Method and system for managing material movement and inventory

• US 20070198313A1
• Filed: 02/17/2006
• Published: 08/23/2007
• Est. Priority Date: 02/17/2006
• Status: Active Grant

• Current Assignee: Xerox Corporation (Xerox Holdings Corp.)
• Original Assignee: Xerox Corporation (Xerox Holdings Corp.)
• Inventors: Carruthers, Cathie
• Granted Patent: US 7,904,352 B2
• Time in Patent Office: Days
• US Class Current: 705/30
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method is provided that involves entering input data into a computer program including at least one of item number, manufacturing cost, material demand, supplier site, shipping frequency, transit time, and container cost, determining material management costs for a plurality of shipment options, and outputting from the computer program at least one of a first set of material management data based on the input shipping frequency and at least one of a second set of material management data based on an optimized shipping frequency of full inbound containers. A corresponding system is also disclosed. The method and system are useful for managing material movement and inventory.

Claims

1. A method comprising:

entering input data into a computer program including at least one of item number, manufacturing cost, material demand, supplier site, shipping frequency, transit time, and container cost,

determining material management costs for a plurality of shipment options, and

outputting from the computer program at least one of a first set of material management data based on the input shipping frequency and at least one of a second set of material management data based on an optimized shipping frequency of full inbound containers.

2. The method of claim 1, wherein a first part of the first set of material management data assumes that the full inbound containers are sent to a first location and a portion of material in the full inbound containers subsequently is transferred to a second location.

3. The method of claim 2, wherein a second part of the first set of material management data assumes that full inbound containers are sent to the second location and a portion of material in the full inbound containers subsequently is transferred to the first location.

4. The method of claim 1, wherein a third part of the first set of material management data assumes that full inbound containers are sent from the supplier site directly to both a first location and a second location.

5. The method of claim 3, wherein a third part of the first set of material management data assumes that full inbound containers are sent from the supplier site directly to both a first location and a second location.

6. The method of claim 1, wherein a first part of the second set of material management data assumes that the full inbound containers are sent to a first location and a portion of material in the full inbound containers subsequently is transferred to a second location.

7. The method of claim 6, wherein a second part of the second set of material management data assumes that full inbound containers are sent to the second location and a portion of material in the full inbound containers subsequently is transferred to the first location.

8. The method of claim 5, wherein a first part of the second set of material management data assumes that the full inbound containers are sent to a first location and a portion of material in the full inbound containers subsequently is transferred to a second location, and a second part of the second set of material management data assumes that full inbound containers are sent to the second location and a portion of material in the full inbound containers subsequently is transferred to the first location.

9. The method of claim 1, further comprising selecting a shipping method based upon review of the first and second sets of material management data.

10. The method of claim 1, wherein the second set of material management data is determined assuming that the full inbound containers are unmixed containers.

11. The method of claim 1, wherein the second set of material management data is determined assuming that the full inbound containers are mixed containers.

12. The method of claim 11, wherein the first and second sets of material management data are determined assuming that the full inbound containers originate with a single supplier.

13. The method of claim 1, further comprising, before determining material management costs, entering standard data including inventory carrying costs.

14. The method of claim 13, wherein inventory carrying costs include costs of capital.

15. The method of claim 1, wherein a portion of the input data is imported from at least one of a transportation cost database and a historical shipment database.

16. The method of claim 1, wherein the first and second sets of material management data are reviewed by an inventory planner and a transportation analyst.

17. A system comprising a computer having a memory containing standard data, a processor configured to determine material management costs for a plurality of shipment options, and software that generates an input form configured to receive material management data for an item to be shipped and an output form that provides at least one of a first set of material management data based on a preferred shipping frequency and at least one of a second set of material management data based on an optimized shipping frequency of full inbound containers.

18. The system of claim 17, wherein the processor determines a first part of the first set of material management data using an assumption that full inbound containers are sent to a first location and a portion of material in the full inbound containers subsequently is sent to a second location, and a second part of the first set of material management data using an assumption that full inbound containers are sent to a second location and a portion of material in the full inbound containers subsequently is sent to the first location.

19. A method comprising:

entering input data into a computer program including item number, manufacturing cost, material demand, supplier site, shipping frequency, transit time, and container cost,

determining material management costs for a plurality of shipment options involving shipping containers of material to a first location and subsequently shipping a portion of the material to a second location, and

outputting from the computer program a first set of material management data based on the input shipping frequency and a second set of material management data based on an optimized shipping frequency of full inbound containers, and

selecting a shipping method based upon review of the first and second sets of material management data.

20. The method of claim 19, wherein material management costs are determined based on an assumption that full containers are shipped.