Index accounting and model baselines 11-25 accounting approach to facility data preparation 7-45 accounting baseline defined 11-25 aggregate volume totals 6-6 aggregation of vendors 4-54 aggregation codes customizing customer codes 6-47 aggregation strategy for finished products 4-32 for intermediate products 4-39 for raw materials 4-41 Alaska, Hawaii, and Puerto Rico nodal point lists for 4-18 alternative facility sizes in ODS 7-37 in OPTIMA 7-39 arcs basic concepts 2-7 cost 2-7 automatic link generation in scenario generation 10-23 average transportation costs 8-7 baseline/solver consistency and cost/flow baseline 11-6 bounds and solution tolerance in model 12-16 bundling strategy 4-57 bureau/tariff scaling 8-23 business logistics 1-5 Canadian customer regions 4-17 candidate locations for DCs 4-22 capacity data preparation 7-48 capacity limits elastic vs. inelastic 7-16 violation of and economies of scale 7-37 capacity limits and facility data 7-6 capacity usage factors and facility data 7-8 capacity violation penalties and facility data 7-9 classical inventory theory limitations 13-2 clustering DC locations 4-23 plant locations 4-28 vendors 4-55 CMFC 8-4 combination procedure for link generation 10-32 commodities distinctions in freight costs 8-45 commodity assignment to freight cost categories 10-12 in scenario generation 10-12 commodity aggregation data 6-40 commodity conversion factors and facility data 7-10 types 7-11 commodity flows in ODS baseline 11-8 in the network ODS 7-26 in the network OPTIMA 7-22 OPTIMA baseline 11-13 requirements and cost/flow baseline 11-7 commodity-specific rates and freight rate preparation 8-36 composite freight rate table 8-27 compressed solution file and solvers 12-27 conservation of flow 10-44 consolidated shipment rating in SHIPCONS 9-30 CONUS 8-4 CONUS DC locations 4-21 conversion coefficients and raw materials modeling 4-42 corporate silos 1-5 cost accounting discrepancies 7-43 cost and/or capacity (facility) data 7-1 cost/capacity values 3-17 cost/flow baseline (validation) analysis 6-6 accounting and model baselines 11-25 and output reports and files 11-27 and solver consistency 11-6 commodity flow requirements 11-7 commodity flows in ODS 11-8 commodity flows in OPTIMA 11-13 data requirements 11-28 flow balance 11-7 graphics package input file 11-27 introduction 1-25 machine-readable solution files 11-27 model validation 11-28 modeling 3-19 ODS model procedure 11-21 OPTIMA model procedure 11-22 outbound transaction file 11-6 preparation summary 14-23 theory 11-2 written reports 11-27 Cost/flow Baseline chapter 11-1
2 INDEX costs and capacities examples 7-12 County Code 6-14 cross-reference table description 6-19 using to aggregate data 6-21 cube 5-11 Customer Account number 6-14 Customer Aggregation Code 6-14 customer assignment decision variables 12-8 customer class action plan 4-45 code recoding/aggregation data 6-48 table example 6-51 field 6-14 defined 4-43 modeling considerations 4-44 customer definition scenarios 4-10 customer demand analysis and solvers 12-33 and outbound flow in ODS baseline module 11-8 and outbound flows in OPTIMA 11-13 data in modeling 3-15 data preparation summary 14-12 data, supplying values 3-15 table from outbound transaction file 6-36 table, dimensions of 3-9 Customer Demand Data chapter 5-1 customer pickup volume 4-47 customer region defined 4-9 definition, action plan 4-16 definition, appropriate detail level 4-15 definition, modeling considerations 4-10 introduction of nodes 2-13 customer service restrictions in scenario generation 10-26 in SHIPCONS 9-27 customer sole sourcing in scenario generation 10-34 data aggregation 6-21 data preparation of customer class data 4-46 data recoding defined 6-19 data recording in SHIPCONS 9-34 data requirements and cost/flow baseline 11-28 data scaling in scenario generation 10-37 data scaling examples 10-37 data table grid weighted average freight cost 8-38 database scope defining 14-9 database scope in issue definition 3-13 DC activity and network commodity flow in ODS 7-28 in OPTIMA 7-26 capacities and facility data preparation 7-50 defining a 4-20 definition, action plan 4-21 definition, modeling considerations 