METHOD FOR MANAGING INVENTORY WITHIN AN INTEGRATED SUPPLY CHAIN

• US 20100205044A1
• Filed: 08/06/2009
• Published: 08/12/2010
• Est. Priority Date: 01/22/2001
• Status: Active Grant

• Current Assignee: WW Grainger Incorporated
• Original Assignee: WW Grainger Incorporated
• Inventors: Scheer, Robert H.
• Granted Patent: US 10,977,608 B2
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 20/203 Inventory monitoring

Abstract

A method for managing inventory within a supply chain. The method is performed by providing forecasts of demand for items distributed within the supply chain, using the forecasts to establish base stocking levels and reorder points within the supply chain, and using the established base stocking levels and reorder points to position items within the supply chain so as to maximize efficiency and profitability when responding to an order for an item.

Claims

1. A computer-readable media having computer-executable instructions for managing inventory within a supply chain having a plurality of geographically distinct distribution points, the instructions performing steps comprising:

providing for each of a plurality of items distributed within the supply chain a forecast of demand over a forecast period;

using the forecast of demand for each of the plurality of items to establish for each of the plurality of items a critical stocking ratio what indicates a total quantity of each of the plurality of items which can be held in inventory over the forecast period;

using the critical stocking ratio for each of the plurality of items to apportion the total quantity of each of the plurality of items which can be held in inventory over the forecast period in shares to the plurality of geographically distinct distribution points in the supply chain by assigning over the forecast period a base stock level for each of the plurality of items at each of the plurality of geographically distinct distribution points in the supply chain and a reorder point for each of the plurality of items at each of the plurality of geographically distinct distribution points in the supply chain;

determining a replenishment method for each of the plurality of items at each of the plurality of geographically distinct distribution points in the supply chain; and

executing the replenishment method to create orders for items at any of the plurality of geographically distinct distribution points in the supply chain that fail to have a base stock level for any of the plurality of items thereby causing inventory within the supply chain to be managed in accordance with the critical stocking ratio.

2. The computer-readable media as recited in claim 1, wherein the instructions compile and aggregate historical demand data for use in providing the forecast of demand for each of the plurality of items.

3. The computer-readable media as recited in claim 2, wherein the historical demand data comprises data representative of demand created by a need to replenish each of the plurality of items at various ones of the plurality of geographically distinct distribution points within the supply chain.

4. The computer-readable media as recited in claim 2, wherein the historical demand data comprises data representative of demand created by a need to fulfill customer orders for each of the plurality of items.

5. The computer-readable media as recited in claim 1, wherein providing the forecast of demand for each of the plurality of items comprises taking into account historical effects of world factors.

6. The computer-readable media as recited in claim 1, wherein providing the forecast of demand for each of the plurality of items comprises considering a need for each of the plurality of items in performance of a maintenance task.