Procurement is a challenging task for large companies when bidders offer quantity and multiple lane or product discounts. Problem becomes convoluted because of different quality ratings of different carriers. Optimal mix of carriers can not only save cost but it can also find right mix in case of carrier disruption, requirement changes etc.
ORMAE provides customized optimization solution for solving this problem by choosing the best carrier bids to minimize the transportation costs
The problem which ORMAE solved was to select the optimal mix of bids offered by the carriers to minimize total transportation cost that fit the customer requirement. A Mathematical model was scientifically developed to be able to find best combination of bids. There were instances when multiple solution came out to be best. Client was able to choose among these multiple solutions based on other preferences.
On implementing this solution, the client manual efforts reduced to less than a min from 1+ hour for each bd selection process.