4-20 locations, choosing 4-20 missions 7-51 overview of distribution centers 4-20 stockage patterns 4-57 throughput limits 7-50 transfer arc 2-14 transfer link generation, in scenario generation 10-29 transfer transaction file 3-16 transfer, historical flow table 6-35 decision variable constraints 12-10 deficit weight 9-26 defining database scope 14-9 defining facility scope 14-8 defining logistics scope 14-4 defining the issues and scope of the project 14-4 demand introducing new products 10-8 measuring 5-11 satisfaction in scenario generation 10-43 demand data preparation 5-3 preparation methods, combining 5-4 setting objectives 5-3 preparation summary 14-12 demand-driven model 3-5 describing the network 14-10 Destination Code 6-10 destination nodes basic concept 2-7 in ODS 2-14 in OPTIMA 2-17 detail appropriate to the model 3-5 determining flows in the optimal solution 8-1 direct shipments pricing option 9-19 discrepancies in cost accounting 7-43 in reporting 7-43 discrete customers 4-9 distance-based freight cost equations 8-14 distribution centers defined (See DC, above) 4-20 distribution centers (DC) 2-13 Document number 6-10, 6-14 downstream product 4-42 echelons see network echelons 4-48
SAILS OPTIMIZATION SOFTWARE 3 economies of scale and DC definition 4-24 and solver performance 12-22 cautions 7-41 defined 7-32 modeling techniques 7-36 EEC 8-25 elastic capacity limits defined 7-7 example 7-14 enabling flows in the optimal solution 8-1 engineering approach to facility data preparation 7-46 equation method examples for preparing freight costs 8-15 equation preparation of cost information 3-18 equation preparation of weighted average freight costs 8-12 equation-based projections and inventory level estimation 13-4 equation-generated freight rates, supplemental 8-26 estimating inventory holding costs 13-6 estimating inventory levels 13-4 European customer regions 4-17 European Economic Community 8-25 exclusion options in scenario generation 10-35 existing facility location analysis and solvers 12-30 capacities included 12-31 explicit modeling 3-7 explicit versus implicit representation in ODS and OPTIMA 4-5 examples 7-29 export volume 4-19 Extended Cube 6-11, 15 Extended Inventory Value 6-11, 15 Extended Sales Value 6-11, 16 Extended Weight 6-10, 15 external demand table building vs. transaction files preparation 14-14 facility capacity estimates preparation 7-48 facility capacity limits recommendations 12-19 facility clusters and DC location selection 4-23 and plant location selection 4-28 facility cost data preparation 7-44 facility data categories in ODS and OPTIMA 7-20 in modeling 3-17 in ODS 7-26 in OPTIMA 7-22 in SAILS 7-1 in scenario generation 10-33 preparation obstacles 7-42 preparation summary 14-15 preparation, accounting approach 7-45 preparation, engineering approach 7-46 preparation, statistical approach 7-46 types of 7-4 Facility Data chapter 7-1 facility eligibility in scenario generation 10-24 facility flow variables 12-6 facility missions noncomparable 7-44 facility recoding/aggregation data 6-42 facility scope defining 14-6 in issue definition 3-13 facility sizes alternatives in ODS 7-37 alternatives in OPTIMA 7-39 feasibility checks in scenario generation 10-42 field descriptions for transaction files 6-10 finished product action plan 4-35 defined 4-32 manufacturing & network commodity flow in ODS 7-28 in OPTIMA 7-25 modeling considerations 4-32 networks in OPTIMA 2-17 production lines and commodity flow 7-25 production requirements in baseline, in ODS 11-12 production requirements in baseline, in OPTIMA 11-16 production allocation 11-16 finished products first cuts 4-32 fixed costs and facility data 7-4 flow balance and cost/flow baseline 11-7 flow balance constraint 2-9 forecasting algorithms 13-2 freight classes table of valid 8-23 freight cost commodity specific 8-36 composite rate table 8-27 databases standard in SAILS 8-18 multiple preparation methods 8-34 selection options 8-35 examples in scenario generation 10-14 in scenario generation 10-11 process explained 8-38
