Optimization Solution for Banknotes Distribution Planning
Banknotes are produced in specific locations and then distributed for use across cities. It is necessary to coordinate with banks to create a plan for banknotes delivery, according to each inventory, production and demand. The plan can be then adjusted throughout the year to the actual demand.
Developing the distribution plan used to be a lengthy process that could take up to 15 hours, limiting the possibility to perform scenario analysis and compromising workflow.
DecisionBrain, in partnership with IBM, was tasked to develop a solution that could define the optimal delivery plan that met demand while respecting production capacities, and leveraging available transport.
A solution built to minimize cost while satisfying demand
The solution developed by DecisionBrain and IBM allows to:
- Minimize the logistic costs while maximizing demand coverage and preserving the safety stock of banknotes
- Select the correct mix of banknotes (used or new)
- Minimize banknotes movements
Savings in the order of 1 million USD per year.
Built on top of IBM Decision Optimization Center platform, the solution has proven to be significantly faster and more robust than the previous planning process, reducing time to 8-12 hours. Additionally, the solution enables planners to have more control over the planning process and outcome, allowing for What-if analysis features and results comparison.
It is estimated that solutions delivered savings in the order of 1 million USD per year.