Modes

Internal Table Name: Modes

Use the Modes table to define the characteristics of a specific transportation mode. These characteristics include costs, assigned transportation asset, and constraints, such as maximum distance and lead time. Transportation Modes allow you to define modes along with standard transportation policies. This simplifies the transportation structure in the model, especially when modes and costing mechanisms are shared across multiple lanes.

When a Mode is selected for a Transportation Policies record, the values from the Modes table are used by default. They can be overridden by entering values at the Transportation Policies level. For example, the Variable Transportation Cost in the Modes table is used, unless you also define a Variable Transportation Cost in the Transportation Policies.

Name

Technology: NO S

Table: Modes

Internal Name: ModeName

Type: Short Text (100)

Use this field to identify the mode.

Variable Transportation Cost

Technology: NO S

Table: Modes

Internal Name: VariableTransportationCost

Type: Short Text (100)

RNE Eligible

Enter the cost to be applied to the unit of measure as defined in the Variable Cost Basis. This can be a single value or can make use of a specific cost mechanism, such as:

• Zone Costs
• Cost Bands
• Step Costs
• Lane Costs

Simulation: This value is used in the Classic Simulation problem type. It is not currently used in the Simulation problem type. Use the Variable Transportation Cost in the Transportation Policies table when using Simulation.

Variable Cost Basis

Technology: NO S

Table: Modes

Internal Name: VariableCostBasis

Type: Short Text (100)

One of Weight, Quantity, Volume, Distance, Time, Weight-Distance, Quantity-Distance, Volume-Distance, Weight-Time, Quantity-Time, Volume-Time.

Simulation: This value is used in the Classic Simulation problem type. It is not currently used in the Simulation problem type. Use the Variable Cost Basis in the Transportation Policies table when using Simulation.

Choose the formula for calculating the total transportation cost for a shipment from Source site to Destination site. The default Variable Cost Basis is Qty. Actual shipment Cost is calculated as follows:

For example, assume you have the following Product and Customer Demand data:

and the following Transportation Policy data:

For various Variable Cost Basis settings and with all demand served on the flow, the shipment costs for Product A are as follows:

Default: Quantity

Fixed Shipment Cost

Technology: NO S

Table: Modes

Internal Name: FixedShipmentCost

Type: Short Text (100)

Enter the fixed cost to be applied when this mode is used. This can be a single value or can make use of a specific cost mechanism, such as a step cost. The Fixed Shipment Cost depends on the Shipment Size and Shipment Rule, as described in the definition for Shipment Rule.

Simulation: This value is used in the Classic Simulation problem type. It is not currently used in the Simulation problem type. Use the Fixed Shipment Cost in the Transportation Policies table when using Simulation.

If you are using Multi-Stop Estimation, select the Name from the Multi-Stop Estimation Vehicle Cost table.

Fixed Shipment Cost cannot be applied to a mode that is used for returns modeling (where product is being returned from a customer to a site).

Shipment Size

Technology: NO S

Table: Modes

Internal Name: ShipmentSize

Type: Short Text (100)

Enter the average size of a shipment using this mode. Enter a value, then optionally select a quantity, weight or volume unit of measure. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Simulation: This value is used in the Classic Simulation problem type. It is not currently used in the Simulation problem type. Use the Shipment Size in the Transportation Policies table when using Simulation.

Default: 1

Shipment Rule

Technology: NO S

Table: Modes

Internal Name: ShipmentRule

Type: Short Text (25)

One of Prorate Shipment Cost, Treat Shipment Cost as Fixed, Enforce Full Shipments, Treat All Costs as Fixed.

This field determines how Shipment Size is handled in terms of applying the Fixed Shipment Cost:

• Prorate Shipment Cost – The fixed cost is prorated based on the Shipment Size.
• Treat Shipment Cost as Fixed – The fixed cost is based on a flow quantity that is rounded to the next multiple of Shipment Size.
• Treat All Costs as Fixed - Both the fixed cost and the variable cost is based on a flow quantity that is rounded to the next multiple of Shipment Size.
• Enforce Full Shipments – The fixed cost is based on a flow value that must be a multiple of Shipment Size or 0. If the flow on a lane is not a multiple of the lane’s Shipment Size and the destination location can store inventory, the flow is rounded up and the excess is held as inventory. If the destination does not have the ability to store inventory (a site with no inventory policy or a customer), the model is infeasible assuming the flow is necessary.

