The list triggered by rate shop will be filtered to exclude ineligible carriers. CST will be based on the filtered list of qualifying carriers:
Carrier |
Cost |
Allotted Tender Response Hours |
---|---|---|
A |
900.00 |
1.50 hours |
C |
875.00 |
1.20 hours |
D |
900.00 |
1.20 hours |
F |
930.00 |
1.20 hours |
G |
931.00 |
.60 hours |
H |
935.00 |
.60 hours |
I |
1000.00 |
.60 hours |
J |
1200.00 |
.15 hours |
K |
1400.00 |
.15 hours |
L |
1410.00 |
.15 hours |
M |
1415.00 |
.15 hours |
Explanation
Carrier A is the first carrier on the CST List. As per the sample Global Settings, the first carrier will receive the full allotment of time, regardless of whether there is sufficient time for all carriers to be offered the load. Therefore, Carrier A is allotted the full 1.50 hours, based on the Tender Response Hours for the Origin Shipping Location. Based on the starting time of 7:00 am, the Tender Response Required By Time for Carrier A would be 8:30 am.
Assuming Carrier A rejects the load at 8:30 am (after the full 1.50 of the allotted 1.50 hours), there still would be 8.50 hours before the time when pick-up must occur at the first stop (5:00 pm). The Minimum Tender Lead Time for the origin shipping location is 3.00 hours which is greater than the value for any remaining carrier. The Minimum Time Required for CST in Global Settings is.50 hours. Therefore, the remaining time available for the CST process is 6.00 hours --> (8.50 - (3.00 -.50)) = 6.00. The Minimum Time Required for CST in Global Settings is deducted from the Minimum Tender Lead Time only when the former is less than the latter. For example, if the Minimum Time Required for CST in Global Settings is 3.50 hours, then the remaining time available for the CST process is 5.50 hours --> (8.50 - 3.00) = 5.50.
For each of the remaining carriers to receive the full allotment, 15.00 additional hours would be required (10 remaining carriers x 1.50 hours each = 15.00 hours). As there are only 6.00 hours remaining, the available time must be rationed.
Carriers C, D and F are the second, third and fourth carriers on the CST List. As per Global Settings, these three carriers will split 60% of 6.00 hours (3.60 hours), meaning they each receive 1.20 hours. The Tender Response Required Time for Carrier C would be 9:42 am (8:30 am plus 1.20 hours, or one hour and twelve minutes). The Tender Response Times for other carriers will be set based on the time that the previous carrier rejects the tender.
Assume Carriers C, D and F each take the maximum time before rejecting the tender. In this case, there would be 2.40 hours remaining after Carrier F rejects the tender. CST will then allocate 75% of the remaining time to Carriers G, H and I. This would be based on the percentages defined in the CST Response Control table in Global Settings, where carriers 5 thru 7 are allotted 30% of the total time, or 75% of the remaining time (30/40). The time will be split evenly, with each of the three carriers allotted.60 hours, or 36 minutes to respond to the tender.
Assume Carriers G, H and I also take the maximum time before rejecting the tender. In this case, there would only be .60 hours remaining after Carrier I rejects the tender. As the Minimum Time Required for CST is.50 hours, assuming the Carrier J uses the maximum allotment of time before rejecting, there would not be sufficient time to issue tenders to Carriers K, L and M.
The example assumes that all carriers will use their full allotment of time before the tender is rejected. If a carrier rejects before the deadline, the additional time will be made available for other carriers. In this example, if each of Carriers C, D, F, G, H and I reject the tender 20 minutes before their deadline, there would be enough time to tender the load to all eligible carriers.
Allocation of remaining time will be performed prior to issuing each tender.
For example: If carrier C rejects the load in 1 hour even, there will be an additional .2 hours available. The total remaining time will be allocated to all remaining carriers based on the percentages in the Global Settings.
When allocating time, if some of the carriers for a group have already been processed, the percentage for that group must be adjusted accordingly.
For example: If Carrier C has already rejected the load, the percentages allocated to that group would be adjusted based on the fact that one of the three carriers in the group no longer needs to be considered. Therefore, the 60% originally allocated to the C, D and F group would be reduced by one-third because 1 of the 3 carriers no longer needs to be considered.
Based on the original allocation of 100%, the distribution would be as follows:
Note that the percentages no longer add up to 100% (40 + 30 + 10 = 80). At this point, the percentages reflect the relative weights that will be used when allocating the remaining time to each group. In the continuing example, the 5 hours remaining after Carrier C rejects the load would be divided as follows:
Carrier |
Cost |
Allocation Formulae |
Allotted Tender Response Hours |
---|---|---|---|
D |
900.00 |
(40/80 * 5) / 2 |
1.25 hours |
F |
930.00 |
(40/80 * 5) / 2 |
1.25 hours |
G |
931.00 |
(40/80 * 5) / 3 |
.625 hours |
H |
935.00 |
(40/80 * 5) / 3 |
.625 hours |
I |
1000.00 |
(40/80 * 5) / 3 |
.625 hours |
J |
1200.00 |
(40/80 * 5) / 4 |
.625 hours |
K |
1400.00 |
(40/80 * 5) / 4 |
.15625 hours |
L |
1410.00 |
(40/80 * 5) / 4 |
.15625 hours |
M |
1415.00 |
(40/80 * 5) / 4 |
.15625 hours |
Recalculated Tender Response Hours
The allocation formulae will take the relative weight dictated by the percentages for the group and then divide this by the total for all groups. This will be extended by the available number of hours and then split evenly amongst all carriers in the group.
A carrier cannot be allocated more than the Tender Response Time. If the Allotted Tender Response Hours exceeds the applicable Tender Response Time, the Tender Response Required By Date/Time will be computed based on Tender Response Time.