Once optimization of a Route has taken place, users can calculate true costs on the Route to determine the economics of their logistics problem. This information will give the user visibility of the total cost of the current plan by Route and by Schedule.
Ü Note&emdash; The true costs are for information purposes only.
True costs of a Route are determined by the following variables:
· Fixed Costs:
¡ Start up cost of an asset
¡ Fixed costs of an asset
· Variable Costs:
¡ Cost per distance
¡ Cost per time
¡ Cost per Load Unit
The example below shows a cost profile setup and then what the true cost calculation would be based on the driver’s work time when this cost profile has been applied.
The route’s projected distance and projected elapsed time are as follows:
The driver works from 7:01am till 17:11am on January 23 as shown below.
The cost calculation break-down should be:
Start Up Cost = 1,500
Time Cost Based on CostDuration:
Projected Elasped Time = 10:11:32
· Duration (hrs) * CostPerHour = (2*10 = 20)
· Duration (hrs) * CostPerHour = ((8-2) * 6 = 36)
The remaining time is free since there is no cost after the first eight (8) hours.
Time Cost Based on Hour of Day:
· 8:00 am &endash; 10:00 am = (2 * 8 = 16.00)
· 10:00 am &endash; 8:00 pm (only charge 10-17:11, total of 8 hours) = (8 * 10 = 80.00)
Distance Cost:
· 0 &endash; 20 miles = (5 * 20 = 100)
· 20 &endash; 1000 miles = ((59.57 &endash; 20) *1 = 39.57)
Cost Total:
· (20 + 36) + (16 +80) + (100 + 39.57) = 291.57
