# Transportation Management

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## Topic

To get rating based on the Farthest Location
Topic posted July 6, 2018 by
Title:
To get rating based on the Farthest Location
Content:

We are using sequential algorithm while building multi-drop shipments. We want OTM to pickup the freight rate for the farthest delivery location to arrive at a shipment freight. How do we achieve this?

## Comment

• Vivek,

Can you provide an example of this rating setup?

• While rating the shipment we are checking the

1. “Order_Type
2. if the Order_Type = ‘Dealer’ then
3. We check the commodity code.

If above conditions are satisfied then we get the rate for the commodity based on the delivery city. We have setup a rate unit break profile which consists of city names and we have also setup a Charge rate based on stop city(for each commodity).

1. We transport finished goods Ex Manufacturing plants in a multi-delivery method.

Eg: Manufacturing Plant: Nasik

Below is the scenario for your understanding.

Order Release 1:

Source City: Nasik

Destination City: ARA

Order Type: Dealer

Commodity: THAR (Type of a CAR)

Quantity: 3

Order Release 2:

Source_City: Nasik

Destination_City: GAYA

Order Type: Dealer

Commodity: QUANTO_WO_SKIRACK (Type of a CAR)

Quantity: 3

Shipment 1 = Order Rel 1+ Order Rel 2 combined in a multi-delivery shipment.

Rates:

1)

Commodity: THAR (Type of a CAR)

Destination City: ARA

Rate Per unit: 24519.00

2)

Commodity: THAR (Type of a CAR)

Destination City: GAYA

Rate Per unit: 25587.00

3)

Commodity: QUANTO_WO_SKIRACK (Type of a CAR)

Destination City: GAYA

Rate Per unit: 24576.00

Expectation:

Shipment Cost:

Farthest Location = GAYA

Cost Calculation = GAYA per unit Rate (for QUANTO_WO_SKIRACK) * Quantity(QUANTO_WO_SKIRACK) + GAYA per unit Rate (for THAR) * Quantity(THAR)

= 24,576 * 3 + 25,587 * 3

=73,728+76,761

= 1,50,489

• What's the rule for the farthest location - i.e., if you had a multi-stop shipment that went from Naski Stop #1 -----> Gaya Delivery Stop #2-----> Ara Delivery Stop #3 would the rate record be the  Naski to Gaya rate record (assuming you had different rate records for Naski to Gaya and Naski to Ara) since it's the furthest away based on the direct distance from Naski to Gaya?

I assume your current rate lanes are not at a city to city level?

• Our rate record is for a specific commodity and contains multiple rate lanes. for Eg in the rate record, "Source is Nasik and commodity is QUANTO_WO_SKIRACK"; there are multiple delivery cities and their respective rates configured as rate unit breaks. please refer to screenshots shared earlier for reference.

The rule for farthest location : The farthest stop location is determined based on the stop sequence arrived at by OTM based on the Geo-code of the delivery locations. The shipment freight has to be calculated based on the sum of product freight for all orders for the farthest location.

Shipment Cost:

Farthest Location = GAYA

Cost Calculation = GAYA per unit Rate (for QUANTO_WO_SKIRACK) * Quantity(QUANTO_WO_SKIRACK) + GAYA per unit Rate (for THAR) * Quantity(THAR)

= 24,576 * 3 + 25,587 * 3

=73,728+76,761

= 1,50,489

• Vivek

Thanks.   Why don't you just create city to city rate lanes/rate records and then have the different rates by commodity defined  within the rate details?

1 Rate Record with a lane of Nasik to Gaya - with the different Gaya commodity specific rates defined

1 Rate Record with a lane of Nashik to Ara - with the different Ara commodity specific rates defined.

Given the shipment Naski to Ara to Gaya - OTM will select the Naski to Gaya rate record and rate the shipment with the commodity specific rates defined.