Evaluate: Scenarios

Creating and Evaluating a Scenario

Managing Scenarios

Scenario Settings

Detailed Bid Summary Report

By default, Sourcing Optimizer will create a scenario, ‘Low Cost Baseline’, which is a scenario with no business rules imposed, once a round closes. Click 'Evaluate' to run the scenario evaluation. 

The 'Scenarios' screen (Figure 1) displays the following information about each evaluated scenario:

  • Rules - the number of rules specified
  • Lots - the number of lots awarded
  • Winners - the number of winning bidders
  • Total - the total allocated cost
  • Adjusted Total - the total adjusted cost (based on applied supplier-specific bonuses and/or maluses)
  • Historic cost - the total historic cost for the lots in the scenario (historic cost must be mapped to see this column)
  • Saving - the calculated savings (historic cost must be mapped to see this column)
  • Saving (%) - the calculated savings percentage (historic cost must be mapped to see this column)

Click 'View results' to view the allocation by lot for this scenario. Then, click on 'Scenarios' to return to the 'Scenarios' screen.

Figure 1: 'Scenarios' Screen

Creating and Evaluating a Scenario

  1. Click the '+ Add a scenario' button at the top of the 'Scenarios' screen
  2. Click on the default name for the newly created scenario, and change it to something descriptive (e.g., "One Winner Only")
  3. To add a constraint/rule click the ‘Edit’ button to the far right of the scenario name
  4. Select the appropriate rule category (e.g., if you want a maximum of 1 winner, click ‘Add’ under ‘Number of Winners’)
  5. Add the rule (e.g., select ‘Ensure a maximum number of unique winners’ from the drop-down field, and then enter ‘1’ in the ‘Maximum number of winners’ field)
  6. Click 'Create'
  7. Add additional rules, if needed
  8. Click ‘Back to Scenario List’ at the top right
  9. Click ‘Evaluate’

Click here to access a list of business rules.

Use the 'Evaluate all scenarios' button at the top right to evaluate all unevaluated scenarios at once.

Managing Scenarios

Use the down arrow button on the far right of each scenario to:

  • Copy – Make an exact copy of the scenario, including any rules attached to it. This is a great way to build-up a scenario since you don’t need to create the rules from scratch.
  • Settings - Please see the 'Scenario Settings' section at the bottom of this article for details about this option
  • Reset – Change the scenario status to its original ‘Not evaluated’ condition. You may want to do this if you adjusted a supplier bonus/malus value, for example.
  • Delete – Delete the scenario
Figure 2: Scenario Options

To rename a scenario, simply click on the scenario name. After modifying the name, click outside the box with the blue border to save it.

Scenario Settings

The 'Settings' screen, accessed by first clicking on the down arrow button next to the scenario and then selecting 'Settings', contains the following options:

  • Cost function: Select the cost function that'll be evaluated. The primary formula is applied if no cost function is selected.
  • Problem type: Determine whether Sourcing Optimizer needs to solve a minimization or maximization problem. The default is 'MIN' (minimize).
  • Child scenarios: This feature allows the user to embed results from other scenarios into this scenario. For example, there may already be a scenario that allocates business for lots 1 and 2 to preferred suppliers, but doesn't include any other lots (3, 4, and 5). By including this child scenario (and not allowing any changes), the system will evaluate lots 3, 4, and 5 only and use the child scenario results for lots 1 and 2.

    As another example, shortest delivery time may be more important than cost for some lots. If you create a cost-based scenario that uses the delivery time scenario as a child, the system will show the cost of selecting an award strategy that favors delivery time.

  • Maximum allocation change: This pertains to child scenarios; specifiy whether there is any flexibility in changing the lot allocations for the child scenarios. By default, null means that no allocation changes are allowed. Entering "6" would allow the system to modify the child scenario results by up to 6 lots.
  • Minimum allocation change: This pertains to child scenarios; by entering a value here you're forcing the system to make a certain number of allocation changes (e.g., entering "4" means that the allocation for 4 lots in the child scenario will change).
  • Bundle bidding evaluation: Decide whether Bundle Bids should be taken into consideration when evaluating the scenario (default is 'On').
  • Volume discounts evaluation: Decide whether Volume Discounts should be taken into consideration when evaluating the scenario (default is 'On').
  • Bidder capacity constraints evaluation: Decide whether Bidder Capacity Constraints should be taken into consideration when evaluating the scenario (default is 'On').
  • Purchaser capacity constraints evaluation: Decide whether Purchaser Capacity Constraints should be taken into consideration when evaluating the scenario (default is 'On').
  • Supplier comparison factors: Decide whether bonuses and maluses entered on the 'Bidder Configuration' screen are considered (default is 'On').
  • Detailed bid summary: Please see the 'Detailed Bid Summary Report' section below for details.
Figure 3: Scenario Settings

Detailed Bid Summary Report

The 'Detailed Bid Summary' report is accessed from the 'Scenario Settings' screen. By default, it provides bid values across all lots and bidders. However, users can enable the following advanced options to make it even more robust:

  • Coverage analysis: Shows the number of complete bids per lot/group as well as the number of complete bids per bidder.
  • Absolute gap analysis: Shows the difference between each bidder's bid and the first place bid for every lot/group.
  • Proportionate gap analysis: Shows the difference between each bidder's bid and the first place bid as a percentage for every lot/group.
  • Rank analysis: Shows the top N ranked bids and bidders per lot/group.
  • Highest rank: Consider the top N bids when performing a rank analysis.
  • Lot scope: Select a lot group to use as a filter (i.e. only the lots in the selected lot group will appear in the report).
  • Aggregation attributes: These allow the user to group lots according to unique values in the bid sheet (e.g., Country, Business Unit, etc.). Bidder performance is then aggregated at that level.
  • Substitution strategy: This section provides options on how to handle partial coverage situations when aggregating lots into groups. There are four options:
    • Allow partial coverage - no modifications; the results will be based on incomplete coverage
    • Allow full coverage only - Excludes bids that don't cover all lots in a group (e.g., if Supplier A bid on one of two locations for the group 'Alberta' then Supplier A won't be considered for that group).
    • Use max value substitution - This will replace any missing bid values with the highest bid of a competitor when calculating group totals.
    • Use min value substitution - This will replace any missing bid values with the lowest bid of a competitor when calculating group totals.
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