The multi-stop estimation algorithm

A new home for the Coupa Supply Chain documentation

Starting with Supply Chain 42, our documentation will be located on Coupa Compass. The help here will continue to be accessible for the foreseeable future, but will no longer be updated. If you need a Compass user account, contact your company’s Designated Support Contact (DSC).

You can access new and updated Supply Chain documentation in the following location on Compass:

https://compass.coupa.com/en-us/products/supply-chain-design-and-planning

The multi-stop estimation algorithm

The multi-stop estimation algorithm attempts to determine a route distance, time and cost as follows:

For each region–period–unit of measure, the multi-stop estimation algorithm generates the matrix breakpoints. The matrix is based on the matrix size options (on the Multi-Stop Estimation tab in Network Optimization Options), capacity utilization (from the Multi-Stop Estimation Vehicle Costs table) and demand profile, so each drop size breakpoint has the same number of demand points. The distance breakpoints are based on the longest (maximum) distance, with equal distance intervals from 0 to the maximum distance.
For correct behavior, set up the Shipment Size in Transportation Policies to correspond to the Customer Demand Quantity for the Customer–Product combination. For example, assume the Customer Demand for Customer1-Product1 has Quantity=25 and Occurrences=4. In the Transportation Policies record where Destination=Customer1 and Product=Product1, the Shipment Size should be 25.
A multi-stop estimated route is generated for each point of the matrix, representing a drop size breakpoint/distance breakpoint combination.
The multi-stop estimated route total cost, distance and time are apportioned to the first drop of the route (matrix point) based on the Multi-Stop Apportioning Type and Apportionment to Quantity Multi-stop estimation options. For example, “Manual” and “40” means that 40% of the cost is apportioned based on the quantity that the first drop represents on the multi-stop estimated route load and 60% on the number of drops.
When you run Network Optimization and have turned on the "Run Multi-Stop Estimation With NO" switch, the cost matrix is generated. Each transportation policy looks up the matrix for each Site–Customer–Product combination to find the "quadrant" within which to interpolate. The returned cost is applied per movement from site to customer for the shipment size on that mode.

You define the transportation regions directly by assigning customers to a region. Once they are defined, you can override the inter-drop distance in the Transportation Region record. This is often used for calibration purposes. You can also override the calculated area of the region.

Customers and sites must be geocoded with valid Latitude and Longitude values. If not geocoded, they must be excluded before running the model or multi-stop estimation will fail. Latitude and Longitude values cannot be 0 or null.

Keep in mind that multi-stop estimation uses KM for distance values and SKM (square kilometers) for area values.

In models where there are multiple modes, or multiple periods (across which the demand profile may vary), then these metrics are calculated per region, mode and period.

A multi-stop estimated route is an average multi-drop route as if the first drop is a real drop and every other drop is an average drop in that region. The multi-stop estimated route is based on the parameters, constraints and costs of the truck as defined in the Multi-Stop Estimation Vehicle Costs table.

The route length is determined for a given site to customer link by taking the distance and applying a speed conversion to provide the time. The number of expected drops is calculated based on which of the following constraints is reached first: trip time, vehicle capacity or duty time (shift hours available).

You control multi-stop estimation using the following:

Last modified: Wednesday May 15, 2024

Is this useful?

Yes No