SAP TM Planning Configuration

SAP Transportation Management (SAP TM) - Release 9.0 Document Version: 1.3 – 2014-02-20 White Paper SAP TM Planning Configuration SAP AGS Business Solution Architecture Ekaterina Tarchinskaya Rodion Schuster Christopher Suerie Typographic Conventions Type Style Description Example Words or characters quoted from the screen. These include field names, screen titles, pushbuttons labels, menu names, menu paths, and menu options. Textual cross-references to other documents. Example Emphasized words or expressions. EXAMPLE Technical names of system objects. These include report names, program names, transaction codes, table names, and key concepts of a programming language when they are surrounded by body text, for example, SELECT and INCLUDE. Example Output on the screen. This includes file and directory names and their paths, messages, names of variables and parameters, source text, and names of installation, upgrade and database tools. Example Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation. <Example> Variable user entry. Angle brackets indicate that you replace these words and characters with appropriate entries to make entries in the system. EXAMPLE Keys on the keyboard, for example, F 2 or E N T E R . Icons Caution Example Note Recommendation Syntax © 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 White Paper SAP TM Planning Configuration Document History Version Date Change 1.0 2013-12-14 Initial version of White Paper 1.1 2014-01-16 1st review 1.2 2014-01-30 Final review (internal release) 1.3 2014-02-20 Reviewed version after internal release White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. All rights reserved. 3 ...................6..7 Check ....................................2........................2........1 General Data ............3....................9 Parallel Processing Profiles .50 Planning Costs Settings .................................2 Capacity Selection ...... 47 2.................................................................................................................................................................................. 6 2 2...... 26 2..............................................2...... 7 Selection Profiles .............................................................................................4 Settings for Carrier Selection for Direct Shipment .................5.....96 2.............................3 2.............4..............................................................................................4 Business Document Type ..................................................................4 Optimizer Runtime .................................................................................................2....................5..........2............................2 2........4 Additional Selection Attributes ....................................................... 37 Optimizer Settings..............................................................5 2...... 55 2.... 28 2..................................................................................................2........................................ 78 2..94 Incompatibility Settings .......................1 General Data ..................6 Scheduling ............5 Rough Planning and Capacity Constraints ....................................................3...............................................................................3.......................................................................................................................1......................5............................................................3 Profile Assignments ..............................7.......................30 2............................ 97 2...........................................................................4...........................................................................................................2 Incompatibility Selection .................................................................................................. 45 2................................ 40 2...............................1 General Data ...................................... 93 Capacity Selection Settings................. 52 2....Table of Contents 1 About This Document .....2......................................1 General data . 78 2.94 2..................3 Direct Shipment Options ................................................................................................................ 38 2.............................................2 Planning Horizon .......................................................5 Manual Planning and Manual Planning Strategies ..................5. 38 2..................1.............................94 2........................................4......... 8 2....................................................3 Settings for Carrier Selection for Tendering ...................................................................................................................................... 17 Planning Profile ...... 52 2.................2 Freight Unit Costs ....................................... 38 2.........................................................................................................2 Settings for General Carrier Selection ................................................................................1...............................................................................3.... All rights reserved..............................................1 General Data ............4 2................4................................................................................................................................................................................................................................................................................6 Cost Values in the Optimizer Explanation Tool .............................. 10 2......................................................6 2............................................................................................................................. 74 2...................................................................................................4..........................................................................5 Costs Functions ........................................................... 52 2.............................. 56 2............................................................................................ 79 2..........................................................1 General Data ......................................2....................................... 92 2............................................................................ 34 2.............................................................................................. 32 2...6.......................................................................................1 Transportation Planning ....................................................2 Geographical Selection Attributes ...........3 Transportation Proposal ....................................................2 Planning Strategies ..... 19 2................................................. 11 2... 75 Carrier Selection Settings ............ 8 2.............................................6 Transshipment Locations ............... 19 2.4 Means-of-Transport Settings ..........................................................................................7 © 2014 SAP AG or an SAP affiliate company......................1 Selection Profile Attributes ..................................4..................................................................................................3.................................................................................................3 Time-Related Selection Attributes ..............................................................7.....96 2.....1.............................................................. 19 2................................... 35 2..............................................................................3......................................................................8 Loading and Unloading Duration .........2......... 4 White Paper SAP TM Planning Configuration ....................................... ....... 99 White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.......................................... 5 ............................................. All rights reserved..........................3 References............................... The content of this document is not part of SAP product documentation.which mainly configure the planning process in SAP Transportation Management (SAP TM). As it is mentioned in the title. All rights reserved. Instead. © 2014 SAP AG or an SAP affiliate company. Therefore.the selection profile and the planning profile .0. This document does not intend to provide all details and capabilities of transportation planning within SAP TM. the reader will have a better understanding of how to adjust the selection and the planning profiles in SAP TM.0.1 About This Document The main objective of this document is to describe in a setting-by-setting manner two profiles . SAP does not guarantee the correctness of the information provided. You may not infer any product documentation claims against SAP based on this information. most of the content and settings described are relevant and present in the descending and ascending releases of the SAP TM release 9. Hence. this document is of interest to all SAP TM users. It is evident that both profiles and their proper definition play an important role in overall transportation planning in SAP TM and affects its outcome. After reading the document at hand. Follow-on versions of this document will reflect the changes related to the new SAP TM releases. it gives some insights about the selection profile and the planning profile and describes the settings based on simple examples. 6 White Paper SAP TM Planning Configuration . this paper represents an attempt to gather in single document the information on planning-related settings. Nevertheless. the settings described and examples used in this document are based on the SAP TM release 9. • Planning Profiles and Settings Planning settings are the core of the planning process and specify how it is to be executed. selection settings outline the geography for which a transportation plan shall be created. costs. Sections 2. Therefore. For example. transportation lanes. 7 . Which constraints are relevant and how costs and penalties are to be calculated in a specific scenario largely depends on the scenario itself. In SAP TM. In Section 2. transportation zones. All rights reserved.) and resources. one should carefully and thoughtfully model the scenario and adjust planning settings in order to sufficiently map all the business requirements into the system and obtain in return the most accurate planning and optimization results which would correspond to the needs of SAP TM users. For example. The document will cover only two of the stated planning pillars. the planning process relies on the following three pillars: • Master Data Master data objects for planning contain transportation network (locations. Therefore. Which resources can be used and at what cost is specified in the planning settings. This information dictates how the actual transportation is to be carried out.9 deal with planning profiles and settings.2 Transportation Planning One of the intentions of SAP TM is to provide its users with the ability to plan and optimize their transportation activities. etc. The planning process can be determined by using the most cost effective and timely transportation routes from source to destination locations while considering numerous constraints.2. it is structured as follows.1 selection profiles and settings are examined. • Selection Profiles and Settings Selection settings are used to specify what should be planned in a certain scenario. and penalties. a planner may only be allowed to schedule standard trucks and not a helicopter for emergency transports. Section 3 outlines references and SAP Notes used in this document. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.2 . 2.2.1 General Data General Data Value Selection Profile Text Value Description Text Value Maximum Number of Selected Objects Natural Number Table 1 General Data Settings in Selection Profile Attributes The selection profile is a user-specific grouping of business documents considered for planning. and transportation units. freight orders. What objects relevant for planning are selected largely depends on the context of the planning scenario.1. the configuration settings of selection profiles and selection attributes are presented. In the Maximum Number of Selected Objects. freight unit stages. freight bookings. These objects can be freight units. VSR optimization.1. All rights reserved. one can define the maximum number of business documents the system is to take into account during planning. the unique name and the description of the selection profile are defined. and carrier selection. 2. The selection profile can be created via the path menu SAP NetWeaver Business Client by choosing Application Administration  Planning  Selection Profiles  Create Selection Profile.1.2 Profile Assignments Profile Assignments Value Time-Related Sel. In the General Data area.1.1.1 Selection Profiles In the following section of this document. The system takes into account the selection profile during manual planning. Attributes List Selection © 2014 SAP AG or an SAP affiliate company. Attributes List Selection Geographical Sel.1 Selection Profile Attributes 2. 8 White Paper SAP TM Planning Configuration . White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. one can define the selection attributes by which the system is to retrieve the business documents for planning. Attributes List Selection Table 2 Profile Assignments Settings in Selection Profile Attributes Figure 1 Selection Profile Assignments In the selection profile.Profile Assignments Value Additional Sel. All rights reserved. The geographical selection attributes can be created via the menu path SAP NetWeaver Business Client by choosing Application Administration  Selection Profile Attributes  Geographical Selection Attributes  Create Geographical Selection Attributes.  Additional Selection Attributes With this profile. Also. it is possible to create these three attributes independent of each other and the selection profile. one can define source and destination locations for the selection of the business documents. one can define the demand horizon. The time-related selection attributes can be created via the menu path SAP NetWeaver Business Client by choosing Application Administration  Selection Profile Attributes  Time-Related Selection Attributes  Create Time-Related Selection Attributes. one can define additional attributes for database queries. 9 . The selection profile retrieves objects relevant for planning according to settings specified in the attached selection attributes. In the system. it is then possible to reuse the same selection attributes in different selection profiles.  Geographical Selection Attributes With this profile. It is possible to assign the following selection attributes to the selection profile (Figure 1):  Time-Related Selection Attributes With this profile. The additional selection attributes can be created via the menu path SAP NetWeaver Business Client by choosing Application Administration  Selection Profile Attributes  Additional Selection Attributes  Create Additional Selection Attributes. 1. 10 White Paper SAP TM Planning Configuration . The source/destination selection settings are described below. 2. Both Locations setting defines whether the selected business object must comply with the selected geographical criteria of source and destination selections.1.2 Geographical Selection Attributes 2. or it is sufficient if only their source or destination matches its criterion.2.2.1 General Data General Data Value Geographical Sel. Attributes Text Value Description Text Value Both Locations Select/Deselect Table 3 General Data Settings in Geographical Selection Attributes In the Geographical Sel. the unique name and the description of the geographical profile are defined. All rights reserved.2 Selection Selection Value Source Locations List Selection Source Zones List Selection Destination Locations List Selection Destination Zones List Selection Table 4 Selection Settings in Geographical Selection Attributes The geographical profile consists of four sections:  Source Locations  Source Zones  Destination Locations  Destination Zones © 2014 SAP AG or an SAP affiliate company.1.2. Attributes and the Description. List Selection Table 6 Demand Horizon Settings in Time-Related Selection Attributes Within the time-related selection attributes. one can define the demand horizon that is assigned to the selection profile. the unique name and the description of the time selection profile are defined. The demand horizon outlines dates for pickup and delivery./Dur.3. Attributes Text Value Description Text Value Table 5 General Data Settings in Time-Related Selection Attributes In the Time-Related Sel.3 Time-Related Selection Attributes 2.1.1 General Data General Data Value Time-Related Sel.3. Absolute or Relative Horizon allows to define the demand horizon as absolute or relative. Each section allows to define specific values or ranges of values. 2.1. All rights reserved. 11 . or not equal to. one can define an inclusive or exclusive set of location values that determine which freight units or other planning-related objects are relevant for planning. Calc. 2. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. For Offs. using the logical greater than. The system then chooses planning-related objects whose pickup date and time and/or delivery date and time lie within the relevant demand horizon.2 Demand Horizon Demand Horizon Value Absolute or Relative Horizon Use Absolute Horizon Use Relative Horizon Round Horizon to Full Days Select/Deselect Time Zone for Rounding the Horizon List Selection Factory Cal. Attributes and the Description. to provide precise selection for planning.Within each section. less than.1. With the absolute horizon option, one can define the demand horizon precisely by maintaining the exact start and end date and time of the demand horizon. Using the absolute horizon, one can specify explicit dates for the pickup horizon and/or the delivery horizon. If using the relative horizon option, the demand horizon is defined not with precise dates but instead with the specified duration (in days) starting from the current date. If the demand horizon is not desired to start from the current date, it is possible to use an offset. The general logic of these features is described more in detail in Section 2.2.2 Planning Horizon. Round Horizon to Full Days specifies whether or not the system rounds the demand horizon to complete days. In the time-related selection attributes, this setting is available in case relative demand horizon is selected. Therefore, if this setting is set, the first day of the relevant demand horizon starts at 00:00 and the last day rounds till 23:59 o’clock. Also to keep in mind, the Round Horizon to Full Days setting is set by default. . Time Zone for Rounding the Horizon specifies the time zone in which the horizon is to be calculated. In the timerelated selection attributes, this setting is available in case relative demand horizon is selected. Factory Cal. For Offs/Dur.Calc. If a factory calendar is specified, then the system takes into account non-working days when calculating the start of the horizon according to the calendar. In this case, the planning horizon always begins on a working day. In the time-related selection attributes, this setting is available in case relative demand horizon is selected. 