Tiered Rating - Support Marginal Rating for Tiered Rating Structure

This feature extends the Tired Rating capabilities to calculate a shipment's specific marginal cost. With this change, when recording a shipment using the action Record Shipment For Tiered Rating or while bulk planning, the cost recalculation will happen according to the marginal rating slabs configured on the aggregated shipment, and the shipment will have the specific cost of that shipment instead of the aggregated shipment.

In the example below, the three shipments all fall into the same tiered rating time period definition. The Total Actual Cost shown 1,480 USD, is the total cost the the shipments before the action Record Shipment For Tiered Rating has been run.

Shipment 1 - 400.00 USD (80 LB * 5.00 USD per LB) +
Shipment 2 - 500.00 USD (100 LB * 5.00 USD per LB) +
Shipment 3 - 580.USD (100 LB * 5.00 USD per LB + 20 LB * 4.00 USD per LB)

Shipments

The rate used for this example is below. For shipment total weight recorded from 0 LB to 100 LB, the cost is 5.00 USD per pound. For shipment total weight recorded from 101 LB to 200 LB, the cost is 4.00 USD per LB and for shipment total weight totals greater than 200 LB the rate is 3.00 USD per LB.

Rate Record

Below are the details and the calculations provided for each of the three shipments after the action Record Shipment For Tiered Rating has been run. The total cost for the three shipments after the Record For Tiered Rate action has run is 1,200.00 USD =

Shipment 1 = 400.00 USD (80 LB * 5.00 USD per LB) +
Shipment 2 = 420.00 USD (20 LB * 5.00 USD per LB) + (80 LB * 4.00 USD per LB) +
Shipment 3 = 380.00 USD (20 LB * 4.00 USD per LB) + ( 100 LB * 3.00 USD per LB).

For the Shipment 1 below, for 80 LBs, all of the shipment weigh falls into the 5.00 per pound rate break.

Shipment 1 - Tiered Rating Cost Detail

For shipment 2, the marginal rating impacts is shown. In this case, 20 LB of this shipment falls into the first weight break, so the Cost Details shows 20 LB at 5.00 USD per pound for a cost of 100.00 USD. Then, the remaining balance of 80 LB for this shipment is rated using the 4.00 USD per LB rate, for a total cost of 320.00 USD.

Shipment 2 - Tiered Rating Cost Details

Finally, for the third shipment of 120 LB, the first 20 LB falls into the 4.00 per LB break and then the balance of 100 LB falls into the final break where the rate is 3.00 USD per LB.

Shipment 3 - Tiered Rating Cost Detail

Business Benefit

This feature extends the rating options provided for Tiered rating scenarios.

Steps to Enable

You don't need to do anything to enable this feature.

Tips And Considerations

To properly calculate the Tiered Cost in situations where multiple shipments are recorded together - for example a multi-shipment select input to the Record Shipment for Tiered Rating action, the property glog.business.shipment.recordForTieredRating.recalcShipImmAfterRecording should be set to true.

Property Tree

When the property glog.business.shipment.recordForTieredRating.recalcShipImmAfterRecording is set to true, the application recalculates the shipment costs immediately after recording the shipment for tiered rating. This means if multiple shipments are being recorded, each shipment can get into different tiers. When set to false, this property recalculates shipment costs of all the shipments after they have been recorded. This means all the shipments will be in the same tier. By default, this property is set to false.

The RBI's below support marginal rating:

Tiered Rating Total Shipment Weight => Shipment Total Weight
Tiered Rating Total Shipment Net Weight => Shipment Total Net Weight
Tiered Rating Total Shipment Volume => Shipment Total Volume
Tiered Rating Shipment Chargeable Weight