The Balance award rule

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.

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Figure 1. Balance award rule configuration

Balance the award

    1. of: 
      • Lots
      • Column
    2. across locations:
      • One-way: Balance award inbound and outbound from single locations
      • Two-way: Balance award between location pairs
    3. origin (outbound): Select the locations to balance the volume from
    4. destination: Select the locations to balance the volume to
    5. 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.
    6. 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.
    7. 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.


Figure 2. Enter a custom description

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