Sophus, a leading provider of supply chain modeling software, has announced the
release of its new algorithm for shipment order assignment. This groundbreaking
algorithm is the first in the industry to use mixed integer programming to optimize a
detailed order-shipment assignment. Previously, this had to be done through heuristic
methods which were often unable to optimize the assignment.
This new capability was developed in response to a customer in the furniture industry
who wanted to reduce transportation costs by consolidating orders to pre-scheduled
routes on a daily basis. The heuristic method used in the past was not able to provide
satisfactory results as the number of shipments grew. To achieve potential cost
savings, the customer turned to Sophus and worked with the company to develop this
new capability.
The new algorithm resulted in a 9% reduction in transportation costs and the customer is
now using it every day. This breakthrough in the industry marks a significant step forward
for supply chain modeling and planning and will help businesses optimize their
operations and save on transportation costs.
Rengpeng Yue, CEO of Sophus, stated, “We are excited to offer this new algorithm to our
customers. Our team has worked hard to develop this breakthrough technology, and we
believe it will revolutionize the way companies approach order-shipment assignments. We
look forward to helping businesses optimize their operations and save on transportation
costs with this new capability.”
