System and method for managing a collection of stock replenishment systems
First Claim
1. A method for managing a stock replenishment system, said system comprising:
- a. selecting an out-of-stock probability for a given item for any given day;
b. obtaining point-of-sale data for the given item over a period of time;
c. determining from the point-of-sale data the statistical distribution of the given item'"'"'s packages per shopper;
d. estimating or determining an expected daily sales for the given item;
e. determining a multi-day maximal sales for the given item from the expected daily sales of the given item and the given item'"'"'s packages per shopper distribution which corresponds to the out-of-stock probability; and
f. setting a reorder point in the stock replenishment software program based on the maximal sales.
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Abstract
The present invention provides a method of managing a stock replenishment system in a way that explicitly controls the in-stock rate. Also provided by the present invention is a method of managing a collection of stock replenishment systems in a way that the combined in-stock rate of the collection is controlled to a selected value. In addition, the present invention provides a method to set up a collection of stock replenishment systems in replenishment software systems in an identical fashion while controlling the combined in-stock rate. The methods of the present invention use point-of-sale data to determine packages-per-shopper rates, which are used as one of the inputs to statistical models of multiple-day retail sales.
32 Citations
50 Claims
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1. A method for managing a stock replenishment system, said system comprising:
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a. selecting an out-of-stock probability for a given item for any given day; b. obtaining point-of-sale data for the given item over a period of time; c. determining from the point-of-sale data the statistical distribution of the given item'"'"'s packages per shopper; d. estimating or determining an expected daily sales for the given item; e. determining a multi-day maximal sales for the given item from the expected daily sales of the given item and the given item'"'"'s packages per shopper distribution which corresponds to the out-of-stock probability; and f. setting a reorder point in the stock replenishment software program based on the maximal sales. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15)
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16. A method of managing a collection of stock replenishment systems controlling one or more items at one or more stores, said method comprising:
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a. defining a combined in-stock objective for all items in all stores controlled by the collection of stock replenishment systems as a desired fraction of the stock replenishment systems that are in-stock on any given day; b. defining a meets objective for the percentage of time that the combined in-stock objective is desired to be met across all stores and all items controlled by the collection of stock replenishment systems; c. determining a common single-store single-item out-of-stock probability employed by each of the collection of stock replenishment systems from the defined combined in-stock objective and the defined meets objective; d. obtaining point-of-sale data for each store and each item controlled by the collection of stock replenishment systems; e. determining a multi-day maximal sales for each store and each item on each stock replenishment system on the collection of stock replenishment systems which corresponds to the common single-store single-item out-of-stock probability; and f. setting the reorder point for each stock replenishment system software program based on the maximal sales. - View Dependent Claims (17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35)
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36. A method of managing a collection of stock replenishment systems across two or more products at one or more stores having the same lead-time, said method comprising:
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a. determine which stores and which items at those stores have the same lead-time; b. defining a combined in-stock objective for all items in all stores controlled by the collection of stock replenishment systems as a desired fraction of the stock replenishment systems that are in-stock on any given day; c. defining a meets objective for the percentage of time that the combined in-stock objective is desired to be met across all stores and all items controlled by the collection of stock replenishment systems; d. determining a single-store out-of-stock probability across the collection of stock replenishment systems from the defined combined in-stock objective and the defined meets objective; e. determining a range of average package per shopper that are similar and select the highest average packages per shopper; f. estimating parameters of a Negative Binomial distribution for the item with the highest average packages per shopper; g. approximating the reorder point as a linear function based on the parameters of the Negative Binomial distribution, wherein the linear function is a slope times expected daily sales plus a safety stock, wherein the safety stock is set as an intercept of the linear function with the axis where the expected daily sales is equal to zero; and h. setting the collection of stock replenishment software programs which have the same lead-time to calculate the reorder point as a slope times the expected daily sales plus the intercept point. - View Dependent Claims (40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50)
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- 37. The method according to claim 37, wherein the expected daily sales are calculated from a trailing average daily sales analysis, or a near-term sales forecast,
Specification