Analytics Magazine Analytics Magazine, May/June 2014 | Page 40

B U S IN E S S DE C I S I O N -M A K I NG Source: A.T. Kearney analysis optimization can help plan this task. Several constraints need to be taken into account to reflect operational reality – including terminal handling capacities, demand availabilities and sequence priorities – to represent operations with terminal networks that use less-than-fulltruckload shipments. Within a few hours, a huge number of alternatives can be evaluated to identify the best schedule, resulting in asset utilization improvements of 2 percent to 5 percent. Transport loading. Transport loading is another interesting application of math optimization that belongs to the 40 | A N A LY T I C S - M A G A Z I N E . O R G family of knapsack problems, where different loading setups are possible. This gets even trickier if every load is unique; for example, if the problem needs to be solved on a daily basis because customer orders change or if loading sequence matters because some items can be transported on top of others but some cannot. Typical project benefits are 2 percent to 4 percent of increased vehicle space usage. Many companies’ operations are executed by external service providers, and this is where efficient procurement becomes essential. Procurement cuts W W W. I N F O R M S . O R G