2.1.3.3 Pick-up Pick-up Value Ignore Pick-up Select/Deselect For Relative Horizon Value Pick-up in Days Time Value (hh:mm) Additional Duration (hh:mm) Time Value (hh:mm) Offset Direction Past Future Offset in Days Time Value (hh:mm) Additional Offset (hh:mm) Time Value (hh:mm) For Absolute Horizon Value Start Date Date © 2014 SAP AG or an SAP affiliate company. All rights reserved. 12 White Paper SAP TM Planning Configuration Pick-up Value Start Time Date End Date Date End Time Date Table 7 Pick-up Settings in Time-Related Selection Attributes Within the time-related selection attributes, it is possible to define a separate pick-up horizon and delivery horizon. Assigned checkbuttons Ignore Pick-up/Ignore Delivery allow choosing whether both horizons are used in the selection, only one of them, or neither. In case the Use Relative Horizon (Figure 2) option is selected, the following settings are enabled in the profile:  Pick-up in Days In the system, the pick-up demand horizon is specified not in precise dates and time but by entering the duration (in days) starting from the current date and time.  Additional Duration (hh:mm) In the system, it is possible to determine the precision of the planning horizon down to hours and minutes. The logic of how additional duration is added to the specified horizon can be checked in Section 2.2.2 more in detail.  Offset Direction The Offset direction specifies in what direction – backward or forward – in relation to the current date the offset duration is calculated. The logic of this setting is described more in detail in Section 2.2.2.  Offset in Days In case it is not desired to start the demand horizon from the current date, one can determine the offset. The logic of how the offset is added to specified horizon can be checked in Section 2.2.2.  Additional Offset (hh:mm) With this setting, one can define the precision of the offset duration down to hours and minutes. The logic of how the additional offset is added to specified horizon and defined offset can be checked in detail in Section 2.2.2. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. All rights reserved. 13 Figure 2 Relative Horizon for Pick-up Setting in Time-Related Selection Attributes In case the Use Absolute Horizon (Figure 3) option is selected, the following settings are enabled in the profile which allow defining the precise start and end dates and time for the demand horizon:  Start Date  Start Time  End date  End Time Figure 3 Absolute Horizon for Pick-up Setting in Time-Related Selection Attributes 2.1.3.4 Delivery Delivery Value Ignore Delivery Select/Deselect © 2014 SAP AG or an SAP affiliate company. All rights reserved. 14 White Paper SAP TM Planning Configuration 15 . Of Pick-Up and Delivery Windows Combination with AND Combination with OR Comb. with Dst.3. All rights reserved. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. 2. Del. with Sce Loc.5 Other Settings Other Settings Value Use Index Time for Selection Do Not Use Index Time.1. Use All Stop Times Use Index Time of Stop Comb. Pick-Up Wind.. Loc. Wind.Delivery Value For Relative Horizon Value Delivery in Days Natural Number Additional Duration (hh:mm) Time Value (hh:mm) Offset Direction Past Future Offset in Days Natural Number Additional Offset (hh:mm) Time Value (hh:mm) For Absolute Horizon Value Start Date Date Start Time Date End Date Date End Time Date Table 8 Delivery Settings in Time-Related Selection Attributes The settings for the delivery demand horizon definition have the same logic as the setting for the pick-up demand horizon descried above. Del. The following options are available:  Do Not Use Index Time. such as the end of the acceptable delivery date. it would be better to restrict the demand horizon to a short amount of time. in order to minimize the number of alternatives the optimizer has to evaluate.  Combination with OR When this method is chosen. falls into the pick-up window or o If at least one time element of the delivery window. such as the start and the end of the requested pick-up date. one can determine how these horizons can be used in combination: inclusive or exclusive.  Comb. 16 White Paper SAP TM Planning Configuration .Table 9 Other Settings in Time-Related Selection Attributes Use Index Time for Selection enables the selection of freight documents according to index times of stops (pickup/delivery times) specified in these freight documents. Pick-Up Wind. with Dst. with Sce Loc. falls into the delivery time window Recommendation for the VSR optimizer setup In order to speed up the optimization process and relax the computational effort for the VSR optimizer. When both the pick-up horizon and the delivery horizon are defined. All rights reserved. falls into the pick-up window and o If at least one time element of the delivery window. falls into the delivery time window. a freight document is selected based on two conditions: o If at least one time element of the pick-up window. Of Pick-Up and Delivery. a freight document is selected based on two conditions: o If both time elements of the pick-up window.  Use Index Time of Stop With this setting. falls into the pick-up window and o If both time elements of the delivery window. such as the start of the requested pick-up date. such as the start of the requested pick-up date. When this method is chosen. Comb. © 2014 SAP AG or an SAP affiliate company. falls into the delivery time window. a freight document is selected based on two conditions: o If at least one time element of the pick-up window. such as the start and the end of the acceptable delivery date. Use All Stop Times With this setting. The following options are available:  Combination with AND When this method is chosen. such as the end of the acceptable delivery date. the system does not use the index time for selection.. the system selects freight documents according to the index time which represents the earliest time of other stop times in freight documents. Loc. Wind. 1.4. If it is preferred to use own conditions.1.1. In the Planned Requirements and the Blocked Documents. 2. Attributes and the Description. one can define by Include in Selection/Exclude in Selection settings whether or not planned requirements and blocked business documents (freight units.4 Additional Selection Attributes 2. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. freight orders and bookings) are to be selected for planning. the unique name and the description of the additional selection profile are defined.4.1 General Data General Data Value Additional Sel.2 Selection Selection Value Selection Values List Selection Condition-Based Filtering List Selection Table 11 Selection Settings in Additional Selection Attributes In the selection section. 17 .2. Attributes Text Value Description Text Value Planned Requirements Include in Selection Exclude in Selection Blocked Documents Include in Selection Exclude in Selection Table 10 General Data Settings in Additional Selection Attributes In the Additional Sel. It can be done in SAP NetWeaver Business Client by choosing Application Administration  General Settings  Condition  Create Condition. All rights reserved. then it should be defined beforehand. one can either use predefined conditions with the Selection Values setting (Figure 4) or specify its own conditions with the Condition-Based Filtering. All rights reserved. 18 White Paper SAP TM Planning Configuration .Figure 4 Selection Objects in Additional Selection Attributes © 2014 SAP AG or an SAP affiliate company. these dates have to be kept in mind while specifying the planning horizon. During planning. the settings of SAP TM planning profile divided into categories as it is done in the system will be presented.2. thereby. In the General Data. the VSR optimizer takes into consideration all defined in a freight unit dates (highlighted with the red rectangle in Figure 5). 2. For Offs/Dur. 19 .2.2 Planning Profile In the following section. 2.1 General Data General Data Value Planning Profile Text value Description Text value Table 12 General Data Settings in Planning Profile The planning profile can be created via the menu path in SAP NetWeaver Business Client by choosing Application Administration  Planning  Planning Profiles  Create Planning Profile. List Selection Round Horizon Select/Deselect Time Zone for Rounding the Horizon List Selection Table 13 Planning Horizon Settings in Planning Profile Planning Horizon setting represents the interval of time where all transports have to be planned. planning horizon defines a time frame in which new freight documents (i. planning results) have to be created.2.2 Planning Horizon Planning Horizon Value Duration in Days Natural Number Additional Duration (hh:mm) Time Value (hh:mm) Offset Direction Future Past Offset in Days Natural Number Additional Offset (hh:mm) Time Value (hh:mm) Factory Cal. All rights reserved.Calc. In other words. the unique name and the description of the planning profile are defined.e. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. The second time window is the requested time window (defined by the requested start date and the requested end date). In the system. Duration in Days. the optimizer might plan such freight units anyway. Figure 6 depicts the calculation logic for the Duration in Days setting. This means that if the planning horizon is set to 1 day and the current time is exactly 13:00 o’clock.e. In this case these freight units would be planned inside the planning horizon. 20 White Paper SAP TM Planning Configuration . i. Figure 37). © 2014 SAP AG or an SAP affiliate company. If at least one of the acceptable dates (i.e. All rights reserved. then the actual duration of the planning horizon would be counted from 13:00 o’clock of the current point of time till 13:00 o’clock tomorrow (in case additional duration. these freight units cannot be planned at all. it must not be violated. it should not be violated but it can be violated in order to achieve a freight unit to be planned in favor of leaving it unplanned. the planning horizon is specified by entering the duration (in days) starting from the current date and the current point of time. i. offset and rounding have not been defined). This time window is a soft constraint. This time window is a hard constraint. The first time window is the acceptable time window (defined by the acceptable start date and the acceptable end date).When the freight unit is planned. If the requested dates are outside of the planning horizon.e.are defined. for example.acceptable or requested . selected for planning freight units are outside of the planning horizon.4 for more details). some penalty costs might occur (see Section 2. The freight unit might have two time windows defined (Figure 5. however. planned departure and arrival dates are inserted by the VSR optimizer into the special field in the freight unit (highlighted with the green rectangle in Figure 5). Figure 5 Freight Unit Dates Settings in Freight Unit There could be the case that. the start date or the end date) is outside of the defined planning horizon. Whether or not such freight units get planned depends on what dates . then the start of the planning horizon would start from 05. Let's consider several examples to demonstrate the configuration of the offset direction. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. Figure 7 Planning Horizon with Defined Additional Duration Offset Direction specifies in which direction – backward or forward – in relation to the current date the offset duration is calculated. for example. Therefore. 21 .2014 (Figure 8). and can use the past test. and offset direction value is Future. Figure 7 depicts the calculation logic of this setting.Figure 6 Planning Horizon Duration in Days Additional Duration (hh:mm). This means that it is possible to obtain planning results dated to the past. the additional duration defined here is counted from the end time of the planning horizon. If offset direction value is set to Past.12. Note The only situation in which it makes sense to set the offset direction to Past is in a test environment. This setting allows extending the planning horizon duration defined in days in the previous setting by the additional duration defined in hours and minutes. then the planning horizon would start from 27. In this case. the user avoids creating a new test data. Taking the abovementioned example where the planning horizon ends at 13:00 o’clock on the next day. The following options of the offset directions are available:  Future The future offset direction allows obtaining planning results in the future with the starting point of the planning horizon also defined in the future. All rights reserved.01. there are no feasible reasons to perform planning in the past. by defining the additional duration of 4 hours (04:00). In a productive system. one can prolong the planning horizon duration till 17:00.  Past The past offset direction allows shifting the starting point of the planning horizon to the past.2013 (Figure 9).2014.01. If the current date is 01. defined offset in days is 5. Figure 10 and Figure 11 illustrate two different calculation logics of the planning horizon: 1) when the offset is defined.Figure 8 Offset Direction Figure 9 Planning Horizon with Past Offset Direction Offset in Days. one can determine the offset. © 2014 SAP AG or an SAP affiliate company. In case it is not desired to start planning from the current date. All rights reserved. 2) when the offset is defined together with the additional duration. To keep in mind. the calculation of the planning horizon starts from the current point of time. 22 White Paper SAP TM Planning Configuration . Figure 12 and Figure 13 illustrate two different calculation logics of the planning horizon: 1) when the offset and the additional offset are defined.Figure 10 Planning Horizon with Defined Offset Figure 11 Planning Horizon with Defined Additional Duration and Offset Additional Offset (hh:mm) works the same as Additional Duration (hh:mm) setting described above. All rights reserved. 2) when the offset. 23 . White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. the additional offset are defined together with the additional duration. 2) when the additional offset is defined together with the additional duration. Figure 14 and Figure 15 illustrate two different calculation logics of the planning horizon: 1) when only the additional offset is defined. 24 White Paper SAP TM Planning Configuration . Offset and Additional Offset However. optionally it is possible to define only additional offset without specifying an offset value in days in the Offset in Days setting. © 2014 SAP AG or an SAP affiliate company. the overall offset is equal only to the duration defined in Additional Offset (hh:mm) setting.Figure 12 Planning Horizon with Defined Offset and Additional Offset Figure 13 Planning Horizon with Defined Additional Duration. In this case. All rights reserved. for example.Calc. That is. For Offs/Dur. the planning horizon always begins on a working day. 25 .Figure 14 Planning Horizon with Defined Additional Offset Figure 15 Planning Horizon with Defined Additional Duration and Additional Offset Factory Cal. then the system takes into account non-working days when calculating the start of the horizon according to the calendar. In this case. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. if. then the overall duration of the planning horizon extends to approximately one year. All rights reserved. If a factory calendar is specified. The factory calendar affects the duration of the planning horizon. the planning horizon is set to 250 days and the specified factory calendar has 5 working days. capacity selection settings. the first day starts at 00:00 and the last day of the planning horizon rounds till 23:59 o’clock. it would be better to restrict the planning horizon to a short amount of time.Round Horizon setting specifies whether or not the system is to round the planning horizon to complete days. Going back to the very first example of the planning horizon. These profiles (Figure 16) are used to influence and control the outcome of the VSR optimizer in both interactive and background planning. As the start of the planning horizon is defined from the current point of time and date. in order to minimize the number of alternatives the optimizer has to evaluate. a shorter planning horizon reduces the number of schedules resulting from the departure calendar. Regardless of the fact that the Additional Duration (hh:mm). then this setting rounds the start and the end days of the planning horizon to complete days.3 Profile Assignments Profile Assignments Value Selection Profile for Freight Orders List Selection Selection Profile for Freight Bookings List Selection Capacity Selection Settings List Selection Optimizer Settings List Selection Planning Costs Settings List Selection Incompatibility Settings List Selection Carrier Selection Settings List Selection Table 14 Profile Assignments Settings in Planning Profile In the Profile Assignments. optimizer settings. In addition. round horizon means that if the planning horizon is set to 1 day and the current time is exactly 13:00 o’clock. these settings can © 2014 SAP AG or an SAP affiliate company.2. planning costs settings. Similar to the selection attributes. Thus. Offset. then the actual duration of the planning horizon would be counted from 00:00 o’clock of the current day till 23:59 o’clock tomorrow (in case additional duration. All rights reserved. which furthermore decreases the number of alternatives to consider. one has the complete days inside the planning horizon. carrier selection settings. offset and rounding have not been defined). Time Zone for Rounding the Horizon specifies the time zone in which planning horizon is to be calculated. the Round Horizon setting is set by default in the planning profile. 26 White Paper SAP TM Planning Configuration . when having scheduled vehicles. all planning-related settings profiles can be defined which the system takes into account while performing planning and finding the optimal solution for transports. 2. Also to keep in mind. or Additional Offset (hh:mm) settings are defined. Recommendation for the VSR optimizer setup In order to speed up VSR optimization process and relax the computational effort for the optimizer. The planning profile might consist of six settings profiles: selection profiles. if the Round Horizon setting is set. All rights reserved. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. Figure 16 Link between Planning Profile and Settings Profiles The following profiles can be included into planning profile:  Selection Profiles The selection profiles are a user-specific grouping of business documents that is considered during transportation planning.be maintained independently of each other and the planning profile. Figure 17 Selection Profiles Settings in the Transportation Cockpit Settings Note The entries in the Transportation Cockpit Profile and Layout Screen (Figure 17) overwrite the entries in the planning profile. The capacity selection settings can be created via the menu path in SAP NetWeaver Business Client by choosing Application Administration  Planning  Planning Profile Settings  Capacity Selection Settings  Create Capacity Selection Settings. they can be reused in different planning profiles.  Optimizer Settings The optimizer settings profile represents a bundle of the VSR optimizer.and transportation proposals-related settings that are considered during the optimizer run. another one – for the selection of freight bookings. the selection profile for freight units and transportation units can be defined in the transportation cockpit layout (Figure 17). In the planning profile two different selection profiles can be specified: one is for the selection of freight orders. Moreover. 