Methods and systems for distributing stock in a distribution network

• US 20060069598A1
• Filed: 09/30/2004
• Published: 03/30/2006
• Est. Priority Date: 09/30/2004
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP SE
• Inventors: Schweitzer, Michael, Schmitz, Hans, Huber, Edward W., McDonald, Marlon S., Monson, Michael J., McCoy, Gregory A., Eich, Eric P., Newbanks, Larry M., Czach, Michael J., Baermann, Guenther J., Taylor, Brian R., Matthews, Ryan G.
• Granted Patent: US 8,655,749 B2
• Time in Patent Office: Days
• US Class Current: 705/8
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities

Abstract

Systems and methods are disclosed for distributing stock in a distribution network. The distribution network may include a source location and a plurality of target locations. In the disclosed systems and methods, the stock requirements of the target locations may be categorized into a plurality of requirement types, wherein each requirement type reflects a category of stock requirements for one of the target locations. In addition, the plurality of requirement types may be prioritized by order of importance and/or the plurality of target locations may be prioritized for each requirement type based on at least one sequence rule. Based on the prioritized requirement types and/or prioritized sequence of the target locations, the stock may be distributed to the plurality of target locations.

Claims

1. A method for distributing stock to a plurality of target locations, wherein each target location has corresponding stock requirements, the method comprising:

categorizing the stock requirements into a plurality of requirement types, wherein each requirement type reflects a category of stock requirements for one of the target locations;

prioritizing the plurality of requirement types by order of importance;

prioritizing the plurality of target locations for each requirement type based on at least one sequence rule; and

distributing the stock to the target locations based on the prioritized requirement types and the prioritized sequence of the target locations, such that the stock requirements are fulfilled from the highest priority requirement type to the lowest priority requirement type and, for each prioritized requirement type, the stock requirements are fulfilled from the highest priority target location to the lowest priority target location.

2. The method of claim 1, wherein the at least one sequence rule defines criteria for determining the priority between target locations for receiving distributed stock.

3. The method of claim 1, wherein the at least one sequence rule reflects at least one of:

(a) a forecasted amount of stock required by the target location beyond a lead time;

(b) a lead time for the target location;

(c) demand at the target location;

(d) a predefined sequence order for the target location;

(e) a proportional basis of the target location'"'"'s fixed requirement quantity daily rate;

(f) a proportion basis of the target'"'"'s safety stock daily rate; and

(g) a filling percentage process.

4. The method of claim 3, wherein the filling percentage process comprises rounding the stock requirements for each of the prioritized requirement types and the prioritized the target locations.

5. The method of claim 4, wherein the stock requirements for each of the prioritized requirement types and the prioritized the target locations are rounded to a next higher multiple of a minimum allowed pack size for the stock.

6. The method of claim 4, wherein distributing the stock further comprises excluding, during the stock distribution, a current target location in a current requirement type from receiving stock if the current target location was allocated, due to rounding, enough stock to meet a previous requirement type'"'"'s requirement and the current requirement type'"'"'s requirements, wherein the current target location comprises one of the prioritized plurality of target locations and the current and the previous requirement types comprise ones of the prioritized plurality of requirement types.

7. The method of claim 3, wherein the filling percentage process comprises:

establishing a cumulated net requirement and a rounded cumulated net requirement for each target location and requirement type, the rounded cumulated net requirement being equal to the corresponding cumulated net requirement rounded to a next higher multiple of a minimum allowed pack size for the stock;

selecting a first requirement type and a second requirement type from the plurality of requirement types, wherein the available quantity of stock is sufficient to meet the rounded cumulated net requirement of the first requirement type but insufficient to meet the rounded cumulated net requirement of the second requirement type; and

calculating, for each target location, a filling percentage configured to be used in prioritizing the plurality of target locations for the second requirement type.

8. The method of claim 7, wherein the lowest priority is given to the highest filling percentage and the highest priority is given to the lowest filling percentage.

9. The method of claim 7, wherein calculating, for each target location, a filling percentage comprises using the following equation:

10. The method of claim 7, wherein distributing the stock further comprises excluding, during the stock distribution, a current target location in the second requirement type from receiving stock if the current target location'"'"'s filling percentage is greater than or equal to 100%, wherein the current target location comprises one of the prioritized plurality of target locations.

