Using cost bands

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.

You define cost bands in the following tables:

  • Cost Band Definitions – Use this table to define step size and maximum size for both the band itself (such as distance) and the step (such as shipment size). You also define the step period and basis for the cost band.
  • Cost Bands – Use this table to define the cost per band-step combination.

For example, assume that you have distance bands of 100 miles each, from 0 to 400. Within each band, you want to define a cost based on shipment size in step increments of 10 lbs, from 0 to 40. You set up a Cost Band Definition:

Name Band Type Step Basis Step Period Step Type
CarrierABC Distance Weight Shipment All Item

You then use the Cost Bands table to create the equivalent of this cost matrix:

  Size (lbs)
Distance (miles)   0 10 20 30 40
0 1.00 0.95 0.90 0.85 0.80
100 1.50 1.40 1.30 1.20 1.10
200 2.00 1.85 1.70 1.55 1.40
300 2.50 2.30 2.10 1.90 1.70
400 3.00 2.75 2.50 2.25 2.00

The Cost Bands will look similar to:

Name Band Minimum Minimum Quantity Cost
CarrierABC 0 MI 0 LB 1.00
CarrierABC 0 MI 10 LB 0.95
CarrierABC 0 MI 20 LB 0.90
CarrierABC 0 MI 30 LB 0.85
CarrierABC 0 MI 40 LB 0.80
CarrierABC 100 MI 0 LB 1.50
...      
CarrierABC 400 MI 40 LB 1.50

If you want the cost lookup to be based on the period flow, use a Step Period based on time, such as "Period Length".

Last modified: Friday May 12, 2023

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