Trip Cost Savings example

Consider a potential trip with two loads: A ' B, C ' A

Assumptions:

The lane for load from A ' B has Execution Tariffs for 4 carriers:

Carrier

Percentage

Rate

PPPP

20

500

QQQQ

50

510

RRRR

30

520

SSSS

0

450

The lane for load from C ' A has Execution Tariffs for 2 carriers:

Carrier

Percentage

Rate

TTTT

40

425

UUUU

60

415

Without considering CEA Penalties, the sum of the lowest cost carriers for the two loads would be $865 which would be less than the trip cost of $900. In this case, the trip would not be created.

Load

Carrier

Rate

A'B

SSSS

450

C'A

UUUU

415

 

 

865

If CEA Penalties are being included with a Minimum Loads Violation of $100, Optimizer would need to assign the Load from A ' B to Carrier PPPP, QQQQ or RRRR to avoid a penalty. Now the lowest possible total cost for moving the individual loads would be $915 since the there would now be a $100 penalty that would be incurred using Carrier SSSS for the first load, bringing the total plan cost using carriers SSSS and UUUU to $965. In this case, the trip would be built.

Load

Carrier

Rate

Penalty

Total

A'B

PPPP

500

0

500

C'A

UUUU

415

0

415

 

 

915

0

915

Load

Carrier

Rate

Penalty

Total

A'B

SSSS

450

100

550

C'A

UUUU

415

0

415

 

 

865

100

965

See Also

Trip Cost Savings