Modulo Rate Structure Explanation

The WMS can use a modulo rate structure to calculate costs based on different operational activities. These activities could include picking, receiving, or storing items in the warehouse. Different rates apply depending on the quantity of items or units processed. Below, we explain how the rate structure works and provide an example using picking as the operational activity.


1. Rate Structure example:

The rates for picking items are set at different intervals:

  • For every 500 picks: The cost is £5.00.
  • For every 60 picks: The cost is £1.50.
  • For every individual pick: The cost is £0.50.

2. Calculation Process

When calculating the total cost for picking a certain number of items, follow these steps:

  • Calculate cost for 500 picks:
    • Determine how many times 500 picks fit into the total quantity picked.
    • Multiply the number of groups of 500 picks by the rate of £5.00.
  • Calculate cost for 60 picks:
    • Calculate the remainder from the previous calculation.
    • Determine how many times 60 picks fit into the remainder.
    • Multiply the number of groups of 60 picks by the rate of £1.50.
  • Calculate cost for individual picks:
    • Calculate the remainder from the previous calculation.
    • Multiply the remaining number of individual picks by the rate of £0.50.

Finally, add all the costs from each step to determine the total cost.


3. Example Calculation

Suppose you picked 622 items. Here is how the calculation works:

  1. Cost for 500 picks:
    • Calculate how many times 500 picks fit into 622 picks: 622÷500=1.244, which rounds down to 1.
    • Calculate the remainder: 622−(1×500) =122.
    • Cost: 1×5.00=£5.00.
  2. Cost for 60 picks:
    • Calculate how many times 60 picks fit into the remainder of 122 picks: 122÷60=2.033, which rounds down to 2.
    • Calculate the remainder: 122−(2×60) =2.
    • Cost: 2×1.50=£3.002×1.50=£3.00.
  3. Cost for individual picks:
    • There are 2 individual picks left.
    • Cost: 2×0.50=£1.002×0.50=£1.00.

Now, sum all the costs:

  • Total Cost: £5.00+£3.00+£1.00=£9.00

So, the total cost for picking 622 items is £9.00.

By following the modulo rate structure, you can easily calculate the cost based on the quantity of items you pick. This system allows for more precise cost calculations and can help you better manage your warehouse operations.