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Supplier allocation

Project Title: Bid Allocation Optimization Tool
Client: Rolls-Royce (via Deloitte)
Timeline: Feb 2021 – Jun 2021
Technologies: Python, Google OR-Tools, Linear & Integer Programming, Web UI

POC: Bid Allocation tool

Overview

Developed a web-based optimization tool to streamline supplier allocation for a global manufacturing giant. The tool aimed to minimize procurement and transportation costs while adhering to complex business constraints.

Key Contributions

  1. Modeled a multi-year procurement strategy using Integer Programming.
  2. Integrated supplier bids, historical performance, and contractual obligations into the optimization logic.
  3. Designed a dynamic UI allowing users to modify constraints and re-run optimization scenarios.
  4. Incorporated supplier scoring based on lead time and fill rate to ensure quality sourcing.

Constraints Handled

  1. Supplier capacity and existing agreements.
  2. Minimum and maximum number of suppliers per part.
  3. Proportion limits on single-supplier allocations.
  4. Minimum supplier performance thresholds.

Impact

Achieved an estimated cost savings of £12 million by optimizing supplier-part allocations across a 5-year horizon.

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