Systems and methods for inventory level improvement by data simulation

• US 20090083123A1
• Filed: 09/26/2007
• Published: 03/26/2009
• Est. Priority Date: 09/26/2007
• Status: Active Application

• Current Assignee: Caterpillar Incorporated
• Original Assignee: Caterpillar Incorporated
• Inventors: Sanchez, Justin Elias, Powell, Haydn James, Force, Paul David, Perlov, Konstantin
• Application Number:
  US11/902,817
• Publication Number:
  US 20090083123A1
• Time in Patent Office: Days
• US Class Current: 705/10
• 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 generating inventory data points simulating a demand and a supply chain response time and providing an inventory diagram based on the simulated demand and supply chain response time. The inventory management process further includes determining a variability inventory level corresponding to a service level based on the inventory diagram and providing a proper inventory level based on the variability inventory level.

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;

generating inventory data points simulating a demand and a supply chain response time;

providing an inventory diagram based on the simulated demand and supply chain response time;

determining a variability inventory level corresponding to a service level based on the inventory diagram; and

providing an inventory level based on the variability inventory level.

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

updating the inventory diagram based on the determined variability inventory level.

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

determining the service level; and

determining the variability inventory level corresponding to the service level.

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

generating the inventory data points for the demand based on a first normal distribution.

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

determining a first mean and a first standard deviation of the first normal distribution.

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

generating the inventory data points for the supply chain response time based on a second normal distribution.

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

determining a second mean and a second standard deviation of the second normal distribution.

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

determining the number of data points for the demand and for the response time.

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

determining the variability inventory level based on the service level, the simulated demand, and the simulated supply chain response time.

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;

generating inventory data points simulating a demand and a supply chain response time;

providing an inventory diagram based on the simulated demand and supply chain response time;

determining a variability inventory level corresponding to a service level based on the inventory diagram; and

providing an inventory level based on the variability inventory level.

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

updating the inventory diagram based on the determined variability inventory level.

12. The method of claim 10, wherein the inventory management process further comprises:

determining the service level; and

determining the variability inventory level corresponding to the service level.

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

generating the inventory data points for the demand based on a first normal distribution.

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

determining a first mean and a first standard deviation of the first normal distribution.

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

generating the inventory data points for the supply chain response time based on a second normal distribution.

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

determining a second mean and a second standard deviation of the second normal distribution.

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

determining the number of data points for the demand and for the response time.

18. The method of claim 10, wherein the inventory management process further comprises:

determining the variability inventory level based on the service level, the simulated demand, and the simulated supply chain response time.

19. A method for inventory management, comprising:

generating inventory data points simulating a demand and a supply chain response time;

providing an inventory diagram based on the simulated demand and supply chain response time;

determining a variability inventory level based on a service level, the simulated demand, and the simulated supply chain response time; and

providing an inventory level based on the variability inventory level.

20. The method of claim 19, further comprising:

determining a first data distribution for simulating the demand; and

determining a second data distribution for simulating the supply chain response time.