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Monthly demand(volume) to per order(volume)

Posted: Tue Jul 04, 2017 8:49 am
by KarthikThilak
Hello,

I need to transform my monthly demand(volume) to per order(volume)to be shipped and then direct it to the consolidated shipment stock.

My aim is to know if the order(volume) to be shipped by parcel or pallet.

Please let me know how this could be done?

Re: Monthly demand(volume) to per order(volume)

Posted: Tue Jul 04, 2017 3:42 pm
by Administrator
KarthikThilak wrote:I need to transform my monthly demand(volume) to per order(volume)to be shipped and then direct it to the consolidated shipment stock.
You need a parameter which converts the monthly demand to order, something like

number of orders = monthly demand * orders per monthly demand unit

Re: Monthly demand(volume) to per order(volume)

Posted: Wed Jul 05, 2017 1:37 pm
by KarthikThilak
I do not have the info on how much volume of articles were ordered.

Is there any way where I can input an equation in consolidated shipment and direct each shipment's volume to either parcel or pallet.

Please suggest

Re: Monthly demand(volume) to per order(volume)

Posted: Wed Jul 05, 2017 1:52 pm
by Administrator
Can you give a brief outline of the actual problem?

Your original post was "I need to transform my monthly demand(volume) to per order(volume)to be shipped", but how can you do this if you don't know how many orders you have?

It would also help if you uploaded the model to help explain what you are trying to do.

Re: Monthly demand(volume) to per order(volume)

Posted: Thu Jul 06, 2017 7:31 am
by KarthikThilak
Hello,

I have data of the number of orders per month.But,This data does not include the volume of products ordered.Just the number of orders.

From the attached model,

I am trying to optimise the shipping volume and number of parcels(cartons) to be shipped.

Ex : If an order volume is 0.5 cubic metre and the number of cartons is 4,is it better to ship via pallet or parcel.

For this,I need to formulate an equation for consolidated shipment.

This is what I am trying to achieve.

Re: Monthly demand(volume) to per order(volume)

Posted: Thu Jul 06, 2017 12:41 pm
by Administrator
Based on what you've written, I've attached what I think you need.

Re: Monthly demand(volume) to per order(volume)

Posted: Mon Jul 10, 2017 3:22 pm
by KarthikThilak
Hello,

Thank you very much for your reply and the attached model.

My point is how would I go about adding the decision parameter volume in the below model.The volume of the shipment(assuming what demand we get is what we ship) is the key factor which decides if we ship it as a parcel or pallet.

Pallet capacity is not so imp. I have tried thinking to model volume using lookup with the demand.But,since it is not a constant, I will not be able to vary it and see with the slider as to what happens when volume is higher/lower and inturn to freight costs related to parcel or pallet is cheaper.

Is there any other way,

Please help

Re: Monthly demand(volume) to per order(volume)

Posted: Mon Jul 10, 2017 3:56 pm
by Administrator
My point is how would I go about adding the decision parameter volume in the below model.The volume of the shipment(assuming what demand we get is what we ship) is the key factor which decides if we ship it as a parcel or pallet.
You can work out volume if you multiply demand by the volume it takes.

Surely pallet capacity is very important. If you have huge demand, it's not all going to fit on one pallet is it?

Re: Monthly demand(volume) to per order(volume)

Posted: Mon Jul 10, 2017 4:46 pm
by KarthikThilak
Yes ,you are right.

But,I am focussing on the demand which fits in one pallet.

The pallet shipments are priced based on only volume.The Parcel shipments are priced based on each parcel(x EUR /parcel)

So,I intend to use lookup table for pallet shipments to get the freight cost for them.to get an optimal volume split for shipping per order.

I have historical data for the period of a year for pallet shipments and parcel shipments.

This is the reason why I am thinking of modelling the volume as decision parameter.

Is there a way in modelling this?

Re: Monthly demand(volume) to per order(volume)

Posted: Wed Jul 12, 2017 7:53 am
by KarthikThilak
Yes ,you are right.

But,I am focussing on the demand(volume) which fits in one pallet.

The pallet shipments are priced based on only volume.The Parcel shipments are priced based on each parcel(x EUR /parcel)

So,I intend to use lookup table for pallet shipments to get the freight cost for them.to get an optimal volume split for shipping per order.

I need to vary the volume(per order) by the slider so that I can see the cheaper option between freight costs of parcel and pallet.Does this mean I have to model it as a constant?

I have historical data for the period of a year for pallet shipments and parcel shipments.

This is the reason why I am thinking of modelling the volume as decision parameter.

Is there a way in modelling this?Please help

Re: Monthly demand(volume) to per order(volume)

Posted: Wed Jul 12, 2017 12:25 pm
by Administrator
KarthikThilak wrote:This is the reason why I am thinking of modelling the volume as decision parameter.

Is there a way in modelling this?Please help
Yes, you can use volume. But you need a way of converting the orders to volume.

Try and do what happens in the real world.