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MEANS OF TRANSPORT COST for DEPLOYMENT OPTIMIZATION

Former Member
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98

Hi Experts;

Our client uses deployment optimization to replenish their customers. We want the deployment optimizer to calculate a cost depending on the distance between the source location and the destination location regardless of the transfer quantity. For this purpose using means of transport cost on the tranportation lane does not make any use since when the deployment optimizer runs it does not consider this cost in the final transportation cost calculation. Any comments would be highly appreciated.

Kind Regards

elif

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Answers (2)

Answers (2)

Former Member
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hi Elif,

Deployment Discrete Optimiser considers means of transport cost in the calculation of total transportation cost..and is also directly dependent on the quantity..

This will allow to choose between different means of transport (costlier/cheaper - air/road) with respect to demand delivery date.

Hope your objective is to minimise cost.

thanks

AM

Former Member
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Deployment optimizer do consider the following cost.

· Storage and transportation costs

· Costs for increasing storage, transportation and handling capacity

· Safety stock penalty

· Late delivery penalty

· Non-delivery penalty

Check the deployment rules in the profile? Is it cost based or fair-share?

Are you using cost profiles in transportation lane? If that is case you need disrete optimization than Linear optimization

Shibu

Former Member
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Hi Shibu;

I use discrete optimization for I wnat the deployment to consider the means of transport cost on the transportation lane. I also added the cost functions since deployment optimizer does not include the means of transport cost I enter on the trans. lane into the total cost calculation somehow; but it still does not work; in the log file, I can see all the costs in the input files but they don't have any effect on the total cost; could it be related to the maintanence of means of transport, or about resources ?

Thanks ...