27 . If nothing is maintained in the Transportation Cockpit Profile and Layout Screen. the values from the planning profile are taken. Additionally.  Capacity Selection Settings The capacity selection profile is a user-specific grouping of settings related to the section of required for planning capacities such as resources. The optimizer settings can be created via the menu path in SAP NetWeaver Business Client by choosing Application Administration  Planning  Planning Profile Settings  Optimizer Settings  Create Optimizer Settings.  Planning Costs Settings The planning costs settings define freight-unit-dependent and means-of-transport-dependent costs which are used to control the outcome of the VSR optimizer. The planning costs settings can be created via the menu path in SAP NetWeaver Business Client by choosing Application Administration  Planning  Planning Profile Settings  Planning Costs Settings  Create Planning Costs Settings.  Incompatibility Settings In the incompatibility settings, one can define attributes that prevent freight units from being combined into one delivery. The incompatibility settings can be created via the menu path in SAP NetWeaver Business Client by choosing Application Administration  Planning  Planning Profile Settings  Incompatibility Settings  Create Incompatibility Settings.  Carrier Selection Settings The carrier selection profile is used to assign a suitable carrier to subcontractable business documents either manually or automatically. The carrier selection settings can be created via the menu path in SAP NetWeaver Business Client by choosing Application Administration  Planning  Planning Profile Settings  Carrier Selection Settings  Create Carrier Selection Settings. Below a more detailed description of each settings profile is outlined. 2.2.4 Business Document Type Business Document Type Value Type Determination Rule Category Default Defined per Category in Planning Profile Condition-Based Default Type for Vehicle Resources List Selection Default Type For Booking (Air) List Selection Default Type for Booking (Ocean) List Selection Default Type for Passive Vehicle Resources List Selection Table 15 Business Document Type Settings in Planning Profile In the Business Document Type, a standard business document type of the planned freight document (freight orders and/or freight bookings) created as the result of planning is defined. In addition, there is an option to specify a condition with which the business document type is to be determined. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 28 White Paper SAP TM Planning Configuration Type Determination Rule setting is responsible for the determination of which standard business document type is to be created as a result of planning. The following rules are available:  Category Default This setting takes the business document type which is checked as default in SAP TM Customizing. For example, in Figure 18 freight order type 1000 is defined as default. This means that this exact business document type is to be selected for planned freight documents. Figure 18 Default Business Document Type Setting in SAP TM Customizing  Defined per Category in Planning Profile This setting means that one can define a specific business document type that is to be used in planning. To do so, a desired business document type can be selected according to the following categories: o Default Type for Vehicle Resources o Default Type For Booking (Air) o Default Type for Booking (Ocean) o Default Type for Passive Vehicle Resources  Condition-Based A special condition for selection of the business document type can be defined in SAP NetWeaver Business Client Application Administration  General Settings  Conditions  Create Condition and then inserted in the field. Even though one might choose condition-based business document type determination (Figure 19), the rest of the settings are still visible. The reason is that the business document type is determined in the following steps: 1. In case a condition for business document type determination is specified in the planning profile, the system first checks the result of the condition. 2. If a specified condition does not return any result, then the defined per category business type document is taken. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. All rights reserved. 29 3. If there is no defined per category type maintained, then the system takes default business document type defined in SAP TM Customizing (Figure 18). Figure 19 Business Document Type Settings in Planning Profile 2.2.5 Manual Planning and Manual Planning Strategies Manual Planning Value Manual Planning Strategy VSRI_1STEP VSRI_CHK VSRI_DEF VSRI_SCH Consider Fixing Status Warning When Changing Fixed Documents Error When Changing Fixed Documents Table 16 Manual Planning and Manual Planning Strategies Settings in Planning Profile In the system, there is an option to perform manual planning. In comparison to automatic planning using the optimizer or transportation proposals generation, one can manually (by drag-and-drop function in the transportation cockpit) assign freight units to capacities such as vehicle resources. The system automatically creates freight documents (freight orders and/or freight bookings) depending on the settings configured in SAP TM Customizing. When freight units are manually assigned to capacities, the system takes into account all settings defined in the respective planning profile. For manual planning, it is possible to specify which planning strategy is to be used. Planning strategies determine the steps that the system is to carry out during the planning process and the order in which it does so. In other words, planning strategies for manual planning basically specify what happens when the planner manually (e.g. by drag-and-drop function) assigns planning-specific objects to capacities. The following standard strategies for manual planning execution are available in the system:  VSRI_DEF © 2014 SAP AG or an SAP affiliate company. All rights reserved. 30 White Paper SAP TM Planning Configuration All rights reserved.  VSRI_SCH This strategy is referred as a manual planning strategy with subsequent scheduling. However. check procedure can be triggered by the respective pushbutton in the transportation cockpit (Figure 22).The VSRI_DEF strategy is a default strategy for manual planning. checks would not be performed while generating transportation plans in manual mode. 31 .). this strategy contains additional method VSRI_CHECK (Figure 20). etc. This strategy is based on default planning strategy VSRI_DEF and performs planning with checks defined in Check settings of Planning Profile. incompatibilities. In case this strategy is not chosen in manual planning processing. the additional method VSRI_TSPS is incorporated into the strategy (Figure 20). and other strategies have one additional method at the end depending on the purpose of the manual planning. one can check what methods and in what sequences are performed within a certain planning strategy. This strategy performs planning with subsequent scheduling according to the scheduling settings defined in the Scheduling area of respective Planning Profile. VSRI and VSRI_POST methods which form default strategy. In SAP TM Customizing. it is visible that all planning strategies are based on VSRI_PRE. Figure 20 Overview of Assigned Methods to Manual Planning Strategies in SAP TM Customizing  VSRI_1STEP The VSRI_1STEP strategy for manual planning is based on default planning strategy VSRI_DEF. The path is the following: in SAP TM Customizing SCM Basis  Process Controller  Assign Methods to a Strategy.  VSRI_CHK This strategy is referred as a manual planning strategy with subsequent constraint check (capacities. Therefore. The distinctive feature of this strategy is that it performs carrier selection at the end of the planning process. In order to execute check. The VSRI_DEF strategy works as a basis for the rest of manual planning strategies. The VSRI_SCH is also based on default planning strategy VSRI_DEF and has White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. In Figure 20. the system is intended to provide support only. Moreover. © 2014 SAP AG or an SAP affiliate company. in case it faces fixed for planning business objects. For manual planning. dates and times in manual planning results may be incorrect. scheduling can be called manually in the transportation cockpit (Figure 21). scheduling would not be performed.2. If this step is not completed. Consider Fixing Status determines how the system is to behave during manual planning while facing business objects which are fixed for planning. the system calculates planned dates for freight orders and freight bookings. Note The planner remains responsible for ensuring that the planning results are consistent.  Error When Changing Fixed Documents The system stops planning and throws an error message. subsequently throwing a warning message. Fixed business objects include freight orders and freight bookings. keep in mind that if planning specific freight units are blocked.additional method assigned VSR_SCHED for scheduling execution.6 Scheduling Scheduling Value Scheduling Strategy VSS_DEF Consider Freight Unit Dates Do Not Consider Freight Unit Dates Consider Freight Unit Dates Consider Freight Unit Dates as Soft Constraints only Scheduling Direction Not Specified Backward Forward Table 17 Scheduling Settings in Planning Profile For scheduling. In the system. 32 White Paper SAP TM Planning Configuration . All rights reserved. then the planning is not possible 2. In case this strategy is not chosen in manual planning processing. however. two alternative types of behavior in such situation are determined:  Warning When Changing Fixed Documents The system performs manual planning despite of the fixing status of the planning object. Either the system finds a solution that fits within the time frame of acceptable dates.  Consider Freight Unit Dates as Soft Constraints only Freight unit dates are considered as soft constraints in manual planning. in the freight order user interface directly). If a planning profile has not been defined.  Consider Freight Unit Dates Freight unit dates are taken into account as hard constraints in manual planning. These settings are not automatically called during VSR optimization. Thus. because scheduling is not performed in the transportation cockpit. The logic for selecting forward scheduling by default is the following. The following options are available:  Do Not Consider Freight Unit Dates Freight unit dates are ignored during manual planning. If the freight order has not been created during planning (e. the system uses forward scheduling by default. The VSS_DEF calls scheduling for manually selected objects when the respective scheduling pushbutton is launched in the transportation cockpit (Figure 21). by manually typing in it). This strategy also takes into account settings specified in the Scheduling settings of the planning profile. However. Thus.g. or it returns no solution. Scheduling Direction setting defines the direction of scheduling is to be used in manual planning. 33 . Therefore.g. if the VSS_DEF strategy is assigned in the Manual Planning and Manual Planning Strategies settings. This means that only the requested dates of the freight unit are considered. All rights reserved. One can also schedule freight orders outside the transportation cockpit (e. The following options are available:  Not Specified The system determines the scheduling direction based on the planning profile. Scheduling Strategy.Note The scheduling settings described in this section are applied only to manual planning or can be called by the specific pushbutton in the transportation cockpit (Figure 21). Figure 21 Scheduling pushbutton in the Transportation Cockpit Consider Freight Unit Dates. then there is no planning profile at creation. Also the scheduling strategy can be used in manual planning. This means that both acceptable and requested dates of a freight unit are considered (Figure 37). a default scheduling type forward needs to be applied. in this case there is no specified planning profile. This setting defines whether or not freight unit dates are considered in manual planning. the system takes the planning profile which has been used at the time of creation of the freight order. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. the system can complete planning outside the acceptable time windows of the assigned freight units (Figure 37). Check Strategy. after the execution of manual planning. planned freight order would be generated without any checks. The check strategy can be used in manual planning. because there has been no delivery time window defined in freight unit. In this case. This strategy defines the actions that are performed when a check is launched for a chosen freight orders or freight bookings in the transportation cockpit (Figure 22). Otherwise.7 Check Check Value Check Strategy VSR_CHECK Take Capacities into Account No Check Error Warning Table 18 Check Settings in Planning Profile Note The check settings described in this section are applied only to manual planning and can be called by the specific pushbutton in the transportation cockpit. 2. The VSR_CHECK calls checks for manually selected objects when the respective scheduling pushbutton is launched in the transportation cockpit. If there is no such date. please refer to SAP Note 1908165. only the planner is responsible for the consistency of the manual planning output. © 2014 SAP AG or an SAP affiliate company. and multiresource assignments and performs a dangerous goods check. If there is no such date. These settings are not automatically called during VSR optimization. This strategy verifies capacities. All rights reserved. Backward Backward scheduling schedules backward from arrival (index time of the last stop of freight order or freight booking). the system schedules backward from the end of the planning horizon taken from the planning profile. if the VSRI_CHECK strategy is assigned in the Manual Planning and Manual Planning Strategies settings. 34 White Paper SAP TM Planning Configuration .  Forward Forward scheduling schedules forward from departure (index time of the first stop of freight order or freight booking). It is also possible to perform checks of already created freight orders. incompatibilities.2. Note For more information on scheduling and the scheduling strategy. the system schedules forward from the start of the planning horizon taken from the planning profile.  Error If resource capacities are exceeded.2.  Warning If resource capacities are exceeded.Figure 22 Check pushbutton in the Transportation Cockpit Take Capacities into Account. All rights reserved. a warning message. or no massage at all whenever resource capacities are overloaded.  No Check This means that if resource capacities are exceeded. the system would raise an error message.8 Loading and Unloading Duration Loading and Unloading Duration Value Dependence Freight Unit and MTr Independent Freight Unit Dependent/MTr Independent Freight Unit Independent/MTr Dependent Freight Unit and MTr Dependent Loading/Unloading Duration Time Value (hh:mm:ss) or List Selection Table 19 Loading and Unloading Duration Settings in Planning Profile Loading and Unloading Durations are defined and calculated using either standard values or conditions. the system would raise a warning message. the system evaluates the condition and returns the loading or unloading duration as an output value. A special condition for calculating loading and unloading durations for freight units can be defined in SAP NetWeaver Business Client Application Administration  General Settings  Conditions  Create Condition and then inserted into the field. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. 35 . In case a condition is specified. it is possible to define if the system should raise an error message. During manual planning or when the check pushbutton is pressed in the transportation cockpit. 2. the system would not raise any message.  Freight Unit Independent/MTr Dependent Loading and unloading durations are calculated based not on freight unit attributes but on means of transport attributes. it is possible to overwrite the loading and unloading durations calculated by the system. Figure 23 Standard Value Determination for Loading and Unloading Duration If the loading and unloading duration is defined dependently of freight unit attributes. or means-of-transport attributes. 36 White Paper SAP TM Planning Configuration . then the option of defining the standard duration value gets enabled (Figure 23). VSR optimization and background processing. It is possible to define loading and unloading duration based on freight unit attributes or means of transport attributes or both. © 2014 SAP AG or an SAP affiliate company. then a condition for the loading and unloading duration has to be defied and inserted into the planning profile. All rights reserved. or both.The system calculates loading and unloading durations automatically during interactive planning.  Freight Unit and MTr Dependent Loading and unloading durations are calculated based both on freight unit attributes and means of transport attributes. Figure 24 Condition-based Determination of Loading and Unloading Duration  Freight Unit Dependent/MTr Independent Loading and unloading durations are calculated based on freight unit attributes but not on means of transport attributes. In case the loading and unloading duration are defined freight unit and means-of-transport independent. The following options are available:  Freight Unit and MTr Independent Loading and unloading durations are calculated regardless of freight unit or means of transport attributes. The respective list of available conditions gets enabled (Figure 24). In manual planning. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. The system can assign each package to a separate parallel work process. Parallel Processing Profiles are defined in SAP NetWeaver Business Client by choosing Application Administration  General Settings  Define Parallel Processing Profile.9 Parallel Processing Profiles Parallel Processing Profiles Value Input Data Selection List Selection Lane Determination List Selection Distance and Duration Determination List Selection Table 20 Parallel Processing Profiles Settings in Planning Profile Parallel Processing Profiles are used for background processing.2. All rights reserved. and by doing so improve performance. To do this. in this document parallel processing settings will not be described in detail. the system groups the data in packages. It is possible to perform background processing using a parallel processing profile both in the background and interactively. for example.2. However. 37 . The following planning strategies are available: © 2014 SAP AG or an SAP affiliate company. 2. 2.3. the settings of SAP TM optimizer profile divided into categories as it is done in the system will be presented.1 General data General Data Value Optimizer Settings Text Value Description Text Value Table 21 General Data Settings in Optimizer Settings In the General Data area. the unique name and the description of the optimizer settings profile are defined.2. 