Transportation lanes costs

[Former Member]

Hello guys,

I'm trying to understand how  the cost works at transportation lanes level.

We have transportation lanes created and also we have products assigned to them. At means of transport level we have MOT, validity, distance and duration and we would like to add cost at Transport cost or Means of transport file level.

For the Transport cost what Unit of measure I need to choose?

How optimizer calculate the cost for the first/second variant. Do I need to switch the optimizer to discrete for the second variant ? For which variant I need to create transportation resource?

Thank you.

Regards Marius     

[sourabh_jain66 · Accepted solution]

Hi Marius,

For the Transport cost what Unit of measure I need to choose?

For UOM you can specify unit of measure for which the cost is applicable, ideally any unit of measure from product master or your sales unit of measure.

How optimizer calculate the cost for the first/second variant. Do I need to switch the optimizer to discrete for the second variant ?

Costs here are notional as already mentioend by Srinivas, you don't need to go for discrete optimization, unless you are using cost function for means of transport or your business problem calls for any of the following;

Discrete Optimization

A problem is not continuous (and is therefore discrete) in Supply Network Planning, when the model contains:

• Discrete (integer-value) lot sizes for transportation or
  PPMs/PDSs
• Discrete means of transport
• Discrete increase of production capacity
• Minimum lot sizes for transportation or PPMs/PDSs
• Piecewise linear cost functions for transportation, production, or
  procurement
• Fixed PPM/PDS resource consumption
• Fixed PPM/PDS material consumption
• Cross-period lot size planning

For which variant I need to create transportation resource?

Here, if you can specify your business requirement, will be helpful in finding the solution for your requirement.

Rgds

Sourabh

[Former Member]

Hi Jain,

I was thinking that UM should be MI or KM.

For UM=MI, cost 73$ and distance = 100 MI, the optimizer has the input = 0.007 and total cost will be 0.007 x quantity. Normally I should have 73$ x 100 = 7300$.

In product master my UM = LB. So, I need to work with the cost by LB. Is it correct?

I don't need to have transportation resource defined, but I was thinking that can be the cause for why the optimizer is not working properly.

Thanks, Marius  

[sourabh_jain66]

Hi Marius,

Yes, you need to work by LB for cost, that is what SAP suggests.

All the best for your scenario.

Rgds

Sourabh

[Former Member]

Hi Marius,

All the costs are notional. No harm maintaining them without specifying a UOM as longs as they are relatively proportional.

Regards,

SG