Definition

  • A per shipment value that puts a floor on the minimum cost of each shipment for that mode. 


Example

  • An FTL lane has the following attributes:

    1. [UNITS PER TRUCK] =  20,000 lbs / truck                   (set at configuration>>product>>units per truck)

    2. [RATE PER MILE] =  $2/truck/mile                              (from reference data)

    3. [DISTANCE] = 100 miles                                             (lane characteristic)

    4. [MINIMUM SHIPMENT COST] = $250     (set at configuration>>freight>>mode)

  • COST PER UNIT  = MAX ( [UNITS PER TRUCK] * [COST PER UNIT] , [MINIMUM SHIPMENT COST] / [UNITS PER TRUCK]

  • In this example the reference data is suggesting the unit cost is [2] * [100] / [20,000] or $0.002/unit and the minimum shipment supersedes that at [250] / [20,000] or $0.0025/unit.