11. The method of claim 1, wherein at least one of the plurality of requirement types reflects at least one of:

(1) stock requirements to fulfill backorders;

(2) fixed stock requirements having a high priority;

(3) forecasted stock requirements over lead time;

(4) safety stock requirements;

(5) non-priority fixed requirements over lead time;

(6) a source location'"'"'s requirements; and

(7) economic order quantity over the lead time.

12. The method of claim 1, wherein the stock comprises parts.

13. The method of claim 1, wherein at least one of the plurality of target locations comprise at least one of a factory, a warehouse, a retail store, a distribution center, and a bulk warehouse.

14. The method of claim 1, wherein the stock requirements comprise backorders.

15. The method of claim 1, wherein prioritizing the plurality of target locations further includes determining whether a first sequence rule resulted in identifying the priority between each target location, and applying a second sequence rule if the first sequence rule did not result in identifying the priority between each target location.

16. The method of claim 1, wherein the prioritized order of target locations for at least one requirement type is different than the prioritized order of target locations for at least one other requirement type.

17. The method of claim 1, wherein prioritizing the target locations for each requirement type further includes applying a respective sequence rule for each requirement type, wherein the sequence rule for at least one requirement type is different than the sequence rule for at least one other requirement type.

18. The method of claim 1, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations comprises using at least one of regular mail, e-mail, facsimile, the Internet, and an interactive voice response system to communicate stock requirements.

19. The method of claim 1, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations further comprises communicating stock requirements over a network.

20. A system for distributing stock to a plurality of target locations, wherein each target location has a corresponding stock requirement, the system comprising:

a component for receiving stock requirements for each of the target locations;

a component for prioritizing the plurality of target locations based on at least one sequence rule; and

a component for determining the distribution of the stock to the target locations based on the prioritized sequence of the target locations, such that the stock requirements are fulfilled from the highest priority target location to the lowest priority target location.

21. The system of claim 20, wherein the sequence rule defines criteria for determining the priority between target locations for receiving distributed stock.

22. The system of claim 20, wherein the at least one sequence rule reflects at least one of:

(a) a forecasted amount of stock required by the target location beyond a lead time;

(b) a lead time for the target location;

(c) demand at the target location;

(d) a predefined sequence order for the target location;

(e) a proportional basis of the target location'"'"'s fixed requirement quantity daily rate; and

(f) a proportion basis of the target'"'"'s safety stock daily rate.

23. The system of claim 22, wherein the filling percentage process comprises rounding the stock requirements for each of the prioritized requirement types and the prioritized the target locations.

24. The system of claim 23, wherein the stock requirements for each of the prioritized requirement types and the prioritized the target locations are rounded to a next higher multiple of a minimum allowed pack size for the stock.

25. The system of claim 23, wherein distributing the stock further comprises excluding, during the stock distribution, a current target location in a current requirement type from receiving stock if the current target location was allocated, due to rounding, enough stock to meet a previous requirement type'"'"'s requirement and the current requirement type'"'"'s requirements, wherein the current target location comprises one of the prioritized plurality of target locations and the current and the previous requirement types comprise ones of the prioritized plurality of requirement types.

26. The system of claim 22, further comprising:

a component for establishing a cumulated net requirement and a rounded cumulated net requirement for each target location and requirement type, the rounded cumulated net requirement being equal to the corresponding cumulated net requirement rounded to a next higher multiple of a minimum allowed pack size for the stock;

a component for selecting a first requirement type and a second requirement type from the plurality of requirement types, wherein the available quantity of stock is sufficient to meet the rounded cumulated net requirement of the first requirement type but insufficient to meet the rounded cumulated net requirement of the second requirement type; and

a component for calculating, for each target location, a filling percentage configured to be used in prioritizing the plurality of target locations for the second requirement type.

27. The system of claim 26, wherein the lowest priority is given to the highest filling percentage and the highest priority is given to the lowest filling percentage.