38 White Paper SAP TM Planning Configuration . All rights reserved.3 Optimizer Settings In the section below. Each planning strategy comprises one or more methods that represent the individual planning steps.2 Planning Strategies Planning Strategies Value Planning Strategy VSR_1STEP VSR_BOOK VSR_DEF VSR_ROUONL VSR_ROUSCH VSR_ROUTE FO Building Rule New Freight Order when Resource is Empty New FO when Resource is Empty and Depot Location Reached Table 22 Planning Strategies Settings in Optimizer Settings Planning Strategies define the planning steps that the system is to perform and the sequence in which it is to perform them when the VSR optimizer is called.3. VSR_PRE_DG. the rest of the planning strategies resemble this structure containing pre-processing. The distinctive feature of this strategy is that it performs carrier selection at the end of the optimizer run. Booking Selection and Schedule Posting. VSR_OPT and VSR_POST methods. The VSR_DEF works as a basis for the VSR_1STEP strategy. the additional method VSR_TSPS is incorporated into the strategy (Figure 25). one can check what methods and in what sequence are performed within a certain planning strategy. 39 . main and post-processing methods.  VSR_BOOK The VSR_BOOK strategy for VSR optimization consists of Route/Schedule Preprocessing. Therefore. VSR_DEF The VSR_DEF strategy is referred as a standard strategy for VSR optimization. All rights reserved. In Figure 25. In SAP TM Customizing. The path is the following: in SAP TM Customizing SCM Basis  Process Controller  Assign Methods to a Strategy. This planning strategy selects booking based on schedules (Figure 25). one can check that the VSR_DEF consists of VSR_PRE.  VSR_ROUONL White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. Figure 25 Overview of Assigned Methods to Optimizer Planning Strategies in SAP TM Customizing  VSR_1STEP The VSR_1STEP strategy for VSR optimization is based on default planning strategy VSR_DEF. However. Let's consider an example for this setting. Freight order building rules are used to control how the system assigns activities on one resource to different freight orders. You use this setting to decompose an overall daily tour into its subtours all starting and ending at the depot.3. Prop. The system creates a freight order for every departure of a schedule vehicle. 40 White Paper SAP TM Planning Configuration . Although the system may recommend the same vehicle. Find Default Route. The system takes into account freight order building rules (FOB rules) when creating and changing more than one freight order on one resource during VSR optimization.  VSR_ROUSCH The VSR_ROUSCH strategy for VSR optimization finds and posts default route as well as finds and post a corresponding schedule. Prop. if the resource is empty. there are local delivery tours. All rights reserved. This strategy contains the following methods: Route/Schedule Preprocessing. Find Schedule. the resource has reached the depot location. and the vehicle comes back to the depot several times a day. VSR_1STEP VSR_BOOK © 2014 SAP AG or an SAP affiliate company. Find Default Route.  VSR_ROUTE The VSR_ROUTE strategy for VSR optimization finds and post default route. Empty runs within the route of the schedule are part of the freight order as well. Post Default Route. because planning is based on vehicle level. Post Default Route. For instance. FO Building Rule. This strategy contains the following methods: Route/Schedule Preprocessing.3 Transportation Proposal Transportation Proposal Settings Value Accept Transp. An exception to these rules is schedule vehicles. all tours are generally independent and could be switched to other vehicles. meaning that no freight units and no trailers are assigned to the resource. 2. Find Default Route. it selects a corresponding schedule and a booking. and Schedule Posting (Figure 25). This setting is only relevant to own vehicles. and Post Default Route methods (Figure 25).The VSR_ROUONL strategy for VSR optimization finds and posts a default route. That is. and Schedule Posting (Figure 25).  New Freight Order when Resource is Empty and Depot Location Reached The VSR optimizer creates a new freight order when the following prerequisites are met: the resource is empty. Then. and Find Booking for Schedule. Not Defined Save Route and Freight Document Save Route Only Planning Strategy for Transp.  New Freight Order when Resource is Empty The VSR optimizer creates a new freight order. no freight units and no trailers are assigned to the resource. Find Schedule. The strategy consists of Route/Schedule Preprocessing. Prop. All rights reserved.Transportation Proposal Settings Value VSR_DEF VSR_ROUONL VSR_ROUSCH VSR_ROUTE Max. Number of Trans Proposals Natural Number Do Not Create Trans. 41 . Immediately Select/Deselect Advanced Settings – Transportation Proposal Preferences Value Route Variation Use Defaults Not Relevant Low Medium High Carrier Variation Use Defaults Not Relevant Low Medium High Departure Date Variation Use Defaults Not Relevant Low Medium White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. the system saves a selected route and creates a corresponding freight document. The following options are available:  Not Defined In this case. the rest two options of transportation proposal acceptance are available. Max.3.Transportation Proposal Settings Value High Time Relevance Use Defaults Not Relevant Low Medium High Cost Relevance Use Defaults Not Relevant Low Medium High Table 23 Transportation Proposal Settings in Optimizer Settings Accept Transportation Proposal setting specifies the subsequent behavior of the system when a specific transportation proposal is accepted. © 2014 SAP AG or an SAP affiliate company. Planning Strategy for Transp. only the stages of the forwarding order or the freight unit are stored according to the transportation proposal. Proposals determines the number of transportation proposals one can get after the optimizer run is finished. the optimizer run for transportation proposals results in the number of alternative optimization solutions transportation proposals.  Save Route Only In this case. by contrast to the regular optimizer run. Then. the system saves only a route of the selected transportation proposal. the system prompts to the question of how the transportation proposal should be accepted. 42 White Paper SAP TM Planning Configuration . if the transportation proposal is accepted by the planner. All rights reserved.2 Planning Strategies of this document. Planning strategies for transportation proposals are the same strategies described in Section 2. Number of Trans.  Save Route and Freight Document In this case. However. That is. Prop. because the system does not perform the automatic transportation proposal generation according to the general settings determined in the assigned planning profile. All rights reserved. in the transportation proposal layout. However. Immediately. after choosing planning specific freight units and capacity resources and then pressing transportation proposals pushbutton (Figure 26) in the transportation cockpit. it is now possible to adjust planning settings according to the needs of the desired transportation proposal outcome. Prop. in SAP NetWeaver Business Client.Do Not Create Trans. To do so. choose Application Administration  Planning  General Settings  Page Layouts  Page Layouts for Transportation Proposal (Figure 28): Figure 28 Page Layout for Transportation Proposal White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. Figure 26 Transportation Proposals Pushbutton in the Transportation Cockpit Figure 27 Immediate Result of the Transportation Proposal Call The result is not shown (Figure 27). This checkbutton determines the availability of the individual transportation proposal preferences adjustment for planning specific freight units in more detail while performing the optimizer run in the transportation cockpit. 43 . the system at first does not output any transportation proposals. one has to accomplish the following prerequisites: o To personalize the page layout to display transportation proposals.  Select If this checkbutton is ticked. The transportation proposal preferences screen area has to be set to visible in the page layout (Figure 29): Figure 29 Settings of Page Layout for Transportation Proposal o Afterwards. 44 White Paper SAP TM Planning Configuration . it is possible to adjust planning settings for planning specific freight units by selecting. one can choose a personalized transportation proposal layout in yet empty transportation proposal screen (Figure 30): Figure 30 Selection of Transportation Proposal Layout o Then. first. select Calculate and Reset Preferences checkboxes in the page layout for transportation proposals. All rights reserved. Change Proposal Settings and then Calculate (Figure 31): Figure 31 Change of Transportation Proposal Setting in the Transportation Proposal Layout © 2014 SAP AG or an SAP affiliate company.o To specify and change specific transportation proposal preferences for planning specific freight units in the transportation cockpit. Use Defaults option. it is possible to weight ("a measure of difference of solutions") this differentiation parameters according to the scale ./FU) Time Value (s) Automatic Runtime Regulation Not Used Fastest Fast Good Quality Highest Quality White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.o Transportation proposals are visible now (Figure 32): Figure 32 Output of the Transportation Proposals In the Advanced Settings of Transportation Proposal Preferences (Route Variation/Carrier Variation/Departure Date Variation/Time Relevance/Cost Relevance).4 Optimizer Runtime Optimizer Runtime Value Max. one can adjust transportation proposal preferences even more in detail by using differentiation parameters for desired optimal results.Use Defaults/Not Relevant/Low/Medium/High. means a robust weight defined with respect to specific user/planner preferences. All rights reserved. For this reason. in this scale. No. The following parameters for transportation proposals variation are available in the system:  Route Variation  Carrier Variation  Departure Date Variation  Time Relevance  Cost Relevance 2.3. Time Without Improvement (Sec. 45 . of Parallel Processes Natural Number Maximum Runtime (Seconds) Time Value (s) Max.  The improvement phase is using the additional threads to do several steps of the evolutionary local search in parallel. because of the thread handling. After defining a good runtime for one CPU. the results of the standard initialization will stay stable. For this reason. After the first optimization run is completed. Parallelization is not reducing the time to calculating a single initial solution. of Parallel Processes is used. Therefore. One can use this progression of the cost over the time to decide. SAP recommends to start this analysis single threaded with on CPU only. one can define how many threads the engine shall use during the optimization. it is possible to analyze the progress of the total cost with help of the explanation tool. If no additional random-initialization is added. one can think about a speed up by parallel processing as a subsequent step. the field Max. one can try to improve the runtime further by parallelization described above. Recommendation for the VSR optimizer setup Nevertheless.  During the initialization phase. with growing complexity and size of the scenario the number of alternative solution that the VSR optimizer has to consider grows more rapidly. so there is no change. which runtime and solution quality fits best to the given requirements. but even in the best case parallelization provides at most a linear speedup. perhaps during the complete weekend. random based initializations are added to utilize all threads. several plans can be built up in parallel. All rights reserved. Independent of the number of processes the overall application flow stays unchanged. In the Optimizer Runtime area. restarting the same scenario may lead to different results. If the number of parallel threads is larger than the number of initialization-techniques. Recommendation for the VSR optimizer setup The obvious question that may arise here is how to determine the best running time for the VSR optimizer.  The pre-solving is implemented mainly serial. the parallel search is not deterministic. After understanding the serial run. This setting defines the amount of time the VSR optimizer algorithm is to use to find and calculate the best possible result. Maximum Runtime (Seconds) determines the overall time the VSR optimizer runs and performs its work. No. 46 White Paper SAP TM Planning Configuration . In the explanation tool it should be possible to see a fast decrease at the start of the run and a very slow decrease of the cost at the end. one could try to use parallelization inside the optimizer to increase its performance.Table 24 Optimizer Runtime Settings in Optimizer Settings To explain the optimizer runtime functionality. © 2014 SAP AG or an SAP affiliate company. it is important to mention that the optimization works in three phases:  Model Creation Phase building up the internal representation  Initialization Phase creating the first complete solutions  Improvement Phase improving the solutions Moreover. it is recommended to start to solve the planning problem in a serial manner without parallel processing. As the search process will discover new solutions in a different sequence. It is recommended to first start the optimizer with a very long runtime. This means. 2. assess the "difficulty" of the planning and optimization problem.5 Rough Planning and Capacity Constraints Rough Planning and Capacity Constraints Value Rough Planning Do Not Use Rough Planning Use Rough Planning Where Defined Prefer Detailed Planning Over Rough Planning Consider Capacities During Optimization Yes No Advanced Settings Value Ignore Capacities(Road) Select/Deselect White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. please refer to SAP Note 1520433. it is recommended to turn off the Automatic Runtime Regulation setting in order to avoid unexpected system behavior. Based on this result. 47 .Max. Note Runtime settings described above are not relevant for transportation proposals generation process. All rights reserved./FU). With this setting.3. if the VSR optimizer does not improve the best solution within the specified amount of time per freight unit. the system chooses the runtime between zero seconds and the time value specified in the Maximum Runtime (Seconds) setting depending on the preferences listed in settings below. Note In order to get more familiar with the VSR optimizer algorithm and its phases of work. The following preferences for automatic runtime regulation are available:  Not Used  Fastest  Fast  Good Quality  Highest Quality Recommendation for the VSR optimizer setup Nevertheless. then it is automatically terminated before the defined maximum runtime. Time Without Improvement (Sec. Automatic Runtime Regulation allows the VSR optimizer to automatically regulate its operating time during the optimization process according to the specific planning needs. Technically. the system calculates a value which. rough planning option was introduced in order to enable the functionality of planning without using a detailed and complete master data setup for certain scenarios. 48 White Paper SAP TM Planning Configuration . Therefore. All rights reserved. In order to do this. in the transshipment location assignment definition. for example. there is a new field Rough Planning Duration (Figure 33) that holds the information for VSR optimization. To cover this. In SAP TM 9. in the past it was required to setup transportation lanes and involve resources. © 2014 SAP AG or an SAP affiliate company. Figure 33 Rough Planning Duration Setting in Transshipment Location Assignments Settings This setting can be used for the planning scenario where it might not be necessary to have a detailed planning.and on-carriage planning is done later and even by a different user or organization.Rough Planning and Capacity Constraints Value Ignore Capacities(Rail) Select/Deselect Ignore Capacities(Sea) Select/Deselect Ignore Capacities(Air) Select/Deselect Table 25 Rough Planning and Capacity Constraints Settings in Optimizer Settings Rough Planning specifies whether rough planning or detailed planning is to be used for the optimizer runs. air and etc.and on-carriage at a certain point in time.0 and higher versions. even though pure and simplified transit duration would do the job. for the pre. it is now possible to setup a certain scenario without the need to define some master data by the usage of the rough planning option. but the truck pre. This is the case when the main stage (ocean.) needs to be planned in advance. Consider Capacities During Optimization determines whether or not resource capacities are considered during VSR optimization. there are the following options:  Do Not Use Rough Planning Rough planning is not considered in the optimizer run. the optimizer delivers rough planning results (if it is defined in transshipment location assignment master data). All rights reserved.  Yes Vehicle /resources capacities are considered in the optimizer run. the VSR optimizer delivers detailed planning results. Even though resource capacities are exceeded.  Use Rough Planning Where Defined For all stages between a location and the assigned transshipment location for which a rough planning duration greater than 0 is defined. the optimizer delivers rough planning results. the VSR optimizer returns transportation proposals using defined means of transport with overloaded. If the detailed information is not available. Figure 34 Advanced Settings of Rough Planning and Capacity Constraints in Optimizer Settings  No Resource capacities are not considered in the optimizer run. Ignore Capacities (Road/Rail/Sea/Air) option allows to ignore or use resource capacities at some stages depending on what capacities are to be considered during VSR optimization. the VSR optimizer delivers detailed planning results. 49 .In the Rough Planning. In case of multimodal transportation. For all other stages. This setting works only if the Advanced Settings of Ignore Capacities (Road/Rail/Sea/Air) are unchecked (Figure 34) (at least one is unchecked).  Prefer Detailed Planning Over Rough Planning If the necessary vehicle-specific or means-of-transport-specific information is available. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. the system is limited to find the first three transshipment locations from the source and the last three . Natural Number Advanced Settings Value Search Depth for Transshipment Locations Natural Number Search Depth for Connections Natural Number Automatic Connection Determination Select/Deselect Ignore Schedules Select/Deselect Ignore Freight Orders Select/Deselect Ignore Freight Bookings Select/Deselect Table 26 Transshipment Locations Settings in Optimizer Settings Maximum No. In this case. Therefore. 50 White Paper SAP TM Planning Configuration . For instance. each one with different trucks and tours to use for the freight units. the less performance can be expected from the VSR optimizer.3. and the Search Depth for Connection is 3. This is so.from the destination. because there would appear more theoretical alternatives to transport the goods. determines the number of transshipment locations is to be used in a transportation route for planning specific freight units which corresponds to the number of times the freight units is being reloaded to another resource. All rights reserved. of Transshipment Loc. it can be concluded that the scenario has to be modelled meaningfully containing only necessary transshipment locations. Recommendation for the VSR optimizer setup The larger and the more complex the network is having numerous transshipment locations. the value of Maximum No. of Transshipment Loc. setting is 6. Let's consider an example.2. Automatic Connection Determination setting specifies whether or not the setting described below are to be used. of Transshipment Loc. Search Depth for Connections setting looks for connections including locations of a schedule (also freight orders and freight bookings) which are not explicitly defined as transshipment locations. Search Depth for Transshipment Locations setting defines how many levels of transshipment location are taken from each end (from the direction of source and destination locations) of the transportation.6 Transshipment Locations Transshipment Locations Value Maximum No. and the more solutions regarding different transshipment locations must be considered. © 2014 SAP AG or an SAP affiliate company. 