The Balance award rule optimizes logistics sourcing by efficiently distributing volume across your network. It reduces empty trips and streamlines transportation for smoother, more reliable operations.
Figure 1. Balance award rule configuration
Balance the award
- of:
- Lots
- Column
- across locations:
- One-way: Balance award inbound and outbound from single locations
- Two-way: Balance award between location pairs
- origin (outbound): Select the locations to balance the volume from
- destination: Select the locations to balance the volume to
- for: Select which bidders to apply the rule to.
- All bidders: Apply the rule to all bidders in the event.
- Specific bidders: Select specific bidders to apply the rule to from the dropdown list.
- Bidders in group: Select specific bidder groups to apply the rule to from the dropdown list.
- Bidders not in group: Select specific bidder groups to not apply the rule to from the dropdown list.
- on: Select which lots to apply the rule to.
- All lots: Apply the rule to all lots in the event
- Specific lots: Select specific lots to apply the rule to from the dropdown list.
- Lots in group: Select specific lot groups to apply the rule to from the dropdown list.
- Lots not in group: Select specific lot groups to not apply the rule to from the dropdown list.
- by applying a penalty (per unbalanced unit)
- Enter a value
Rule description
Enter a custom description of your rule that will appear in addition to the auto-generated description created by Sourcing Optimizer. This custom description is a useful way of adding context for the purpose or goal of your rule.
Rule example
Bid sheet
Lot ID | Origin | Destination | Price |
L1_FREIGHT_DUB_CORK | Dublin | Cork | - |
L2_FREIGHT_CORK_DUB | Cork | Dublin | - |
Bid submissions
Bidder One
Lot ID | Price |
L1_FREIGHT_DUB_CORK | 100 |
L2_FREIGHT_CORK_DUB | 100 |
Bidder Two
Lot ID | Price |
L1_FREIGHT_DUB_CORK | 150 |
L2_FREIGHT_CORK_DUB | 80 |
Scenarios
Low Cost Baseline
Total cost: $180 with $0 penalty for load imbalance
Lot ID | Allocation | Cost |
L1_FREIGHT_DUB_CORK | Bidder One | 100 |
L2_FREIGHT_CORK_DUB | Bidder Two | 80 |
Balance Load @ $1000 per unbalanced unit
Total cost: $200 with $0 penalty for load imbalance
Explanation: Awarding L2 to Bidder One is cheaper than incurring the penalty.
Lot ID | Allocation | Cost |
L1_FREIGHT_DUB_CORK | Bidder One | 100 |
L2_FREIGHT_CORK_DUB | Bidder One | 100 |
Balance Load @ $10 per unbalanced unit
Total cost: $180 with $10 penalty for load imbalance
Explanation: Incurring the penalty is cheaper than awarding L2 to Bidder One
Lot ID | Allocation | Cost |
L1_FREIGHT_DUB_CORK | Bidder One | 100 |
L2_FREIGHT_CORK_DUB | Bidder Two | 80 |