In the Cluster Costing Allocated to Individual Customers table, the cluster costing is calculated per customer. This shows how cluster costs are divided over the individual customer locations. The values are calculated for individual customer locations as if it were served alone by the DC. This helps you evaluate if the “value” of the customer matches the “cost” of serving the customer.
Cluster Costing Allocated to Individual Customers
The columns detail the following information:
Cluster - The cluster currently assigned to the customer location.
Demand - The demand for the customer location.
Average Drop Size - The average drop size for the customer location.
Customer Stem Distance - The distance from the selected DC to the customer location.
Total Number of Trips - The customer demand divided by the customer drop size.
Distance Based Cost per Trip - The distance-based cost per trip for a customer is twice the distance from DC to the customer location, multiplied by the vehicle cost per unit of distance.
Time Based Cost per Trip - The time-based cost per trip for a customer is a sum of the following values:
Average Vehicle Load time
Average Vehicle Unload time
Twice the distance from DC to the customer location divided by the vehicle speed, multiplied by the vehicle cost per hour.
Trip Based Cost per Trip - The trip-based cost per trip for a customer is the Fixed Vehicle Cost per Trip for the vehicle selected, for the cluster assigned to the customer location.
Total Cost - The individual total cost for a customer is the sum of the distance-, time- and trip-based cost per trip multiplied by the total number of trips for a customer location.
Allocated Cost - The allocated cost for an individual customer location is its part of the cluster total cost. This is the Total Cost for an individual customer location divided by the sum of Total Cost for all customer locations. And this proportion is multiplied by the Total Cost for the cluster.
Cost per THU Allocated - The allocated cost for an individual customer location for a single THU. So, the Allocated Cost divided by the demand of that customer location.
Cost per THU Function - The cost per THU is calculated for each customer location based on the Costing Curves.