Method and system for inventory management

• US 5,765,143 A
• Filed: 03/10/1995
• Issued: 06/09/1998
• Est. Priority Date: 02/28/1995
• Status: Expired due to Term

• Current Assignee: Epicor Software Corporation (Clayton, Dubilier & Rice Holdings LP)
• Original Assignee: Triad Systems Corp. (Clayton, Dubilier & Rice Holdings LP)
• Inventors: Pisarsky, Vladimir, Leach, James, Sheldon, David E.
• Primary Examiner(s): Voeltz, Emanuel T.
• Assistant Examiner(s): Bainbridge, Barton L.
• Application Number:
  US08/402,025
• Time in Patent Office: 1,187 Days
• Field of Search: 364/401 R, 364/402, 364/403, 395/210, 395/228, 705/10, 705/16, 705/22, 705/28
• US Class Current: 705/28
• 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 computer system and computer-implemented method for controlling inventory of vendors at one level of a part distribution chain. The system includes a computer programmed with software for generating order data in response to reference data indicative of sales, inventory, demographics, and/or market characteristics of or pertaining to at least two vendors at the same distribution level. The order data is indicative of one or more of a recommended inventory increase transaction (such as a reorder by a vendor of a sold part); an inventory reduction transaction (such as a return of one or more parts in stock at the vendor); and a recommended stocking level of one or more parts by the vendor. When the computer is operated by personnel of a first vendor, it receives reference data concerning at least one other vendor at the same distribution level (in addition to processing reference data concerning the first vendor. When the computer is a host computer, it receives reference data from two or more vendors at the same distribution level. Preferably, the computer which generates the order data is programmed to generate the order data by processing forecast data which is generated by processing the reference data. To generate the forecast data, the computer preferably implements a point-of-sale based method or an actuarial method to determine a forecast of sales of a part by a vendor in a selected time period.

Claims

1. A computer system for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said computer system including:

a first computer programmed with order data generation software for generating order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics include sales characteristics, inventory characteristics, and market characteristics, wherein the first computer is a host computers;

a second computer, connected for communication with the first computer, and programmed with software for supplying a first portion of the reference data to the first computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor include sales characteristics of the second vendor, inventory characteristics of the second vendor, and market characteristics pertaining to the second vendor; and

a third computer, connected for communication with the host computer, and programmed with software for supplying a second portion of the reference data to the host computer, said second portion consisting of data indicative of characteristics of the first vendor, where said characteristics of the first vendor consist of at least one member of the set consisting of sales characteristics of the first vendor, inventory characteristics of the first vendor, market characteristics of the first vendor, and demographic characteristics pertaining to the first vendor.

4. The system of claim 1, wherein the order data is indicative of a recommended inventory increase transaction.

5. The system of claim 1, wherein the order data is indicative of a recommended inventory decrease transaction.

6. The system of claim 1, wherein the order data is indicative of a recommended stocking level of parts by at least one of the first vendor and the second vendor.

7. The system of claim 1, wherein the order data generation software includes:

forecast data generation software for generating forecast data by processing the reference data; and

software for processing the forecast data to generate the order data.

8. The system of claim 7, where the forecast data generation software generates the forecast data by implementing a point-of-sale based method, where the forecast data includes data indicative of a forecasted number of sales of a part in a first time period by the first vendor, where the forecasted number of sales of said part is F, where F=W×

D×

T, where W is a weighted average of relative store sales of the part by a population of vendors which stock the part, T is a trend factor for the part, and D is a total demand potential for the first vendor of all parts similar to the part.

9. The system of claim 8, wherein the total demand potential, D, is indicative of actual number of sales by the first vendor of all parts similar to the part stocked by said first vendor in a second time period having duration substantially equal to that of the first time period, adjusted to include estimated sales activity for parts similar to the part that are not stocked by said first vendor.

10. The system of claim 7, where the forecast data generation software generates the forecast data by implementing an actuarial method.

11. The system of claim 10, where the forecast data are indicative of a forecasted number of sales of a part in a first time period by the first vendor, and the forecasted data are determined by processing data indicative of vehicle population by age fit by the part in the first vendor'"'"'s market area, data indicative of failure rate for the part per vehicle by age during the first time period, and data indicative of an estimate of the first vendor'"'"'s relative market share in the first vendor'"'"'s market area during said first time period.

