Optimizing the Transportation Safety Time

Transportation Safety Time (TST) is included in the loop to protect against delivery delays.

In a classical approach, this TST is applied to all parts delivered by the same transport. If the TST is a Delivery Safety Time, the Maximum In-House Inventory is increased by the consumption during this time.

You can apply this TST only to components that you are sure to be consumed during this delay like high runners but it is better to define this list of components by establishing the list of products to be produced by production line if the delivery is delayed. This list can be included in your Disaster Recovery Plan.

For each line using a component delivered by this transport you have to define the list of products to be produced until the next delivery (only high runners) sorted by descending quantity. Take the first one on the list (with the highest volume) and check if the production of the line during the TST is lower than the demand for this part during the TB2D. If it is the case, only this product can be chosen to be produced during the delivery delay. Otherwise, you have to take others to completed the quantity produced during the delay.

Then you have the list of components to be secured with a TST.

Of course longer will be the TST, more components you will have to add in this list. If TST = TB2D, all components have to be in the list.