Look At The Attachment For Full Question Objective 1 Route S ✓ Solved

Look At The Attachment For Full Questionobjective1 Route Supply

Look At The Attachment For Full Questionobjective1 Route Supply

(Look at the attachment for full question) Objective: 1. Route supply effectively to avoid low stock or stock out 2. Find fastest way to balance shipping back to Ocean mode and reasoning Assumptions: 1. Pallet size is . Shipping minimums is 1 pallet 3. Current target DOS is 21 days 4. PO ETD is fixed 5. Transit times: Air = 1 wk transit and Ocean = 6 wks transit Answer: 1. Fill in "PO ETA" row your PO Supply ETA. (When you want to the good to arrived based the shipping parameter) 2. Color code qty planned by AIR vs. OCEAN 3. You can add additional columns/rows if needed to illustrate results

Sample Paper For Above instruction

Effective supply chain management is vital for businesses aiming to maintain optimal stock levels and meet customer demand without incurring excess costs or stockouts. The strategic routing of shipments, especially when balancing between air and ocean modes, requires careful planning to ensure timely replenishment while minimizing transit durations and costs. This paper explores the methodologies for routing supply efficiently to prevent low stock or stockouts and evaluates the fastest routing options considering transit times and other operational constraints.

Introduction

Supply chain responsiveness depends heavily on the ability to accurately predict restocking times and choose the most efficient transportation routes. The challenge policymakers face revolves around coordinating the modes of transportation—air and ocean—and their respective transit durations. Air freight, with its shorter transit time, offers quicker replenishment but at higher costs, whereas ocean freight, being more economical but slower, necessitates precise planning to align with inventory needs and demand forecasts.

Understanding the Assumptions and Constraints

In this analysis, several assumptions underpin the routing strategy. The pallet size specified influences packing and shipment calculations, while the fixed minimum shipment size (one pallet) affects operational flexibility. The target Days of Supply (DOS) at 21 days establishes a benchmark for replenishment, aligning with inventory policies aimed at avoiding stockouts. The fixed PO ETD ensures predictability in scheduling, and the transit times—one week for air and six weeks for ocean—set the basis for strategic routing decisions.

Determining "PO ETA" and Shipment Planning

The "PO ETA" (Expected Arrival Time) is crucial to synchronize the supply arrival with inventory needs. To calculate the PO ETA, one subtracts the transit duration from the desired stock replenishment date, considering the lead time required for order processing and transportation. For example, if inventory needs replenishment by day 21, and the shipment mode is ocean with a six-week transit, the PO must be dispatched at least 42 days prior (6 weeks) to arrive on time, accounting for the fixed ETD and transit period.

Balancing Air and Ocean Shipments

Strategically, faster air shipments can cover urgent replenishment needs or fill gaps due to delays in ocean freight. To illustrate, quantities planned via air are color-coded to distinguish from those shipped by ocean. The decision matrix determines whether an additional air shipment is necessary based on the current stock levels, lead times, and urgency. When the inventory falls below the threshold, an air shipment can be expedited to prevent stockouts, albeit at increased costs.

Logistical Optimization Techniques

Optimizing routing involves modeling demand and supply scenarios using key parameters such as transit times, shipment sizes, and costs. Advanced tools like linear programming or simulation models can identify the optimal mix of air and ocean shipments. These models aim to minimize total cost while ensuring stock levels do not drop below safety thresholds defined by the target DOS. Additional columns or rows in planning spreadsheets can display scenarios under different assumptions, providing a comprehensive view of routing options.

Conclusion

Effective routing supply requires careful consideration of transit times, costs, and inventory policies. By calculating precise PO ETAs and dynamically allocating shipments between air and ocean modes, companies can maintain a balanced supply chain that minimizes stockouts and excess inventory. Leveraging analytical tools and strategic decision-making, businesses can adapt to changing demand patterns and logistical constraints, ensuring continuous product availability and operational efficiency.

References

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