13. The system of claim 11, wherein each said weighting factor W_j is a measure of similarity of the "j"th vendor and the first vendor, based on statistical analysis of characteristics of said "j"th vendor and said first vendor.

2. A computer system for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said computer system including:

a first computer programmed with order data generation software for generating order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics include sales characteristics, inventory characteristics, and market characteristics, wherein the first computer is a first vendor computer; and

a second computer, connected for communication with the first computer, and programmed with software for supplying a first portion of the reference data to the first computer said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor include sales characteristics of the second vendor, inventory characteristics of the second vendor, and market characteristics pertaining to the second vendor, wherein the second computer is a second vendor computer, and the first computer is also programmed with software for generating a second portion of the reference data, said second portion consisting of data indicative of characteristics of the first vendor, where said characteristics of the first vendor consist of at least one member of the set consisting of sales characteristics of the first vendor, inventory characteristics of the first vendor, and market characteristics of the first vendor.

3. A computer system for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said computer system including:

a first computer programmed with order data generation software for generating order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics include sales characteristics, inventory characteristics, and market characteristics; and

a second computer, connected for communication with the first computer, and programmed with software for supplying a first portion of the reference data co the first computer, said first portion consisting to data indicative of characteristics of the second vendor, where said characteristics of the second vendor include sales characteristics of the second vendor, inventory characteristics of the second vendor, and market characteristics pertaining to the second vendor, wherein the reference data indicative of market characteristics includes data indicative of vehicle population by age fit by part, data indicative of part failure rate per vehicle by age during a selected time period, and data indicative of an estimate of relative market share of said at least one of the vendors during the selected time period.

12. A computer system for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said computer system including:

a first computer programmed with order data generation software for generating order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics consist of at least one member of the set consisting of sales characteristics, inventory characteristics, demographic characteristics, and market characteristics; and

a second computer, connected for communication with the first computer, and programmed with software for supplying a first portion of the reference data to the first computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor consist of at least one member of the set consisting of sales characteristics of the second vendor, inventory characteristics of the second vendor, market characteristics of the second vendor, and demographic characteristics pertaining to the second vendor, wherein the order data generation software includes;

forecast data generation software for generating forecast data by processing the reference data; and

software for processing the forecast data to generate the order data, where the forecast data generation software generates the forecast data by implementing a point-of-sale based method, where the forecast data includes data indicative of a forecasted number of sales of a part in a first time period by the first vendor, where the forecasted number of sales of said part is F, where F=W×

D×

T, where W is a weighted average of relative store sales of the part by a population of vendors which stock the part, T is a trend factor for the part, and D is a total demand potential for the first vendor of all parts similar to the part, wherein the population consists of a number, i, of vendors, and wherein the weighted average, W, satisfies

W=(W₁ R₁ /S₁ +W₂ R₂ /S₂ +. . . +W_i R_i /S_i)/i, where R_j is an amount of sales of the part by the "j"th vendor in the population, j is a number in the range from 1 through i, S_j is an amount of sales of all parts similar to the part by the "j"th vendor in the population, and W_j is a weighting factor for the "j"th vendor in the population.

14. A computer system for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said computer system including:

a first computer programmed with order data generation software for generating order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics consist of at least one member of the set consisting of sales characteristics, inventory characteristics, demographic characteristics, and market characteristics; and

a second computer, connected for communication with the first computer, and programmed with software for supplying a first portion of the reference data to the first computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor consist of at least one member of the set consisting of sales characteristics of the second vendor, inventory characteristics of the second vendor, market characteristics of the second vendor, and demographic characteristics pertaining to the second vendor, wherein the order data generation software includes;

forecast data generation software for generating forecast data by processing the reference data; and

software for processing the forecast data to generate the order data, where the forecast data generation software generates the forecast data by implementing a point-of-sale based method, where the forecast data includes data indicative of a forecasted number of sales of a part in a first time period by the first vendor, where the forecasted number of sales of said part is F, where F=W×

D×

T, where W is a weighted average of relative store sales of the part by a population of vendors which stock the part, T is a trend factor for the part, and D is a total demand potential for the first vendor of all parts similar to the part, wherein the population consists of a number, i, of vendors, and wherein the weighted average, W, satisfies

space="preserve" listing-type="equation">W=(W'"'"'.sub.1 R.sub.1 +W'"'"'.sub.2 R.sub.2 +. . . +W'"'"'.sub.i R.sub.i)/ (W".sub.1 S.sub.1 +W"/.sub.2 S.sub.2 +. . . +W".sub.i S.sub.i)

where R_j is an amount of sales of the part by the "j"th vendor in the population, S_j is an amount of sales of all parts similar to the part by the "j"th vendor in the population, W'"'"'_j is a weighting factor for the "j"th vendor in the population, and W"_j is another weighting factor for the "j"th vendor in the population.

