Transportation Policies

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Supply Chain Guru Quick Reference Sheet
Transportation Policies
Parcel: Quantity of product ships to the destination
site immediately
LTL (Less than Truckload): Quantity of
product has to be transported from one site to
another, it is transported immediately, without
regard to any other product bundles that are
going to the same site. Transportation asset
can be selected. The asset will be required to
be available in order for the shipment to move
Full TL (Full Truckload): Transportation
Asset required for Full Truckload policies.
Product bundles are consolidated together
based on aggregate weight and/or cubic, then
dispatched as a single shipment to one
destination when the asset is full
Air, Rail and Ship: When a transportation
asset is selected, the policy will behave similar
to the Full TL policy. If no asset, then it
behaves the same as the parcel policy
Daily or Weekly Shipment: Product bundles
shipped daily (every 24 hours) or weekly
(every 7 days). When shipment time arrives, if
an asset is specified, product bundles will be
shipped when an asset becomes available
Periodic Shipment: Product bundles ship on
a repeating schedule
Pooled Outbound/ Pooled Inbound: Similar
to Full TL Policy, except that all products to/
from a single site are consolidated on a single
asset
Pooled Periodic Outbound/ Pooled
Periodic Inbound: Similar to Periodic
Shipment Policy, except that all products to/
from a single site are consolidated on a single
asset
Flow (Optimization Only): Designed for
transportation through pipelines
Link To Lane: Used for virtual lanes
that make use of the Ship To field
Sourcing Policies
Single Source : Orders can only be filled by
one source
Single Source (Select Closest): Chooses the
one source closest in distance to the site that is
requesting product
Sets up a sourcing policy in which multiple
sources are possible but SC Guru does the
work of determining which source, based on
distance, will fill the site’s request
Multiple Sources (Most Inventory):Orders will
be filled by the source with the most inventory
of the requested product on hand
Multiple Sources (Order of Preference):Sets
an order of preference for filling orders by
defining preference
Each site is checked to see if it has the
inventory on-hand to fill the request. If it does, it
is selected as the source. If not, the next
preferred site is checked for inventory. If none
of the sources have the inventory on-hand to fill
the request, the first site is then selected.
Multiple Sources (Probability): Randomly
selects a source to fill orders based on
probability. Source is selected based on the
probability in the Policy Parameter field. In
optimization, if this policy is selected fractional
sourcing constraints are imposed.
Source by Transfer: The site will rely on other
model elements to push inventory to it. The
site’s model variables continue to function,
registering inventory and back order changes,
but it will never order replenishment. It is
usually used in conjunction with scripting logics.
Make: Replenishments of this product are filled
internally, or at the site. Can be used with the
Bill of Materials (BOM). Can use the Guru
submodel- defined work centers, work
resources, and processes.
Make by Schedule: Similar to the Source by
Transfer policy: production will not be
scheduled automatically when this rule is
selected. Relies on external elements like the
Productions Table and Scripting to schedule
production.
Make (Single Process), Make (Order of
Preference), Make (Probability):These
policies are used when a particular product can
be made at the site by multiple processes or
workcenters.
Inventory Policies
R,Q: Fixed replenishment point/fixed replenishment
quantity inventory policy. When the inventory level onhand falls below a certain replenishment point, R, the
site will generate a replenishment order for a certain
quantity, Q, of this product. When using this policy, the
Reorder Point field is set as the trigger level. The
Reorder/Order Up To Qty field will be the exact number
of units reordered.
s,S: minimum/maximum inventory policy. When the
inventory level on-hand falls below a minimum, s, the
site will generate a request for a replenishment order
that will restore the on-hand inventory to a target, or
maximum, number, S. When using this policy, the
Reorder Point field is the minimum, or trigger level.
The Reorder/Order Up To Qty field is the maximum, or
the number to which the inventory level is restored
Demand Flow: No strict inventory control. Instead,
every order that arrives at this site for this product will
generate a request for a replenishment order for the
exact same quantity. All requests are driven by the
actual demand quantities received at this site for this
product. Therefore, the Reorder Point and
Reorder/Order Up To Qty fields are not used.
Days of Supply (DOS) - Demand is similar to an s,S
inventory policy except that the parameters for
minimum and maximum levels are specified in number
of days rather than product quantities. This policy
computes the daily average of product by looking back
at the actual demand. How far back to look is given by
the DOS window field.
DOS – Forecast: Similar to an s,S inventory policy
except that the parameters for minimum and maximum
levels are specified in number of days rather than
product quantities. This policy computes the daily
average of product by looking forward and using
forecasted demand. How far forward to look is given by
the DOS window field. Forecast quantities must be
entered into the forecast
R,Q Targets: Allows the user to change the Reorder
Point (R) and Reorder Quantity (Q) based on a period
of time designated by the user (year, quarter, month,
day, etc.) When using the R,Q Targets inventory
policy, the quantities and period are specified in the
Forecasts input table.
s,S Targets: Just like the regular s,S policy except that
you can specify Reorder Point (s) and Order up to
Quantity (S) for certain periods. You can define the
period as days, weeks, months, years, quarters etc.
When using the s,S Targets inventory policy, the
quantities and period are specified in the Forecasts
input table.
Supply Chain Guru Quick Reference Sheet
Mode Selection Rules
Mode Rule
Example
First
The mode with the lowest Mode
number will be used.
First Available Asset
By Probability
On Due Date
On Qty
The mode for which an asset
becomes available first will be used.
The mode will be picked based on the
probability. Here the mode number
reflects this probability.
In the simulation engine, the modes
are sorted in descending order from
Longest to shortest. The first mode
that can fulfill the order on time
(before or on the Due Date) will be
used.
The mode will be picked based on the
size of the order (in units). One mode
with mode# 0 needs to be specified,
and other modes where the mode# is
used as the unit-break points. If there
are 2 modes, one with mode# 0 and
one with mode# 200, orders that have
a size between 0 and 200 units, will
take mode 0 and orders =>200 units,
will take mode 200.
On Weight
The mode will be picked based on the
size of the order (in weight). Similar
to On Qty.
On Cubic
The mode will be picked based on the
size of the order (in cubic). Similar to
On Qty.
Queue Only
Shipments will only be placed in a
queue, but never dispatched. Queue
Only assumes a customer written
script takes care of scheduling
shipments.
A custom script defined in the scripts
table.
Custom
Parameter
The mode with the lowest Mode
number will be used.
Enter 30, if chances are 30% that
this mode will be used. The
probabilities for the lane need to
add up to 100.
The mode will be picked based on
the size of the order (in units).
Each mode should have a range
in which to send it (ie 0-200 =
Mode_1, 200-500 = Mode 2, 500 And above = Mode 3). Take the
first number in the range for that
mode, and place that in the mode
parameter.
Each mode should have a range in
which to send it (ie 0-200 =
Mode_1, 200-500 = Mode 2, 500 And above = Mode 3). Take the
first number in the range for that
mode, and place that in the mode
parameter.
Each mode should have a range in
which to send it (ie 0-200 =
Mode_1, 200-500 = Mode 2, 500 And above = Mode 3). Take the
first number in the range for that
mode, and place that in the mode
parameter.
Shipments will only be placed in a
queue, but never dispatched.
Queue Only assumes a customer
written script takes care of
scheduling shipments.
A custom script defined in the
scripts table.
LLamasoft Support
Email: Support@llamasoft.com
Website: www.llamasoft.com
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