| |
 |
|
We have developed a spreadsheet model to
apportion costs to each delivery on a Paragon schedule. This information
can then be used in customer account profitability studies and to
produce cost tables. Cost apportionment has to be applied with great
care in distribution, as removing a particular group of deliveries will
affect the the cost of the remaining deliveries. Before any decisions
are finalised, a new fleet requirement can be produced in Paragon.
The following settings are taken from a Paragon schedule:
- inter drop distances and speeds, possibly by postcode area
- stem distances and speeds
- vehicle capacities and unloading rates
The cost per vehicle day and mile is also a required input. The model
then costs each delivery individually, assuming that each delivery on
the vehicle has the same characteristics. It tests whether the vehicle
will run out of physical capacity, driving time or shift time, then
tests whether it is cheaper to serve the call with two trips in a shift
rather than one. At the end of this process, it returns the cost of
serving the call.
To validate the apportionment process, the total cost of the individual
calls is added together and compared to the cost of the fleet produced
by the Paragon schedule and is factored, if necessary. Cost curves can
then be produced, such as:
Logistech's paper on deriving delivery costs
Back to technology |
|
|
|
|
|
|
