Method and system for calculating risk components associated with the consumption of an indirect procurement commodity

• US 20040260613A1
• Filed: 06/18/2003
• Published: 12/23/2004
• Est. Priority Date: 06/18/2003
• Status: Abandoned Application

• Current Assignee: Hewlett-Packard Development Company, L.P. (HP Inc.)
• Original Assignee: Hewlett-Packard Development Company, L.P. (HP Inc.)
• Inventors: Mills, Lloyd Paul
• Application Number:
  US10/463,994
• Publication Number:
  US 20040260613A1
• Time in Patent Office: Days
• US Class Current: 705/26.1
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The present invention includes a method and system for calculating risk components associated with the consumption of an indirect procurement commodity. Consequently, based on the amount of risk a user is a system user willing to take, a substantial reduction in the costs associated with the purchase of indirect procurement commodities can be achieved. An aspect of the present invention is a method for calculating risk components associated with the consumption of an indirect procurement commodity. The method includes receiving consumption data related to the indirect procurement commodity, establishing a volume of the indirect procurement commodity to be consumed during a future predetermined period based on the consumption data and calculating at least one risk component wherein the at least one risk component is associated with the volume of the indirect procurement commodity to be consumed during the future predetermined duration and time period.

Claims

1. A method for calculating risk components associated with the consumption of an indirect procurement commodity comprising:

receiving consumption data related to an indirect procurement commodity;

establishing a volume of the indirect procurement commodity to be consumed during a future predetermined duration and time period based on the consumption data; and

calculating at least one risk component wherein the at least one risk component is associated with the volume of the indirect procurement commodity to be consumed during a future predetermined period.

2. The method of claim 1 wherein the indirect procurement commodity comprises energy.

3. The method of claim 1 wherein the consumption data is received via an Excel based tool via a graphical user interface.

4. The method of claim 3 wherein the consumption data includes a data matrix.

5. The method of claim 4 wherein establishing a volume of the indirect procurement commodity to be consumed during a future predetermined period based on the consumption data comprises establishing a boundary of probable volume values.

6. The method of claim 5 wherein establishing a boundary of probable volume values comprises:

calculating a mean and standard deviation of the data matrix; and

adding two standard deviations to the mean thereby establishing a starting point of the boundary of probable volume values.

7. The method of claim 6 wherein calculating the at least one risk component further comprises:

a calculating a one-tail positive statistic associated with the volume.

8. The method of claim 7 further comprising completing an iteration wherein the iteration comprises:

establishing another volume; and

calculating another one-tail positive statistic for the another volume.

9. The method of claim 8 wherein establishing another volume comprises subtracting 0.25 from the volume.

10. The method of claim 8 wherein the data matrix is at least one of an off-peak data matrix and a peak data matrix.

11. The method of claim 8 wherein the at least one risk component is calculated for a predetermined period.

12. The method of claim 11 wherein the predetermined period is at least one of 1 month, 3 months, 6 months and 12 months.

13. A system for calculating risk components associated with the consumption of an indirect procurement commodity comprising:

a graphical user interface; and

a risk calculation tool coupled to the graphical user interface capable of;

receiving consumption data related to an indirect procurement commodity;

establishing a volume of the indirect procurement commodity to be consumed during a future predetermined period based on the consumption data; and

calculating at least one risk component wherein the at least one risk component is associated with the volume of the indirect procurement commodity to be consumed during the future predetermined period.

14. The system of claim 13 wherein the indirect procurement commodity comprises energy.

15. The system of claim 13 wherein the risk calculation tool comprises an Excel based tool and receiving the consumption data comprises receiving the consumption data into the Excel based tool via the graphical user interface.

16. The system of claim 15 wherein the consumption data includes a data matrix.

17. The system of claim 16 wherein establishing a volume of the indirect procurement commodity to be consumed during a future predetermined period based on the consumption data comprises establishing a boundary of probable volume values.

18. The system of claim 17 wherein establishing a boundary of probable volume values comprises:

calculating a mean and standard deviation of the data matrix; and

adding two standard deviations to the mean thereby establishing a starting point of the boundary of probable volume values.

19. The system of claim 18 wherein calculating the at least one risk component further comprises:

calculating a one-tail positive statistic associated with the volume.

20. The system of claim 19 further comprising completing an iteration wherein the iteration comprises:

establishing another volume; and

calculating another one-tail positive statistic for the another volume.

21. The system of claim 20 wherein establishing another volume comprises subtracting 0.25 from the volume.

22. The system of claim 20 the data matrix is at least one of an off-peak data matrix and a peak data matrix.

23. The system of claim 20 wherein the at least one risk component is calculated for a predetermined period.

24. The system of claim 23 wherein the predetermined period is at least one of 1 month, 3 months, 6 months and 12 months.

25. A computer program product for calculating risk components associated with the consumption of an indirect procurement commodity, the computer program product comprising a computer usable medium having computer readable program means for causing a computer to perform the steps of:

receiving consumption data related to an indirect procurement commodity;

establishing a volume of the indirect procurement commodity to be consumed during a future predetermined period based on the consumption data; and

calculating at least one risk component wherein the at least one risk component is associated with the volume of the indirect procurement commodity to be consumed during a future predetermined period.

26. The computer program product of claim 25 wherein the consumption data includes a data matrix.

27. The computer program product of claim 26 wherein establishing a volume of the indirect procurement commodity to be consumed during a future predetermined period based on the consumption data comprises establishing a boundary of probable volume values.

28. A method of doing business comprising:

receiving consumption data related to an indirect procurement commodity;

establishing a volume of the indirect procurement commodity to be consumed during a future predetermined duration and time period based on the consumption data; and

calculating at least one risk component wherein the at least one risk component is associated with the volume of the indirect procurement commodity to be consumed during a future predetermined period.

29. The method of claim 28 wherein the indirect procurement commodity comprises energy.

30. The method of claim 28 wherein the consumption data is received via an Excel based tool via a graphical user interface.

31. The method of claim 30 wherein the consumption data includes a data matrix.

32. The method of claim 31 wherein establishing a volume of the indirect procurement commodity to be consumed during a future predetermined period based on the consumption data comprises establishing a boundary of probable volume values.

33. The method of claim 32 wherein establishing a boundary of probable volume values comprises:

a calculating a mean and standard deviation of the data matrix; and

adding two standard deviations to the mean thereby establishing a starting point of the boundary of probable volume values.