For example, assume a Shipment Size of 1000 and a Fixed Cost of 100. There is also a Variable Transportation Cost of 1. If the flow quantity is 1500:

• Prorate Shipment Cost – The fixed cost is prorated for the flow quantity of 1500, so the fixed cost is 150.
• Treat Shipment Cost as Fixed – The flow quantity of 1500 is rounded to the next multiple of Shipment Size (2000), so the fixed cost is 200.

• Treat All Costs as Fixed – The flow quantity of 1500 is rounded to the next multiple of Shipment Size (2000). The fixed cost 200. The variable cost is 2000. The total cost is 2200

• Enforce Full Shipments – The flow quantity of 1500 is not a multiple of Shipment Size. If the flow is to a site that has an inventory policy, the flow is rounded up and the excess is held as inventory. If the flow is to a customer or a site with no inventory policy, the model is infeasible since it cannot satisfy this Shipment Rule and there is no fixed cost.

The Variable Transportation Cost is based on the actual flow/shipment size and is not rounded in the same way the Fixed Shipment Cost is handled, unless you are using the Treat All Costs as Fixed rule.

Keep in mind that units of measure are considered when calculating the fixed cost. Assume a Shipment Size of 100 EA and a Fixed Shipment Cost of 1000. If the flow quantity is 100 EA and you are using Prorate Shipment Cost, the fixed cost is 1000. However, if the Shipment Size is 100 DOZ, the fixed cost is 1000 * (100/1200) = 83.33

Allowable Products

Technology: NO

Table: Modes

Internal Name: AllowableProducts

Type: Short Text (100)

Use this column to identify the product or group of products to which the cost applies when using Multi-Stop Estimation. You can create a group with members that are the allowed products. If no value is entered, all products are used for the mode.

Bundle Products

Technology: NO S

Table: Modes

Internal Name: BundleProducts

Type: Short Text (25)

One of Yes, No.

This value determines if the mode shipment cost is at the product level (No) or at the aggregate product level (Yes).

When products are bundled, the cost is determined in the following way:

1. Sum all product flows for the source-destination-mode-period,
2. Determine the total flow weight,
3. Divide the weight by the shipment size to determine the number of shipments,
4. Round the number of shipments up if using a fixed shipment cost; do not round if using a prorated cost,
5. Multiply the number of shipments by the batch cost.

When products are not bundled, the same determination is used, but for each product separately.

Minimum Charge

Technology: NO S

Table: Modes

Internal Name: MinimumCharge

Type: Currency

In this column enter the minimum rate negotiated with the transportation company. Minimum charges override costs if the total transportation cost is less than the minimum cost calculated using Minimum Charge. In that case, the calculated minimum cost is applied.

minimum cost = Minimum Charge / avg shipment qty

where avg shipment qty = avg shipment weight / product Unit Weight

Assume the following:

Product Unit Weight = 5 LB

Minimum Charge = 10000

Variable Transportation Cost = 3

Fixed Shipment Cost = 1150

Shipment Size = 250 LB

Demand Quantity = 10 EA

The minimum cost would be calculated as:

Minimum Charge / (Shipment Size / Unit Weight) = 10000 / (250 / 5) = 200

The cost for comparison is determined based on the Shipment Rule:

If Shipment Rule is Prorate Shipment Cost, the cost for comparison is the summation of Variable Transportation Cost and Fixed Shipment Cost:

Total Transportation Cost = Flow Qty * MAX(minimum cost, Variable Transportation Cost + Fixed Shipment Cost / Shipment Size)

Total Transportation Cost = 10 * MAX(200, 3 + (1100 / 250)) = 10 * 200 = 2000

If Shipment Rule is not Prorate Shipment Cost, the Minimum Charge is compared with the Variable Transportation Cost only:

Total Transportation Cost = (Flow Qty * MAX(minimum cost, Variable Transportation Cost)) + Fixed Shipment Cost * number of shipments

Total Transportation Cost = (10 * MAX(200, 3)) + 1150 = 2000 + 1500 = 3500

Minimum Charge is reflected in the Total Transportation Cost in the Network Summary output table.