28. The system of claim 26, wherein the component for calculating, for each target location, the filling percentage is configured for using the following equation:

29. The system of claim 26, wherein the component for determining the distribution of the stock is configured for excluding, during the stock distribution, a current target location in the second requirement type from receiving stock if the current target location'"'"'s filling percentage is greater than or equal to 100%, wherein the current target location comprises one of the prioritized plurality of target locations.

30. The system of claim 20, wherein the stock requirements are categorized into a plurality of requirement types, at least one of the plurality of requirement types reflects at least one of:

(1) stock requirements to fulfill backorders;

(2) fixed stock requirements having a high priority;

(3) forecasted stock requirements over lead time;

(4) safety stock requirements;

(5) non-priority fixed requirements over lead time;

(6) a source location'"'"'s requirements; and

(7) economic order quantity over the lead time.

31. The system of claim 20, wherein the stock comprises parts.

32. The system of claim 20, wherein at least one of the plurality of target locations comprise at least one of a factory, a warehouse, a retail store, a distribution center, and a bulk warehouse.

33. The system of claim 20, wherein the stock requirements comprise backorders.

34. The system of claim 20, wherein the component for prioritizing the plurality of target locations is further configured for determining whether a first sequence rule resulted in identifying the priority between each target location, and applying a second sequence rule if the first sequence rule did not result in identifying the priority between each target location.

35. The system of claim 20, wherein the stock requirements are categorized into a plurality of requirement types and the prioritized order of target locations for at least one requirement type is different than the prioritized order of target locations for at least one other requirement type.

36. The system of claim 35, wherein the component for prioritizing the target locations for each requirement type is further configured for applying a respective sequence rule for each requirement type, wherein the sequence rule for at least one requirement type is different than the sequence rule for at least one other requirement type.

37. The system of claim 20, wherein the component for prioritizing the plurality of target locations is configured for using at least one of regular mail, e-mail, facsimile, the Internet, and an interactive voice response system to communicate stock requirements.

38. The system of claim 20, wherein the component for prioritizing the plurality of target locations is further configured for communicating stock requirements over a network.

39. A computer-readable medium which stores a set of instructions which when executed performs a method for distributing stock to a plurality of target locations, wherein each target location has corresponding stock requirements, the method executed by the set of instructions comprising:

categorizing the stock requirements into a plurality of requirement types, wherein each requirement type reflects a category of stock requirements for one of the target locations;

prioritizing the plurality of requirement types by order of importance;

prioritizing the plurality of target locations for each requirement type based on at least one sequence rule; and

determining a distribution of the stock to the target locations based on the prioritized requirement types and the prioritized sequence of the target locations, such that the stock requirements are fulfilled from the highest priority requirement type to the lowest priority requirement type and, for each prioritized requirement type, the stock requirements are fulfilled from the highest priority target location to the lowest priority target location.

40. The computer-readable medium of claim 39, wherein the sequence rule defines criteria for determining the priority between target locations for receiving distributed stock.

41. The computer-readable medium of claim 39, wherein the at least one sequence rule reflects at least one of:

(a) a forecasted amount of stock required by the target location beyond a lead time;

(b) a lead time for the target location;

(c) demand at the target location;

(d) a predefined sequence order for the target location;

(e) a proportional basis of the target location'"'"'s fixed requirement quantity daily rate; and

(f) a proportion basis of the target'"'"'s safety stock daily rate.

42. The computer-readable medium of claim 41, wherein the filling percentage process comprises rounding the stock requirements for each of the prioritized requirement types and the prioritized the target locations.

43. The computer-readable medium of claim 42, wherein the stock requirements for each of the prioritized requirement types and the prioritized the target locations are rounded to a next higher multiple of a minimum allowed pack size for the stock.

44. The computer-readable medium of claim 42, wherein distributing the stock further comprises excluding, during the stock distribution, a current target location in a current requirement type from receiving stock if the current target location was allocated, due to rounding, enough stock to meet a previous requirement type'"'"'s requirement and the current requirement type'"'"'s requirements, wherein the current target location comprises one of the prioritized plurality of target locations and the current and the previous requirement types comprise ones of the prioritized plurality of requirement types.