15. The system of claim 14, wherein each said weighting factor W_j is a measure of similarity of the "j"th vendor and the first vendor, based on statistical analysis of characteristics of said "j"th vendor and said first vendor.

16. A computer system for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said computer system including:

a first computer programmed with order data generation software for generating order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics consist of at least one member of the set consisting of sales characteristics, inventory characteristics, demographic characteristics, and market characteristics; and

a second computer, connected for communication with the first computer, and programmed with software for supplying a first portion of the reference data to the first computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor consist of at least one member of the set consisting of sales characteristics of the second vendor, inventory characteristics of the second vendor, market characteristics of the second vendor, and demographic characteristics pertaining to the second vendor, wherein the order data generation software includes;

forecast data generation software for generating forecast data by processing the reference data; and

software for processing the forecast data to generate the order data, where the forecast data generation software generates the forecast data by implementing an actuarial method, and wherein the forecast data include data indicative of a forecasted number of sales of a part in a first time period by the first vendor, where the forecasted number of sales of said part is F'"'"', where ##EQU5## where "a" is vehicle age expressed as an integral number from 1 to N of time units, N represents age of the oldest vehicle that can use the part, V_a is vehicle population of age "aa" fit by the part in the first vendor'"'"'s market area during the first time period, R_a is a failure rate for the part per vehicle of age "a" during the first time period, and S is an estimate of the first vendor'"'"'s relative market share in the first vendor'"'"'s market area during said first time period.

17. A method for controlling inventory of vendors at a single part distribution level, said vendors including at, least a first vendor and a second vendor, said method including the steps of:

(a) operating a first computer so as to generate order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics include sales characteristics, inventory characteristics, and market characteristics, wherein the first computer is a host computer;

(b) before step (a), supplying a first portion of the reference data to the first computer from a second computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor include sales characteristics of the second vendor, inventory characteristics of the second vendor, and market characteristics pertaining to the second vendor, and

(c) before step (a), supplying a second portion of the reference data from a third computer to the host computer, said second portion consisting of data indicative of characteristics of the first vendor, where said characteristics of the first vendor consist of at least one member of the set consisting of sales characteristics of the first vendor inventory characteristics of the first vendor, market characteristics of the first vendor, and demographic characteristics pertaining to the first vendor.

20. The method of claim 17, wherein the order data is indicative of a recommended inventory increase transaction.

21. The method of claim 17, wherein the order data is indicative of a recommended inventory decrease transaction.

22. The method of claim 17, wherein the order data is indicative of a recommended stocking level of parts by at lease one of the first vendor and the second vendor.

23. The method of claim 17, wherein step (a) includes the steps of:

(c) operating the first computer to generate forecast data by processing the reference data; and

(d) after step (c), operating the first computer to process the forecast data to generate the order data.

24. The method of claim 23, wherein the forecast data includes data indicative of a forecasted number of sales of a part in a first time period by the first vendor, where the forecasted number of sales of said part is F, where F=W×

D×

T, where W is a weighted average of relative store sales of the part by a population of vendors which stock the part, D is a total demand potential for the first vendor of all parts similar to the part, and T is a trend factor for the part.

25. The method of claim 24, wherein the total demand potential, D, is indicative of actual number of sales by the first vendor of all parts similar to the part stocked by said first vendor in a second time period having duration substantially equal to that of the first time period, adjusted to include estimated sales activity for parts similar to the part that are not stocked by said first vendor.

26. The method of claim 23, wherein the forecast data are indicative of a forecasted number of sales of a part in a first time period by the first vendor, and the forecasted data are determined by processing data indicative of vehicle population by age fit by the part in the first vendor'"'"'s market area, data indicative of failure rate for the part per vehicle by age during the first time period, and data indicative of an estimate of the first vendor'"'"'s relative market share in the first vendor'"'"'s market area during said first time period.

