Cost Band Definitions

Internal Table Name: AdvancedCosting_CostBandDefinitions

You can use cost bands to set up cost lookups based on ranges (bands) and sizes, defined in steps. A common use for cost bands is to set up a lookup matrix for distance bands with shipment size steps.

If a lookup cannot be found for the cost band, a cost of 9999 will be incurred. This is the case if the cost band is used for Fixed Shipment Cost or Variable Transportation Cost.

Name

Technology: NO

Table: AdvancedCosting_CostBandDefinitions

Internal Name: CostBandName

Type: Short Text (100)

Enter the name for the Cost Band.

Band Type

Technology: NO

Table: AdvancedCosting_CostBandDefinitions

Internal Name: BandType

Type: Short Text (50)

Select the type of cost band you are defining:

• Distance
• Time

Default: Distance

Step Basis

Technology: NO

Table: AdvancedCosting_CostBandDefinitions

Internal Name: ThroughputBasis

Type: Short Text (100)

Choose the unit of measure basis on which cost bands are based

• Quantity
• Weight
• Volume

Default: Weight

Step Period

Technology: NO

Table: AdvancedCosting_CostBandDefinitions

Internal Name: ThroughputPeriod

Type: Short Text (100)

One of Period Length, Horizon, Day, Week, Month (30 day), Quarter (91 day), Year, Shipment

Choose the time period (such as Day, Week, Month (30 day), Quarter (91 day), or Year) over which the Step Cost is applied. Alternately, if the Step Period is Shipment, the cost will be applied based on the size of the Shipment.

If you want the cost lookup to be based on the period flow, use a Step Period based on time, such as "Period Length". When the Step Period is based on time, the Minimum Quantity is adjusted as:

Minimum Quantity * (time period/Step Period)

where:

time period is the model horizon in a single period model or the period length in a multi-period model.

For example, assume the following input data in which the Step Period is Week:

Products

Cost Band Definitions

Cost Bands

The piecewise cost Minimum Quantity for the first step (with a cost of 10) is calculated as follows:

(20 KG/ 2 KG) * (365 / 7) = 521.43

Any quantity greater than 521.43 will have a cost of 2.

In a second example, the Step Period is Shipment and the Shipment Size is 15 EA.

Modes

Cost Band Definitions

Cost Bands

The 20 KG Minimum Quantity / 2 KG Unit Weight means that the first step cost value of 10 is used up to a quantity of 10. In this example, the Shipment Size is 15 EA, so a cost of 20 is used.

Default: Shipment

Step Type

Technology: NO

Table: AdvancedCosting_CostBandDefinitions

Internal Name: StepTreatment

Type: Short Text (100)

One of All Item, Incremental.

• Incremental – Piecewise costs are calculated based on the break points you create with Step Size. For example, assume you have set up the Steps and Costs as:

  0	2	4	6
  1.5	1.3	1.25	1.1

and the size is 9, the total cost will be:

(2 - 0) * 1.5 + (4 - 2) * 1.3 + (6 - 4) * 1.25 + (9 - 6) * 1.1 = 11.4

• All Item – The cost will be based on the break in which the total occurs. Given the same example from above, for a size of 9, the total cost will be:

9 * 1.1 = 9.9

Default: All Item

Notes

Technology: NO

Table: AdvancedCosting_CostBandDefinitions

Internal Name: CostBandDetailsNotes

Type: Memo

Enter optional descriptive notes about the cost band definition.