Processing Cost

Calculating the processing cost

This table is considered only by the Network optimization and Simulation-based experiments.

Products within the supply chain are processed with certain costs.

In the Processing Cost table, you define policies for calculating processing costs for products. Processing cost policy is set on the facility level and is applied based on the product, and operation's direction (inbound or outbound).

Column	Description
Facility	Defines the source facility for which the processing cost policy is created. A source may be a single distribution center, a factory or a supplier, as well as a group of facilities defined by the user. The cell contains a list of facilities (previously defined in the DCs and Factories and Suppliers tables). The list also includes groups from the Groups table, if there are any.
Product	Defines the product for which the processing cost policy is set. If a product is selected, the processing cost policy applies only to orders / shipments containing this product. If (All products) is selected, the processing cost policy applies to any product. The cell contains a list of products (defined in the Products table).
Type	Defines the type of the processing cost calculation policy: Inbound shipment processing — cost calculation policy is applied to shipments received from a supplying site by this Facility. The value is not relevant for suppliers, since a supplier's inventory is unlimited and no shipments are received. Outbound shipment processing — cost calculation policy is applied to shipments sent to a receiving site from this Facility.
Units	Defines the basis unit for calculating the processing cost. The list of available units comprises the units defined in the anyLogistix Settings (as well as the weight and volume units defined in the Units table). ft³ — cubic feet kg — one kilogram of a product lb — pound m³ — one cubic meter pcs — one product unit
Cost	Defines the cost of processing the specified product measurement Unit.
Currency	The type of currency that the payment is made in (The list of available currencies comprises the units defined in the anyLogistix Settings).
Time Period	Defines the period of time (previously defined in the Periods table) during which the defined processing cost will be considered.

Calculating the processing cost

Processing cost is calculated in the following way:

Order / shipment amount is represented in terms of Units.
The resulting number of Units is multiplied by the processing cost for a single unit.

If the same source facility and product are specified in more than one table record, the cost of processing this product will comprise the sum of values defined in the Cost column cells. The example below shows that the cost of processing Furniture products at São Paulo facility constitutes 15 USD (default currency).

Similar concepts apply to calculating processing time. Refer to the Processing Time section for details.

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