How To Consider Deficit Penalty Cost in Planning When Equipment Is Not Fully Utilized
Last updated on DECEMBER 17, 2017
Applies to:Oracle Transportation Management Cloud Service - Version 6.4.2 to 6.4.2 [Release 6.4]
Information in this document applies to any platform.
How to consider deficit penalty cost in Planning ?
Need to know how this below scenario can be configured in the application
Scenario is that there is a penalty applied by the carrier if customer fail to fill the truck.
Truck capacity is 10000 kgs. The shipment weight is 8500 Kgs. Carrier has a rate which says that if 9000 Kgs is not filled then need to pay a penalty on the deficit i.e. 500 Kgs (=9000-8500). The penalty is 1 AUD per Kgs. Hence in the shipment, they will have a base cost which is 1000 AUD and then a penalty on the deficit / shortfall weight which will be 1AUD / kgs = 500 AUD.
Also this deficit cost needs to be considered during planning to select the best equipment as there are other equipments which can be used.
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