SYSTEMS AND METHODS FOR INVENTORY REPLENISHMENT AND ALLOCATION

• US 20180218314A1
• Filed: 01/31/2017
• Published: 08/02/2018
• Est. Priority Date: 01/31/2017
• Status: Active Grant

• Current Assignee: Walmart Apollo, LLC (WalMart Inc.)
• Original Assignee: Wal Mart Stores Inc (WalMart Inc.)
• Inventors: Bowman, John, Bewli, Jagtej, Weill, Bradley, Kangude, Yamini, Gregory, Sony
• Granted Patent: US 10,504,057 B2
• Time in Patent Office: Days
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities

Abstract

In many embodiments, a method can comprise receiving an online order for an item from a user and receiving an estimate of a network stockout cost of a network associated with the item, the network comprising at least a first fulfillment center and a second fulfillment center. In some embodiments, the method further can comprise updating a first local stockout cost and updating a second local stockout. In various embodiments, the method further can comprise executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first local stockout cost, executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second local stockout cost, and selecting the first fulfillment center to deliver the item pursuant to the online order from the user based at least in part on the first stocking plan. Other embodiments of related methods and systems are also provided.

Claims

1. A system comprising:

one or more processing modules; and

one or more non-transitory storage modules storing computing instructions configured to run on the one or more processing modules and perform acts of;

receiving an online order for an item from a user;

receiving an estimate of a network stockout cost of a network associated with the item, the network comprising at least a first fulfillment center and a second fulfillment center;

determining a first local stockout cost of the first fulfillment center for the item by allocating a first portion of the network stockout cost to the first fulfillment center;

determining a second local stockout cost of the second fulfillment center for the item by allocating a second portion of the network stockout cost to the second fulfillment center;

updating the first local stockout cost by a first formula;

b₁*=EFR₂*b₁+(1−

EFR₂)*b_N;

wherein;

b₁* is an updated first local stockout cost;

EFR₂ is a second expected fill rate of the second fulfillment center;

b₁ is the first local stockout cost; and

b_N is the network stockout cost;

updating the second local stockout cost by a second formula;

b₂*=EFR₁*b₂+(1−

EFR₁)*b_N;

wherein;

b₂* is an updated second local stockout cost;

EFR₁ is a first expected fill rate of the first fulfillment center; and

b₂ is the second local stockout cost;

executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first local stockout cost;

executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second local stockout cost; and

selecting the first fulfillment center to deliver the item pursuant to the online order from the user based at least in part on the first stocking policy.

2. The system of claim 1, wherein:

the item comprises a holding cost, the holding cost comprising;

a first item holding cost associated with stocking the item at the first fulfillment center; and

a second item holding cost associated with stocking the item at the second fulfillment center.

3. The system of claim 2, wherein:

the first local stockout cost is based at least in part on the first holding cost; and

the second local stockout cost is based at least in part on the second holding cost.

4. The system of claim 1, wherein:

the one or more non-transitory storage modules storing the computing instructions are configured to run on the one or more processing modules and further perform the acts of;

assigning a first geographic area to the first fulfillment center; and

assigning a second geographic area to the second fulfillment center;

wherein the first geographic area is different from the second geographic area.

5. The system of claim 1, wherein:

the one or more non-transitory storage modules storing the computing instructions are configured to run on the one or more processing modules and further perform the acts of;

determining an updated first mean demand of the item at the first fulfillment center based at least in part on the second expected fill rate.

6. The system of claim 5, wherein:

determining the updated first mean demand of the item at the first fulfillment center is based at least in part on the formula;

m₁*=m₁+(1−

EFR₂)*m₂;

wherein;

m₁* is the updated first mean demand;

m₁ is a estimated first mean demand; and

m₂ is an estimated second mean demand.

7. The system of claim 5, wherein:

the one or more non-transitory storage modules storing the computing instructions are configured to run on the one or more processing modules and further perform the acts of;

determining an updated second mean demand of the item at the second fulfillment center based at least in part on the first expected fill rate.

8. The system of claim 7, wherein:

determining the updated first mean demand of the item at the first fulfillment center is based at least in part on the formula;

m₂*=m₂+(1−

EFR₁)*m₁;

wherein;

m₂* is the updated second mean demand;

m₂ is a estimated second mean demand; and

m₁ is an estimated first mean demand.

