AI Supply Chain Optimization Engineer.
Madison.
$130,000
median salary, 7% below the national average
$98,000 to $166,000. Last updated April 2026.
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Data points to own the conversation.
A AI Supply Chain Optimization Engineer in Madison earns a median of $130,000 in 2026. That is 7% below the national average. The range runs from $98,000 to $166,000, and where you land depends on your experience, your skills, and how well you negotiate. Compensation reflects the ability to apply ML to complex supply chain problems including demand forecasting, inventory optimization, and logistics network design.
Salary range
Where do you fall?
Salary by experience
The gap between entry and lead level is typically $117,000. Where you land depends on years of experience and what you bring to the table.
Entry (0-2 yrs)
$85,000
to $104,000
Mid (3-5 yrs)
$111,000
to $137,000
Senior (6-9 yrs)
$143,000
to $169,000
Lead (10+ yrs)
$163,000
to $202,000
Salary trend
+7% YoYTotal compensation
Base salary is not the full picture. Equity, bonus, and signing can add $56,000 to the total package.
Base
$130,000
Equity
$34,000
Bonus
$14,000
Signing
$8,000
Estimated total: $186,000
How Madison compares
Madison, WI
$130,000
Cost of living: 5% below average
National Average
$140,000
Madison is $10,000 below
AI Supply Chain Optimization Engineer salary by city
Salary by role in Madison
What you should know
The AI Supply Chain Optimization Engineer landscape in Madison is not what most salary sites will tell you. Madison is a growing tech hub anchored by the University of Wisconsin and Epic Systems, one of the largest health IT companies. The city consistently ranks among the best places to live and has a thriving startup ecosystem. Salaries are competitive relative to the modest cost of living. Compensation reflects the ability to apply ML to complex supply chain problems including demand forecasting, inventory optimization, and logistics network design. Engineers who can reduce supply chain costs by measurable percentages through AI-driven decisions earn premiums. Experience with operations research combined with ML provides the most valued skill combination.
Junior supply chain AI engineers start at $90,000 to $110,000. Mid-level engineers building production forecasting systems reach $130,000 to $158,000. Senior engineers designing network-wide optimization platforms earn $165,000 to $200,000. Directors of supply chain AI at major retailers or manufacturers can reach $220,000 to $280,000. In Madison, cost of living sits near the national average, so the numbers you see are roughly what you keep.
Base salary is not the full picture. Performance bonuses of 12% to 20% tied to cost reduction or service level improvements are common. Equity at supply chain tech companies adds $15,000 to $55,000 annually. Benefits at large retailers and manufacturers include comprehensive packages and product discounts. And on the tax side: wisconsin's top income tax rate is 7.65%. Madison has no city income tax. The moderate state rate is offset by the affordable cost of living and strong employer base. When someone quotes you $130,000, ask what the total package looks like. The gap between base and total comp is where real money hides.
On negotiation: Reference Epic Systems compensation benchmarks. Epic sets the salary standard for tech in Madison and most employers in the area compete against their packages. The range for AI Supply Chain Optimization Engineers in Madison runs from $98,000 to $166,000. That is not a narrow window. Where you land inside it depends almost entirely on whether you negotiate and how well you prepare.
Sources: SEC filings, H-1B LCA (DOL), BLS OES, 50+ job posting platforms. COL: BEA Regional Price Parities (2025). Data verified by Justin Bartak, Founder & Chief AI Officer. Last verified April 8, 2026. Full methodology
Considering a related role?
- A Pharmacist in Madison earns $129,000 (1% less)
- The highest-paying role in Madison is Distinguished Engineer at $307,000
Common questions.
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