4 INDEX process in scenario generation 10-14 freight cost source in scenario generation 10-14 full transaction file demand data preparation 5-4 gaps and solution tolerance in model 12-16 generating scenarios summary 14-21 geographic aggregation scheme 4-10 geographic distribution of demand 4-9 geographic spread and demand data selection 10-9 demand data preparation 5-4 globally replace 3-9 graphics package input file and cost/flow baseline 11-27 and solvers 12-27 high-volume lanes for active transportation links 8-46 historical base time period establishing 5-10 historical flow allocation table 1-25, 11-9, 11-13, 6-33 identification number in SAILS 3-11 implicit modeling defined 3-7 procedure, ODS and OPTIMA 7-30 implicit representation of raw materials and intermediate products in network echelons 4-51 in the solver 7-29 inbound 2-14 inbound historical flow table 6-34 inbound link generation in scenario generation 10-31 inbound transaction file defined 3-16 described 6-12 inbound transportation flows and network commodity flow 7-24 inbound, replenishment, and DC transfer files processing logic 6-24 inbound, replenishment, and DC transfer SAILS transaction file layouts 6-10 inelastic capacity limits example 7-13 inter-warehouse transfer links 4-50 intermediate product action plan 4-39 defined 4-38 flow allocation 11-17 modeling considerations 4-39 networks in OPTIMA 2-17 production 11-18 production lines and commodity flow 7-25 requirements computation 11-17 intermediate product/finished product conversions and commodity flow 7-25 international manufacturing and plant locations 4-29 interplant transfer arcs 2-14 interplant transfer link generation in scenario generation 10-30 interwarehouse transfer flows and network commodity flow 7-26 inventory cost data preparation 7-51 inventory holding costs estimating 13-6 inventory level estimation equation-based projections 13-4 turn rate-based projections 13-4 inventory theory limitations 13-2 limitations 7-52 issue definition project management summary 14-4 issue definition in modeling 3-12 joint constraints and facility data 7-7 Julian Date 6-10, 15 LaLonde, Dr. Bernard J. 1-5 large shipment bypass option in SHIPCONS 9-13 linear cost functions and economies of scale 7-32 linear programming model objectives 12-5 linehaul multistop shipment option 9-31 rate types 9-20 rating module 9-20 rating procedure 9-22 shipment in SHIPCONS 9-20 link generation logic in scenario generation 10-21 procedure in scenario generation 10-28 user-specified 10-22 link selection in scenario generation 10-21 links action plan for transportation 8-45 lock closed 3-9 lock open 3-9 logistics 1-5 logistics scope defining 14-4 in issue definition 3-12 low-volume lanes for transportation links 8-48 lower bound 2-7 LTL 8-4 machine-readable solution files
SAILS OPTIMIZATION SOFTWARE 5 and cost/flow baseline 11-27 and solvers 12-27 managerial issues that you can investigate with SAILS 1-3 manual demand data preparation 5-4 manual preparation of customer demand values 3-15 of transportation cost information 3-18 manual preparation of weighted average freight costs 8-11 manually supplied freight rates 8-24 master database preparation 3-9 Materials Management, 1-5 mathematical models meet these requirements 2-5 measurement of flows and costs in network models 2-12 measures of volume in transaction file 6-9 miniature transaction file demand data preparation 5-4 option 5-8 preparation 6-18 minimum/maximum inconsistency in scenario generation 10-43 mission of DCs 7-51 mixed integer linear program in solvers 12-4 model components 12-5 model objectives 12-5 mode 8-4 mode code transaction files 6-12, 16 mode type pricing restrictions 9-26 model building and using in SAILS 1-9 model baseline defined 11-26 model components 1-10 model components within ODS and OPTIMA 4-5 model objective linear programming models 12-5 model solver use summary 14-24 model usage strategy and solvers 12-28 model validation and cost/flow baseline 11-28 model-building factors to consider 4-5 modeling guidelines 3-6 modeling practices recommendations 12-18 modeling techniques for economies of scale 7-36 monthly, weekly, and daily seasonal analyses 6-6 motor carrier class rates scaling options 8-20 Motor Carrier Freight Rates 1-21 multiple preparation methods for freight rates 8-34 National