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OTM 6.3 Multi-Tier Algorithm
Sundar Arunapuram , Oracle
Thomas Tsukada, Oracle
Al Drummond, Oracle
© 2009 Oracle Corporation – Proprietary and Confidential
Topics• Multi-Tier Solution in 6.3
• Data Model
• High Level Approach for planning
• Supporting Actions for Multi-tier
• What has changed in 6.3
• More Integrated Networks
• Multi-Leg with Ground Networks
• Cross Itinerary – Cross Leg Consolidation
• Example from Testing
• Network Scenario
• Results
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Will the 6.2 Algorithm Change?
3
No, The new 6.3 algorithm is invoked by parameters.
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Multi-Tier Solution• Objective
• Replace the current multi-tier solution with a more robust solver that
makes cost based routing decisions for orders across multiple
itineraries – taking into account
• carrier capacities and commitments
• Location capacities
• Schedules (voyage and ground)
• Provide ability to route through a network of cross docks and pools
without placing limitations on number and sequence of cross docks
and pools.
• Ability to perform staged planning
• Ability to plan order movements across legs – grouping of order
movements and sequence of processing the groups
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Bulk-Plan Order Releases
Bulk-plan Order Releases
Check OR Status
Order Releases
Planning
Parameters
Create Order
Movements
Order Movements
ShipmentsPlan Order
Movements
Commit Order
Movements and
Shipments
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Create Order Movements
Create Order Movements
Order Releases
Planning
Parameters
Un-assign Order
Releases
Order Movements
Bundle Order
Releases
Select Itinerary
Route Order
Bundles
Create Order
Movements
Find Valid Paths
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Plan Order Movements
Plan Order Movements
Check OM Status
Order Movements
Planning
Parameters
Un-assign Order
Movements
Order Movements
Shipments
Bundle Order
Movements
Route Order
Bundles
Plan Shipments
Commit
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Plan Shipments
Plan Shipments
Order Movement
Bundles
Group Order
Movements and
process each group
Shipments
Build multi-stop
shipments
Solution Improvement
Service Provider
Assignment and
Commitments
Shipment Groups and
Trailer Builds
Continuous Moves
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Route Order Bundles
Route Order Bundles
OR/OM Bundles
Planning
Parameter Set
Prepare Data for
Routing Solver
Order Movements
Perform Routing
Solver
Construct Order
Movements
Find Valid Paths
for Orders
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Routing Solver
Output
Order
Routes
Packed
Equipments
Input
Orders
Shipments
Equipment
Rates
Rate Service
Network
Schedules
Capacities
Commitments
Parameters
Constraints Routing Solver
Route Optimizer
Heuristic
Solver
MIP
Route
Optimizer
Sched-
Aware
Conopt
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Multi-Tier Solution Scope
• Goal of the 6.3 multi-tier feature is to create a more robust planning
engine to perform cost based routing decisions across itineraries
• Unify the multi-leg and pool cross dock paths into one
• One planning engine that supports both order releases and order
movements
• Provide a more flexible network definition – thus eliminating some of
the artificial restrictions of today’s solution
• Staged planning and partial planning
• Plan only certain legs of the order
• Re-routing capabilities to re-route a part of the order
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Multi-Tier Solution – Not in Scope
• Will not touch the flow of continuous moves, trailer
builds, location capacities (may look at these in
routing decisions) and route execution
• Multi-stop orders – will not change the current logic
• Will not handle semi-fixed trips
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TRANSPORTATION ROUTING
NETWORKS IN OTM 6.3
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Transportation Networks in OTM 6.2
Multi-Leg
Itinerary
Single Leg
Crossdock / Pool
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OTM 6.3:
Representation of a more Integrated Network
15
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Examples of Transportation Networks in 6.3
Multiple Cross-docks
Pickup – Linehaul - Deliver
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Multi-leg Itineraries with Ground Networks
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Cross-Itinerary / Cross-Leg Consolidation
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TEST EXAMPLE - SETUP
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A Network Example
• A test case with 300 orders was created to illustrate the new
capabilities of the Multi-Tier Enhancement.
• Networks can be modeled with either multiple itineraries or an
embedded network in an itinerary or a combination.
• This test case used 14 itineraries where each itinerary represented
a source to destination flow.
• The network approach connects nodes with spokes. In 6.3, the new
Network legs have both a source and destination. The network is
defined by multiple legs.
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Multiple Itineraries to define the
NetworkItinerary Option
for Network Definition
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Embedded Network Equivalent
Network Leg Option
For Network Definition
1 Itinerary Leg
1 Embedded Network
Many Network Legs
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Ames
Des Moines Hub
Alexandria Route
Moline
West Burlington
Ft Dodge
Jackson
Jackson Route
Memphis Route
5 manufacturing Plants
18 Customer Destinations – 3 Routes
Council Bluffs
3 Routes for Delivery
Each destination receives
1 identical order from each plant
Total 5363 lbs
Total 374 cu ft
Each Source produces 1 ItemAmes – 1 plt paper bags 1,270 lbs
Council – 10 ctn generators 1,855 lbs
Ft Dodge – 1 plt Toilet Paper 349 lbs
Moline – 1 plt Motor Oil 1297 lbs
West Burlington – 10 ctn Microwave 610 lbs
St Louis Hub
Source Region
For Hub
Orders Flow From Source Regions to Destination Regions
Destination Region
For Hub
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Itineraries – Freight Test 01
One itinerary is required for each unique routing.
Des Moines General Pickup to Memphis Delivery Region
Des Moines General Pickup to Jackson Delivery Region
Des Moines General Pickup to Alexandria Delivery Region
Itinerary Option
for Network Definition
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Freight Flow 1 for Test
Destinations
St Louis Hub
Des Moines Hub
Sources
Jackson Hub
DestinationsOklahoma City Hub
Sources
Indianapolis Hub
Sources
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Freight Flow 2 for Test
Destinations
St Louis Hub
Des Moines Hub
Sources
Jackson Hub
Destinations Oklahoma City Hub
Sources
Indianapolis Hub
Sources
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Freight Flow 3 for Test
Destinations
St Louis Hub
Des Moines Hub
Sources
Jackson Hub
DestinationsOklahoma City Hub
Sources
Indianapolis Hub
Sources
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Freight Flow 4 for Test
Destinations
St Louis Hub
Des Moines Hub
Sources
Jackson Hub
Destinations Oklahoma City Hub
Sources
Indianapolis Hub
Sources
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Freight Flow 5 for Test
Destinations
St Louis Hub
Des Moines Hub
Sources
Jackson Hub
DestinationsOklahoma City Hub
Sources
Indianapolis Hub
Sources
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Freight Flow 6 for Test
Destinations
St Louis Hub
Des Moines Hub
Sources
Jackson Hub
Destinations Oklahoma City Hub
Sources
Indianapolis Hub
Sources
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TEST EXAMPLE - RESULTS
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Order Routing
Pickup Leg
Line Haul Leg 1
Delivery Leg
Line Haul Leg 2
Cross Dock
Delivery
Terminal
Source
Destination
Pickup
Terminal
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Pickup Shipments – Des Moines Hub
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Sample Pick Up Shipment
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Line Haul - Des Moines to St Louis
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Sample Line Haul Shipment
Shows Consolidation in the line haul shipment.
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Pickup Shipments - Indianapolis
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Line Haul – Indianapolis to St Louis
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Pickup Shipments - St Louis Hub
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Line Haul from St Louis
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Deliveries from Oklahoma City Hub
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Sample Delivery Shipment
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Deliveries from Jackson Hub
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Sample Delivery Shipment