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Cost vs. Objective

Cost vs. Objective

OptiFlow optimizes with respect to the Objective, this often translates to the total cost in the plan. However, it is possible the Cost differs from the Objective. On this page we elaborate which drivers can enter the Cost, versus the Objective.

Cost

Cost drivers on the vehicle

  • Cost per Hour

  • Cost per Kilometer

  • Fixed Cost: the cost to start this vehicle

  • Cost per Stop

  • Cost per Hour Wait Time: This is an extra cost that will be added to the cost per hour.

Often it is more optimal to wait at a location. Increasing the cost per hour wait time, has the effect that drivers won’t wait at the location, but at the cost of a better planning

  • Cost per hour overtime: extra cost per hour when exceeding the regular Timespan and using the Allowed Overtime

  • Minimum Timespan: fixed penalty cost & additional penalty cost per hour

We don’t advise the usage of minimum timespan. This will often result in suboptimal plans as creating detours is incentivized by the penalty. Please reach out to your local contact when interested in this feature.

Cost drivers on the orders

  • TimeWindow Costs

Planning rules

  • Order-Vehicle-Cost == Constraints

  • Inter-Order-Consecutive-Cost

  • Inter-Order-Break-Cost

Objective

In general the Objective is equal to the Cost plus some penalties

  • Location group penalty based on the orders

  • Max Time in vehicle

  • Clustering mode: (sub)Route Clustering: on Planning Settings or Vehicles

  • Additional Handling Percentage: on Planning Settings or Vehicles

  • Penalty on unplanned orders: for mandatory & optional orders.
    For mandatory orders, the penalty is set by the algorithm. For optional orders this is equal to the orders Penalty (= Outsourcing Cost)

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