Capacity Override by Service Provider

The system uses container optimization logic to determine how to pack orders (ship units) into equipment containers. OTM uses the equipment group-based capacity overrides to determine how much a container can hold. Additionally, OTM allows capacity overrides to specify service providers. The same equipment group may have different capacity depending upon which service provider (or mode) the shipment is using.

The container optimization logic can also consider individual combinations of equipment group, mode, and service provider in order to determine how to pack a container. In particular, when commitment allocations or capacity limits affect how equipment should be packed, the container optimization logic will be able to decide how to pack a container based on which service provider should be used.

Example

Suppose there is one equipment group and two carriers. Carrier 1 has a lighter tractor, and so can carry 36,000 lbs for this container. Carrier 2 has a heavier tractor, so in order to adhere to road weight restrictions, it can carry only 34,000 lbs for the same container. The lane has a 50/50 percent allocation commitment for carriers 1 and 2.

Without this setup, container optimization logic in bulk plan may load every shipment with 36,000 lbs, and then every shipment will have to go to carrier 1. The allocation commitment cannot be met because container optimization does not build any shipments that can be handled by carrier 2.

Note that container optimization can make decisions between equipment groups based on allocation. This setup allows container optimization to make decisions about how to pack the same equipment group based on allocation.

Configuration

The "USE CAPACITY OVERRIDE BY SERVPROV" parameter should be turned on.
The "ALLOW DIFFERENT RATE RECORDS FOR SPLIT ORDERS" parameter should be turned on (to allow container optimization to consider different service providers simultaneously).
The following container optimization logic parameter settings are recommended:
- The "CONSIDER CAPACITY LIMITS" logic parameter should be turned on for capacity limits.
- The "CONSIDER COMMITMENT ALLOCATIONS" logic parameter should be turned on for commitment allocation.
- The "OPTIMIZE COST" logic parameter should be turned on for either capacity limits or commitment allocation.
- The "MAXIMIZE CONTAINER UTILIZATION" logic parameter should be turned off for either capacity limits or commitment allocation.
- The "MINIMIZE NUMBER OF CONTAINERS" logic parameter should be turned off for either capacity limits or commitment allocation.

Use Case

In the following use cases, there are three carriers:

TUDOR (TL): $160
YORK (TL): $200
STUART (INT): $300

The BIG container is defined as an equipment group that can hold 40,000 lbs.

Commitment Allocation

In this use case, the capacity overrides are defined with two lines as follows:

YORK (any mode): 30,000 lbs

STUART (any mode): 35,000 lbs

Note that there is an implicit third version of the BIG container, which can hold 40,000 lbs for any service provider other than YORK and STUART.

There are 14 orders, each 10,000 lbs.

For this case, a shipment using the BIG container on TUDOR can carry 4 orders, but on YORK or STUART it can carry only 3 orders.

Without commitment allocations, all shipments should go to TUDOR (which is both cheaper and bigger), and so there would be 4 shipments using TUDOR with a maximum of 4 orders per shipment.
With a commitment allocation strategy where YORK should get 100%, all shipments should be built so that YORK can take them. So there would be 5 shipments using YORK with a maximum of 3 orders per shipment.
With a commitment allocation strategy where YORK and TUDOR each should get 50%, half the shipments should be built so YORK can take them. So there would be 4 shipments, 2 using TUDOR with a maximum of 4 orders per shipment, and 2 using YORK with a maximum of 3 orders per shipment.

The same is true when planning a single large count-splittable order with 14 ship units, each 10,000 lbs. For example, in the 50/50 percent case, the order should be split into 4 unequal-sized shipments.

Capacity Limits

In this use case, "Capacity Limit" refers to the number of available containers for a carrier, while "Capacity Override" refers to the amount of freight that a container can carry. (They both use the word "capacity" but have completely different meanings.)

In this use case, the capacity overrides are defined with two lines as follows:

INT (any carrier): 25,000 lbs

YORK (any mode): 32,000 lbs

Note that there is an implicit third version of the BIG container, which can hold 40,000 lbs so long as its not on YORK and not on the INT mode.

There are 12 orders, each 8,000 lbs.

For this case, a shipment using the BIG container on TUDOR can carry 5 orders, but on YORK it can carry only 4 orders, and on STUART is can carry only 3 orders.

In this use case there are no commitment allocations.

When there are no capacity limits, all the shipments should be built for TUDOR (which is cheaper and bigger), and so there would be 3 shipments using TUDOR with a maximum of 5 orders per shipment.
When there are capacity limits so TUDOR can take only one shipment, and YORK can take only one shipment, one shipment can be built for TUDOR's capacity, and one shipment can be built for YORK's capacity, but the remainder must be built for STUART's capacity. So there will be 1 shipment using TUDOR with 5 orders, 1 shipment using YORK with 4 orders, and 1 shipment using STUART with 3 orders.
When there are capacity limits so TUDOR has no available capacity, and YORK can take only one shipment, no shipments should be built for TUDOR's capacity, and one shipment can be built for YORK's capacity, but the remainder must be built for STUART's capacity. So there will be 1 shipment using YORK with 4 orders, and 3 shipment using STUART with a maximum of 3 orders. No shipments will be built with 5 orders.

The same should be true when planning a single large count-splittable order with 12 ship units, each 8,000 lbs.