51 . in case the setting is ticked.Ignore Schedules/Ignore Freight Orders/Ignore Freight Bookings settings specify which object are to be ignored in the connection determination process. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. All rights reserved. In the planning costs settings.1 General Data General Data Value Planning Costs Settings Text Value Description Text Value Table 27 General Data Settings in Planning Costs Settings In the General Data. 52 White Paper SAP TM Planning Configuration . these costs are not the actual costs.4.4 Planning Costs Settings In the following section. one can define freight-unit-dependent and means-of-transport-dependent costs.2. 2. the unique name and the description of the planning costs profile are defined. © 2014 SAP AG or an SAP affiliate company. the settings of SAP TM planning costs profile divided into categories as it is done in the system will be presented.4. Earliness/Delay Cost Basis is defined by either entering it directly with the use of Earliness/Delay Costs Defined in Planning Costs setting or by specifying a condition in Earliness/Delay Costs Defined in Condition with the condition type Optimizer Penalty Costs for Freight Unit. one can specify how the system is to calculate relevant costs if freight unit dates are violated. However. All rights reserved. They simply offer a means of controlling the result of the VSR optimization and weight parameters important for the planning output.2 Freight Unit Costs Freight Unit Costs Value Earliness/Delay Cost Basis Earliness/Delay Costs Defined in Planning Costs Earliness/Delay Costs Defined in Condition Costs for Non-Delivery Natural Number Costs for Earliness per Day Natural Number Costs for Lateness per Day Natural Number Table 28 Freight Unit Cost Settings in Planning Costs Settings In the Freight Unit Costs. 2. the system sets the value of 1. In this case. Moreover. early delivery).Costs for Non-Delivery specify the amount of costs assigned when a freight unit cannot be delivered. and the delivery of a freight unit cannot take place. An example for hard constraint violation can represent the inability to deliver a freight unit within a requested time frame. Costs for earliness per day are applied per each early stop of the freight unit (i. By default. 53 . early pick-up. a planned freight document might contain several freight units. Costs for lateness per day are applied per each late stop of the freight unit (i. The same holds true for costs for lateness per day. The costs for non-delivery are incurred when hard constraints are violated. The earliness/lateness duration is calculated as the difference between requested dates and time and scheduled dates and time. because non-delivery result is not usually a desired outcome for planning. All rights reserved. Earliness/Lateness costs are assigned per each freight unit in the planned transportation (in planned freight order or freight booking). the total earliness/lateness duration represents the sum of all total durations of each freight unit. the overall earliness/lateness duration of the freight unit represents the sums of earliness/lateness durations applied per each stop of the freight unit in the planned transportation. the system sets the value for non-delivery costs equal to 999 999 999.e.e. However. In this case. late delivery). White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. Figure 35 Violation of Hard Constraints during VSR optimization Figure 36 Caption of Non-Delivery Costs in the Optimizer Explanation Tool Costs for Earliness per Day and Costs for Lateness per Day define the earliness/lateness cost factors that are to be used for early and late delivery/arrival cost calculation. The cost factor both for earliness and lateness can be defined in the range of natural numbers from 0 to 999 999 999. one can check that non-delivery costs are calculated and assigned to the planning-specific freight unit (note that in the shown example no other costs except for non-delivery costs are defined) (Figure 36). Earliness/Lateness costs allow controlling how the system is to deal when the pick-up and delivery windows of a freight unit are taken into account by the VSR optimizer. The cost value can be defined in the range of natural numbers from 0 to 999 999 999. during the optimizer run. late pick-up. in the optimizer explanation tool. By default. Therefore. the system would throw an error message saying that the optimizer run failed (Figure 35). For this. Dates and time are divided into acceptable and requested ones. it is possible to model three cases related to time windows (Figure 37):  Time windows as hard constraints. there are four parameters available for pick-up dates and time definition and four parameters for delivery dates and time definition. however. o The end date and time is defined as a hard constraint. If the VSR optimizer cannot find a solution within the time frame of acceptable dates.2013 at 14. Requested dates and time work as a soft constraint for the VSR optimizer. only requested start/end dates and time are defined.2013 at 13. they work as a hard constraint for the VSR optimizer.  Time windows as hard and soft constraints. No other costs are defined. Cost values for earliness and lateness per day are the same and equal to 1. while the end date and time is defined as a hard constraint. it might offer a solution with different time windows. In this case. This means that the optimizer tries to adjust solutions to requested dates and time window. the same values are set for the acceptable and requested start dates and time. The tolerant time difference has to be defined between requested and acceptable dates and time. o The start date and time is defined as a hard constraint. Figure 37 Acceptable and Requested Dates in Freight Unit Let’s consider an example of the Costs for Earliness per Day calculation.00 o’clock (Figure 38). That is.  Time windows as soft constraints. There is a freight unit with requested pick-up on 17. 54 White Paper SAP TM Planning Configuration . acceptable start/end dates and time are defined. The system automatically sets the same values for requested dates and time.In a freight unit. In case acceptable start/end dates and time are defined. several options can be defined:  Both acceptable and requested start/end dates and time are defined in a freight unit. That is. the same values are set for the acceptable and requested end dates and time.12.12.30 o’clock and delivery on 17. o The end date and time is defined as a soft constraint. the same values are set for the acceptable and requested start dates and time. Figure 38 Definition of Freight Unit Dates in Freight Unit © 2014 SAP AG or an SAP affiliate company. That is. then it throws a message that planning-specific freight units cannot be delivered. The end date and time is defined as a soft constraint only. The end date and time is defined as hard and soft constraint with the tolerant time difference. To sum up. The start date and time is defined as hard and soft constraint with the tolerant time difference. All rights reserved. o The start date and time is defined as a hard constraint. For this. 5 hour or 5400 seconds. Let’s have a closer look at the first transportation proposal highlighted in the red rectangle in Figure 39.After the optimizer run for transportation proposals is carried out. this value is multiplied by the earliness cost factor specified in the planning costs profile and divided by 86400 seconds (it is total amount of seconds in one day. 400 ̅̅̅̅̅ . In case of lateness. and as a result. General formula for earliness/lateness costs per day calculation can be derived as follows: ∑ (∑ ( )) .5 hour is converted into seconds what equals to 5400 seconds. this value is 1. The result is (5400 * 1) / 86400 = 0. since earliness or lateness costs are calculated per day). the VSR optimizer outputs several solutions. In the optimizer explanation tool. All rights reserved. Its proposed departure time is slightly different from the requested ones. 55 .3 Direct Shipment Options Direct Shipment Options Value Currency List Selection Table 29 Direct Shipment Options Settings in Planning Costs Settings White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. Figure 39 Results of VSR optimization Figure 40 Caption of Earliness Costs in the Optimizer Explanation Tool Going back to our example.0625 which is visible in the first highlighted column called Earliness in Figure 40. the pick-up time is early 1. the second highlighted column called Earliness Costs captures the difference between requested pick-up date and time and planned pick-up date and time (Figure 40). Then. In the system. all values are calculated the same and captured in the columns Lateness Costs and Lateness in the optimizer explanation tool. earliness costs are assigned.5 hour.0625.4. In case of our example. The optimizer explanation tool captures the earliness costs equal to 0. ̅̅̅̅̅ Equation 1 Earliness/Lateness Costs Calculation 2. Note the system calculates earliness/lateness duration in seconds by default. 1. 4.In this document. 56 White Paper SAP TM Planning Configuration . Then. it is also possible to enable the option when the system considers the total of both values.in USD. In case distance costs are taken from transportation lane.4. There are created direct shipment options for two freight units: one is in EUR and another one . For scheduled means of transport. Consider Distance Costs from Planning Cost Settings /Consider Distance Costs from Transportation Lane settings allow specifying whether the distance costs of means of transport are to be taken from assigned transportation lane or to be determined in the planning costs profile. This currency is used in order to calculate costs for direct shipment option.1 Means-of-Transport Settings General Data General Data Value Means of Transport List Selection Consider Distance Costs from Planning Cost Settings Yes/No Consider Distance Costs from Transportation Lane Yes/No Fixed Cost Natural Number Table 30 General Data of Means-of Transport Settings in Planning Costs Settings In the Mean-of-Transport. the direct shipment is not going to be described in detail. one needs to convert costs into one currency in order to evaluate both numbers. in the planning costs profile. However. All rights reserved. 2. Alternatively. This setting specifies the common currency that is used for evaluation. costs are maintained in the schedule. the following value. one can define a currency that is to be used when direct shipment options are determined. is extracted from means of transport setting in transportation lane (Figure 41): Figure 41 Definition of Distance Costs in Transportation Lane © 2014 SAP AG or an SAP affiliate company.4 2. if any.4. one can specify means of transport whose costs are to be considered during VSR optimization. Let's consider an example. In the planning costs profile. Fixed costs can be defined in the range of natural numbers from 0 to 999 999 999. Figure 44 Caption of Fixed Costs in the Optimizer Explanation Tool Therefore. the system sets the value equal to 0. not individually per planned freight document. Let’s have a look at the example. Fixed Costs represent the cost factor that the system calculates once per freight order or freight booking planned after VSR optimization. one of the outputted transportation proposals has two created freight order for two transportation stages (Figure 43): Figure 43 Output of the VSR optimizer for Fixed Costs Example In the optimizer explanation tool. the cost factor for fixed costs has a value of 7 (Figure 42): Figure 42 Definition of Fixed Costs in the Planning Costs Profile After the optimizer run for transportation proposals is completed. the total fixed costs are shown in the column called Fixed Costs (Figure 44) and equal to 14. i. By default. All rights reserved. the default unit of measure for distance costs is kilometer. and the optimizer explanation tool shows costs per the overall planned transportation. 57 . a general formula for fixed costs calculation can be defined as follows: Equation 2 Fixed Costs Calculation White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.e.Note In transportation lane. as there are two freight orders in the proposed transportation. In case distance costs are specified in the planning costs settings. the value is taken from the Costs per Distance Unit setting in the Distance Settings. it is possible to influence the display of this field by setting parameter /SAPAPO/SCC_DISTUNIT. However. It is done by specifying a higher cost factor in pick-up-related penalty costs or delivery-related penalty costs.  The goods are delivered too early or too late.2. one can use penalty cost factors to weight the earliness and lateness costs that are defined for each freight unit on the basis of the means of transport. 58 White Paper SAP TM Planning Configuration .4. Let's consider an example. one can set the pick-up penalty cost factor 1 for a truck and 10 . This means that by defining the penalty cost factor.3 Distance Settings Distance Settings Value Costs per Distance Unit Natural Number © 2014 SAP AG or an SAP affiliate company. In case the pick-up or the delivery time window is violated. the total earliness or lateness costs are multiplied by the respective penalty cost factor. The violation of a pick-up window for a truck is less expensive than the violation of a pick-up window for a train. one can force the VSR optimizer to find a solution with dates and time which are closer to the desired start/end of a pick-up or start/end of a delivery based on the means of transport. As a result.2 Penalty Costs Penalty Costs Value Premature Pick-Up Natural Number Delayed Pick-Up Natural Number Premature Delivery Natural Number Delayed Delivery Natural Number Table 31 Penalty Costs Settings in Planning Costs Settings In the planning cost settings.The following cost factors are available:  Cost factor for premature pickup  Cost factor for delayed pickup  Cost factor for premature delivery  Cost factor for delayed delivery The definition of penalty costs allows modeling in the scenario the following two cases:  The goods are picked up too early or too late.4. the VSR optimizer will be forced to adjust the planning results in the favor of train pick-up window. The cost factors can be defined in the range of natural numbers from 0 to 999 999 999. if any.4. All rights reserved.for a train. 2. By default. the system sets all values equal to 1.4. Therefore. the system considers maximum distance as a hard constraint for each freight order and tries to find a solution with the distance not greater than this value.Distance Settings Value Maximum Distance Natural Number Unit Of Measure List Selection Distance Cost Basis from Lane Route-Based Distance Costs Destination-Based Distance Costs Table 32 Distance Settings in Planning Costs Settings In the Distance Settings. the following settings are enabled:  Costs per Distance Unit With this setting. Figure 45 Distance Costs Specification in the Planning Costs Profile White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.  Maximum Distance The maximum distance setting allows defining an overall distance travelled of the planning-specific freight units as a hard constraint for the VSR optimizer. All rights reserved.  Unit Of Measure The unit refers to both the costs per distance unit value and the maximum distance value. one can define a cost factor per distance unit for variable distance cost calculation. Note If a unit is not specified. In case this value is defined. the system uses the unit of measure kilometer by default. 59 . one can specify a cost factor that refers to the distance dimension of a capacity used in VSR optimization. If the system is to take the distance costs from the planning costs profile (Figure 45). This cost factor is a part of the direct transportation lane between the source location and target location and is based on the geographical location of the destination. and multiplies the result by a cost factor. This means that the total distance costs are the sum of distance costs of each stage of the transportation. 2. o Destination-based distance costs Destination-based distance costs are determined using a calculation logic that adds up the distances between the source and target locations. Three cases are considered within this calculation logic: 1. the transportation lane between source location and destination location has to be defined. The description of calculation options follows below. The following two options are available: o Route-based distance costs Route-based distance costs are determined using a calculation logic that adds up the costs for the transportation of the goods from the source location to the destination location via a number of transshipment locations based on the costs for each stage. The route-based distance costs calculation logic is taken as an example. © 2014 SAP AG or an SAP affiliate company. 3. Distance costs are taken both from the planning costs profile and the transportation lane. The distance cost basis from lane setting is enabled regardless of whether distance costs are taken from the planning costs profile or from the transportation lane (Figure 46). Note In case of destination-based distance costs. Figure 46 Distance Costs Specification in the Planning Costs Profile Let’s look at the examples how the system calculates distance costs during VSR optimization. Distance costs are taken from the planning costs profile. 60 White Paper SAP TM Planning Configuration . including all distances between transshipment locations. Distance Cost Basis from Lane This setting determines the calculation logic for distance costs. Distance costs are taken from the transportation lane. This means that the calculation logic for distance costs have to be defined in any case. All rights reserved. In the planning costs profile. All rights reserved. Then. for a respective mean of transport a cost factor of value 10 with the unit of measure kilometer is defined (Figure 47). 