Deficit Rating - Rate Unit Break Should Evaluate Most Cost Effective Break
Last updated on JULY 09, 2014
Applies to:Oracle Transportation Management - Version: 5.5.04
This problem can occur on any platform.
Rate Unit Breaks are setup for different Weight thresholds and varying costs. An order falls within one break, however if the next break were used, the cost would be cheaper if the weight of the order was artificially increased to the next break limit.
It is expected that because the use of this other break is cheaper that this rate be used.
Here is an illustrated example.
1. Rate Unit Breaks were defined as follows (where rating is per 100 LBs)
Min 500 LB @ 12.22
Min 1000 LB @ 10.46
An order of 944 LBs is planned.
1. First since the order is in the Min 500 break, the following calculation is done:
944 * / 100 * 12.22 = 115.36
2. The next break is then checked. This time assume that the order IS 1000 LB (i.e. pretend the order is bigger and this time use 1000 LB instead of 944) so that it meets the criteria of this break:
1000 / 100 * 10.46 = 104.6
Since the second option is cheaper, then it should be used.
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