people have the experience and the expertise to really bring the realism to your optimization model so they should be you know just as involved as anybody else in terms of building the model, building the application and things like that.

1:00:04So, so being able to talk to both sides, here's the value, here's where it affects our bottom line, but here's how it's going to make you more productive. Here's going to help your life. Here's how it's going to make your job easier or better are things that you need to be able to articulate as you're sort of going down this optimization path. Yeah.

1:00:22Jon Krohn:So you can speak to management about the value, the bottom line, how they're going to save money while simultaneously you can be speaking to the people who are going to be using these tools and make it clear that this is not going to replace them is going to make them better at their jobs for people who now want to be able to get going and add optimization to their toolkit where should they start the first website to go to is just groby.com slash learn that will take you redirect you to another site where it has essentially all of the the training that that I've led over the past few years. We have a whole series of four trainings.

1:01:00It's optimization for data scientists, Opti 101, 201. We did a 202 and then a 301, where it takes you from the absolute beginning of optimization to some pretty techniques and things where we hit along things about the difference between machine learning and optimization. And again, from an AI perspective, how it fits into sort of the AI landscape and how do you deal with uncertainty? Because that's a big thing. You know, your demand forecasts are not perfect all the time. So we really sort of tried to run the gamut there. So that's a great way to start. We have a, we worked with a professor, Dr.

1:01:37Joel Sokol at Georgia Tech. He helped us produce another more in-depth training. So the training that I was talking about, each of those are like two, four to five hour sessions and stuff like that, which all of those things are YouTube video, YouTube playlist now with Jupyter Notebooks on our GitHub. The other thing is on a Udemy course that has four parts. So you can check all that out to really get from I'm just starting out to I kind of know what I'm doing now. I'm dangerous and a good kind of dangerous. I can actually solve some problems here. But again, I'll always say that there's always room to learn.

1:02:14So I think between that, And then honestly hopping on at the Intelligence Hub, using the Modeler to help you understand your problem in the context that you want. So you can say, I'm new at optimization. I want you to help me solve this problem. Limit the notation for now. Like, I just want to see this. And really, the Modeler does an exceptional job of not showing you all of the, here's your formulation, and it's all math right away. Like, just get rid of that for a while. You do need to understand it at some point. But you can really sort of give it a little bit of a profile on you and what you want.

1:02:49And that's super helpful as well. So I say that that website, we have tons of Jupyter notebooks that you can use that are all over the place in terms of the industry and the application and the difficulty as well. So I'd say that's kind of like your one-stop shop. And if you do need to explain the optimization part, the burrito optimization game is good for you to learn. but then also that's a great tool to send to your management or to to the planners the the end users and be like oh this is why optimization is helpful because within again like two rounds of that people are severely suboptimal same thing for the groving game as well there's a little bit more randomness there um because there there is some simulation involved and stuff but but you can really quickly see that you know gut intuition experience what i think you know i ended up just not they're not accurate ways of making decisions.

1:03:42So all of those can be found at that one webpage. So I'd say that's the first place to start.

1:03:50Jon Krohn:Cool. Garobin, the burrito optimization game, but above all, garobin.com slash learn for all the educational resources that you and your team have been putting together. If people want an intensive, more interactive session, I believe you also have an annual two-day training called optimization for data scientists coming up. Do you want to to talk about that? So all of those, the Opti series that I was talking about that is we have decided to rebrand that a little bit. So we're done with the optimization for data scientists, but it's going to be more Gen AI focused. So, and not just talking about the tools that we have, it's not just going to be, oh, we're going to use the Groby Intelligence Hub for everything.

1:04:30We know that that's not how everyone's going to want to work. And we want to try and teach the lessons that we've learned of really how to put optimization together with generative AI and how these things should really work together in a more general context, general framework. So we're not going to be using all of our stuff, but we will be using sort of cloud code and things like that. And how can you really get the most out of this? What are the things you really need to focus on in order to get the best output? What are the best ways for me to prompt things? when should I be doing this versus that?

1:05:06So a bunch of techniques and a bunch of ways, a bunch of lessons learned that we have. So that will be, I believe, in mid-November. So we got some time, but it's going to be like, I think we're calling it like OptiGenAI something. I don't, we haven't really finalized the name yet.

1:05:20Jon Krohn:Are there dates finalized or a URL people can go to or anything like that yet? We don't have a URL or anything, but we do know that this training is going to happen either November 19th and 20th or one of those two days. We haven't finalized if it's going to be one day or two days, but the end of, you know, that the end of that week in November 19th or 20th, we'll have, we're going to have that, that training that's again, focused on Gen AI and optimization working together as two best friends should. And that's online. It'll all be all remote. If you can't make it, if you're, you know, you're, you have other stuff happening, you can still register and do it all on demand afterwards.