61 .54 kilometers. the calculated distance costs are shown in the first highlighted column called Distance (Dimension) and equal to 55. the distance (5. However. Figure 49 Caption of Distance Costs Defined in the Planning Costs Settings General formula for the route-based distance costs defined in the planning costs settings can be defined as follows: ∑ ( White Paper SAP TM Planning Configuration ) © 2014 SAP AG or an SAP affiliate company. Note In the system.54 km) is multiplied by cost factor 10 defined in the planning costs settings. the distance is calculated in kilometers by default. and the following Figure 48 depicts calculated distance costs available in the optimizer explanation tool: Figure 48 Caption of Distance Costs Defined in the Planning Costs Settings In case of the first transportation proposal. The planned transportation consists of one stage and its total distance is 5. Figure 49 illustrates the same example described above but with the unit of measure meter. Note that this value is rounded. then the system additionally multiplies distance costs by 1000 (1 km = 1000 m).37. The optimizer explanation tool captured distance costs equal to 55 370. the distance costs defined in the planning costs settings are adhered to the defined unit of measure. Figure 47 Definition of Route-based Distance Costs in the Planning Costs Settings After the optimizer run for transportation proposals is executed. The distance of the planned transportation is captured in the second highlighted column which is also called Distance (Dimension). This value is calculated as follows. This means that if one specifies the unit of measure meter. the optimizer explanation tool shows the calculated distance costs (Figure 51): Figure 51 Caption of Distance Costs Defined in Transportation Lanes In case of the second transportation proposal which has two stages. the calculated distance costs are captured in the first highlighted column called Distance (Transportation Lane) and equal to 92. the second column Distance (Transportation Lane) already takes distance values and distance costs factors from transportation lanes and multiplies them. © 2014 SAP AG or an SAP affiliate company.14. two Distance (Transportation Lane) columns overlap each other. The same figure is captured in the second highlighted column which is also called Distance (Transportation Lane). All rights reserved. Despite of the second column Distance (Dimension) described above which captures the total distance travelled in the planned transportation. In other words.̅̅̅̅̅ Equation 3 Route-based Distance Costs Calculation with Cost Factor Defined in Planning Costs Profile Note In case cost factor for route-based distance costs calculation is defined in the planning costs profile. The following cost factors of value 7 and 8 per kilometer are defined in two different transportation lanes are defined (Figure 50): Figure 50 Definition of Distance Costs in the Transportation Lane After the optimizer run for transportation proposals is carried out. its value is constant for each stage in the transportation of the goods. 62 White Paper SAP TM Planning Configuration . Therefore. their values can be different for each stage in the transportation of the goods. In the following example. 63 .Total distance costs are calculated as follows. and the calculated distance costs available in the optimizer explanation tool (Figure 53): Figure 53 Caption of Distance Costs Defined Both in Transportation Lane and Planning Costs Profile The calculated costs are shown in the column called Distance (Transportation Lane) and equal to 92.14.31. both costs from transportation lanes and the planning costs profile are considered (Figure 52). Therefore. and in the column called Distance (Dimension) and equal to 120. The overall distance of the planned transportation is 12. Figure 52 Consideration of Distance Costs both from Transportation Lanes and Planning Costs Profile After the optimizer run for transportation proposals is carried out. general formula for the route-based distance costs defined in transportation lanes and the planning costs profile can be defined as follows: (∑ (∑ ( ) ( ) ) ) ̅̅̅̅̅ Equation 5 Route-based Distance Costs Calculation with Combined Cost Factors White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. Therefore.75 kilometers.75 * 8 + 4.31* 7 = 92.The total distance costs represent the sum of distance costs of each stage which in return equal to the stage distance times a cost factor from the transportation lane. 17.06 kilometers: the distance of the first stage is 7. 7. a general formula for the route-based distance costs defined in transportation lanes can be defined as follows: ∑ ( ) ̅̅̅̅̅ Equation 4 Route-based Distance Costs Calculation with Cost Factors Defined in Transportation Lanes Note In case cost factors for route-based distance costs calculation is defined in transportation lanes. It is evident that the total distance costs are the sum of distance costs taken from transportation lanes and distance costs from the planning costs profile. All rights reserved. and the distance of the second one is 4. The same values are used as in the previous two examples.14. Figure 54 shows such example: distance costs in the planning costs settings are calculated in meters. These values are simply added up. All rights reserved.Note Distance costs are calculated also in alignment with the specified unit of measure. 64 White Paper SAP TM Planning Configuration . but distance costs from transportation lanes are defined in kilometers. This means that distance costs taken from the planning costs settings and transportation lanes can be calculated in different units of measure. Let’s derive formulas for destination-based distance cost calculation: Distance costs are taken from the planning costs profile: ∑ ( ) ̅̅̅̅̅ Equation 6 Destination-based Distance Costs Calculation with Cost Factor Defined in Planning Costs Profile Distance costs are taken from the transportation lane: ∑ ( ) ̅̅̅̅̅ Equation 7 Destination-based Distance Costs Calculation with Cost Factors Defined in Transportation Lane Distance costs are taken both from the planning costs profile and the transportation lane: (∑ (∑ ( ) ( ) ) ) ̅̅̅̅̅ Equation 8 Destination-based Distance Costs Calculation with Combined Cost Factors © 2014 SAP AG or an SAP affiliate company. Figure 54 Caption of Distance Costs Calculated in Different Units of Measure The main difference between route-based costs calculation and destination-based cost calculation is that in destination-based calculation logic the distance value of the planned transportation is multiplied by a cost factor only once.  Unit Of Measure The unit of measure refers to both the costs per duration unit value and the maximum duration value. In the planning costs profile.4.  Maximum Duration The maximum duration setting allows defining duration (consumed time for the transportation of a freight unit) as a hard constraint for the VSR optimizer.4 Duration Settings Duration Settings Value Costs per Duration Unit Natural Number Maximum Duration Natural Number Unit Of Measure List Selection Table 33 Duration Settings in Planning Costs Settings In the Duration Settings. the system uses the unit hour. the system considers this value as a hard constraint for each freight order and tries to find a solution with the duration not greater than this value. 65 . Note If a unit is not specified. one can specify a cost factor that refers to the duration (time) dimension of a capacity used in VSR optimization. In case maximum value is defined. 2. the cost factor is taken from the transportation lane that is not used by any stage in planned transportation. Furthermore. the user has to keep in mind that in case of using destination-based distance costs with the cost factor taken from the transportation lane. the duration costs factor of 10 per hour is defined (Figure 55): White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.4. according to the setting definition. Let’s consider an example of the duration costs calculation. one can define a cost factor per duration unit for variable duration cost calculation. All rights reserved.Note The destination-based distance costs calculation with the cost factor taken from the planning costs settings is the same as the route-based distance costs calculation with cost factor taken also from the planning costs settings. That is the transportation lane from the ultimate source to ultimate destination. The following settings are available:  Costs per Duration Unit With this setting. in case of the first transportation proposal.69. In the shown example. in the transportation cockpit the duration is rounded to hours and minutes (Figure 57).Figure 55 Definition of Duration Cost Factor in the Planning Costs Profile After the optimizer run for transportation proposals is executed. the travelled duration is calculated in seconds by default what is shown in the optimizer explanation tool (Figure 56). In the optimizer explanation tool. the VSR optimizer shows several transportation proposals.50. All rights reserved. In case the unit of measure for distance cost factor is changed to minutes. a general formula for duration costs calculation can be defined as follows: © 2014 SAP AG or an SAP affiliate company. That is. (249 (duration per stage) * 10 (cost factor defined in the planning costs profile)) / 60 (amount of seconds in 1 minute) = 41.69 and calculated as follows. Therefore. the total duration costs are equal to 0. The overall duration of the planned transportation represents the sum of durations travelled per stage.50. the total duration costs for the first transportation proposal is now equal to 41. 66 White Paper SAP TM Planning Configuration . However. That is. the duration value is captured in the second highlighted column called Duration (Figure 56). as the system aligns to the unit of measure of the calculated distance. Note In the system. the results for the same example would be the following (Figure 57): Figure 57 Caption of Duration Costs Defined in Different Unit of Measure In this case. That is why in the shown example duration costs are divided by 3600. Figure 56 Caption of Duration Costs in the Optimizer Explanation Tool The first highlighted column called Duration (Total Duration) (Figure 56) captures the overall duration costs calculated by the VSR optimizer. (249 (duration per stage) * 10 (cost factor defined in the planning costs profile)) / 3600 (amount of seconds in 1 hour) = 0. The value is taken from the Costs per Quantity setting. In this case.4. The following options are available:  Planning Costs: Distance-Independent. one can specify the calculation logic for quantity costs and the source of the cost factor.5 Quantity Costs Quantity Costs Value Basis for Quantity Costs Planning Costs: Distance-Independent. quantity costs represent the sum of quantities of goods transported in each stage times the cost factor.4.  Planning Costs: Multiplied by Distance The system takes a cost factor from the planning costs profile (from the Costs per Quantity setting) and multiplies the quantity by distance times the cost factor.  Unit Of Measure White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. 67 . All rights reserved. per Lane/Schedule Planning Costs: Multiplied by Distance Transportation Lane/Schedule: Distance-Independent Transportation Lane/Schedule: Multiplied by Distance No Costs Costs per Quantity Natural Number Unit Of Measure List Selection Table 34 Quantity Costs Settings in Planning Costs Settings In the Quantity Costs settings. meaning that the system can use cost factors either from transportation lanes or from schedules. the following two settings are enabled:  Costs Per Quantity In the Costs per Quantity. one can define a cost factor that refers to the quantity dimension of a capacity used in VSR optimization run. or from a planning costs profile. one defines the value for the costs per quantity. per Lane/Schedule The system takes a cost factor from the planning costs profile and calculates quantity costs in a distanceindependent way. In case it is chosen to take quantity costs from the planning costs profile. In the Basis for Quantity Costs.∑ ( ) ̅̅̅̅̅ Equation 9 Duration Costs Calculation 2. In case quantity costs are taken from the transportation lane.The Unit of Measure refers to the costs per quantity. The rest three options for quantity costs calculation are:  Transportation Lane/Schedule: Distance-Independent The system is to calculate the costs in a distance-independent way. the system takes the costs per quantity from the schedule. the system uses the unit kilogram by default. For non-scheduled means of transport.  Transportation Lane/Schedule: Multiplied by Distance The system is to multiply quantity costs taken either from the transportation lane or the schedule by the distance and by the cost factor.  No Costs The system does not take quantity costs into account in VSR optimization. Note If a unit is not specified. All rights reserved. 68 White Paper SAP TM Planning Configuration . then the system extracts necessary values from the following fields in the respective schedule (Figure 59): Figure 59 Quantity Costs from Schedule © 2014 SAP AG or an SAP affiliate company. the following cost factor and the unit of measure are extracted from the transportation lane master data (Figure 58): Figure 58 Quantity Costs from Transportation Lane In case quantity costs are taken from the schedule. For a means of transport of a schedule. the system takes the costs per quantity from the transportation lane. A planning-specific freight unit contains a product with weight of 800 kilograms. because there are two stages. the quantity is calculated in the unit of measure of the product. as there is only one stage generated in the transportation. the quantity of the second proposal is 1600 kilograms. and the quantities are the same. As mentioned above. In the optimizer explanation tool. general formula for the Planning Costs: Distance-Independent. In the optimizer explanation tool.Let’s have a look at several examples: In the first example. A cost factor of value 10 per kilogram is specified in the planning costs profile: Figure 60 Definition of Quantity Costs in Planning Costs Profile After the optimizer run for transportation proposals is carried out. However. All rights reserved. Figure 61 Caption of Distance-Independent Quantity Costs with Define Cost Factor in Planning Costs Profile Therefore. the first highlighted column called Quantity (Dimension) captures the total quantity costs calculated by the VSR optimizer and represent the quantity of goods transported times the cost factor specified in the planning costs profile. the overall quantity transported represents the sum of product quantities transported per stage. in the second transportation proposal with two stages. in the shown example one can see that the total quantity of the first transportation proposal is 800 kilograms. per Lane/Schedule setting can be defined as follows: ∑ ( ) ̅̅̅̅̅ Equation 10 Distance-Independent Quantity Costs Calculation with Cost Factor Defined in Planning Costs Settings Profile White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. per Lane/Schedule is used. Planning Costs: Distance-Independent. Note In the system. the quantity costs are calculated as follows: (800 (quantity of the first stage) + 800 (quantity of the second stage)) * 10 (cost factor from the planning costs profile) = 1600. 69 . Therefore. the VSR optimizer outputs several transportation proposals. the quantity transported of the planned transportation is captured in the second highlighted column called Quantity (Dimension) (Figure 61). That is. This means that if one specifies the unit of measure kilogram for transported goods and the quantity cost factor is measured in ton.60 kilograms. the quantity of the second proposal is 9645. the VSR optimizer outputs several transportation proposals. © 2014 SAP AG or an SAP affiliate company. Therefore. Planning Costs: Multiplied by Distance is used. and the total distance represents a rounded value. However. in the second transportation proposal with two stages. one can see that the total quantity is 4429. because there are two stages generated with different distances which are multiplied by the quantities.75(distance of the second stage)) * 10 (cost factor from the planning costs profile) = 96456. That is. this value is captured in the second highlighted column called Quantity (Dimension) (Figure 63). in case of the first transportation proposal.54 (distance travelled) times 800 (quantity transported). Figure 63 Caption of Quantity Costs Multiplied by Distance with Defined Cost Factor in Planning Costs Profile In this case. Figure 62 illustrates the same example described above but with different units of measure used in the cost factor and the quantity of goods. All rights reserved. A planning-specific freight unit contains a product with weight of 800 kilograms.Note Quantity costs are calculated also in alignment with the specified unit of measure. In the optimizer explanation tool. Note that there is only one stage. Figure 62 Caption of Distance-Independent Quantity Costs with Define Cost Factor with Different Unit of Measure in Planning Costs Profile In this example. A cost factor of value 10 per kilogram is specified in the planning costs profile. 70 White Paper SAP TM Planning Configuration .31 (distance of the stage)) + (800 (quantity of the second stage) * 7. This means that the quantity cost factor defined in the planning costs profile and the quantity of transported goods can be calculated in different units of measure. In the optimizer explanation tool. the overall quantity costs represent the sum of distances times quantities of goods transported in planned transportation times the cost factor.60 which equals 5. After the optimizer run for transportation proposals is carried out. the quantity costs are calculated as follows: (800 (quantity of the first stage) * 4. the first highlighted column called Quantity (Dimension) captures the total quantity costs and represents the quantity value taken from the second column times the cost factor specified in the planning costs profile. then the system would additionally multiply the quantity costs by 1000 (1 ton = 1000 kg). The optimizer explanation tool captures quantity costs equal to 16000000 in the transportation proposal with two freight orders. general formula for the Planning Costs: Multiplied by Distance setting can be defined as follows: ∑ ( ) ̅̅̅̅̅ Equation 11 Multiplied by Distance Quantity Costs Calculation with Cost Factor Defined in Planning Costs Settings Profile Note Quantity costs are calculated also in alignment with the specified unit of measure. Transportation Lane/Schedule: Distance-Independent costs calculation basis is used. All rights reserved. Figure 64 Units of Measure for Quantity Cost Factor Definition in Planning Costs Profile In this example. 71 . This means that the quantity cost factor defined in the planning costs profile and the quantity of transported goods can be calculated in different units of measure. Note In case the quantity cost factor is defined in the planning costs profile. the following units of measure are available for the quantity cost factor definition (Figure 64). The following cost factors of value 8 and 10 per kilogram are defined in two different transportation lanes (Figure 65): White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.Therefore. Note In the planning costs profile. A planning-specific freight unit contains a product with weight of 800 kilograms. its value is constant for each stage in the transportation of the goods. Figure 65 Definition of Quantity Cost Factors in the Transportation Lane After the optimizer run for transportation proposals is carried out. 72 White Paper SAP TM Planning Configuration . Therefore. Despite of the second column Quantity (Dimension) described above which captures the total quantity transported in the planned transportation. Figure 66 Caption of Distance-Independent Quantity Costs with Defined Cost Factor in Transportation Lane In case of the second transportation proposal which has two stages. quantity costs are calculated in the unit of measure specified of a planning-specific freight unit. a general formula for the Transportation Lane/Schedule: Distance-Independent setting can be defined as follows: ∑ ( ) ̅̅̅̅̅ Equation 12 Distance-Independent Quantity Costs Calculation with Cost Factors Defined in Transportation Lanes Note In case the basis of quantity costs calculation is taken from transportation lanes. the VSR optimizer output several transportation proposals. even though the units of measure of defined in the transportation lane cost factor was changed to grams or completely different unit of measure.in the shown example. two Quantity (Transportation Lane) columns overlap each other. the calculated quantity costs are captured in the first highlighted column called Quantity (Transportation Lane) and equal to 14400 (Figure 66). The quantity transported of 800 kilograms of the first stage is multiplied by the cost factor of 8 and then summed up with the quantity of 800 kilograms transported in the second stage times cost factor of 10. All rights reserved. the calculated costs were always equal to 14400. The total quantity costs are calculated as follows. In other words. the second column Quantity (Transportation Lane) already takes quantity values and distance cost factors from transportation lanes and multiplies them. 800 (quantity travelled in the first stage) * 8 (cost factor from the transportation lane) + 800 (quantity travelled in the second stage) * 10 (cost factor from the transportation lane) = 14400. That is. The same figure is captured in the second highlighted column which is also called Quantity (Transportation Lane) (Figure 66). © 2014 SAP AG or an SAP affiliate company. the calculated quantity costs are captured in the first highlighted column called Quantity (Transportation Lane) and equal to 89556. the quantity costs are calculated as follows: (800 (quantity travelled in the first stage) * 4. