Step Cost Definitions

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Step Cost Definitions

Internal Table Name: AdvancedCosting_StepCostDefinitions

You can use step costs to set up cost lookups based on pairs of values representing the step and associated cost. For example, you may have a throughput step cost where the cost varies based on the throughput quantity. Throughput less than 200 units is 1.5 per unit, greater than or equal to 200 and less than 500 is 1.25 and greater than or equal to 500 is 1.0.

Step Cost Definitions determine the treatment, Step Period and throughput basis for the step cost structure you are defining.

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

Step Cost Definitions do not currently support distance-based calculations for Network Optimization. If you want to apply costs based on distance, use Cost Band Definitions instead of Step Cost Definitions.

Name

Technology: All

Table: AdvancedCosting_StepCostDefinitions

Internal Name: StepCostName

Type: Short Text (100)

Enter the name for the Step Cost.

Type

Technology: All

Table: AdvancedCosting_StepCostDefinitions

Internal Name: FieldName

Type: Short Text (100)

Select the type of field to which the step cost applies. This will identify which columns display the name of this step cost definition as a valid selection.

Type	Table > Field
Break Time Cost	Rate > Break Time Cost
Capital Investment Cost	Sites > Capital Investment Cost
Capital Investment Cost	Work Centers > Capital Investment Cost
Drive Time Cost	Rate > Drive Time Cost
Duty Time Cost	Rate > Duty Time Cost
Fixed CO2	Sites > Fixed CO2
Fixed Consignment Cost	Inventory Policies > Fixed Consignment Cost
Fixed Cost (TO Rate)	Rate > Fixed Cost
Fixed Expression Cost	Expression Based Costs > Fixed Cost
Fixed Operating Cost	Sites > Fixed Operating Cost
Fixed Operating Cost	Work Centers > Fixed Operating Cost
Fixed Order Cost	Customer Sourcing Policies > Fixed Order Cost
	Production Policies > Fixed Order Cost
	Site Sourcing Policies > Fixed Order Cost
Fixed Rest Time Cost	Rate > Fixed Rest Time Cost
Fixed Shipment Cost	Mode > Fixed Shipment Cost
Fixed Shipment Cost	Transportation Policies > Fixed Shipment Cost
Fixed Startup Cost	Sites > Fixed Startup Cost
Fixed Startup Cost	Work Centers > Fixed Startup Cost
Fixed Warehousing Cost	Inventory Policies > Fixed Inbound Shipment Cost
Fixed Warehousing Cost	Inventory Policies > Fixed Outbound Shipment Cost
Hourly Cost	Transportation Assets > Hourly Cost
	Transportation Assets Multi-Period > Hourly Cost
	Work Resources > Hourly Cost
	Work Resources Multi-Period > Hourly Cost
In Transit Stop Cost	Rate > In Transit Stop Cost
Per Distance Cost	Rate > Per Distance Cost
	Rate > Per Reposition Distance Cost
	Rate > Per Distance Out of Route Cost
Per Unit Cost	Rate > Per Unit Cost
Service Time Cost	Rate > Service Time Cost
Unit Consignment Cost	Inventory Policies > Unit Consignment Cost
Unit Production Cost	Production Policies > Unit Production Cost
Unit Sourcing Cost	Customer Sourcing Policies > Unit Sourcing Cost
	Customer Sourcing Policies Multi-Period > Unit Sourcing Cost
	Site Sourcing Policies > Unit Sourcing Cost
	Site Sourcing Policies Multi-Period > Unit Sourcing Cost
Unit Warehousing Cost	Inventory Policies > Unit Inbound Cost
Unit Warehousing Cost	Inventory Policies > Unit Outbound Cost
Variable Expression Cost	Expression Based Costs > Variable Cost
Variable Rest Time Cost	Rate > Variable Rest Time Cost
Variable Transportation Cost	Mode > Variable Transportation Cost
Variable Transportation Cost	Transportation Policies > Variable Transportation Cost
Wait Time Cost	Rate > Wait Time Cost

Step Basis

Technology: All

Table: AdvancedCosting_StepCostDefinitions

Internal Name: ThroughputBasis

Type: Short Text (100)

Choose the unit of measure basis on which step costs are based:

Quantity
Weight - When entering Minimum Quantity in the Step Costs table, be sure to include a weight unit of measure (such as 100 LB).
Volume - When entering Minimum Quantity in the Step Costs table, be sure to include a volume unit of measure (such as 100 CFT).
Distance - When entering Minimum Quantity in the Step Costs table, be sure to include a distance unit of measure (such as 100 MI). Note: Step Cost Definitions do not currently support distance based calculations for Network Optimization. Use Cost Band Definitions instead.
Time - When entering Minimum Quantity in the Step Costs table, be sure to include a time unit of measure (such as 8 HR).

If you defined Step Cost Definitions with a Step Basis of "Stops" or "LongBreaks" in an earlier version of Supply Chain Guru X, these values will be invalid. For use with the In Transit Stop Cost or Fixed Rest Time Cost columns in the Rate table, change the Step Basis to "Quantity". If you are defining a step cost for the Fixed Cost column in the Rate table and want to use "Stops" or "LongBreaks" as the Fixed Cost Basis, define the value directly in the Fixed Cost column using the format <quantity1,cost1><quanitity2,cost2>.

Default: Quantity

Step Type

Technology: All

Table: AdvancedCosting_StepCostDefinitions

Internal Name: StepTreatment

Type: Short Text (100)

One of All Item, Incremental.

To control All Item vs. Incremental for Transportation Optimization Rates, use the Rate Table All Items Discounts options in Transportation Optimization Options.

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:
Minimum Quantity Cost
0 1.5
2 1.3
4 1.25
6 1.1

Minimum Quantity	Cost
0	1.5
2	1.3
4	1.25
6	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

Step Period

Technology: All

Table: AdvancedCosting_StepCostDefinitions

Internal Name: ThroughputPeriod

Type: Short Text (100)

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

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 are using Shipment as the Step Period, you must define a Shipment Size on the Modes or Transportation Policies tables.

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

Product Name	Unit Weight	Unit Volume
Product1	2 LB	5 CFT

Step Cost Definitions

Name	Type	Step Basis	Step Type	Step Period
Weekly	Variable Transportation Cost	Weight	All Item	Week

Step Costs

Name	Minimum Quantity	Cost
Weekly	0 LB	5
Weekly	100 LB	2

The piecewise cost Minimum Quantity for the first step (with a cost of 5) is calculated as follows:

(100 LB / 2 LB) * (365 / 7) = 2607.143

Any quantity greater than 2607.143 will have a cost of 2.

In a second example, the Step Period is Shipment and the Shipment Size is 40 EA.

Modes

Mode Name	Shipment Size
Mode_40	40 EA

Step Cost Definitions

Name	Type	Step Basis	Step Type	Step Period
Shipment	Variable Transportation Cost	Weight	All Item	Shipment

Step Costs

Name	Minimum Quantity	Cost
Shipment	0 LB	5
Shipment	100 LB	2

The 100 LB Minimum Quantity / 2 LB Unit Weight means that the first step cost value of 5 is used up to a quantity of 50. In this example, the Shipment Size is 40 EA, so a cost of 5 is used.

Default: Period Length

Last modified: Friday May 12, 2023

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