Motor Freight Class in product aggregation 4-36 NEMTB 8-4 network description data an introduction 1-10 in modeling 3-14 overview 4-1 summary 14-10 Network Description Data chapter 4-1 network diagrams as physical models 3-3 network echelons action plan 4-50 defined 4-48 modeling considerations 4-48 predefined for ODS and OPTIMA 4-50 network flow decision variables 12-6 network model limitations concerning inventory analysis 13-3 Network Modeling Basics chapter 2-1 network models examples of 2-7 network nodes and definition of customer regions 4-9 define 5 transportation links 4-48 network structure decision variables 12-7 network structure variables facility locations 12-23 new product introductions 10-8 NMFC 4-36, 8-4 nodal point cities specification of by customer region 6-43 nodal point lists non-standard 4-17 standard 4-16 nodes basic concepts 2-6 noncomparable facility missions 7-44 nonlinear cost functions and economies of scale 7-34 nonlinear distance/rate relationship and weighted average freight costs 8-14 ocean ports 4-24 ODS alternative facility sizes 7-37 baseline commodity flows 11-8 baseline replenishment flows 11-9 cost/flow baseline procedure 11-21 facility data in 7-26 features 2-15 from overall view to split node representation 7-28 master DC locations in 4-52 network model, node and arc types in 2-14 optimization problem statement 12-12 ODS and OPTIMA mixed integer linear programs 12-4 one-digit ZIP zones
6 INDEX demand scaling 10-20 freight cost scaling 8-20 map of 4-23 open-ended excursions solvers 12-32 OPTIMA alternative facility sizes 7-39 baseline commodity flows 11-13 capabilities summary 7-19 cost/flow baseline procedure 11-22 customer demands and outbound flows in baseline 11-13 features 2-19 from overall view to split node representation 7-22 network model overview 2-16 optimization problem statement 12-13 replenishment and transfer flows in baseline 11-13 optimization a closer look 12-5 optimization problem statement 12-12 order entry/shipment buildup in SHIPCONS 9-10 order/shipment size analysis 6-6 Origin Code 6-10 Origin DC Code 6-15 origin DC location importance of 11-6 origin-specific scaling 8-22 outbound arcs 2-14 outbound historical flow table 6-35 outbound link choices and solver performance 12-19 outbound link generation in scenario generation 10-29 outbound transaction file and cost/flow baseline 11-6 described 6-14 introduction 3-16 layout 6-17 processing logic 6-26 outbound transportation flow and network commodity flow in ODS 7-28 and network commodity flow in OPTIMA 7-26 output reports and files and cost/flow baseline 11-27 and solvers 12-25 overall plant data and network commodity flow in OPTIMA 7-25 overflow privilege 9-29 overview of SAILS 1-1 performance maximizing in the solver 12-16 Physical Distribution Management. 1-5 physical model diagrams 3-3 limitations of 2-3 plant capacity data preparation 7-48 plant location defined 4-26 introduction to nodes 2-13 modeling considerations 4-26 selecting 4-26 selection action plan 4-27 what your list should include 4-26 plant representation in OPTIMA 2-16 pool points 4-23 pool shipment option 9-31 pool shipments pricing option 9-19 Post-Optimization Analysis chapter 13-1 preparing a cost/flow baseline, summary of 14-23 customer demand data 14-12 facility cost data 7-44 facility data 14-15 inventory cost data 7-51 recoding/aggregation data 6-39 transaction files 6-38 transportation data 14-17 weighted average freight costs equation preparation 8-12 how to 8-11 profile weighted average method 8-17 problem dimensions and solver performance 12-18 procedure for implicitly modeling raw materials and intermediate products 7-30 processing logic for transaction files 6-24 processing transaction files 6-1 product bundling action plan 4-59 defined 4-56 in SHIPCONS 9-9 modeling considerations 4-57 overview 4-56 refinement 4-59 product flow balances in scenario generation 10-44 product-specific capacity limits example 7-13 product-specific constraints and facility data 7-6 production lines as a SAILS facility type 7-1 profile weighted average and preparation of freight cost information 3-18 and preparation of weighted average freight costs 8-17 project flow summary 14-3 project management and modeling 3-20 Project Management Summary chapter 14-1
