Inventory replication based upon order fulfillment rates

• US 20100241269A1
• Filed: 05/22/2010
• Published: 09/23/2010
• Est. Priority Date: 05/11/1999
• Status: Abandoned Application

• Current Assignee: JUNE RAY LIMITED
• Original Assignee: JUNE RAY LIMITED
• Inventors: Bhargava, Gautam, Hari, Radhakrishna, Koenig, Franklin R., Perham, Gerry, Ham, Peter, Klots, Boris
• Application Number:
  US12/800,759
• Publication Number:
  US 20100241269A1
• Time in Patent Office: Days
• US Class Current: 700/214
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0617 Representative agent
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing

Abstract

A load balancing technology segregates various inventory types (e.g., potatoes vs. milk, vs. pretzels, vs. tissue paper, etc.) based upon how frequently they are ordered in a distribution center. Inventory types that are ordered at the slowest rate are not “replicated” over multiple pods in the distribution center. Rather, they are constrained to reside at a single pod within the distribution center. Items that are ordered somewhat more frequently than those in the slowest group are replicated in multiple pods across the distribution center. In other words, these items are separately stocked at locations on more than one pod in the distribution center. This means that a container passing through the distribution center can obtain each of the items in the second group of item types at multiple pods in the distribution center. Thus, these items do not create a bottleneck in the order fulfillment process. Inventory types in a third group, the fastest movers, are segregated from items in the first two groups. They are stored in a separate type of pod that fulfills orders even faster than the other type of pods.

Claims

1. A computer-implemented method for managing an on-line store, including distributing inventory to facilitate order throughput in a distribution center that has a plurality of storage areas, the method comprising:

determining, by a computing device, a consumption rate of a product based on information concerning orders of a plurality of customers over a period of time, not just an instance in time, to assist with distributing the product in the distribution center; and

assigning, by a computing device, a first and a second storage areas for the product in the distribution center based on the determined consumption rate,

wherein in determining the consumption rate of the product, the quantity of the product associated with those orders having the product is considered,

wherein the first and the second storage areas are assigned for the product because of the consumption rate of the product, which is higher than the consumption rate of at least one other product, and

wherein the first but not the second storage area is assigned for the at least one other product because of the consumption rate of the at least one other product, which is lower than the consumption rate of the product.

2. The method of claim 1,

wherein the distribution system has a management system,

wherein the management system of the distribution center manages the movement of a plurality of conveyors in the distribution center, and

wherein at least one conveyor is configured to move a container to a storage area to allow a product in the container to be stored in the storage area.

3. The method of claim 1,

wherein the distribution system has a management system,

wherein the management system of the distribution center manages the movement of a conveyor in the distribution center,

wherein the management system of the distribution center manages the movement of a carousel in the distribution center to store different products, and

wherein the carousel is configured to be proximate to the conveyor to assist moving products from the conveyor to be stored in the carousel.

4. The method of claim 1, further comprising identifying yet another product that is being consumed faster than the product, and providing the yet another product in one or more high throughput storage areas.

5. The method of claim 1,

wherein the first storage area is assigned for the product also based on the location of an existing product in the distribution center,

wherein the distribution center includes a plurality of zones,

wherein the product is categorized into one of the plurality of zones, and

wherein the assigning of the storage area also requires the product to be assigned in the one of the plurality of zones.

6. The method of claim 5, wherein the one of the plurality of zones is categorized based on humidity.

7. The method of claim 5, wherein the one of the plurality of zones is categorized based on product fragility.

8. The method of claim 5, wherein the one of the plurality of zones is categorized based on temperature.

9. The method of claim 5, wherein the one of the plurality of zones is categorized based on regulatory consideration.

10. The method of claim 1, wherein a velocity curve is determined to help group a plurality of products based upon their relative consumption rates for assigning the plurality of products into different storage areas in the distribution center.

11. A distribution center having inventory arranged to facilitate order throughput, the distribution center comprising:

at least a first and a second storage areas to store products for filling orders; and

a controller configured to assign

the first and the second storage areas for a product in the distribution center based on a consumption rate of the product, and

the first but not the second storage area for another product because of a consumption rate of the another product, which is lower than the consumption rate of the product;

wherein the consumption rate of the product is determined based on information concerning orders of a plurality of customers over a period of time, not just an instance in time, and

wherein in determining the consumption rate of the product, the quantity of the product associated with those orders having the product is considered.

12. The distribution center of claim 11, wherein the distribution center includes carousels that rotate into various positions and thereby make different products in the distribution center available for order fulfillment.

13. The distribution center of claim 11, wherein the another product is consumed at a rate of less than one bin'"'"'s worth of inventory per unit time, and wherein a bin is a portion of the area that holds only one product.

14. The distribution center of claim 11,

wherein the first area is assigned for the product also based on the location of an existing product in the distribution center,

wherein the distribution center includes a plurality of zones,

wherein the product is categorized into one of the plurality of zones, and

wherein the assigning of the storage area also requires the product to be assigned in the one of the plurality of zones.

15. The distribution center of claim 14, wherein the one of the plurality of zones is categorized based on humidity.

16. The distribution center of claim 14, wherein the one of the plurality of zones is categorized based on product fragility.

17. The distribution center of claim 14, wherein the one of the plurality of zones is categorized based on temperature.

18. The distribution center of claim 14, wherein the one of the plurality of zones is categorized based on regulatory consideration.

19. The distribution center of claim 11, wherein a velocity curve is determined to help group a plurality of products based upon their relative consumption rates for assigning the plurality of products into different storage areas in the distribution center.

20. A computer-implemented method for managing an on-line store, including distributing inventory to facilitate order throughput in a distribution center that has a plurality of storage areas, and that has a plurality of zones, the method comprising:

determining, by a computing device, a consumption rate of a product based on information concerning orders of a plurality of customers over a period of time, not just an instance in time, to assist with distributing the product in the distribution center;

identifying, by a computing device, the zone that the product belongs; and

assigning, by a computing device,

a first and a second storage areas for the product in the distribution center based on the determined consumption rate and the zone that the product belongs, and

the first storage, but not the second storage area, for another product because of the consumption rate of the another product, which is lower than the consumption rate of the product,

wherein in determining the consumption rate of the product, the quantity of the product associated with those orders having the product is considered.