Multi-stop estimation

Multi-stop estimation provides a method to model costing for multi-stop delivery activity for Network Optimization problems. It allows for an approximation for a drop as part of a multi-stop route. This can then be compared to carrier/lane costing approaches. Multi-stop estimation provides a good estimate of the cost of a channel on multi-drop routes when making Network Optimization decisions.

To learn more about multi-stop estimation, refer to:

• The multi-stop estimation algorithm
• Transportation regions
• Inter-drop distance
• Average drop size
• Vehicle constraints
• Multi-stop estimated vehicle costs
• Using multi-stop estimation

Multi-stop estimation is designed to provide an integrated and dynamic way to generate costs associated with multi-drop deliveries for network design questions. It will not be at the level of detail of a Transportation Optimization model, but will result in better allocation behavior and costs than what can be defined with transportation policies alone. As a Network Optimization model, it will still be able to consider upstream implications, such as manufacturing and inventory.

Multi-stop estimation enables you to model multi-drop route costs between sites and customers:

• You can model company owned vehicle fleets.
• Capacities can be defined in multiple units of measure.
• The multi-stop estimation algorithm calculates an average drop size and an inter-drop distance by transportation region.
• You can define a maximum number of drops per journey.
• You can also define a delivery time period, which represents the maximum delivery time available between the first and last drop on a multi-stop estimated route.

The results of multi-stop estimation are used very much like an input pipe, populating the fixed shipment cost that is used as an input to Network Optimization.

You generate the apportioned costs prior to solving or expanding model as described in Using multi-stop estimation.