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Function documentationTransport Load Optimization

 

You can use this function to calculate an optimal distribution of location product quantities to transportation units (TUs). The goal of the transport load optimization (TLO) is to optimize order quantities in terms of load planning, with a view to reducing transportation costs, increasing operational efficiency, and speeding up the loading and unloading of transportation units. TLO uses an optimization algorithm for the optimal loading and fill-up of transportation units. You can control the algorithm regarding what is allowed (such as the dropping of a transportation unit), so that TLO can compare and contrast different results. The parameters provided allow you to define the TLO requirements according to your needs and to control the objectives of the optimization. For example, they can help you to control the following objectives:

  • Minimize the number of required stacks and, ultimately, transportation units, by loading the TUs in a compact manner

  • Maximize the use of the TU itself in terms of volume and weight capacity

  • Optimize the load handling by loading in complete units (for example, layers) whenever possible

Features

Transport load optimization includes the following internal steps:

  • Consolidation and saving of transportation units

    The consolidation starts with an initial loading variant, that is, a not-yet-load-optimized variant of loaded order quantities that is input into TLO. These order quantities represent the quantities that are calculated in the replenishment step and (optionally) optimized by the optimization steps prior to TLO. The consolidation step rearranges this input loading variant, by changing the position of the order quantities on the TU, minimizing the stacks on a TU, or by changing the TU itself. The goal is to find a new loading variant that requires less transportation units than is calculated with the input variant. If one or more TUs can be saved, the optimization is complete. If not, the functionality tries to load the TUs in a way that the last TU contains no location products that prevent a possible drop (see next step).

  • Drop last transportation unit

    The system drops the last TU if both of the defined minimum thresholds (minimum loading volume percentage and minimum loading weight percentage) in the Restriction Profile are undercut and if dropping is allowed for all location products on TU. If the thresholds are not undercut, fill-up takes place. In the TLO Profile in Customizing, you can define what should happen if the last TU cannot be dropped because at least one of the location products on the TU does not allow dropping. For example, dropping might not be allowed if a location product would fall under its defined minimum order range of coverage or minimum order quantity on location product level.

    Depending on your settings, either the quantity calculated so far is left unchanged (that is, it is neither dropped nor filled-up), meaning that the optimization finishes, or the fill-up takes place regardless.

  • Fill-up

    The fill-up step considers the number of required TUs that was determined in the consolidation step. It does not change this number, but checks all TUs to find the best way of loading. When doing this, the system may increase or reduce the order quantity or split the rounded units of measure into smaller units (which also have to be specified for rounding).

After TLO has taken place during the FRP run, the quantity of each location product (that is, each item of an order proposal) is assigned to one or more transportation units. An order proposal that has been optimized as part of TLO can be automatically split by transportation unit assignment after transfer to the SAP Retail system. This means that in SAP Retail it is possible to have an individual purchase order for each transportation unit.

You can split the order proposal in this way by setting the corresponding indicator in the TLO master data in the Restriction Profile before the FRP run takes place. For more information about maintaining the TLO master data settings, see Restriction Profiles.

In the SAP F&R Replenishment Workbench, you can change the transportation unit split indicator for individual order proposals. Within each optimized order proposal, you can display, change, or create assignments of product quantities to transportation units at the line item level. You can assign each order proposal item to one or more TUs. You can also merge item quantities that were assigned to different TUs. For more information, see Using Transport Load Optimization.