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Eliminating TST based on receiving hours


Receiving down time can be used to absorb TST

When your Receiving Hours are less than 24h, you can use Closing Hours to eliminate or reduce the TST by changing the Arrival Time.

TST <= Closing Hours

If your TST is shorter than your Closing Hours, you can schedule your Arrival Time during your Closing Hours. You just need to have at least the value of your TST between your Arrival Time and the opening of your Receiving.

TST > Closing Hours

In this case your TST can be only reduced by the value of your Closing Hours. Like in the previous case, you just need to have at least the value of your initial TST between your Arrival Time and the opening of your Receiving.


Conclusions

  • In the first case, your TST is eliminated so your loop and your inventory are reduced by the value of your initial TST.
  • In the second case, your TST is reduced by your Closing Hours, so your loop and your inventory are reduced by the value of your initial TST minus Closing Hours.

Do not forget that closing Receiving when Production is running increases inventory (you need to protect your line during your closing hours).

TST calculation The best way to calculate a TST is to analyse the history of transportation arrival time.

Safety Transit Time (STT) Safety Transit Time impact the transportation route or/and its transit time.

Delivery Safety Time (DST) Delivery Safety Time has to cover the maximum delay of an order.

Learn more...

Transportation Safety Time Transportation Safety Time (TST) has to be known to insure a good sizing of the VRO loop.

Using TST for weather events A classical example used by a lot of companies during winter.

Eliminating TST based on production hours An analysis of truck arrivals and consumption schedule may help to optimize your TST.

Optimizing TST of a 3740 km milkrun A real example showing how you can optimize the TST and its cost.

TST : Think globaly You may not need to secure your transportation if you are the only one to do it!

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