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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

© 2009 Oracle Corporation – Proprietary and Confidential

Will the 6.2 Algorithm Change?

3

No, The new 6.3 algorithm is invoked by parameters.

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

TRANSPORTATION ROUTING

NETWORKS IN OTM 6.3

© 2009 Oracle Corporation – Proprietary and Confidential

Transportation Networks in OTM 6.2

Multi-Leg

Itinerary

Single Leg

Crossdock / Pool

© 2009 Oracle Corporation – Proprietary and Confidential

OTM 6.3:

Representation of a more Integrated Network

15

© 2009 Oracle Corporation – Proprietary and Confidential

Examples of Transportation Networks in 6.3

Multiple Cross-docks

Pickup – Linehaul - Deliver

© 2009 Oracle Corporation – Proprietary and Confidential

Multi-leg Itineraries with Ground Networks

© 2009 Oracle Corporation – Proprietary and Confidential

Cross-Itinerary / Cross-Leg Consolidation

© 2009 Oracle Corporation – Proprietary and Confidential

TEST EXAMPLE - SETUP

© 2009 Oracle Corporation – Proprietary and Confidential

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.

© 2009 Oracle Corporation – Proprietary and Confidential

Multiple Itineraries to define the

NetworkItinerary Option

for Network Definition

© 2009 Oracle Corporation – Proprietary and Confidential

Embedded Network Equivalent

Network Leg Option

For Network Definition

1 Itinerary Leg

1 Embedded Network

Many Network Legs

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

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

© 2009 Oracle Corporation – Proprietary and Confidential

Freight Flow 1 for Test

Destinations

St Louis Hub

Des Moines Hub

Sources

Jackson Hub

DestinationsOklahoma City Hub

Sources

Indianapolis Hub

Sources

© 2009 Oracle Corporation – Proprietary and Confidential

Freight Flow 2 for Test

Destinations

St Louis Hub

Des Moines Hub

Sources

Jackson Hub

Destinations Oklahoma City Hub

Sources

Indianapolis Hub

Sources

© 2009 Oracle Corporation – Proprietary and Confidential

Freight Flow 3 for Test

Destinations

St Louis Hub

Des Moines Hub

Sources

Jackson Hub

DestinationsOklahoma City Hub

Sources

Indianapolis Hub

Sources

© 2009 Oracle Corporation – Proprietary and Confidential

Freight Flow 4 for Test

Destinations

St Louis Hub

Des Moines Hub

Sources

Jackson Hub

Destinations Oklahoma City Hub

Sources

Indianapolis Hub

Sources

© 2009 Oracle Corporation – Proprietary and Confidential

Freight Flow 5 for Test

Destinations

St Louis Hub

Des Moines Hub

Sources

Jackson Hub

DestinationsOklahoma City Hub

Sources

Indianapolis Hub

Sources

© 2009 Oracle Corporation – Proprietary and Confidential

Freight Flow 6 for Test

Destinations

St Louis Hub

Des Moines Hub

Sources

Jackson Hub

Destinations Oklahoma City Hub

Sources

Indianapolis Hub

Sources

© 2009 Oracle Corporation – Proprietary and Confidential

TEST EXAMPLE - RESULTS

© 2009 Oracle Corporation – Proprietary and Confidential

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.

© 2009 Oracle Corporation – Proprietary and Confidential

Pickup Shipments - Indianapolis

© 2009 Oracle Corporation – Proprietary and Confidential

Line Haul – Indianapolis to St Louis

© 2009 Oracle Corporation – Proprietary and Confidential

Pickup Shipments - St Louis Hub

© 2009 Oracle Corporation – Proprietary and Confidential

Line Haul from St Louis

© 2009 Oracle Corporation – Proprietary and Confidential

Deliveries from Oklahoma City Hub

© 2009 Oracle Corporation – Proprietary and Confidential

Sample Delivery Shipment

© 2009 Oracle Corporation – Proprietary and Confidential

Deliveries from Jackson Hub

© 2009 Oracle Corporation – Proprietary and Confidential

Sample Delivery Shipment