SAILS OPTIMIZATION SOFTWARE 7 proposed facility location analysis and solvers 12-31 proprietary relational database manager 3-9 published tariffs 8-20 pure flow analysis, capacities included and solvers 12-30 pure flow analysis, no capacities and solvers 12-30 quantity, inbound, replenishment, and DC transfer files 6-10 quantity, outbound transaction file 6-15 raw material action plan 4-41 defined 4-41 explicit vs. implicit representation 4-41 inbound flows in baseline 11-19 modeling considerations 4-41 networks in OPTIMA 2-17 procurement and network commodity flow 7-24 requirements computation in baseline 11-19 supplier capacities 7-48 supplier requirements in baseline 11-20 supplier selection action plan 4-30 modeling considerations 4-30 suppliers 2-13 raw material/intermediate product conversions and network commodity flow 7-24 recoding/aggregation data for customer class codes 6-48 for customer region 6-43 preparing 6-39 reconciliation items 11-30 refinement of multiple product bundles 4-59 relational database manager 3-9 release triggers for shipment dispatching module 9-13 remove 3-9 replacement mode-specific freight rates 8-25 replenishment arcs 2-14 historical flow table 6-34 link generation in scenario generation 10-30 transaction file defined 3-16 transaction file layout 6-13 transportation flow and network commodity flow in ODS 7-28 in OPTIMA 7-25 replenishment flow in ODS baseline 11-9 in OPTIMA baseline 11-13 percentages 11-9 potential problems 11-15 link generation in scenario generation 10-30 replicated arcs a model with 2-10 replication of facilities limitations 7-39 replication strategy 4-24 reporting discrepancies facility data 7-43 reports available in SAILS transaction file processing 6-6, 32 restrictions customer service in SHIPCONS 9-27 mode type pricing 9-26 reverse flows and network echelons 4-52 rolling targets dispatching option in SHIPCONS 9-15 safety stock 13-2 SAILS modeling basics 3-1 SAILS Solvers chapter 12-1 scaling issues and solver performance 12-24 in scenario generation 10-37 scaling motor carrier class rates 8-20 scenario generation automatic link generation 10-23 combination link generation 10-32 customer sole sourcing 10-34 DC transfer link generation 10-29 defined 10-2 demand satisfaction 10-43 exclusion options 10-35 feasibility checks 10-42 freight cost selection 10-11 identifies options and restrictions 3-19 inbound link generation 10-31 interplant transfer link generation 10-30 link selection 10-21 mandatory user inputs 10-49 minimum/maximum inconsistency in scenario generation 10-43 optional inputs 10-49 outbound link generation 10-29 product flow balances 10-44 replenishment link generation 10-30 and modeling 3-19 selection options 10-6 steps for ODS model 10-5 steps for OPTIMA model 10-5 summary 14-21 supply/demand mismatch 10-42 tasks required for 3-19 Scenario Generation chapter 10-1 scheduled shipment date option in SHIPCONS 9-15 scope definition project management summary 14-4 select 3-9
8 INDEX selection options in scenario generation customer demand 10-6 freight costs 10-11 selectively replace 3-9 sensitivity analysis and solvers 12-32 SHIPCONS and product bundling 4-60 consolidated shipments 9-30 data recording 9-34 delivery method selection 9-32 design of 9-7 input data required 9-5 large shipment bypass option 9-13 order entry/shipment buildup 9-10 processing rules 9-16 product bundling 9-9 purpose of 9-3 rolling targets dispatching option 9-15 scheduled shipment date option 9-15 shipment buildup tables 9-10 shipment dispatching options 9-13 shipment planning policy 9-38 shipment planning scope 9-9 shipment pricing options 9-18 shipment size scaling 9-29 split pricing 9-32 traffic management simulation model and customer class 4-46 when to use, summary 14-20 SHIPCONS chapter 9-1 shipment buildup tables 9-10 shipment dispatching module release triggers 9-13 options in SHIPCONS 9-13 shipment planning policy in SHIPCONS 9-38 shipment pricing module in SHIPCONS 9-18 options in SHIPCONS 9-18 shipment profiles supplying 8-32 uncertainty 8-49 shipment size scaling in SHIPCONS 9-29 