LEVELED-FLOW REPLENISHMENT USING DEADBAND LIMITS

• US 20090138384A1
• Filed: 12/27/2007
• Published: 05/28/2009
• Est. Priority Date: 11/28/2007
• Status: Active Grant

• Current Assignee: Callahan Cellular LLC (Intellectual Ventures LLC)
• Original Assignee: Kimberly-Clark Worldwide Incorporated (Kimberly-Clark Corporation)
• Inventors: Kelly, Jayne M., Knoespel, Wesley J., McCormick, Kevin L.
• Granted Patent: US 8,655,753 B2
• Time in Patent Office: Days
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/083 Shipping
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

Inventory replenishment that levels the flow of products from a collection of supplying distribution centers (DCs) to a receiving DC. Products are shipped in calculated, predetermined quantities at calculated, predetermined intervals to match the outflow rates at the receiving DC. Inventory levels at the receiving DC are monitored daily, and exceptions or adjustments to the shipment pattern (e.g., quantities and time intervals) are executed in a systematic manner when they stray outside of calculated minimum and maximum levels.

Claims

1. A method comprising:

determining an expected outflow of a product from a location and a desired inventory level for the product at the location;

defining time intervals and a quantity of the product to ship to the location for each of the defined time intervals as function of the determined outflow of the product and the desired inventory level;

calculating a minimum inventory level and a maximum inventory level for the product at the location as a function of the determined outflow of the product and the desired inventory level;

receiving a current inventory level for the product at the location;

comparing the received current inventory level to the calculated minimum inventory level and to the calculated maximum inventory level; and

adjusting the defined quantity of the product to ship to the location for one or more of the time intervals as a function of said comparing.

2. The method of claim 1, further comprising:

defining a quantity of the product to ship at regular intervals to the location; and

adjusting the defined quantity of the product as a function of the adjusted quantity.

3. The method of claim 2, wherein the product is shipped to the location in a shipping container, and wherein defining the quantity of the product comprises defining the quantity of the product as a function of the capacity of the shipping container, wherein the defined quantity occupies less than the available capacity of the shipping container to accommodate the adjustment of the defined quantity of the product.

4. The method of claim 1, wherein calculating the minimum inventory level comprises summing the expected outflow and a safety stock quantity.

5. The method of claim 1, wherein calculating the maximum inventory level comprises summing the minimum inventory level, a range of the desired inventory level), and a buffer value.

6. The method of claim 1, wherein adjusting the quantity of the product to ship comprises increasing the quantity of the product to ship if the received inventory level is less than the calculated minimum inventory level.

7. The method of claim 1, wherein adjusting the quantity of the product to ship comprises decreasing the quantity of the product to ship if the received inventory level is greater than the calculated maximum inventory level.

8. The method of claim 1, wherein adjusting the quantity of the product to ship comprises increasing the quantity of the product to ship if the received inventory level is greater than the calculated minimum inventory level and less than the desired inventory level.

9. A system comprising:

a memory area for storing current inventory levels for products, each of said current inventory levels being associated with one of a plurality of locations, said memory area further storing minimum inventory levels and maximum inventory levels for each of the products; and

a processor configured to execute computer-executable instructions for;

defining shipments of the products from one of the locations to another of the locations, said shipments being defined to occur regularly;

comparing the current inventory levels stored in the memory area to the minimum inventory levels and to the maximum inventory levels for the products;

determining add exceptions as a function of said comparing, said add exceptions representing quantities of the products to add to the defined shipments;

determining withhold exceptions as a function of said comparing, said withhold exceptions representing quantities of the products to withhold from the defined shipments;

applying the determined withhold exceptions to the defined shipments; and

then applying the determined add exceptions to the defined shipments.

10. The system of claim 9, further comprising an order management system, wherein the processor is further configured to execute computer-executable instructions for entering the determined withhold exceptions and the determined add exceptions into the order management system.

11. The system of claim 9, further comprising adjusting a quantity of the product to ship to the location as a function of said comparing.

12. The system of claim 9, further comprising means for calculating the minimum inventory level and means for calculating the maximum inventory level.

13. The system of claim 9, further comprising means for adjusting the defined shipments as a function of the determined withhold exceptions and the determined add exceptions.

14. The system of claim 9, further comprising means for defining the shipments of the products from said one of the locations to said another of the locations.

15. The system of claim 9, wherein the plurality of locations comprise distribution centers.

16. The system of claim 9, wherein the memory area and the processor are associated with a supplier distribution center.

17. One or more computer-readable media having computer-executable components, said components comprising:

a design component for scheduling shipments of products from a first location to a second location as a function of an expected outflow of the products from the second location and as a function of the desired inventory level for the products at the second location, said shipments being scheduled to occur regularly;

an assessment component for comparing current inventory levels for the products at the second location with corresponding predefined minimum and maximum inventory levels for the products at the second location; and

an implementation component for adjusting the shipments scheduled by the design component as a function of the comparison performed by the assessment component, wherein adjusting the shipments comprises withholding, from the scheduled shipments, quantities of products having a current inventory level greater than the corresponding maximum inventory level and adding, to the scheduled shipments, quantities of products having a current inventory level less than the corresponding minimum inventory level.

18. The computer-readable media of claim 17, wherein the design component allocates quantities of the products to each of the shipments.

19. The computer-readable media of claim 17, wherein the design component determines a quantity of shipping containers for the shipments, and wherein the implementation component adjusts the quantity of shipping containers determined by the design component.

20. The computer-readable media of claim 17, wherein the assessment component and the implementation component execute upon receipt of the current inventory levels from the second location.