Shipment consolidation threshold calculator

Calculate dispatch counts by interval and holding cost by interval with your own figures.

Your numbers

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Use dispatch counts by interval and holding cost by interval to compare changes to your inputs. The method and limits below explain the scope.

Examples

Examples

Try the starting example

Order counts by consecutive day
2,0,2
Fixed cost per nonempty dispatch ($)
10
Holding cost per order per waiting day ($)
1
Candidate dispatch intervals (days)
1,2,3
Dispatch counts by interval
2, 2, 1
Holding cost by interval ($)
0, 2, 4
Total cost by interval ($)
20, 22, 14
Lowest-cost tested interval (days)
3

Try another scenario

Order counts by consecutive day
1,1
Fixed cost per nonempty dispatch ($)
5
Holding cost per order per waiting day ($)
10
Candidate dispatch intervals (days)
1,2
Dispatch counts by interval
2, 1
Holding cost by interval ($)
0, 10
Total cost by interval ($)
10, 15
Lowest-cost tested interval (days)
1
Calculation method

Calculation method

Dispatch counts by interval

For each tested interval, dispatch nonempty blocks at block end, including the last partial block.

Holding cost by interval ($)

For each order, multiply whole days waiting until its block-end dispatch by the holding cost; sum all orders.

Total cost by interval ($)

Nonempty dispatches × fixed dispatch cost + holding cost.

Lowest-cost tested interval (days)

The first minimum-cost interval in the supplied candidate order.

Symbols and units
a
Order counts by consecutive day
b
Fixed cost per nonempty dispatch ($)
c
Holding cost per order per waiting day ($)
d
Candidate dispatch intervals (days)

Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.

Assumptions & limits

Assumptions & limits

  • Orders arrive at each day’s start; dispatch occurs at the end of each block and any final partial block. Holding is charged only for whole intervening days, and empty blocks are not dispatched. No service deadline, variable freight charge or customer demand response is assumed.
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Further reading

OpenStax: arithmetic and geometry ↗

Background reading; this does not imply endorsement or independent review of SumFizz.

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