simplified models theories 11-1 simulation models characteristics of 9-6 simulations independent, in SHIPCONS 9-9 sink nodes 2-6 small/large order split pricing strategy 9-34 sole-sourcing in scenario generation 10-34 solution tolerance and solver performance 12-23 solution tolerance 12-16 solver performance economies of scale 12-22 general considerations 12-16 outbound link choices 12-19 problem dimensions 12-19 scaling issues 12-24 solution tolerance 12-23 solvers capabilities, facility data 7-19 compressed solution file 12-27 customer demand analysis 12-33 defined 12-4 existing facility location analysis, capacities included 12-31 existing facility location analysis, no capacities 12-30 graphics package input file 12-27 in SAILS 12-1 machine-readable solution files 12-27 model validation 12-29 open-ended excursions 12-32 output reports and files 12-25 proposed facility location analysis 12-31 pure flow analysis, capacities included 12-30 pure flow analysis, no capacities 12-30 seek least-cost designs 3-20 sensitivity analysis 12-32 synergy studies 12-33 thinking like the 3-8 transportation policy 12-33 what they do 12-4 written reports 12-25 source nodes 2-6, 14 split node representation in ODS 7-28 in OPTIMA 7-22 split pricing in SHIPCONS 9-32 standard data files geographic 1-12 transportation 1-21 standard freight rate databases in SAILS 8-18 standard nodal point lists 4-16 State Code 6-14 state/county code-based customer aggregation table 6-46 statistical analysis approach to facility data preparation 7-46 statistical analysis of demand available in SAILS 6-6 Stock Code 6-10, 14 stock codes assembling 6-41 stocking points 13-2 stopoff shipments pricing option 9-19 stopoff/pool combinations in SHIPCONS 9-34 strategic logistics network design
SAILS OPTIMIZATION SOFTWARE 9 how to model in SAILS 3-1 substitution of one character string for another 6-19 summary of project management 14-1 super source aggregation of vendors 4-55 supplement 3-9 supplemental freight rates 8-24 supplier capacities and facility data preparation 7-48 supply demand mismatch in scenario generation 10-42 synergy studies and solvers 12-33 systemwide scaling 8-20 three-echelon model 2-9 three-echelon model with multiple flow paths 2-9 throughput limiting out a DC 7-51 TL 8-4 TOFC 8-4 traffic lane 8-7 transaction file aggregation 5-7 content 6-9 in modeling 3-16 preparation 6-38 processing 6-1 processing logic 6-23 purpose of 6-6 Transaction File Processing chapter 6-1 transaction history file and customer demand values 3-15 processing logic 5-7, 6-23 transfer transaction file 6-13 transportation cost defined 8-7 data in modeling 3-17 data preparation summary 14-17 flow variables 12-7 links supported by SAILS 4-48 links, action plan 8-45 links, major types 8-5 policy analysis and solvers 12-33 Transportation Data chapter 8-1 transshipment nodes 2-6, 14, 17 turn rate-based projections and inventory level estimation 13-4 U.P.S. Rates 1-21 U.S. standard nodal point lists 4-16 unit cost measures 4-36 United Parcel Service standard freight rate database 8-18 upper bound 2-7 using the model solver summary 14-24 USPS ZIP code sectional centers 4-14 validation of the model and solvers 12-29 variable component of freight cost in equations 8-13 variable costs and facility data 7-5 variables constraints on decision variables 12-10 customer assignment decision 12-8 facility decision 12-7 facility flow 12-6 network flow decision variables 12-6 network structure facility location performance 12-23 structural 12-7 transportation flow 12-7 vendor aggregation via clustering 4-55 vendor aggregation via super source 4-55 vendor-intensive systems 4-54 violation penalty charge 7-37 volume of demand 5-11 weight break 8-4 weighted average freight cost category 8-36 weighted average freight costs equation preparation 8-12 examples of equation method 8-15 manual preparation 8-11 preparing 8-11 profile weighted average preparation 8-17 selection 10-11 weighted rate preparation options 8-38 written reports and cost/flow baseline 11-27 and solvers 12-25 available from transaction file processing 6-31 Yellow Freight Systems standard freight rate database 8-18 ZIP Code 6-14
10 INDEX Notes