Cost optimization system for supplying parts

• US 5,063,506 A
• Filed: 10/23/1989
• Issued: 11/05/1991
• Est. Priority Date: 10/23/1989
• Status: Expired due to Fees

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Brockwell, John C., Collins, Edward J.
• Primary Examiner(s): Smith, Jerry
• Assistant Examiner(s): CASS, RUSSELL
• Application Number:
  US07/425,615
• Time in Patent Office: 743 Days
• Field of Search: 364/402, 364/403, 364/401, 364/408, 364/468
• US Class Current: 705/7.37
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/06316 Sequencing of tasks or work
• 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 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/04 Billing or invoicing

Abstract

A cost estimation system estimates the cost of supplying parts to a manufacturing facility. The system comprises a first database for storing cost information for various supply methods including air freight, ocean freight, land freight, warehouse storage, plant storage and material handling costs. A user selects a supply method for the parts, and has the option to select a percentage of one type of transportation and a percentage of an alternate type of transportation to serve as a back-up. A user also enters delivery frequency data indicating one or more frequencies of delivery to base a cost estimation. A computer processor then estimates the cost of supplying the parts at the one or more frequencies of delivery and the selected supply method. Finally, the cost estimates are presented to a user.

Claims

1. A computer system for estimating the cost of supplying parts to a manufacturing facility at one or more delivery frequencies and a selected supply method, said system comprising:

first database definition means for defining a first database to simultaneously store cost information for a plurality of alternate supply methods;

option entry means for user selection of at least one of said supply methods for said parts, said supply method impacting the cost of supplying said parts to said manufacturing facility, said option entry means permitting a user to select a nonzero percentage of air transportation and a nonzero percentage of land transportation for said parts over the same leg of a supply route;

data entry means for user entry of delivery frequency data indicating one or more preferred frequencies of delivery to base a cost estimation;

storage means, coupled to said option entry means and said data entry means, for storing said selections and data; and

processing means, coupled to said first database and said storage means, for estimating the cost of supplying said parts at said one or more frequencies of delivery and the selected supply method.

2. A computer system as set forth in claim 1 wherein said supply methods comprise space and handling methods.

3. A computer system as set forth in claim 1 wherein said supply methods comprise just-in-time and warehouse store and deliver methods.

4. A computer system as set forth in claim 1 wherein said alternate supply methods comprise plant floor storage vs. warehouse storage methods, and the user can use said option entry means to select either one of said storage methods.

5. A computer system as set forth in claim 1 wherein said data entry means permits user entry of duty rates.

6. A computer system as set forth in claim 1 wherein

said data entry means permits the entry of minimum and maximum delivery frequencies;

and

said processing means estimates costs based on a plurality of delivery frequencies between said minimum and maximum delivery frequencies.

7. A computer system as set forth in claim 6 wherein said processing means identifies an optimum one of said delivery frequencies for minimizing costs.

8. A computer system as set forth in claim 1 wherein said data entry means receives data entries defining a level of protective stock, and said processing means bases in part a cost estimation on said level.

9. A computer system as set forth in claim 1 wherein said supply method comprise air, ocean and land freight.

10. A computer system as set forth in claim 1 further comprising

display means, coupled to said processing means, for displaying said cost estimate and an itemization of costs for separate elements of said cost estimate, said elements corresponding to said selected supply method;

and means, coupled to said display means, for changing said selected supply method and directing said processor means to determine a new cost estimate.

11. A computer system as set forth in claim 1 wherein said percentages of air transportation and land transportation total one hundred percent.

12. A computer system for estimating the cost of supplying parts to a manufacturing facility, said system comprising:

first database definition means for defining a first database to store cost information for a plurality of alternate transportation methods for the same leg of a supply route, and cost information for other components of a logistics plan;

option entry means for user selection of a nonzero amount of use of one of said transportation methods and a nonzero amount of alternate use of another one of said transportation methods for the same leg of said supply route, and selection from said other components of said logistics plan;

storage means, coupled to said option entry means, for storing said selections; and

processing means, coupled to said first database and said storage means, for estimating the cost of supplying said parts at the selected amounts of use of said transportation methods for the same leg of said supply route and the other selected components of said logistics plan.

13. A computer system as set forth in claim 12 wherein said amounts of use of said transportation methods for said leg of said supply route total one hundred percent.

14. A computer system as set forth in claim 12 wherein said option entry means permits said user to select a nonzero percentage of air transportation and a nonzero percentage of land transportation for said parts over the same leg of said supply route.

15. A computer system as set forth in claim 12 wherein said option entry means permits said user to select a nonzero percentage of international air transportation and a nonzero percentage of ocean transportation for said parts over the same leg of said supply route.

16. A computer system for estimating the cost of supplying parts to a manufacturing facility at a selected supply method, said system comprising:

first database definition means for defining a first database to simultaneously store cost information for a plurality of alternate supply methods;

option entry means for user selection of at least one of said supply methods for said parts, the selected supply method or methods impacting the cost of supplying said parts to said manufacturing facility, said option entry means permitting said user to select a nonzero percentage of one type of transportation and a nonzero percentage of another type of transportation for said parts over a same leg of a supply route;

storage means, coupled to said option entry means, for storing said selection; and

processing means, coupled to said first database and said storage means, for estimating the cost of supplying said parts based on a combination of the selected percentages of use of said transportation methods for the same leg of said supply route.

17. A computer system as set forth in claim 16 wherein said percentages of transportation for said same leg of said supply route total one hundred percent.