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1 <Insert Picture Here> The Grocery Company

2 Executive Summary A scenario has been set up to represent a fictitious wholesale grocery company. The company has implemented the features in OTM that allow Allocation of shipments to carriers while using a Network Direct shipments single leg Through Cross Dock multiple leg Intermodal multiple leg with routing by allocation. These features are to be available in 6.3.2

3 Scenario Grocery Company, Edison, NJ Receives Baked Goods from East Hanover NJ. Soap Products from Edison NJ Toilet Paper from Elmwood Park NJ Coffee from Freehold NJ Peanut products from Albany GA via Intermodal Onion Products from Lyons GA via Intermodal Ships Groceries to Distribution Centers in New York State Allocation is used on Outbound Groceries Allocation is used on Inbound Intermodal.

4 NY State Grocery Distribution Network Allocation Regions Eastern NY Albany Troy Kingston Glens Falls Plattsburg Southern Tier Binghamton Elmira Ithaca Western NY Buffalo Jamestown Rochester Central New York Syracuse Ogdensburg Utica Rome Watertown

5 Direct Shipments Full Truck Load Plattsburg, NY Freehold, NJ Glens Falls NY East Hanover, NJ Troy, NY Elmwood Pk, NJ Albany, NJ Edison, NJ Kingston, NY On Network Leg from Region to Region

6 Rate Matrix

7 Planning Parameter Sets - Comparison Dynamic Cluster Destination is used to avoid Rep Location Costs in Routing.

8

9 SINGLE LEG DIRECT

10 Test Case for Full Truck Load (FTL) I6 Destinations 4 Sources There is 1 full truck load shipment between each of the 4 sources and the 16 destinations. There are a total of 64 shipments. The intent is to validate that the best (Green) rates are used, followed by the next best (Yellow) and next best (Orange) and the worst (Red). The first run is without SPA to validate that the bet rates are favored. The second run with SPA is to validate that SPA optimizes the cost while honoring the allocation strategy...

11 Bulk Plan Without Allocation

12 Best Carrier By Cost Without Allocation Best Costs from Matrix are added together. Planned costs are Equal to best costs.. Validated base case that the best costs were favored costs.

13 Allocation Base Case No Allocation Black River Express Berkshire Express

14 Allocation Base Case No Allocation Finger Lakes Express Niagara Express

15 Allocation Setup for Direct Direct Shipments will use the abstract allocation from State to State Shipments that Originate at the NJ Cross Dock Shipment could also use these allocation percentages but there are more specific allocation percentages for more granular lanes so they will be used instead.

16 Bulk Plan With Allocation

17 Best Carrier By Cost With Allocation

18 Routings with Allocation Black River Express Berkshire Express

19 Routings with Allocation Finger Lakes Express Niagara Express

20 Allocation Usage Results - FTL Allocation Usage shows that the percentages were honored.

21 ANALYSIS OF DIRECT

22 Allocation of FTL Shipments - Results Region Favored By Rates Carrier Results Without Allocation Allocation Percentage Results With Allocation Next Best Carrier Eastern NY Southern NY Western NY Berkshire Express Finger Lakes Express Niagara Express 20 25% 16 Finger Lakes Express 12 25% 16 n/a 12 25% 16 n/a Central NY Black River Express 20 25% 16 Niagara Express

23 Analysis of Shipment Assignments A check with the price matrix showed that the shipments that were given to the next best carriers were the cheapest ones that they could service. This shows that the SPA process optimized with the least possible cost.

24 MULTI-LEG THROUGH XDOCK

25 Orders routed through Xdock to Destinations Edison_NJ Freehold_NJ Elmwood Pk_NJ East Hanover_NJ Raritan Xdock Plattsburg_NY Troy_NY Albany_NY Kingston_NY 4 Source Locations 16 Destination Locations One order from each source location to each destination. Each order is 12 pallets so it takes up ¼ truck. There will be 1 full truck from the Xdock to each destination.

26 Bulk Plan of 64 LTL orders No Allocation

27 Bulk Plan of 64 orders No Allocation Validation of Lowest Cost Berkshire Express Eastern New York $2,084 5 Shipments Finger Lakes Express Southern New York $1, Shipments Niagara Express Western New York $2, Shipments Black River Express Central New York $2, Shipments

28 Shipments without Allocation Inbound to Xdock Outbound from Xdock

29 Shipments Built Typical Shipment from factory to Xdock contains many orders of the same item, Typical Shipment from the Xdock contains orders of the different items.

30 Allocation Usage Results - LTL Planned Count was 16 for each carrier after the FTL, then the LTL was planned and each carrier received 4 additional shipments.

31 ROUTING DECISION

32 intermodal Shows allocation by routing The selection of the main leg carrier will influence the routing of the pre-carriage and on-carriage legs.

33 Intermodal Network Each Carrier has own facilities Allocation: NS - 60%, CSXT - 40% Georgia Food Manufacturers Region Allocation lane for Network Routing There can only be 1 lane covering both paths. Georgia Ramps to New jersey Ramps

34 Network Legs and Allocation Lanes Network Legs Allocation Lane On- Carriage Dray Rail Pre-carriage Dray Pre- Carriage Dray Rail On-carriage Dray

35 Ocean Example of Routing Allocation Newark CFS Group of Ports USNYC Allocation Lane Group of Ports DEBRV Bremerhaven CFS C D Baltimore CFS C USBAL NLRTM Rotterdam CFS D Norfolk CFS USORF BEANR Antwerp CFS C D Miami CFS USMIA FRLEH Le Havre CFS C D

36 Norfolk Southern Intermodal Network In OTM, the network is not modeled as illustrated. It is modeled as a collection of point to point legs. The implication of multiple nodes is that the freight is cross docked.

37 NS Schedule Modeled as OTM Ground Service

38 Bulk Plan without Allocation NS Gets 100% of the rail shipments.

39 Allocation for Intermodal

40 Bulk Plan with Allocation NS Gets 60% of the rail shipments and CSXT gets 40% of the rail shipments..

41 Summary In network routing, allocation is enabled in to direct the routing of orders through the network. The most important point is that once an order is routed by allocation, there is no re-routing to switch carriers. Allocation of the Order Movements can only switch carriers within the routing lane. The strategy for routing on a lane where there are multiple carriers is to set up a common lane and not to set up a lane per carrier. Only set up different lanes where there is a physical difference in the routing.

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