1:05:56Everything's recorded. Notebooks are there, you know, all that sort of stuff will be there. and we leave it open for I think like a month or something like that. So you have plenty of time to dive in to that content and work through it.

1:06:10Jon Krohn:Nice. We'll keep an ear out for that or reach out to Jerry as November approaches. I suspect we might have sponsor messages on the podcast for it. But something that we do already have sponsor messages running for is the Grobi Summit, which is in person in Las Vegas. That is coming up as well. that is kind of, that's not necessarily as technical as the, what used to be called optimization for data scientists thing. It's something it's on September 22nd and 23rd, uh, at the Aria hotel and resort in Las Vegas. And that's more general, right? Like that isn't, that isn't necessarily targeted at just technical people, right?

1:06:50We know our audience. And if we didn't have some technical stuff there, they would be very upset with us. That's why we kind of have two days. The first day is sort of more focused on the, you know, the usefulness of optimization, getting actual, like we invite our customers, our people who use Garobi to tell their story. So that's where, again, where that USA Cycling example was discussed, was at that event. So you'd be able to hear those cool stories, see how people are really using optimization and not just like see it. And then you can just, then you can go talk to them like oh that is something that's really close to what i'm doing can you tell me more about it and it's a it's an event in which people really love to share what they're doing so we have a lot of that a lot of like let's let me share my story with what how i'm using optimization and and the benefits that it's giving that's kind of like the the big day one focus um the second day is more a little bit more technically focused and we have two tracks one of which is what we call an advanced track.

1:07:50So if you are someone who is really good at optimization, you can hear from our super genius experts on the cool stuff that they're working on and how to deal with these problems at a very super advanced level. That's there. And then we also have what we call a beginner track. And again, we start from the basics and that is going to cover sort of, hey, what is optimization again in the context of the AI world that we're living in now. I want to get some basic examples out of the way, sort of start with basic modeling. We use our Python API, so Garobi Py, and then we are going to go actually through a pretty longer session of using the intelligence hub and using the modeler and developing a model, and then using Garobot to help sort of debug and make it run faster as a support tool.

1:08:44And then also the explainer as well, like, hey, things have gone wrong. Why? What can I do? So we're going to try and have that whole story told there as well. So it's a great way to meet people who are doing the problems that you feel like you should be able to be doing in your in your company and sort of really see firsthand the benefits there. um so i can't suggest the event enough i will be there so if you want to say to my face that you did not like my opti 101 training then you can do that as well or you can say hey that's pretty cool i appreciate it um i don't i'm always a little i'm a little self-deprecating at times so um just in case if anyone does have some criticism but uh but you can then meet other people who are much smarter than me on this as well we do bring a we do bring a lot of grovi folks there.

1:09:33And you'll be able to talk with the best of the best to help you out.

1:09:36Jon Krohn:All right. So yeah, Jerry and some smart people at the Decision Intelligence Summit 2026 coming up in Las Vegas, September 22nd and 23rd. Jerry, we are out of time today. This has been another fantastic episode. So great to hear all the updates happening in the mathematical optimization world this year, particularly as it pertains to, say, Agentic AI and lots of other industry applications, including energy, finance, those USA Cycling successes. Before I let you go, do you have another book recommendation for us? Yes, I do. And this one's going to be a little on the oddball side of things. I did two stints of graduate school.

1:10:15One was general applied math, and then I got into operations research and statistics after that. But when I was doing the more general applied math, I had to take a graduate level geometry class. and part of the reading that we needed to take we needed to do in there is we needed to read this book called flatland and it is a super unique way of exploring the relationship between geometrical objects like a point versus a line versus a polygon versus a three-dimensional shape and if you were to take all of those sort of things and take those and make them sort of like living beings then also put it in like a medieval setting um that is what you would get in in flatland and it's just a really interesting way of of sort of exploring uh sort of the basic principles of geometry in a really weird way uh i that's the only way i could describe this book is really weird but it's really interesting and it's really fun to to read it's got like a little bit of um it has some issues in it but overall it's still pretty it's still pretty cool um i would i would recommend reading it for just for it just for the comedy alone but it is a really good way of i guess sort of one of the through lines that i've been talking about is like you need to be able to talk to people the way that they are you know in their language you need to be able to communicate complex ideas in different ways to reach different people.

1:11:51And that's kind of the takeaway of this book is, is you need to be able to talk about what you are as a geometrical figure and relate it to other ones that just kind of don't understand. If, imagine if you were a two dimensional line, how would, and somebody said, Oh, I have three dimensions. I have height, you know, not just length and width or something like that. Um, or, you know, I have, I have three dimension instead of two, like it's sort of, but it really does like an interesting, has like the interesting interplay of like, how do you talk about something that somebody has no idea what you really mean?

1:12:25Um, so, uh, so it's pretty cool from that perspective as well. So I highly recommend it.

