You can define the minimum amount of money the consolidatedshipment must save compared to shipping each order as a separateshipment.

For example:

• You have to cover the cost of the additional warehouse coordinationthat must occur to arrange and ship the consolidated freight.
• You specify that each consolidated shipment must save at least$40.

To enable this feature define the Minimum CostSavings on the Add Mode and Equipment page.

Theoptimizer uses the following calculation:

• The optimizer calculates the total cost of shipping each orderseparately. The optimizer uses the cost from the direct mode selectionplan for the order.
• The optimizer calculates the total cost of the consolidated shipment.
• The optimizer subtracts the consolidated cost from the total costfor shipping the orders separately.
• If the cost savings are more than the Minimum CostSavings the optimizer creates the shipment.
• If the cost savings are less than the Minimum CostSavings the optimizer does not create the shipment. Theorders are available for another optimization run.

For example:

• You set the minimum cost savings to $100.
• The optimizer consolidates 10 orders. The cost of the consolidatedshipment is $2000.
• The total cost of shipping the 10 orders separately is $2200.
• The optimizer subtracts the $2000 consolidated cost from the $2200cost of shipping the separate orders. The cost savings is $200.
• The $200 cost savings is more than the $100 minimum savings sothe optimizer creates the consolidated shipment.