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.80 (Figure 66).31 (distance travelled in the first stage) * 8 (cost factor from the first transportation lane)) + (800 (quantity travelled in the second stage) * 7. the overall quantity costs represent the sum of distances times quantities of goods transported in planned transportation times the cost factor.80 kilograms. Therefore. The same figure is captured in the second highlighted column which is also called Quantity (Transportation Lane) (Figure 66). 73 . All figures used are the same as in the previous example. one can see that the total quantity costs are 44296 which equals 5.54 (distance travelled) times 800 (quantity transported) and times cost factor of 10 specified in the transportation lane. All rights reserved. However. its value is variable for each stage in the transportation of the goods.75 (distance travelled in the second stage)* 10 (cost factor from the second transportation lane)) = 89556. As it was said earlier. In this case. in the second transportation proposal with two stages. in case of the first transportation proposal. the VSR optimizer outputs several transportation proposals.In this example. the quantity of the second proposal is 89556. because the transportation consists of two stages with different distances which are multiplied by the quantity transported in each stage and different cost factors taken from transportation lanes. Figure 67 Caption of Quantity Costs Multiplied by Distance with Defined Cost Factor in Transportation Lane In case of the second transportation proposal which has two stages. general formula for the Planning Costs: Multiplied by Distance setting can be defined as follows: ∑ ( ) ̅̅̅̅̅ Equation 13 Multiplied by Distance Quantity Costs Calculation with Cost Factors Defined in Transportation Lanes Note In case quantity cost factor for quantity costs calculation is defined in transportation lanes. Therefore.80. That is. After the optimizer run for transportation proposals is carried out. Transportation Lane/Schedule: Multiplied by Distance is used. two Quantity (Transportation Lane) columns overlap each other. 4. Cost functions can be used to model load costs.6 Additional Stops Additional Stops Value Costs per Additional Intermed. Stop Natural Number Maximum Number of Stops Natural Number Table 35 Additional Stops Settings in Planning Costs Settings In the Additional Stops section. By default. one can define the maximum number of intermediate stops and the costs per additional intermediate stop.4. the system sets the value equal to 0. 2. All rights reserved. the system takes it as a hard constraint during the optimizer run. Unit of Measure specifies the unit of measurement for load unit. for example. one can define piecewise linear cost functions for a combination of means of transport and load in a certain unit of measurement (load unit). In case the Maximum Number of Intermediate Stops is specified. 74 White Paper SAP TM Planning Configuration . Costs per Additional Intermediate Stop can be defined in the range of natural numbers from 0 to 999 999 999.4.5 Costs Functions Costs Functions Value Unit of Measure List Selection Cost Function List Selection Segment List Selection Load List Selection Load Costs List Selection Slope List Selection Table 36 Costs Functions Settings in Planning Costs Settings In the Costs Functions. © 2014 SAP AG or an SAP affiliate company.2. 6 Cost Values in the Optimizer Explanation Tool This section is to sum up mentioned above information about the optimizer explanation tool and to describe how different costs considered by the VSR optimizer are presented there.2. To call the optimizer explanation tool. Figure 68 Optimizer Explanation Tool in the Transportation Cockpit In the optimizer explanation tool the costs analysis is available under Result  Solution Details  Costs (Figure 69). ID ID of proposed by the VSR optimizer solution Total Costs Total amount of calculated costs in planned transportation Total Duration Total amount of duration-related costs (the cost factor is taken from planning costs profile.4 Duration Settings) Distance (Dimension) Total amount of distance-related costs (the cost factor is taken from planning costs profile. All rights reserved. 75 . after the optimization run is completed in SAP NetWeaver Business Client.4.4. see Section White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.4. one can choose Planning Transportation Cockpit  Optimizer Explanation (Figure 68). Figure 69 Costs Analysis in the Optimizer Explanation Tool The following table represents the structure of costs how they are captured in the optimizer explanation tool: Field Explanation of Meaning Sol. see Section 2. This information will help to better understand the composition of total costs calculated by the VSR optimizer and where its constituents are captured. see Section 2.3 Distance Settings) Distance (Transportation Lane) Total amount of distance-related costs (cost factors are taken transportation lanes) Distance (CO2) In order to determine CO2 emission-related costs. 76 White Paper SAP TM Planning Configuration .4.1 General Data) No. see Section 2. Stop Costs Total amount of costs-related to intermediate stops (the cost factor is taken from planning costs settings. see Section 2.4. Number of vehicles participating in planned transportation Total Duration Total duration of planned transportation (in seconds by default) Distance (Dimension) Total distance travelled in planned transportation (in kilometers by default) Distance (Transportation Lane) Captures total amount of distance-related costs (cost factors are taken transportation lanes) Distance (CO2) Total distance travelled in planned transportation (in kilometers by default) Quantity (Dimension) Total quantity of good transported in planned transportation © 2014 SAP AG or an SAP affiliate company. All rights reserved.4.4.1 General Data) ND Costs Total non-delivery costs (the cost factor is taken from planning costs profile. a BADI has to be used. see Section 2. Quantity (Dimension) Total amount of quantity-related costs (the cost factor is taken from planning costs profile.4.4. a BADI has to be used.1 General Data) Lateness Costs Total amount of lateness costs (the cost factor is taken from planning costs profile.6 Additional Stops) Load Costs Total amount of loading/unloading costs VehCosts Total amount of vehicle costs Earliness Costs Total amount of earliness costs (the cost factor is taken from planning costs profile.5 Quantity Costs) Quantity (Transportation Lane) Total amount of quantity-related costs (cost factors are taken transportation lanes) Quantity (CO2) In order to determine CO2 emission-related costs.Field Explanation of Meaning 2. of Veh.4.4. see Section 2.4. Field Explanation of Meaning Quantity (Transportation Lane) Captures total amount of quantity-related costs (cost factors are taken transportation lanes) Quantity (CO2) Total quantity of good transported in planned transportation No. Stops Number of intermediate stops in planned transportation Load Costs Loading/Unloading duration VehCosts Total amount of vehicle alternatives Earliness Costs Total duration of earliness (in seconds by default) Lateness Costs Total duration of lateness (in seconds by default) Number of Not Performed Orders Total amount of non-delivered freight units Table 37 Costs in the Optimizer Explanation Tool White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. All rights reserved. 77 . Type of Carrier Selection determines the process in which carrier selection is to be executed. one can choose a parallel processing profile (see Section 2. Check Incompatibilities defines whether or not incompatibility settings are to be checked during a carrier selection run. In the Incompatibility Settings. It takes into account the selected optimization options when determining the most cost-effective carrier for all selected business documents. If none of the carriers © 2014 SAP AG or an SAP affiliate company. or customer and carrier.9 Parallel Processing Profiles).5 Carrier Selection Settings 2.1 General Data General Data Value Carrier Selection Settings Text Value Description Text Value Check Incompatibilities Select/Deselect Incompatibility Settings List Selection Parallel Processing Profile List Selection Type of Carrier Selection Settings General Carrier Selection Carrier Selection for Tendering Carrier Selection for Direct Shipment Table 38 General Data Settings in Carrier Selection Settings In the Carrier Selection Settings and Description. Some critical settings in the carrier selection profile are the following: incompatibilities between order and carrier. one can specify a unique name and description of carrier selection profile. All rights reserved.5.2. 78 White Paper SAP TM Planning Configuration . The following options are available in the system:  General Carrier Selection In this case. In the Parallel Processing Profile.2. the system performs regular automatic carrier selection. It represents a separate optimization that is available for the automatic carrier selection. one can select incompatibility setting that is to be applied during carrier selection run. direct shipment will not be described in detail.5. Optimization determines the assignment of carriers with the lowest costs to business documents. In this document.total costs are means to weight parameters included in the optimization. real costs are used more frequently for carrier selection runs. In this document. further settings are displayed in the carrier selection profile. If this option is selected. 79 .2 Settings for General Carrier Selection It has to be noted that automatic general carrier selection that is a part of special optimization run. further settings are displayed in the carrier selection profile. The optimization problem is solved by mixed-integer linear programming. Here.  Carrier Selection for Tendering In this case. Note It is important to keep in mind that costs used in the optimization run for carrier selection are also not a real costs. during carrier selection determination of direct shipment options is to be evaluated.  Carrier Selection for Direct Shipment In this case. tendering will not be described in detail. It aims to achieve the following goals:  Reduction in total costs (discounts for continuous moves)  Consideration of all allocation restrictions for means of transport and carriers  Consideration of business shares  Incompatibilities  Carrier validity The total costs represent the weighted total of the following individual costs:  Non-delivery costs for business documents that the optimizer for carrier selection cannot assign  Costs for the assignment of carriers to business documents  Penalty costs for violating business shares  Discounts for continuous moves The total of all the discounts for continuous moves is subtracted from these total costs. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. All rights reserved.are available. According to the practice. it is also possible to define real costs with the help of Transportation Charge Management. If this option is selected. the same principle is applied as in VSR optimization for transportation planning . the system does not assign a carrier to the relevant business documents. further settings are displayed in the carrier selection profile. the specified carrier selection profile is to be used in tendering process. 2. However. If this option is selected. 2. The following options for transportation allocation consideration are available:  Do Not Use Transportation Allocations In this case. Transportation Allocation is either a minimum or maximum restriction that regulates how much business you are doing with a certain carrier in a certain region for a certain means of transport.1 Other Settings for General Carrier Selection Other Settings Value Allocation Usage Do Not Use Transportation Allocations Use Transportation Lane Settings Use Transportation Allocations BS Usage Do Not Use Business Shares Use Transportation Lane Settings Always Use Business Shares Strategy Use Transportation Lane Settings Costs Priority Costs + Priority Costs * Priority Carrier Cost Origin Use Transportation Lane Settings Use Internal Costs Use Transportation Charges from TCM No Cost Determination Table 39 Other Settings for General Carrier Selection in Carrier Selection Settings Allocation Usage determines how transportation allocations are to be considered during the carrier selection run. © 2014 SAP AG or an SAP affiliate company.  Use Transportation Lane Settings In this case. the system does not use transportation allocations during the carrier selection run. All rights reserved.2.5. If the Use Transportation Allocation setting is tickled (Figure 70) in the transportation lane. then it will be considered during the carrier selection run. 80 White Paper SAP TM Planning Configuration . the system determines the value of the setting according to what is specified in respective transportation lane. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. In a nutshell. These strategies are based on cost.Figure 70 Use Transportation Allocations Setting in Transportation Lane  Use Transportation Allocations In this case. All rights reserved. The following options are available:  Use Transportation Lane Settings In this case. the system determines the value of the setting according to what is specified in respective transportation lane. then it will be considered during the carrier selection run. The rest is explained below. The options for strategy selection are the same as presented in carrier selection settings. business shares represent a fixed percentage of freight business allocated to a certain carrier.  Use Transportation Lane Settings In this case. If the Priority/Costs strategy is specified (Figure 72) in the transportation lane. 81 . the system does not use business shares during the carrier selection run. Business Share Usage determined how the system considers specified business shares during the carrier selection run. The following options for business share usage are available in the system:  Do Not Use Business Shares In this case. priority. the system uses determined business shares during the carrier selection run. Figure 71 Use Business Shares Setting in Transportation Lane  Use Business Shares In this case. or a combination of the two. Strategy setting determines which strategy is taken into account during automatic carrier selection. The additional available strategy in transportation lane Neither Costs Nor Priority means that the Priority/Costs strategy is not to be used in the carrier selection run. the system uses determined transportation allocations during the carrier selection run. then it will be considered during the carrier selection run. If the Use Business Share setting is tickled (Figure 71) in the transportation lane. the system determines the value of the setting according to what is specified in respective transportation lane. The highest priority ranking carrier is always picked in the carrier selection process regardless of its cost value  Costs + Priority  According to this strategy. All rights reserved. does not influence the choice. if any. Specified priority value. all the carriers in the ranking list are relevant (peer-to-peer/broadcast) based on the specific flag maintained at the carrier level in the lane. The highest priority ranking is 1. and this carrier is selected in automatic carrier selection. all the carriers in the ranking list are relevant (peer-to-peer/broadcast) based on the specific flag maintained at the carrier level in the lane. Carrier with the lowest sum result has the highest ranking.  Priority A priority ranking is assigned to each carrier per transportation lane. carriers are ranked in ascending order of their sum of Costs and Priority. For tendering. Carriers are ranked in descending order of their lane priorities. The carrier with the lowest total costs is always preferred over other carriers. © 2014 SAP AG or an SAP affiliate company.Figure 72 Priority/Costs Strategy Setting in Transportation Lane  Costs All carriers are ranked in ascending order of the total costs. carriers are ranked in ascending order of their multiplication of Costs and Priority.  Costs * Priority According to this strategy. Carrier with the lowest multiplication result has the highest ranking. For tendering. 82 White Paper SAP TM Planning Configuration . and this carrier is selected in automatic carrier selection. The following options are available:  Use Transportation Lane Settings In this case. the system uses cost origin according to what is specified in the respective transportation lane (Figure 73). the system takes internal costs specified in the transportation lane (Figure 74). To access carrier profile settings. All rights reserved. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. 83 .Carrier Cost Origin setting determines from which origin the cost values used in the carrier selection run are taken. on the SAP Easy Access screen. one can define them in the carrier profile. If no internal costs are defined in the specific transportation lane. Figure 73 Cost Origin Setting in Transportation Lane  Use Internal Costs In this case. one can choose Master Data  General  Define Carrier Profile. However. All rights reserved. and there one can retrieve carrier costs from SAP ERP. The reason it is shown is because transportation lane master data is also used in other SAP applications (SAP APO). according to the practice. © 2014 SAP AG or an SAP affiliate company. this option is used more frequently. To use this functionality.  No Cost Determination No transportation costs related to carrier are considered during the carrier selection run.External Costs (ERP). Note Note that the costs defined in TCM represent a real costs used for carrier selection decisions. As it was said earlier. charge calculation has to be created that is set up in charge management. the system uses charges calculated in Charge Management. 84 White Paper SAP TM Planning Configuration . there is specified cost origin option .Figure 74 Internal Costs Setting in Transportation Lane  Use Transportation Charges from TCM In this case. this option is not available in SAP TM. Note In the system. 2. with Highest Costs Common Currency List Selection Action After Carrier Selection Run Assign Best Carrier Automatic Tendering Manual Tendering No Action Continuous Move Type Use Transportation Lane Settings Do Not Create Continuous Move Simple Continuous Move Round Trip Continuous Move Continuous Move Information Select/Deselect Reaction to Continuous Move Removal Remove Carrier Ranking (CR) White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company.5. All rights reserved. with Lowest Costs Accept Carrier with Charges of Zero as C.2. 