Inter-store inventory transfer

• US 10,565,547 B2
• Filed: 04/05/2016
• Issued: 02/18/2020
• Est. Priority Date: 04/05/2016
• Status: Active Grant

• Current Assignee: Wayfair LLC (Wayfair Inc.)
• Original Assignee: Wayfair LLC (Wayfair Inc.)
• Inventors: Deshpande, Ajay A., Hampapur, Arun, Li, Yingjie, Lin, Ding Ding, Liu, Xuan, Xing, Dahai, Zheng, Xiao Bo
• Primary Examiner(s): Goyea, Olusegun
• Application Number:
  US15/090,921
• Publication Number:
  US 20170286899A1
• Time in Patent Office: 1,414 Days
• Field of Search: 705 1449, 705 267, 705 268, 705 1423, 705 264, 705 263, 705335, 705 37, 705 271, 705 2, 705 16, 705 24, 705 28, 705 29, 705400
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

Examples of techniques for generating an inter-store inventory transfer are disclosed. In one example implementation according to aspects of the present disclosure, a computer-implemented method may include defining a subset of stores of a plurality of stores to fulfill inter-store inventory transfer request for a product category of a plurality of product categories. The method may further include, responsive to determining that an order for a product of the product category cannot be fulfilled by one of the stores of the subset of stores of the plurality of stores, determining, by a processing device, an alternate store of the subset of stores to fulfill the order.

Claims

1. A computer-implemented method for generating an inter-store inventory transfer, the method comprising:

defining a subset of stores of a plurality of stores, based at least in part on aggregated in-store demand data for each of the plurality of stores and control parameters, to fulfill inter-store inventory transfer requests for a product category of a plurality of product categories;

responsive to determining that an order for a product of the product category cannot be fulfilled by one of the stores of the subset of stores of the plurality of stores, determining, by a processing device, an alternate store of the subset of stores to fulfill the order, wherein the alternate store is selected as having at least two of a minimum shipping cost, a minimum inventory balancing cost, or a minimum markdown cost; and

fulfilling the order for the product by transferring the product from the alternate store of the subset of stores to the one of the stores of the subset of stores of the plurality of stores that cannot fulfill the order.

2. The computer-implemented method of claim 1, wherein a customer is located at the one of the stores of the subset of stores of the plurality of stores that cannot fulfill the order.

3. The computer-implemented method of claim 1, wherein defining a subset of stores of a plurality of stores to fulfill inter-store inventory transfer requests for a product category further comprises:

receiving the aggregated in-store demand data for each of the plurality of stores.

4. The computer-implemented method of claim 3, wherein defining a subset of stores of a plurality of stores to fulfill inter-store inventory transfer requests for a product category further comprises:

receiving the control parameters.

5. The computer-implemented method of claim 4, wherein the control parameters comprise at least one of a product shipping cost, a product handling cost, a service level penalty cost, and an inventory capacity of each product of the product category at each of the subset of the plurality of stores.

6. The computer-implemented method of claim 4, wherein defining a subset of stores of a plurality of stores to fulfill inter-store inventory transfer requests for a product category further comprises:

formulating, by the processing device, a mixed integer programming model to calculate, based on the demand data and the control parameters, a minimized total cost-to-serve to fulfill a demand of a product for each of the plurality of product categories, each of a plurality of demand zones, and the subset of stores; and

storing the minimized total cost-to serve in an inventory pool data repository.

7. The computer-implemented method of claim 1, wherein determining the alternate store of the subset of stores to fulfill the order further comprises:

querying an inventory pool data repository storing a calculated minimized total cost-to-serve and the subset of stores.

8. The computer-implemented method of claim 7, wherein determining the alternate store of the subset of stores to fulfill the order further comprises:

querying an inventory status of each store of the subset of stores.

9. The computer-implemented method of claim 1, wherein determining the alternate store of the subset of stores to fulfill the order further comprises:

responsive to determining the alternate store of the subset of stores to fulfill the order, generating an inter-store transfer order to the alternate store to fulfill the order.

10. The computer-implemented method of claim 1, wherein determining the alternate store of the subset of stores to fulfill the order further comprises:

responsive to determining that no alternate store of the subset of stores can fulfill the order, passing the order to an e-commerce system to fulfill the order.