18. A method for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said method including the steps of:

(a) operating a first computer so as to generate order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics include sales characteristics, inventory characteristics, and market characteristics, wherein the first computer is a first vendor computers;

(b) before step (a), supplying a first portion of the reference data to the first computer from a second computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor include sales characteristics of the second vendor, inventory characteristics of the second vendor, and market characteristics pertaining to the second vendor, wherein the second computer is a second vendor computer; and

(c) before step (a), operating the first computer to generate a second portion of the reference data, said second portion consisting of data indicative of characteristics of the first vendor, where said characteristics of the first vendor consist of at least one member of the set consisting of sales characteristics of the first vendor, inventory characteristics of the first vendor, market characteristics of the first vendor, and demographic characteristics pertaining to the first vendor.

19. A method for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said method including the steps of:

(a) operating a first computer so as to generate order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics include sales characteristics, inventory characteristics, and market characteristics; and

(b) before step (a), supplying a first portion of the reference data to the first computer from a second computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor include sales characteristics of the second vendor, inventory characteristics of the second vendor, and market characteristics pertaining to the second vendor, wherein the reference data indicative of market characteristics of each of said at least two of the vendors includes data indicative of vehicle population by age fit by part, data indicative of part failure rate per vehicle by age during a selected time period, and data indicative of an estimate of relative market share of said at least one of the vendors during the selected time period.

27. A method for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said method including the steps of:

(a) operating a first computer so as to generate order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics consist of at least one member of the set consisting of sales characteristics, inventory characteristics, demographic characteristics, and market characteristics; and

(b) before step (a), supplying a first portion of the reference data to the first computer from a second computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor consist of at least one member of the set consisting of sales characteristics of the second vendor, inventory characteristics of the second vendor, market characteristics of the second vendor, and demographic characteristics pertaining to the second vendor, wherein step (a) includes the steps of;

(c) operating the first computer to generate forecast data by processing the reference data; and

(d) after step (c), operating the first computer to process the forecast data to generate the order data, wherein the forecast data includes data indicative of a forecasted number of sales of a part in a first time period by the first vendor, where the forecasted number of sales of said part is F, where F=W×

D×

T, where W is a weighted average of relative store sales of the part by a population of vendors which stock the part, D is a total demand potential for the first vendor of all parts similar to the part, and T is a trend factor for the part, wherein the population consists of a number, i, of vendors, and wherein the weighted average, W, satisfies

space="preserve" listing-type="equation">W=(W.sub.1 R.sub.1 /S.sub.i +W.sub.2 R.sub.2 /S.sub.2 +. . . +W.sub.i R.sub.i /S.sub.i)/i,

where R_j is an amount of sales of the part by the "j"th vendor in the population, j is a number in the range from 1 through i, Si is an amount of sales of all parts by the "j"th vendor in the population, and W is a weighting factor for the "j"th vendor in the population.

28. The method of claim 27, wherein each said weighting factor W_j is a measure of similarity of the "j"th vendor and the first vendor, based on statistical analysis of characteristics of said "j"th vendor and said first vendor.

29. A method for controlling inventory of vendors at a single part distribution level, said vendors including at least a first vendor and a second vendor, said method including the steps of:

(a) operating a first computer so as to generate order data in response to reference data, where the reference data is indicative of characteristics of at least two of the vendors, where the characteristics consist of at least one member of the set consisting of sales characteristics, inventory characteristics, demographic characteristics, and market characteristics; and

(b) before step (a) supplying a first portion of the reference data to the first computer from a second computer, said first portion consisting of data indicative of characteristics of the second vendor, where said characteristics of the second vendor consist of at least one member of the set consisting of sales characteristics of the second vendor, inventory characteristics of the second vendor, market characteristics of the second vendor, and demographic characteristics pertaining to the second vendor, wherein step (a) includes the steps of;

(c) operating the first computer to generate forecast data by processing the reference data; and

(d) after step (c), operating the first computer to process the forecast data to generate the order data, wherein the forecast data includes data indicative of a forecasted number of sales of a part in a first time period by the first vendor, where the forecasted number of sales of said part is F'"'"', where ##EQU6## where "a" is vehicle age expressed as an integral number from 1 to N of time units, N represents age of the oldest vehicle that can use the part, V_a is vehicle population of age "a" fit by the part in the first vendor'"'"'s market area during the first time period, R_a is a failure rate for the part per vehicle of age "a" during the first time period, and S is an estimate of the first vendor'"'"'s relative market share in the first vendor'"'"'s market area during said first time period.