The setup for multi-stop estimation is as follows:

1. Create one or more Transportation Region records.
2. Assign a Transportation Region to the locations in the Customers table.
3. Define Customer Demand with Quantity representing the shipment size and Occurrences as the number of deliveries of that shipment size per period. In other words, the total quantity for the customer–product in the period is Quantity * Occurrences.
4. Create the multi-stop cost definition in the Multi-Stop Estimation Vehicle Cost table.
   Internally, the multi-stop estimation matrix uses KM as units. While you can apply distance and area overrides using other units of measure, distance units for Fuel Cost and Maintenance Cost in the Multi-Stop Estimation Vehicle Cost table are KM, as specified in column names.
5. In the Modes table:
   • Create a Mode record.
   • Select the multi-stop estimated cost name as the Fixed Shipment Cost.
   • Set the Shipment Rule to “Treat Shipment Cost as Fixed”.
   • Select the product or group of products to which the cost applies in the Allowable Products column.
6. In the Transportation Policies table:
   • Select the Mode you defined for multi-stop estimation.
   • Populate the Shipment Size to correspond to the Customer Demand Quantity for the Customer–Product–Period combination. For example, assume the Customer Demand for Customer1–Product1 has Quantity=25. In the Transportation Policies record where Destination=Customer1 and Product=Product1, the Shipment Size should be 25. The demand quantity for each Customer–Product–Period as defined in the demand data must have an equivalent Shipment Size populated in Transportation Policies. If you populate only one Shipment Size value, all movements will have costs allocated using the same Shipment Size.
7. Run Network Optimization with the "Run Multi-Stop Estimation With NO" switch turned on as described in Run Network Optimization with multi-stop estimation. The Fixed Shipment Cost is populated using the results of the multi-stop estimation alogrithm. The apportioned time, apportioned distance, drop size bands and cost are populated in the Multi-Stop Estimation Matrix output table based on the demand, multi-stop estimation vehicle costs and capacities, and the Multi-stop estimation options.

When using multi-stop estimation, the following rules apply:

• Costs are generated only for vehicles that have compatible products defined in the Modes table.
• Demand for products that do not have a compatible vehicle (as defined in the Modes table) is not considered in calculated costs.
• Only customers that have demand are used to calculate costs.
• 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.
• Only customers associated with a defined transportation region are considered for calculation.
• Costs are calculated only for demand in the periods defined in the model horizon.
• In the case that no periods are defined, multi-stop estimation uses a single period defined by the model horizon. All demand is associated with the first day in the model horizon.

1. Open Multi-Stop Estimation Vehicle Cost. Ensure that you have populated the required values for a record in this table.
2. On the Launch Pad, select Network Optimization as the Technology and as the Problem type.
3. Click Options and select the Multi-Stop Estimation tab.
4. Turn on the "Run Multi-Stop Estimation With NO" switch and adjust the other Multi-Stop Estimation Options as needed.
5. Save the options.
6. Click Run. Network Optimization runs and the Multi-Stop Estimation Matrix is populated based on the Multi-Stop Estimation Vehicle Cost, the Multi-Stop Estimation options and the Transportation Regions you have defined.