If you change the Shipment Size to Volume, then the Product Unit Volume value is considered.

Default: 0

Discount Rate

Technology: NO S

Table: Modes

Internal Name: DiscountRate

Type: Short Text (100)

Enter the discount factor applied to fixed and variable costs, typically negotiated with the transportation company. This rate is multiplied by the cost to determine the actual cost. If no value is populated, the default is 1 (no discount).

Default: null

Asset

Technology: NO S

Table: Modes

Internal Name: AssetName

Type: Short Text (100)

Choose the transportation asset that transports products on the mode.

Fuel Surcharge

Technology: NO S

Table: Modes

Internal Name: FuelSurcharge

Type: Short Text (255)

Use this field to represent a fuel surcharge that is incurred in addition to the normal transportation cost in Network Optimization. The Fuel Surcharge affects how the calculated Variable Transportation Cost is determined. Use the Fuel Surcharge Basis field to determine how the Fuel Surcharge is determined.

Fuel Surcharge Basis

Technology: NO S

Table: Modes

Internal Name: FuelSurchargeBasis

Type: Short Text (100)

One of % Variable Cost, Cost per Unit, or a valid Unit of Measure such as LB, KM

Use this field to determine how the Fuel Surcharge should be applied:

• % Variable Cost – Variable transportation cost is calculated as Variable Transportation Cost * (1 + Fuel Surcharge percentage)
• Cost per Unit – Variable transportation cost is calculated as Variable Transportation Cost + Fuel Surcharge.
• Unit of Measure – Variable transportation cost is calculated as Variable Transportation Cost + Value of UOM column

For example, assume:

Variable Transportation Cost = 50

Fixed Shipment Cost = 125

Fuel Surcharge = 5

Distance = 35 MI

If Fuel Surcharge Basis = % Variable Cost:

Variable transportation cost = 50 * (1 + 0.05) = 52.5

If Fuel Surcharge Basis = Cost per Unit

Variable transportation cost = 50 + 5 = 55

If Fuel Surcharge Basis = MI

Variable transportation cost = 50 + (5 * 35) = 225

CO2

Technology: NO S

Table: Modes

Internal Name: CO2

Type: Short Text (255)

In this field, set the CO2 emissions for this transportation mode based on the CO2 Basis. By default, the CO2 Basis is weight-distance, therefore the CO2 emission quantity is set at kg per weight unit, per unit of distance.

For example, if .04 is entered, then this is .04 kg of CO2 per one unit of weight of product moved over one mile by this transportation mode.

Default: 0

CO2 Basis

Technology: NO S

Table: Modes

Internal Name: CO2Basis

Type: Short Text (50)

Use this field to select the basis for determining CO2 emissions. Typically, this is weight-distance, but you can select one of the other values as shown:

Default: Weight-Distance

Replenishment Frequency

Technology: NO S

Table: Modes

Internal Name: ShipmentFrequency

Type: Short Text (50)

Use this field to specify the replenishment frequency for the mode. This is defined as a number with the time unit specified (such as 3 Week). Enter a value, then optionally select a time unit of measure. If you do not select a unit of measure, the default Time Unit Of Measure from Model Settings is used.

Default: 0

Status

Technology: NO S

Table: Modes

Internal Name: Status

Type: Short Text (25)

One of Include, Exclude.

Choose the mode status:

• Include - This mode is included when the model is run.
• Exclude - This mode is excluded when the model is run.

Default: Include

Notes

Technology: NO S

Table: Modes

Internal Name: Notes

Type: Memo

Enter optional descriptive notes about the mode.