Multi-statement Table Valued Function vs Inline Table Valued Function

Internally, SQL Server treats an inline table valued function much like it would a view and treats a multi-statement table valued function similar to how it would a stored procedure.

When an inline table-valued function is used as part of an outer query, the query processor expands the UDF definition and generates an execution plan that accesses the underlying objects, using the indexes on these objects.

For a multi-statement table valued function, an execution plan is created for the function itself and stored in the execution plan cache (once the function has been executed the first time). If multi-statement table valued functions are used as part of larger queries then the optimiser does not know what the function returns, and so makes some standard assumptions - in effect it assumes that the function will return a single row, and that the returns of the function will be accessed by using a table scan against a table with a single row.

Where multi-statement table valued functions can perform poorly is when they return a large number of rows and are joined against in outer queries. The performance issues are primarily down to the fact that the optimiser will produce a plan assuming that a single row is returned, which will not necessarily be the most appropriate plan.

As a general rule of thumb we have found that where possible inline table valued functions should be used in preference to multi-statement ones (when the UDF will be used as part of an outer query) due to these potential performance issues.

In researching Matt's comment, I have revised my original statement. He is correct, there will be a difference in performance between an inline table valued function (ITVF) and a multi-statement table valued function (MSTVF) even if they both simply execute a SELECT statement. SQL Server will treat an ITVF somewhat like a VIEW in that it will calculate an execution plan using the latest statistics on the tables in question. A MSTVF is equivalent to stuffing the entire contents of your SELECT statement into a table variable and then joining to that. Thus, the compiler cannot use any table statistics on the tables in the MSTVF. So, all things being equal, (which they rarely are), the ITVF will perform better than the MSTVF. In my tests, the performance difference in completion time was negligible however from a statistics standpoint, it was noticeable.

In your case, the two functions are not functionally equivalent. The MSTV function does an extra query each time it is called and, most importantly, filters on the customer id. In a large query, the optimizer would not be able to take advantage of other types of joins as it would need to call the function for each customerId passed. However, if you re-wrote your MSTV function like so:

CREATE FUNCTION MyNS.GetLastShipped()
RETURNS @CustomerOrder TABLE
    (
    SaleOrderID    INT         NOT NULL,
    CustomerID      INT         NOT NULL,
    OrderDate       DATETIME    NOT NULL,
    OrderQty        INT         NOT NULL
    )
AS
BEGIN
    INSERT @CustomerOrder
    SELECT a.SalesOrderID, a.CustomerID, a.OrderDate, b.OrderQty
    FROM Sales.SalesOrderHeader a 
        INNER JOIN Sales.SalesOrderHeader b
            ON a.SalesOrderID = b.SalesOrderID
        INNER JOIN Production.Product c 
            ON b.ProductID = c.ProductID
    WHERE a.OrderDate = (
                        Select Max(SH1.OrderDate)
                        FROM Sales.SalesOrderHeader As SH1
                        WHERE SH1.CustomerID = A.CustomerId
                        )
    RETURN
END
GO

In a query, the optimizer would be able to call that function once and build a better execution plan but it still would not be better than an equivalent, non-parameterized ITVS or a VIEW.

ITVFs should be preferred over a MSTVFs when feasible because the datatypes, nullability and collation from the columns in the table whereas you declare those properties in a multi-statement table valued function and, importantly, you will get better execution plans from the ITVF. In my experience, I have not found many circumstances where an ITVF was a better option than a VIEW but mileage may vary.

Thanks to Matt.

Addition

Since I saw this come up recently, here is an excellent analysis done by Wayne Sheffield comparing the performance difference between Inline Table Valued functions and Multi-Statement functions.

His original blog post.

Copy on SQL Server Central