20. The computer-implemented method of claim 1, wherein defining the subset of stores of the plurality of stores to fulfil inter-store inventory transfer requests for the product category comprises:

formulating, by the processing device, a mixed integer programming model to calculate, based on the aggregated in-store demand data and the control parameters, a minimized total cost-to-serve to fulfill a demand of a product for each of the plurality of product categories, each of a plurality of demand zones, and the subset of stores,

wherein the control parameters comprise a product shipping cost, a product handling cost, a service level penalty cost, and an inventory capacity of each product of the product category at each of the subset of the plurality of stores.

11. A system for generating an inter-store inventory transfer, the system comprising:

a processor in communication with one or more types of memory, the processor configured to;

define a subset of stores of a plurality of stores, based at least in part on aggregated in-store demand data for each of the plurality of stores and control parameters, to fulfill inter-store inventory transfer requests for a product category of a plurality of product categories;

responsive to determining that an order for a product of the product category cannot be fulfilled by one of the stores of the subset of stores of the plurality of stores, determine an alternate store of the subset of stores to fulfill the order, wherein the alternate store is selected as having at least two of a minimum shipping cost, a minimum inventory balancing cost, or a minimum markdown cost; and

fulfill the order for the product by transferring the product from the alternate store of the subset of stores to the one of the stores of the subset of stores of the plurality of stores that cannot fulfill the order.

12. The system of claim 11, wherein a customer is located at the one of the stores of the subset of stores of the plurality of stores that cannot fulfill the order.

13. The system of claim 11, wherein defining a subset of stores of a plurality of stores to fulfill inter-store inventory transfer requests for a product category further comprises:

receiving the aggregated in-store demand data for each of the plurality of stores;

receiving the control parameters;

formulating, by the processor, a mixed integer programming model to calculate, based on the demand data and the control parameters, a minimized total cost-to-serve to fulfill a demand of a product for each of the plurality of product categories, each of a plurality of demand zones, and the subset of stores; and

storing the minimized total cost-to serve in an inventory pool data repository.

14. The system of claim 13, wherein the control parameters comprise at least one of a product shipping cost, a product handling cost, a service level penalty cost, and an inventory capacity of each product of the product category at each of the subset of the plurality of stores.

15. The system of claim 11, wherein determining the alternate store of the subset of stores to fulfill the order further comprises:

querying an inventory pool data repository storing a calculated minimized total cost-to-serve and the subset of stores;

querying an inventory status of each store of the subset of stores; and

responsive to determining the alternate store of the subset of stores to fulfill the order, generating an inter-store transfer order to the alternate store to fulfill the order.

16. A computer program product for generating an inter-store inventory transfer, the computer program product comprising:

a non-transitory storage medium readable by a processing circuit and storing instructions for execution by the processing circuit for performing a method comprising;

defining a subset of stores of a plurality of stores, based at least in part on aggregated in-store demand data for each of the plurality of stores and control parameters, to fulfill inter-store inventory transfer requests for a product category of a plurality of product categories;

responsive to determining that an order for a product of the product category cannot be fulfilled by one of the stores of the subset of stores of the plurality of stores, determining an alternate store of the subset of stores to fulfill the order, wherein the alternate store is selected as having at least two of a minimum shipping cost, a minimum inventory balancing cost, or a minimum markdown cost; and

fulfilling the order for the product by transferring the product from the alternate store of the subset of stores to the one of the stores of the subset of stores of the plurality of stores that cannot fulfill the order.

17. The computer program product of claim 16, wherein a customer is located at the one of the stores of the subset of stores of the plurality of stores that cannot fulfill the order.

18. The computer program product of claim 16, wherein defining a subset of stores of a plurality of stores to fulfill inter-store inventory transfer requests for a product category further comprises:

receiving the aggregated in-store demand data for each of the plurality of stores;

receiving the control parameters;

formulating, by the processing circuit, a mixed integer programming model to calculate, based on the demand data and the control parameters, a minimized total cost-to-serve to fulfill a demand of a product for each of the plurality of product categories, each of a plurality of demand zones, and the subset of stores; and

storing the minimized total cost-to serve in an inventory pool data repository.

19. The computer program product of claim 16, wherein determining the alternate store of the subset of stores to fulfill the order further comprises:

querying an inventory pool data repository storing a calculated minimized total cost-to-serve and the subset of stores;

querying an inventory status of each store of the subset of stores; and

responsive to determining the alternate store of the subset of stores to fulfill the order, generating an inter-store transfer order to the alternate store to fulfill the order.