Network Routing Example

Network routing is a way to model transportation networks. Following is a simple example of a transportation network to illustrate network routing.

Note: This is a very simple transportation network for explanation purposes. Much more complicated scenarios are supported.

 

 

In this scenario, orders are to be shipped from distribution centers in Illinois to stores in Ohio. The scenario consists of:

• Two source locations: Chicago and Mount Vernon.
• Two cross docks: Indianapolis and Louisville.
• One deconsolidation pool: Cuyahoga Falls.
• Two destination regions, each with several destination locations: Northeast Ohio (around Cleveland) and Southwest Ohio (around Cincinnati). These are represented by the blue ovals.

The destination regions are served as follows:

• Deliveries into the Northeast Ohio destination region are only via LTL (shown in green).
• Deliveries into the Southeast Ohio destination region are only via TL (shown in dark red).
• Shipments into either cross dock or the deconsolidation pool are via TL (shown in dark red).

Routing Choices

This example looks at an order from either source location to any destination location.

For example, an order from Chicago to a destination in Cleveland will have the following possible routes:

• One shipment: LTL from Chicago into Cleveland.
• Two shipments: TL from Chicago to Indianapolis cross dock; LTL from Indianapolis cross dock into Cleveland.
• Three shipments: TL from Chicago to Indianapolis cross dock; TL from Indianapolis cross dock to Cuyahoga Falls pool; and LTL from Cuyahoga Falls pool into Cleveland.

Likewise, an order from Mount Vernon to a destination in Cincinnati will have the following possible routes:

• Two shipments: TL from Chicago to Indianapolis cross dock; TL from Indianapolis cross dock into Cincinnati.
• Two shipments: TL from Chicago to Louisville cross dock; TL from Louisville cross dock into Cincinnati.

Basically, TL shipments are rated by distance, and LTL shipments are rated by simple weight classes. Consolidating orders onto the same TL shipment generally will reduce costs, while consolidating orders onto the same LTL shipments generally will not.

Order Flow

This section describes why the correct order routing solutions within the simple transportation network example depend upon the set of orders being planned and the different consolidation opportunities provided by different routing choices.

In this scenario, the correct routing decision for an order depends in part upon what other orders are being planned at the same time.

Example 1: Linehaul into the Pool

Consider the following two orders:

• Order 1: Chicago to Cleveland Store 1. By itself, this order is cheapest to send LTL from Chicago into Cleveland.
• Order 2: Mount Vernon to Cleveland Store 2. By itself, this order is cheapest to send TL to Indianapolis cross dock, and LTL from Indianapolis cross dock into Cleveland.

If both orders are planned at that same time, it will be cheaper to send each order individually on separate TL shipments into Indianapolis, then together on the same TL shipment to the Cuyahoga Falls pool, and the individually on short LTL shipments into their respective destination stores.

Example 2: Cross dock Selection

For another example, consider the following two orders:

• Order 1: Chicago to Cincinnati Store 1. This order must go via the Indianapolis cross dock into Cincinnati.
• Order 2: Mount Vernon to Cincinnati Store 2. By itself, this order is cheapest going via the Louisville cross dock into Cincinnati.

If both orders are planned at the same time, it will be cheaper to send each order individually on separate TL shipments into Indianapolis, then together on the same multi-stop TL shipment to Cincinnati Stores 1 and 2.

The Routing Constraint Manager allows you to control how an order is routed.

Example 3: Same Source/Destination, Different Routes

To the previous example, add a third order:

• Order 3: Mount Vernon to Cincinnati Store 2, large enough to fill a whole truck.

If all three orders are planned at the same time, it will still be cheaper to send Order 2 via the Indianapolis cross dock, but to send Order 3 via the Louisville cross dock.