Sourcing models

Sourcing models are quite different to routing models in that sourcing models are strategic, while routing models fall into the tactical/operational modelling tier. This means that sourcing models attempt to answer questions that are posed at a higher level than routing models. Modelling individual sequences of activities (like routing models) is not considered in sourcing models. Rather, the focus shifts to modelling aggregate transactions and the options around how they are performed. An example of this may be deciding how to service a customer footprint, how should customers be partitioned between two depots, or if a third depot costs x per annum, should opening such a depot be considered?

Sourcing (or network) models are rate-based in their modelling approach and provide linear sets of inequalities to model the cost of decisions or flows in the network.