[slimjim30215]

I've been told that when OTM is planning a shipment it looks at both equipment utilization and cost, but that it looks at equipment utilization first. Can anyone confirm if this is true?

If so, then I'm also wondering if anyone can provide some recommendations on how to configure OTM to look at price over utilization, if this can even feasibly be done.

In our situation we have many equipment groups and it is well within the realm of reason that one service provider's piece of equipment (small) may have a higher freight cost than another service provider's piece of equipment (not so small) and we need the least cost solution to be chosen, not the best equipment utilization.

[nipunlakhotia]

Hi,

If you want OTM to look at price over utilization, then 2 approaches can be used

• Rate preference for a given lane and service provider
• In itinerary leg, use "No equipment" as equipment assignment type. But this have one drawback also i.e. shipment will not have any equipment type & related utilization data.

[slimjim30215]

Nipun,

Thanks for the input. I have already discussed rate preference with the team, before sending out this question, it's definitely not the desired/favored approach, but we are aware that it might be our best option. Since the rates are heavily dependent on equipment constraints the itinerary leg approach probably won't be an option either.

I guess we'll have to go the rate preference route, thanks again.

[nipunlakhotia]

After analyzing the requirement again, it seems that service provider1 will never be used for shipment making - if order weight if suitable for small equipment , then OTM will use service provider2 since rate preference is used. Also if order weight/volume is suitable for large equipment, then anyways OTM will use service provider2.

Then what is use of configuring rates for service provider 1?

[slimjim30215]

The rates are related to 2-axle, 3-axle, 4-axle and 5-axle trailers, and at certain times during the year, a certain axle configuration is required over another, even if the rate is higher/lower for another piece of equipment. That's why rate preference, and more specifically, a rate preference with effective/expiration dates, will need to be utilized.

[bmj_23]

Hi - part of the first steps in the bulk planning process is for OTM to look at all of the available equipment groups based on the available itineraries. Based on this selection, it looks to create different options about how to fit your ship units in to all of the possible equipment groups. From there, it moves in to looking at the possible rates for each of those different options and the associated cost of each option. I don't think it is a fair statement to say that OTM prefers utilization over cost.

If you have a larger but cheaper equipment group available, I think OTM should figure that out for you. It should be a very simple test to try. That is the best way to verify one way or another. Let me know what you find out.

[nipunlakhotia]

Hi Bmj,

I tested the above scenario in my test instance and results were not in line with the expectations..

• Planning engine does not look at the possible rates for each of those different equipment options and the associated cost of each option.
• Instead, OTM planning engine first optimize on equipment for the given leg and then rate shipment based on all rates available for that particular equipment only.

Thus, it is resulting in shipment being rated by expensive service provider (provided it offer smaller equipment group i.e. higher utilization).

<<log details attached>>

Please test this scenario at your end and confirm.

[bmj_23]

Hi,

1. On your single leg itinerary PRACTICE.TEST_AB_1, are you using equipment group profiles or Multi-Modal Equipment Sets ?

2. From the log files, it looks like as if there is only one valid equipment group to put your order in on that itinerary. Assuming you are using Equipment group profiles on the itinerary leg, how many equipment groups are in that equipment group profile ?

3. Also, what version of OTM are you using and are you familiar with some of the container optimization planning parameters ?

Let me know.

[nipunlakhotia]

Hi,

1. We are using equipment group profiles (with 2 valid equipment groups - 43ft & 53ft) in single leg
itinerary
2. OTM 5.5 CU04
3. We are using default planning parameter set.

[bmj_23]

OK, so the smaller equipment (43FT) is cheaper than the larger (53FT) equipment ?

Take a screen shot and post it here on what you have under the following:

Transportation Planning and Execution > Power Data > Planning > Logic Configuration > Container Optimization Default.