1:12:29Jon Krohn:Nice. And you're not the first person who has recommended flatland to me. So thank you for that recommendation. I think it's probably a good fit for this audience, uh, as opposed to an oddball, suggestion. And yeah, final question, Jerry, as always on this show, we already know about things like groby.com slash learn is a great resource for groby. But for you personally, how should we follow you for your thoughts after this episode? So I'm relatively active on LinkedIn. So follow me there. Follow groby on there as well. I also have a blue sky handle so you can check out what I have to say there so often.

1:13:05So that's a math with Jerome, um, on that platform. Um, and cause I do also go by Jerome, um, just to, just to throw that curve ball in there. Well, I think we probably explained that away a long time ago. Um, so you can follow me there.

1:13:21Jon Krohn:Yeah. So, um,

1:13:26nice. Um, so yeah, that's probably the best ways to sort of keep up to date with what, what I'm thinking and, and what Garobi's working on and what's happening in optimization.

1:13:36Jon Krohn:Well, thank you, Jerome or Jerry or whatever you'd like me to call you. And I hope we'll have you on again next year to see whatever wild AI environment we're in in 2027 and how mathematical optimization is making all kinds of problems solved that otherwise would still not be solvable. You'll probably talk to an AI agent named Jerome, and I just won't be here. Sounds good. All right. Jerry, thanks so much again for coming on the show and catch you again soon. All right. Thanks, John. I appreciate it. So great to have Jerry Yurchison back on the show today. In this episode, he covered the three building blocks of any mathematical optimization problem.

1:14:21Jon Krohn:That's one, decisions you control, two, constraints on those decisions, and three, an objective to maximize or minimize. He also talked about how any problem with those three characteristics can potentially be solved optimally regardless of industry. Separately, he talked about why LLMs shouldn't be trusted with high-stakes decisions on their own, since they'll confidently claim they've optimized your business while occasionally ignoring an instruction, whereas optimization treats constraints as hard guarantees that cannot be violated. He talked about the division of labor he sees for the agentic AI era.

1:14:57Jon Krohn:Agents help you define the problem statement, write the formulation and generate the code, then hand off to a solver like Garobi, soon callable via MCP servers, for a defensible, explainable, guaranteed optimal solution. And he provided some fun case studies at the end of the episode, including improvements in after-tax retirement income relative to conventional planning tools and USA Cycling, which used mixed integer programming to plan rider rotations and effort levels en route to gold at Paris 2024. As always, you can get all the show notes, including the transcript for this episode, the video recording, any materials mentioned on the show, the URLs for Jerry's social media profiles, as well as my own at superdatascience.com slash 1015.

1:15:40Jon Krohn:Yes, these numbers are getting big. Yeah, thanks, of course, to everyone on the Super Data Science podcast team, our podcast manager, Sonja Breivich, media editor, Mario Pombo, partnerships manager, Natalie Zajski, our researcher Serge Masise, and our founder Kirill Aromenko. Thanks to all of them for producing another Optimal episode for us today, for enabling that Optimal team to create this free podcast for you. We are so grateful to our sponsors. You can support this show by checking out our sponsors' links, which are in the show notes. Otherwise, help us out by sharing this episode with folks that would like to learn about mathematical optimization, review the episode on your favorite podcasting platform or YouTube.

1:16:22Jon Krohn:If you rate an Apple Podcasts review, that is particularly helpful for us for getting word out about the show. So bonus points if you do that. Subscribe if you're not already a subscriber. And most importantly, I just hope you'll keep on tuning in. I'm so grateful to have you listening and I hope I can continue to make episodes you love for years and years to come. Till next time, keep on rocking it out there and I'm looking forward to enjoying another round of the Super Data Science Podcast with you very soon.

From the publisher

In Episode #1015, Jerry Yurchisin (manager of decision intelligence strategy at Gurobi Optimization) joins Jon Krohn to explain the AI technology that makes breaking a constraint mathematically impossible. Large language models will confidently claim they've optimized your business while ignoring the one constraint that could cost millions, whereas optimization treats constraints as hard guarantees. Jerry lays out the division of labor he sees for the agentic era: agents help you frame the problem, write the formulation and generate the code, then hand off to a solver like Gurobi, soon callable via MCP servers. In this episode, Jerry breaks down the three building blocks of any optimization model, traces the leap in non-linear solving, explains how to pitch optimization to your CFO and to the planners whose jobs it touches, and shares case studies spanning energy grids, retirement planning and USA Cycling's Paris 2024 gold.

Additional materials: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.superdatascience.com/1015⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

Interested in sponsoring a SuperDataScience Podcast episode? Email natalie@superdatascience.com for sponsorship information.

In this episode you will learn:

(02:42) The three building blocks of an optimization model

(21:43) Where optimization fits in the agentic AI era

(29:58) Inside the Gurobi Intelligence Hub

(39:40) Energy, retirement planning and a cycling gold medal

(50:58) How to sell optimization inside your organization

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