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  • Bulk plan - consolidation vs lesser cost

    HI all,

    CONSIDER THIS SCENARIO

    There are 3 orders with same source-destination

    Order ID EPD LDD
    TC-100 2010-02-01 01:54 CST 2010-02-02 23:59 PST
    TC-200 2010-02-01 01:50 CST 2010-02-04 23:59 PST
    TC-300 2010-02-01 01:54 CST 2010-02-08 23:59 PST

    There are 3 different rate offerings for above source-destination pair
    RO1: 1 transit time 1 day
    RO1: 1 transit time 3 days
    RO1: 1 transit time 7 days

    When all 3 orders are planned together using bulk plan, system is consolidating everything into 1 shipment using RO1 at $500

    If they would had been planned seperately, then 3 shipments would had been created i.e.
    order1 shipment1 using RO1
    order2 shipment2 using RO2
    order3 shipment3 using RO3
    TOTAL cost of all 3 shipments is $400

    Issue:
    Why does bulk plan does not considers both scenarios i.e. with and without consolidation and then selects the one which is of lesser cost?

    Presently bulk plan is creating 1 shipment i.e. consolidating all 3 orders in to one - even at higher cost?

    Can any planning parameter be used to get desired results. We have even tried SOLUTION IMPROVEMENT planning parameter config, but same result

    Note:
    We are using Kewill as exteranl rating engine in all our rate offerings

    Regards
    Nipun
    Nipun Lakhotia
    Manager, EY

  • #2
    Re: Bulk plan - consolidation vs lesser cost

    Try these two parameters and see whether they work for your scenario.
    COMPUTE SHIPMENT TIME WINDOW
    HOLD AS LATE AS POSSIBLE

    Also, you might need to play around parameters relate to Order Bundling.
    --
    Joseph Liang
    MavenWire APAC
    http://www.mavenwire.com/

    Comment


    • #3
      Re: Bulk plan - consolidation vs lesser cost

      Hi Joseph,

      Thanks for the reply. checked the 2 options but couldnt acheive the result which we are looking for.

      Regards,

      Comment


      • #4
        Re: Bulk plan - consolidation vs lesser cost

        We ran into this problem before. There is a sequential tendency toward bundling over price. We found that we could use the Solution Improvement Configuration - Send orders on a shipment direct one at a time

        Comment


        • #5
          Re: Bulk plan - consolidation vs lesser cost

          We are getting same results even after trying Solution Improvement Configuration - Send orders on a shipment direct one at a time

          OTM is still preferring order bundling over price
          Nipun Lakhotia
          Manager, EY

          Comment


          • #6
            Re: Bulk plan - consolidation vs lesser cost

            Have you tryed cost savings parameters?

            Under MULTISTOP CONFIG ID -
            MULTISTOP COST SAVING CHECK TYPE - Set it to 4.Calculate cost for all paired shipments

            Also Under CONTAINER OPT CONFIG ID - OPTIMIZE COST - set it to true.

            Comment


            • #7
              Re: Bulk plan - consolidation vs lesser cost

              Also set the following parameters to 0, to avoid bundling at first:
              MAXIMUM VOLUME PER BUNDLE
              MAXIMUM WEIGHT PER BUNDLE

              Regards

              Comment


              • #8
                Re: Bulk plan - consolidation vs lesser cost

                Does somebody found already a solution?
                We do face the same problem but all steps above were performed without success.

                thanks
                Barbara

                Comment


                • #9
                  Re: Bulk plan - consolidation vs lesser cost

                  Hi Folks,

                  Were you able to get this scenario plan order bundle based on cost rather than transit time? We have a similar requirement and the above settings didn't optimize cost. Do we need to add other additional setups?

                  Thanks,
                  Rajiv

                  Comment


                  • #10
                    Re: Bulk plan - consolidation vs lesser cost

                    Analysing an unexpected Bulk Plan result is difficult already when you have created the OTM setup (locations, rates, itins, ...) yourself, and often involved scanning the logfile and running several tests.

                    Josephs, George's and Daniel's suggestions are all very valid, but you have to give a little more detail about your setup if you want more effective help.

                    Comment


                    • #11
                      Re: Bulk plan - consolidation vs lesser cost

                      Click image for larger version

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                      Lourens,

                      Thanks for your response. Since the problem was looking same as in the original post and I was busy working on another issue I didnt give an example. Sorry about that. Attached 2 orders are having same source/destination and compatible items. Its a single leg non multistop itinerary. There is no other active itinerary. Date emphasis is DELV on both orders.When you plan OR1 alone it has enough transit and plans with SP1 -$1084 and OR2 is planned with SP2 - $362. In a single bulk plan if both orders are selected it creates a single shipment (SP2 - $4000) from a single order bundle considering the earliest Late delivery date of 2 orders as Late delivery date for the entire order bundle. I understand so far OTM is working as expected.But when it plans this order bundle to SP2, the cost is higher compared to shipping OR1 and OR2 direct. I am trying to split this single order bundle and plan based on optimised cost. Consolidated cost is around $4000 whereas had we shipped it direct it could have costed less than $1500.

                      Thanks,
                      Rajiv

                      Comment


                      • #12
                        Re: Bulk plan - consolidation vs lesser cost

                        Not sure if adjusting planning objective in Conopt Logic Configuration helps.
                        --
                        Joseph Liang
                        MavenWire APAC
                        http://www.mavenwire.com/

                        Comment


                        • #13
                          Re: Bulk plan - consolidation vs lesser cost

                          Have you tried Daniel's suggestion?
                          Bulk plan - consolidation vs lesser cost

                          Comment


                          • #14
                            Re: Bulk plan - consolidation vs lesser cost

                            Joseph and Lourens, Thanks for your response.

                            Lourens, No Daniel's suggestion didn't work. I had raised an SR and was following with Oracle. I thought of updating this thread once I get a solution. Its still in progress.

                            Comment


                            • #15
                              Re: Bulk plan - consolidation vs lesser cost

                              Is you itinerary set as multi-stop?

                              Even though it is a location-location shipment, if you don`t flag the multistop at your itinerary, the cost optimization is skipped.

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