85 .2 Advanced Settings for General Carrier Selection Advanced Settings Value Planning Strategy TSPS_DEF Optimizer Runtime Time Value (s) Consider Manual Assignment as Fixed Select/Deselect Action for Manual Ranking Remove Keep Consider Costs But Keep Only When Available Overall Carrier Availability Select/Deselect Transportation Charge Interpretation Accept Carrier with Charges of Zero Accept Carrier with Charges of Zero as C. be manually switched in the freight order (Figure 75). see Planning Strategies section.Advanced Settings Value Remove CR and Unassign Carrier if Status = "Carr. The unit of measure is seconds. This ranking is then considered for tendering. All rights reserved. Assigned" Remove CR and Unassign Carrier with Any Status Check Distance and Duration Select/Deselect Continuous Move MTr Check Select/Deselect CM Cost Recalculation of TCM No Recalculation Recalculation Of Costs Based on TCM Use Tendered Objects for Optimization Select/Deselect Tender Without Optimizer Results Select/Deselect Tendering Manager List Selection Tendering Profile List Selection Table 40 Advanced Setting for General Carrier Selection in Carrier Selection Settings Planning Strategy determines the steps that the system is to carry out during the carrier selection process and the order in which it does so. The following standard strategy for carrier selection is available:  TSPS_DEF This strategy is referred as a standard strategy for carrier selection. when the carrier selection is performed. It can. Based on the settings described above. Action for Manual Ranking setting determines how the system considers manual ranking during the carrier selection run. the system determines the least costly carriers and ranks them from lowest to highest cost. For more information. Additions and deletions are also possible. 86 White Paper SAP TM Planning Configuration . however. Consider Manual Assignment as Fixed tells the system whether or not manual assignment of carrier is considered as final or not. © 2014 SAP AG or an SAP affiliate company. Optimizer Runtime determines the overall time the VSR Optimizer runs and performs the search of the most optimal solution for carrier selection. or from lowest to highest priority. but could have met his allocation requirements for the period and. with Highest Costs White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. A carrier availability can be turned on and off for a specific lane by updating the validity. Based on the carrier availability. Every transportation lane has a validity period. A carrier can be available for a transportation lane. for example. Carrier availability can also be influenced by the purchasing organization the carrier is associated with in the freight agreement.  Accept Carrier with Charges of Zero as C. in case manual ranking is available it is considered during the carrier selection run. All rights reserved. the following carrier availability alternatives are possible in the system.Figure 75 Carrier Ranking Settings in Freight Order The following options are available in the system:  Remove This means that manual ranking is removed and not considered during the carrier selection run. One can also define different carriers on an inbound or outbound transportation lane. The following options are available:  Accept Carrier with Charges of Zero This means that the system that system is allowed to use carriers with no charged in the carrier selection run. but may be incompatible for a specific customer who could exist on that transportation lane.  Keep This means that manual ranking is kept while the carrier selection is performed. for this reason. which is specific to the means of transport.  Consider Costs But Keep Only When Available This means that systems determined costs and priorities according to specified settings. with Lowest Costs This means that the system ranks a carrier with zero charges as a carrier with lowest costs.  Accept Carrier with Charges of Zero as C. The allocation requirements can be specific to a means of transport or zone hierarchy. A carrier may be maintained on a transportation lane. 87 . Transportation Charge Interpretation setting tells the system what to do when no charges are found for a carrier. Thus. Similarly. transportation lanes are maintained in the system specific to means of transport. For example. This is based on the purchase organization definition in SAP TM. the carrier may be available only for a specific purchasing organization within a company. an order contains hazardous items but the carrier does not have any experience in handling such items. a carrier can be incompatible with the order characteristics if. and the lane-level validity applies to the carriers associated with that lane. however. as defined by the individual client requirement. is not considered during carrier selection. Overall Carrier Availability setting determines whether or not carrier availability is considered during the carrier selection run. This means that the system ranks a carrier with zero charges as a carrier with highest costs. o Tendering Manager In case tendering is to follow the carrier selection run.  Automatic Tendering The system triggers automatic tendering among available carriers.  No Action No further action follows. The following actions are available:  Assign Best Carrier The system automatically assigns the best carrier according to carrier ranking to a freight order. The aim is to reduce the costs of the business documents by assigning additional business documents to a carrier. Continuous Move Type setting specifies whether or not the system is to combine subcontractable business documents (for example. Therefore. freight orders) by forming continuous moves. In case automatic or manual tendering option is selected. All rights reserved. Common Currency setting determines currency for carrier costs interpretation. the system determines continuous move type according to setting specified in the transportation lane (Figure 76). The following options are available:  Use Transportation Lane Settings In this case. Tendering manager represents a person responsible for the tendering process. tendering profile has to be specified. o Tendering Profile In case tendering is to follow the carrier selection run. the system performs tendering without consideration of carrier selection optimization results.  Manual Tendering The system prompts the planner to perform manual tendering. Action After Carrier Selection Run setting specifies what further actions are to follow after the carrier selection run is executed. © 2014 SAP AG or an SAP affiliate company. the following setting are set to enabled: o Tender Without Optimizer Results In case selected. 88 White Paper SAP TM Planning Configuration . this setting specifies the common currency that is used for evaluation. tendering manager has to be specified. Carrier costs of different carrier might be defined in different currency.  Round Trip Continuous Move A round trip is a simple continuous move for which the following additional prerequisites must be met: The source location of the first business document and the destination location of the second business document are identical. Assigned" White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. This deletion than invalidates the current carrier ranking. directly executes the following business documents one after the other. the following settings are also available:  Reaction to Continuous Move Removal This setting defines what happens with the unselected or unprocessed parts of a continuous move when the system deleted continuous move. All rights reserved. The following further options of deletion are available: o Remove Carrier Ranking (CR) o Remove CR and Unassign Carrier if Status = "Carr.  Simple Continuous Move The carrier accepts one or more additional business documents and. If this setting is enabled. after executing the first business document. Continuous Move Information setting defines how the system is to deal with continuous moves that were created in previous optimization runs. since the ranking was generated considering the continuous move discount. 89 . The system cannot take into account complex round trips where multiple source locations (pickup) or destination locations (delivery) are served.Figure 76 Continuous Move Settings in Transportation Lane  Do Not Create Continuous Move The system does not form continuous move during the carrier selection run. Note A round trip can only consist of exactly two business documents. Figure 77 Maximum Distance of Continuous Move Setting in Transportation Lane © 2014 SAP AG or an SAP affiliate company.o Remove CR and Unassign Carrier with Any Status If the Continuous Move Information setting is ticked. 90 White Paper SAP TM Planning Configuration . Check Distance and Duration setting checks the compatibility if distances and durations of business documents combined into continuous move. Distances between the destination location of the first business document and the source location of the second business document must not exceed the smaller maximum distance that defined for the carrier in the transportation lanes (Figure 77). departure/arrival windows of business documents participating in continuous move have to be compatible (Figure 78). the system selects the complete continuous move for carrier selection. Therefore. Moreover. no deletion is requires by the system. All rights reserved. All rights reserved.  Recalculation Of Costs Based on TCM The system performs recalculation of costs from charge management as it is described above. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. CM Cost Recalculation of TCM setting tells the system is to perform a recalculation of costs from charge management for continuous moves.Figure 78 Arrival/Departure Windows Determination of Continuous Move Setting in Transportation Lane Continuous Move MTr Check setting check continuous move setting specified in means of transport attached to transportation lane. The following options of setting are available:  No Recalculation The system does not perform recalculation of costs from charge management. If this setting is specified. however. The system saves the result in the ranking list. 91 . only for the carriers that offer continuous moves. the system considers the discounts for continuous moves for the business documents from charge management in the recalculation. 5. All rights reserved.Note In the system. there is a prerequisite setting for continuous move enablement that is sometimes missed out. The carrier has to be activated for continuous move option in the carrier profile (Figure 79). © 2014 SAP AG or an SAP affiliate company. 92 White Paper SAP TM Planning Configuration .5.3.1 Other Settings for Carrier Selection for Tendering Other Settings Value Allocation Usage Do Not Use Transportation Allocations Use Transportation Lane Settings Use Transportation Allocations Table 41 Other Setting for Carrier Selection for Tendering in Carrier Selection Settings The explanation of these settings can be found above in Other Settings for General Carrier Selection.3 Settings for Carrier Selection for Tendering 2. Figure 79 Continuous Move Setting in Carrier Profile Settings 2. 2 Advanced Settings for Carrier Selection Tendering Advanced Setting Value Planning Strategy TSPS_DEF Overall Carrier Availability Select/Deselect Table 42 Advanced Setting for Carrier Selection for Tendering in Carrier Selection Settings The explanation of these settings can be found above in the Advanced Settings for General Carrier Selection. All rights reserved.5. with Lowest Costs Accept Carrier with Charges of Zero as C.5.4.1 Settings for Carrier Selection for Direct Shipment Advanced Settings for Carrier Selection for Direct Shipment Advanced Setting Value Planning Strategy TSPS_DEF Overall Carrier Availability Select/Deselect Transportation Charge Interpretation Accept Carrier with Charges of Zero Accept Carrier with Charges of Zero as C. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. 93 .5.3. 2.4 2. with Highest Costs Table 43 Advanced Setting for Carrier Selection for Direct Shipment in Carrier Selection Settings The explanation of these settings can be found above in the Advanced Settings for General Carrier Selection.2. 6.2.1 General Data General Data Value Capacity Selection Settings Text Value Description Text Value Table 44 General Data Settings in Capacity Selection Settings In the General Data area. the configuration settings of capacity selection profile will be explained as they are presented in the system. All rights reserved.6 Capacity Selection Settings In the Capacity Selection Settings section.6. 2. 94 White Paper SAP TM Planning Configuration . 2. the unique name and the description of the capacity selection settings profile are defined.2 Capacity Selection Vehicle Resources Value Attributes for Vehicle Resource Selection List Selection Sign List Selection Option List Selection Lower Limit List Selection Upper Limit List Selection Schedule Value Attribute for Schedule Selection List Selection Sign List Selection Option List Selection Lower Limit List Selection © 2014 SAP AG or an SAP affiliate company. Attribute for Vehicle Resource Selection/ Schedule Selection (Figure 80) setting provides the variety of attributes by which the resources can be selected. to provide precise selection for planning. the capacity selection profile helps to define which vehicle resources and schedules are to be selected for planning. since in general each means of transport has its own distance information to represent the possible lanes. All selected resources (both vehicle resources and schedules) would appear in the transportation cockpit and would be used for planning. 95 . Another relevant aspect for reducing the number of means of transport. or not equal to. Thereby. using the logical greater than.) which perform the routes for moving the freight units. which usually is the main driver for memory consumption during the optimization. besides reducing the number of alternatives. Each selection section allows to define specific values or ranges of values for resources. All rights reserved. which decreases the performance of the search. trailer. Figure 80 Attributes for Vehicle Resource Selection White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. etc. The different resources are grouped to means of transport. This setting involves selecting the resource capacity in the transportation cockpit. schedules. Each means of transport defines a cost structure and a set of possible lanes through the network which the VSR optimizer has to evaluate in order to find the optimal solution. Recommendation for the VSR optimizer setup Each extra means of transport creates additional alternatives of route that the VSR optimizer has to evaluate. as little as possible different means of transport should be defined. Both active and passive resources can be added. is the memory consumption. for a performance reason. less than.Vehicle Resources Value Upper Limit List Selection Table 45 Vehicle Resources Settings in Capacity Selection Settings One of the basic elements for planning are the resources (truck. Therefore. 96 White Paper SAP TM Planning Configuration . The Incompatibility Area groups together incompatibility definitions by the area they are applied. the configuration settings of incompatibility settings profile will be explained as they are presented in the system.1 General Data General Settings Value Incompatibility Settings Text Value Description Text Value Incompatibility Area Complete VSR (VSR Opt. Plng and Transp.7 Incompatibility Settings In the Incompatibility Settings section. and/or in background processing.7.2. In the General Data area. Incompatibility settings can be maintained for:  Complete VSR (VSR Opt. the unique name and the description of the incompatibility settings profile are defined. Plng and Transp. 2. and Man. Proposal) Freight Unit Building Carrier Selection Delivery Proposal Default Incompatibility Settings Select/Deselect Table 46 General Data Settings in Incompatibility Settings The incompatibility settings profile specifies when the system allows incompatibilities to be violated during manual planning. VSR optimization. Proposal)  Freight Unit Building  Carrier Selection  Delivery Proposal © 2014 SAP AG or an SAP affiliate company. All rights reserved. and Man. 2 Incompatibility Selection Incompatibility Selection Value Incompatibility List Selection Violation in Manual Planning Incompatibility Is Ignored Warning If Incompatibility Is Violated Incompatibility Must Not Be Violated According to Incompatibility Definition Violation in Automatic Planning Incompatibility Is Ignored Warning If Incompatibility Is Violated Incompatibility Must Not Be Violated According to Incompatibility Definition Table 47 Incompatibility Selection Settings in Incompatibility Settings The incompatibility setting in the incompatibility selection allows selecting several incompatibility definitions that may apply to a planning run. In the Incompatibility. Violation in Manual Planning/ Violation in Automatic Planning specifies the behavior of the system when it detects the incompatibility during planning. The following behavior is predefined:  Incompatibility Is Ignored Incompatibility is not taken into account during planning. White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. The incompatibility definition can be created via the menu path in SAP NetWeaver Business Client by choosing Application Administration  Planning  Incompatibility Definitions  Create Incompatibility. one can define which incompatibility definitions are to be selected for planning.2. In case of its violation.  Incompatibility Must Not Be Violated Incompatibility is considered as a hard constraint during planning.  Warning If Incompatibility Is Violated The system throws a warning message when incompatibility is detected during a planning run. All rights reserved.7. 97 .  According to Incompatibility Definition The system is to behave according to the setting defined in Incompatibility Definition. a successful planning completion is not possible. Note In case the option different from the According to Incompatibility Definition setting is chosen. 98 White Paper SAP TM Planning Configuration . the values of the rest of the Violation in Manual/Automatic Planning settings overwrite the value maintained directly in the incompatibility definition (Figure 81). All rights reserved. Depending on the kind of characteristic it should be considered to split up the problem into several sub-problems (see above) when the sub-problems are mostly disjoint. Incompatibilities between different products within a resource reduce the number of tours where a freight unit can be assigned. Figure 81 Manual/Automatic Violation Settings in Incompatibility Definition Settings Recommendation for the VSR optimizer setup Each incompatibility reducing the number of resources or alternative transshipment locations increases the performance of the optimizer since fewer solutions have to be evaluated. but on the other hand make feasible and good combinations harder to find. © 2014 SAP AG or an SAP affiliate company. 99 . All rights reserved.3 References The following table lists sources used in this document: Reference Titles SAP Note Number White Papers about SAP VSR optimizer 1520433 SAP Note Number 1908165 SAP Note on Freight Unit Dates in VSR Optimization and VSS Scheduling Help Portal SAP Transportation Management 9.0 Help Portal White Paper SAP TM Planning Configuration © 2014 SAP AG or an SAP affiliate company. . 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