Transportation Logistics Software for Supply Assignment

Paradox Solves Distribution Problem for Dairy Company with Transportation Logistics Software

 

A dairy distributor in Wisconsin was faced with a fulfillment problem.

 

Background

Distribution Parameters:

• 41 Supply locations

• 87 Demand locations

• Each Supply location has a preset volume that it can supply

• Each Demand location has a preset volume that it needs

• Total Supply volume matches the Total Demand volume

• Each Supply location can serve multiple Demand locations

• Each Demand location can be served from multiple Supply locations

• Cost per unit volume shipped between any Supply location to any Demand location is available

 

The distributor required a tool that, when fed the above information, can generate an assignment solution that determines how much

volume should be shipped from each Supply location to each Demand location so the demand is met at the lowest transportation cost. 

 

Process

Paradox built Supply Assigner, a transportation logistics software, for this purpose and solved the assignment problem.  

Supply Assigner can extend beyond fulfillment.  As long as the problem parameters have entities to be assigned with an associated cost, the tool can be used to generate least cost assignment solution.  For example, when drivers on the road need to be assigned the next load to pull and the cost of assigning a driver to a load is defined depending on his distance from the pickup location, remaining hours on his clock, etc. the assignment tool can help determine least cost assignment.

 

Results

The solution from the tool saved the distributor over $30,000 per week.