9. A method comprising:

receiving an online order for an item from a user;

receiving an estimate of a network stockout cost of a network associated with the item, the network comprising at least a first fulfillment center and a second fulfillment center;

determining a first local stockout cost of the first fulfillment center for the item by allocating a first portion of the network stockout cost to the first fulfillment center;

determining a second local stockout cost of the second fulfillment center for the item by allocating a second portion of the network stockout cost to the second fulfillment center;

updating the first local stockout cost by a first formula;

b₁*=EFR₂*b₁+(1−

EFR₂)*b_N;

wherein;

b₁* is an updated first local stockout cost;

EFR₂ is a second expected fill rate of the second fulfillment center;

b₁ is the first local stockout cost; and

b_N is the network stockout cost;

updating the second local stockout cost by a second formula;

b₂*=EFR₁*b₂+(1−

EFR₁)*b_N;

wherein;

b₂* is an updated second local stockout cost;

EFR₁ is a first expected fill rate of the first fulfillment center;

and

b₂ is the second local stockout cost;

executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first local stockout cost;

executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second local stockout cost;

and

selecting the first fulfillment center to deliver the item pursuant to the online order from the user based at least in part on the first stocking plan.

10. The method of claim 9, wherein:

the item comprises a holding cost, the holding cost comprising;

a first item holding cost associated with stocking the item at the first fulfillment center; and

a second item holding cost associated with stocking the item at the second fulfillment center.

11. The method of claim 10, wherein:

the first local stockout cost is based at least in part on the first holding cost; and

the second local stockout cost is based at least in part on the second holding cost.

12. The method of claim 9, further comprising:

assigning a first geographic area to the first fulfillment center; and

assigning a second geographic area to the second fulfillment center,

wherein the first geographic area is different from the second geographic area.

13. The method of claim 9, further comprising:

determining an updated first mean demand of the item at the first fulfillment center based at least in part on the second expected fill rate.

14. The method of claim 13, wherein:

determining the updated first mean demand of the item at the first fulfillment center is based at least in part on the formula;

m₁*=m₁+(1−

EFR₂)*m₂;

wherein;

m₁* is the updated first mean demand;

m₁ is a estimated first mean demand; and

m₂ is an estimated second mean demand.

15. The system of claim 13, further comprising:

determining an updated second mean demand of the item at the second fulfillment center based at least in part on the first expected fill rate.

16. The system of claim 15, wherein:

determining the updated first mean demand of the item at the first fulfillment center is based at least in part on the formula;

m₂*=m₂+(1−

EFR₁)*m₁;

wherein;

m₂* is the updated second mean demand;

m₂ is a estimated second mean demand; and

m₁ is an estimated first mean demand.

17. A method comprising:

determining a network stockout cost of an item in a network, the network comprising at least a first fulfillment center and a second fulfillment center;

allocating a first portion of the network stockout cost of the item to the first fulfillment center of the network;

allocating a second portion of the network stockout cost of the item to the second fulfillment center of the network; and

updating the first portion of the network stockout cost by a first formula;

b₁*=EFR₂*b₁+(1−

EFR₂)*b_N;

wherein;

b₁* is an updated first portion of the network stockout cost;

EFR₂ is a second expected fill rate of the second fulfillment center;

b₁ is the first portion of the network stockout cost; and

b_N is the network stockout cost;

updating the second portion of the network stockout cost by a second formula;

b₂*=EFR₁*b₂+(1−

EFR₁)*b_N;

wherein;

b₂* is an updated second portion of the network stockout cost;

EFR₁ is a first expected fill rate of the first fulfillment center;

and

b₂ is the second portion of the network stockout cost;

executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first portion of the network stockout cost;

executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second portion of the network stockout cost; and

selecting the first fulfillment center to deliver the item pursuant to an online order from a user based at least in part on the first stocking plan.

18. The method of claim 17, wherein:

the item comprises a holding cost, the holding cost comprising;

a first item holding cost associated with stocking the item at the first fulfillment center; and

a second item holding cost associated with stocking the item at the second fulfillment center.

19. The method of claim 18, wherein:

the first local stockout cost is based at least in part on the first holding cost; and

the second local stockout cost is based at least in part on the second holding cost.

20. The method of claim 17, further comprising:

assigning a first geographic area to the first fulfillment center; and

assigning a second geographic area to the second fulfillment center,

wherein the first geographic area is different from the second geographic area.