What is the functionality of the 'Convert Node priority into Cost' flag set in the Landed cost screen?

Answer

This is regarding the ‘Convert Node priority into cost” flag present in the landed cost screen. The landed cost screen is located under DOM->Order Promising->Sourcing and Scheduling->Landed Cost. The functionality of the flag can be explained with the help of an example.

Scenario:
Currency= USD
Cost Factor=10
Distribution group contains 3 nodes: N1,N2,N3. So the computed costs would be like this based on their priorities.

Node    Priority    Cost
N1            1          10
N2            2          20
N3            3          30

So, when optimization is set to be cost/number of shipments at Scheduling rules level, and we want priority to play a role in deciding the node, then we make use of this option.

The behavior observed because of this flag is not the same as that seen by setting Priority at the scheduling rules level as the optimization criterion to achieve the requirement. With the latter, the decision might depend solely on priority. But if we make use of the 'Convert Node priority into Cost' flag and set optimization to cost, we look at cost (all costs like handling, transportation etc. which might be not considered if set optimization to priority) and priority together to select the best possible option.