Transportation Safety Time
Gina Mastrosimone
A late delivery of one part number may not impact Production Schedule. Sometime it is possible to expedite receiving, inspection and line feeding operations to protect Production. However if a truck with a lot of part numbers is late, speeding-up all these operations for all parts could be a real challenge.
It means that a late arrival of an order can be a major factor of disruption.
2 solutions exist to protect Production:
- The Delivery Safety Time (DST);
- The Safety Transit-Time (STT).
The first one means that you accept the fact that the delivery can be delayed and you have a safety stock within your plant to protect the Production Schedule.
The second one means that you are slowing down your transportation and so increasing your transit-time to be sure that the delivery will be always on time.
DST and STT increase your inventory but in 2 different ways:
- DST increases your in-house inventory;
- STT increases your in-transit inventory, maybe transportation cost (you hold transportation resources for a longer period of time) but requires no extra storage space in your plant.
It is sometime possible to eliminate TST by choosing the right arrival time based on production or receiving hours. A transportation delays analysis is always necessary to define the right TST. The choice of using DST or STT is part of the transportation cost and inventory optimization.
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