45. The computer-readable medium of claim 41, wherein the filling percentage process comprises:

establishing a cumulated net requirement and a rounded cumulated net requirement for each target location and requirement type, the rounded cumulated net requirement being equal to the corresponding cumulated net requirement rounded to a next higher multiple of a minimum allowed pack size for the stock;

selecting a first requirement type and a second requirement type from the plurality of requirement types, wherein the available quantity of stock is sufficient to meet the rounded cumulated net requirement of the first requirement type but insufficient to meet the rounded cumulated net requirement of the second requirement type; and

calculating, for each target location, a filling percentage configured to be used in prioritizing the plurality of target locations for the second requirement type.

46. The computer-readable medium of claim 45, wherein the lowest priority is given to the highest filling percentage and the highest priority is given to the lowest filling percentage.

47. The computer-readable medium of claim 45, wherein calculating, for each target location, a filling percentage comprises using the following equation:

48. The computer-readable medium of claim 45, wherein distributing the stock further comprises excluding, during the stock distribution, a current target location in the second requirement type from receiving stock if the current target location'"'"'s filling percentage is greater than or equal to 100%, wherein the current target location comprises one of the prioritized plurality of target locations.

49. The computer-readable medium of claim 39, wherein at least one of the plurality of requirement types reflects at least one of:

(1) stock requirements to fulfill backorders;

(2) fixed stock requirements having a high priority;

(3) forecasted stock requirements over lead time;

(4) safety stock requirements;

(5) non-priority fixed requirements over lead time;

(6) a source location'"'"'s requirements; and

(7) economic order quantity over the lead time.

50. The computer-readable medium of claim 39, wherein the stock comprises parts.

51. The computer-readable medium of claim 39, wherein at least one of the plurality of target locations comprise at least one of a factory, a warehouse, a retail store, a distribution center, and a bulk warehouse.

52. The computer-readable medium of claim 39, wherein the stock requirements comprise backorders.

53. The computer-readable medium of claim 39, wherein prioritizing the plurality of target locations further includes determining whether a first sequence rule resulted in identifying the priority between each target location, and applying a second sequence rule if the first sequence rule did not result in identifying the priority between each target location.

54. The computer-readable medium of claim 39, wherein the prioritized order of target locations for at least one requirement type is different than the prioritized order of target locations for at least one other requirement type.

55. The computer-readable medium of claim 39, wherein prioritizing the target locations for each requirement type further includes applying a respective sequence rule for each requirement type, wherein the sequence rule for at least one requirement type is different than the sequence rule for at least one other requirement type.

56. The computer-readable medium of claim 39, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations comprises using at least one of regular mail, e-mail, facsimile, the Internet, and an interactive voice response system to communicate stock requirements.

57. The computer-readable medium of claim 39, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations further comprises communicating stock requirements over a network.

58. A method for distributing stock from a source location to a plurality of target locations, wherein each target location has a corresponding stock requirement, the method comprising:

categorizing, for each target location'"'"'s stock requirement, the types of stock requirements for the target location, wherein each requirement type reflects a category of stock requirements for the respective target location;

determining a prioritized order of the requirement types of the target locations and determining a prioritized order of the target locations for each requirement type; and

distributing the stock to the target locations based on the prioritized requirement types and the prioritized sequence of the target locations.

59. The method of 58, wherein distributing the stock further includes distributing the stock to fulfill the requirements of each requirement type in order of priority, and when distributing stock for each prioritized requirement type, distributing the stock in order of priority of the target locations.

60. A method for distributing stock to a plurality of target locations, wherein each target location has corresponding stock requirements, the method comprising:

categorizing the stock requirements into a plurality of requirement types, wherein each requirement type reflects a category of stock requirements for one of the target locations;

prioritizing the plurality of requirement types by order of importance; and

distributing the stock to the target locations based on the prioritized requirement types such that the stock requirements are fulfilled from the highest priority requirement type to the lowest priority requirement type.

61. The method of claim 60, further comprising prioritizing the plurality of target locations for each requirement type based on at least one sequence rule.

62. The method of claim 60, wherein distributing the stock to the target locations based on the prioritized requirement types further comprises distributing the stock to the target locations based on the prioritized sequence of the target locations, such that the stock requirements are fulfilled from the highest priority requirement type to the lowest priority requirement type and, for each prioritized requirement type, the stock requirements are fulfilled from the highest priority target location to the lowest priority target location.