Systems and methods for inventory level improvement

• US 20090037299A1
• Filed: 07/31/2007
• Published: 02/05/2009
• Est. Priority Date: 07/31/2007
• Status: Abandoned Application

• Current Assignee: Caterpillar Incorporated
• Original Assignee: Caterpillar Incorporated
• Inventors: Sanchez, Justin Elias, Powell, Haydn James, Force, Paul David, Perlov, Konstantin
• Application Number:
  US11/882,221
• Publication Number:
  US 20090037299A1
• Time in Patent Office: Days
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

Methods and systems for inventory management are disclosed. In one embodiment, an inventory manager may use an inventory management system to perform an inventory management process. The inventory management process includes receiving inventory management data related to a service level, a supply chain response time, and demand, and determining a base inventory based on the supply chain response time the demand. The inventory management process further includes determining a variability inventory based on one or more variations in the supply chain response time and the demand and the service level, and providing a proper inventory level based on consideration of the base inventory and the variability inventory.

Claims

1. An inventory management system, comprising:

a memory that stores program code; and

a processor that executes the program code to perform an inventory management process, the inventory management process comprising;

receiving inventory management data related to a service level, a supply chain response time, and demand;

determining a base inventory based on the supply chain response time and the demand;

determining a variability inventory based on one or more variations in the supply chain response time and the demand; and

providing a proper inventory level based on the base inventory and the variability inventory.

2. The system of claim 1, wherein the inventory management process further comprises:

determining other planned inventory based on the inventory management data.

3. The system of claim 2, wherein the inventory management process further comprises:

providing a proper inventory level based on the base inventory, the variability inventory, and the other planned inventory.

4. The system of claim 1, wherein the inventory management process further comprises:

determining the base inventory based on a product response inventory and a dealer on-hand inventory.

5. The system of claim 4, wherein the inventory management process further comprises:

determining the product response inventory based on the supply chain response time and the demand.

6. The system of claim 5, wherein the inventory management process further comprises:

determining the dealer on-hand inventory based on an inventory order frequency and an inventory order batch size.

7. The system of claim 1, wherein the inventory management process further comprises:

determining the variability inventory based on an response time uncertainty inventory and a response gap inventory.

8. The system of claim 7, wherein the inventory management process further comprises:

determining the response time uncertainty inventory based on the service level, the inventory demand, and a standard deviation in the supply chain response time.

9. The system of claim 8, wherein the inventory management process further comprises:

determining the response gap inventory based on the service level, the supply chain response time, and a standard deviation in the demand.

10. A method for inventory management, comprising:

performing an inventory management process through an interaction of users of an inventory management architecture, the inventory management process including;

receiving inventory management data related to a service level, a supply chain response time, and demand;

determining a base inventory based on the supply chain response time and the demand;

determining a variability inventory based on one or more variations in the supply chain response time and the demand; and

providing a proper inventory level based on the base inventory and the variability inventory.

11. The method of claim 10, wherein the inventory management process further includes:

determining other planned inventory based on the inventory management data.

12. The method of claim 11, wherein the inventory management process further includes:

providing a proper inventory level based on the base inventory, the variability inventory, and the other planned inventory.

13. The method of claim 10, wherein the inventory management process further includes:

determining the base inventory based on a product response inventory and a dealer on-hand inventory.

14. The method of claim 13, wherein the inventory management process further includes:

determining the product response inventory based on the supply chain response time and the demand.

15. The method of claim 14, wherein the inventory management process further comprises:

determining the dealer on-hand inventory based on an inventory order frequency and an inventory order batch size.

16. The method of claim 10, wherein the inventory management process further includes:

determining the variability inventory based on an response time uncertainty inventory and a response gap inventory.

17. The method of claim 16, wherein the inventory management process further includes:

determining the response time uncertainty inventory based on the service level, demand, and a standard deviation in the supply chain response time.

18. The method of claim 17, wherein the inventory management process further includes:

determining the response gap inventory based on the service level, the inventory response time, and a standard deviation in the demand.

19. A method for inventory management, comprising:

receiving inventory management data related to a service level, supply chain response time, and demand;

determining a base inventory based the supply chain response time and the demand;

determining a variability inventory based on one or more variations in the supply chain response time and the demand; and

providing a proper inventory level based on the base inventory and the variability inventory.

20. The method of claim 19, further comprising:

determining a response time uncertainty inventory based on the service level, demand, and a standard deviation in the supply chain response time.

determining a response gap inventory based on the service level, the inventory response time, and a standard deviation in the demand; and

determining the variability inventory based on the response time uncertainty inventory and the response gap inventory.