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Alternate Transport Mode
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Enable Alternate Transport Modes
There may be instances where using the primary transport mode would not meet the order fulfillment need. The Alternate Transport Mode feature enables you to define alternate modes of transport that the Order Plan process can consider using for Procurement and Replenishment orders when the need cannot be fulfilled by the primary transport mode on the day of the need due to lead time constraints.
There are four types of alternate transport modes:
Alternate Transport Mode
Description
Replenishment Transport Mode
Defines transportation modes between a source location and destination location for replenishment orders. This type of alternate transport mode can be managed on the Replenishment Transport Mode page.
For example, if train service is not available between a specific source and destination location, a Replenishment Transport Mode of Air could be defined between the two locations.
Replenishment SKU Transport Mode
Defines transportation modes by part between a source location and destination location for replenishment orders. This type of alternate transport mode can be managed on the Replenishment SKU Transport Mode page.
For example, an oversized part that can only travel by truck available between a specific source and destination location could have a Replenishment SKU Transport Mode of Truck defined for that part, source location, and destination location.
Vendor Location Transport Mode
Defines transportation modes between a vendor location and destination location for procurement orders. This type of alternate transport mode can be managed on the Vendor Location Transport Mode page.
For example, if train service is not available between a specific vendor and destination location, a Vendor Location Transport Mode of Air could be defined between the vendor location and destination location.
Vendor Location SKU Transport Mode
Defines transportation modes by part between a vendor location and destination location for procurement orders. This type of alternate transport mode can be managed on the Vendor Location SKU Transport Mode page.
For example, an oversized part that can only travel by truck available between a specific vendor and destination location could have a Vendor Location SKU Transport Mode of Truck defined for that part, vendor location, and destination location.
Once the Alternate Transport Modes are defined, you can change the setting of a part, location, SKU, or ordering parameter to enable the Order Plan process to consider alternate transport modes.
The Order Plan process determines which Alternate Transport Mode to use for a a Procurement or Replenishment order based on which Order Policy is in effect.
For Time-Phase Safety Stock or Trigger Point
Use the Transportation Mode that gets material to the destination as quickly as possible once the Backorder Threshold is met.
1. Determine the begin date of the backorder. If the begin date is within Lead Time, then Alternate Transport Modes are considered.
2. All valid Transportation Modes at the destination SKU, including the Primary Transportation Mode (the transport mode with the longest total pipeline length) and the Alternate Transport Modes , are prioritized in descending order by the total pipeline length.
3. Each Transportation Mode is evaluated in descending order, comparing Backorder Days accumulated from the date that backorder begins to the date of arrival for that the Alternate Transport Mode. The accumulated Backorder Days are compared to the Backorder Threshold.
If Backorder Days is less than the Backorder Threshold, then the Transportation Mode is used.
Otherwise, the next Alternate Transport Mode (which has a shorter pipeline) in the prioritized list is considered.
If all available Transportation Modes are exhausted and none of them satisfies the Backorder Threshold condition, then the Transportation Mode that brings in material at the earliest to generate the order is used.
For Time-Phased ROP
Use the Transportation Mode that gets today’s backorders to the destination as quickly as possible.
1. All valid Transportation Modes at the destination SKU, including the Primary Transportation Mode (the transport mode with the longest total pipeline length) and the Alternate Transport Modes, are prioritized in descending order by the total pipeline length.
2. Each Transportation Mode is evaluated in descending order, comparing Backorder Days Reduced from either an existing host order arriving that covers the backorder or the Primary Transportation Mode's available date, whichever is available first. The Backorder Days Reduced are compared to the Backorder Threshold.
If Backorder Days Reduced is greater than or equal to the Backorder Threshold, then the Transportation Mode is used.
Otherwise, the next Alternate Transport Mode (which has a shorter pipeline in the prioritized list is considered.
If all available Transportation Modes are exhausted and none of them satisfies the Backorder Threshold condition, then no Alternate Transport Mode is used.
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Alternate Transport Modes can be used with the Availability Based Replenishment feature.
Alternate Transport Modes cannot be used with Repair, Balancing, or Excess Recall orders.
Alternate Transport Modes is not used if the Safety Stock < 0 because those are SKUs that are normally backordered.
Alternate Transport Modes is not recommended for SKUs with minimal levels, such as ROP = 0. Inventory Optimization calculates expected backorders to be larger than a small fraction or Alternate Transport Modes may activate quite often, driving up logistical costs. Increasing the service target may be a more effective use of money over Alternate Transport Mode costs.
Alternate Transport Modes may not be very useful for Procurement where processing time is much greater than transportation time.
Alternate Transport Modes is not used for projected backorders inside Lead Time. Use SCS Inside Lead Time for those conditions.
Alternate Transport Modes cannot be used with the Schedule Change Suppression feature.
Alternate Transport Mode for a Part can be viewed on the Transport Mode tab of the Parameter Settings page.
Alternate Transport Mode orders do not respect order sizing rules.
Calendars can be specified by transport mode. Otherwise, the regular waterfall applies to all transport modes.
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