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  • rate per mile calculation

    Hi,

    The scenario is rate per mile calculation with the rate unit break profile set up as follows:

    0-20 miles - $2
    21-100miles-$1.5
    101-150 miles-$1.25

    Total Distance between point-A and Point-B is 29.88 miles. OTM is applying the rate that is set up for the range 21-100 miles (i.e 1.5$ *29.88 = 44.82$)

    Please help us how do we configure in OTM, for the system to pick up the rate fpr the range 0-20 and then apply the rate for 21-100.

    Thanks and regards,
    Jay

  • #2
    Re: rate per mile calculation

    Hello

    Need a little more information on this.

    What is the scenario and what are the shipping requirements you are trying to meet?
    Why are you using rate unit break profiles to determine this?

    Only seeing the above, I would list conditions on the Rate Record cost using the Shipment Total Distance Traveled parameter. But again, need more info to know if this is a feasible solution.

    Matthew Hunter

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    • #3
      Re: rate per mile calculation

      Hi,

      1. I would be tempted to set up the 0 - 20 mile rate as the base freight cost on the rate record with a condition of total distance travelled < 20. This way, all shipments should have that base freight cost calculated.

      2. Then use accessorials for the other distance breaks - so for example, you would have an accessorial cost with conditions of total distance travelled > 20 and < 101 with that mileage cost, and then a different accessorial cost for the > 101 < 150 mileage bands.

      Shouldn't take too long to configure and test whether that works.

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      • #4
        Re: rate per mile calculation

        This won't work BMJ. How would the accessorial cost apply its rate only for miles above 20? E.g. shipment has 80 miles. Then base cost will not apply because of condition distance traveled < 20. Then accessorial will apply with rate basis of shipment total distance traveled, say 1.5$ per mile, so 80 x 1.5 = 120. But what he wants here is first 20 miles at $2/mile rate and next 60 miles at a $1.5/mile rate. So cost should have been 20 x 2 + 60 x 1.5 = 130.

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        • #5
          Re: rate per mile calculation

          Here is the solution to your problem. There is a concept called Marginal Rating in OTM. This is nothing but a check box on rate cost called "Calculate As Marginal Cost". If you check that, the rate conditions are evaluated and rate specified is applied only for qualifier satisfied in rate condition, e.g. shipment total distance traveled between 20 and 100 miles. See attached document which explains the rate cost setup with screenshots.Marginal rating in OTM.docx

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          • #6
            Re: rate per mile calculation

            From what's described, just using multiple conditions should satisfy the requirement.

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            • #7
              Re: rate per mile calculation

              Swapnil - You are correct - I set this scenario up myself and saw the difference between the requirement and how OTM rates it. If your marginal rating solution works, that's a neat way of doing what I thought was relatively standard OTM functionality.

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              • #8
                Re: rate per mile calculation

                Hi Swapnil and all,

                Thanks a lot it is working as per your suggestions. Sorry for the delay in response.

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                • #9
                  Re: rate per mile calculation

                  Thanks for Document!!

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                  • #10
                    Hi Swapnil,

                    Can I get this document?

                    Thanks.

                    Pranav

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