Method for monitoring excess inventory

• US 5,960,414 A
• Filed: 11/25/1997
• Issued: 09/28/1999
• Est. Priority Date: 11/25/1997
• Status: Expired due to Fees

• Current Assignee: Hewlett-Packard Development Company, L.P. (HP Inc.)
• Original Assignee: Hewlett-Packard Company (HP Inc.)
• Inventors: Rand, Christopher James, Peterson, Karla Jane
• Primary Examiner(s): Peeso, Thomas R.
• Application Number:
  US08/977,303
• Time in Patent Office: 672 Days
• Field of Search: 705/28, 705/22
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 20/203 Inventory monitoring

Abstract

An excess inventory system monitors excess material. In the system, requirements are determined for each component part over a predetermined period (e.g., 6 months) from material requirements planning (MRP) data. When forecasting for the component part is to be determined using an MRP planning method, the MRP data is used to determine a number of excess component parts. The number of excess components is then recorded in a record for the component part within an excess inventory table. When forecasting for the component part is to be determined using an alternate planning method which is alternate to MRP, the alternate planning method is used to determine a number of excess component parts. The number of excess components and a notation indicating the alternate planning method used are then recorded in the record for the component part within the excess inventory table.

Claims

1. A method for monitoring excess inventory for a component part, the method allowing flexibility in choosing a methodology for performing forecasting, and the method comprising the following steps:

(a) determining requirements for the component part over a predetermined period from material requirements planning (MRP) data;

(b) when forecasting for the component part is to be determined using an MRP planning method, performing the following substeps;

(b.1) determining, from the MRP data, a number of excess components parts, and

(b.2) recording the number of excess components in a record for the component part within an excess inventory table; and

,

(c) when forecasting for the component part is to be determined using an alternate planning method which is alternate to MRP, performing the following substeps;

(c.1) determining, from the alternate planning method, a number of excess component parts, and

(c.2) recording, in the record for the component part within the excess inventory table, the number of excess components and a notation indicating the alternate planning method used.

2. A method as in claim 1 wherein in substep (b.1) the number of excess component parts is determined using the following formula:

space="preserve" listing-type="equation">excess component parts=number of component parts on hand +number of component parts on order-requirements for the component part over the predetermined period.

3.

3. A method as in claim 1 wherein steps (a) through (c) are scheduled to be performed periodically after the performance of an MRP cycle.

4. A method as in claim 3 wherein steps (a) through (c) are scheduled to be performed periodically over one of the following periods:

hourly;

daily;

weekly; and

monthly.

5. A method as in claim 1 wherein in substep (b.2) includes, in response to an exclusion value entered by a user, excluding a certain amount of component parts from being regarded as excess.

6. A method for monitoring excess inventory for a component part comprising the following steps:

(a) determining requirements for the component part over a predetermined period from material requirements planning (MRP) data;

(b) when forecasting for the component part is to be determined using an MRP planning method, performing the following substeps;

(b.1) determining, from the MRP data, a number of excess component parts, and

(b.2) recording the number of excess components in a record for the component part within an excess inventory table;

(c) when forecasting for the component part is to be determined using an alternate planning method which is alternate to MRP, performing the following substeps;

(c.1) determining, from the alternate planning method, a number of excess component parts, and

(c.2) recording, in the record for the component part within the excess inventory table, the number of excess components and a notation indicating the alternate planning method used; and

,

(d) summarizing information in the excess inventory table and placing the summarized information into a summarized excess inventory table, the summarized excess inventory table including a record for a platform product which includes the component part.

7. A method as in claim 6 wherein step (d) includes the following substep:

(d.1) maintaining actual accruals for excess materials for the platform product.

8. A method as in claim 7 wherein substep (d.1) includes performing the following calculation to calculate current actual accruals:

space="preserve" listing-type="equation">current actual accruals=((last period actual accruals+new accruals)-de-accruals)-dispositions against accruals.

9. A method as in claim 6 wherein step (d) includes the following substep:

(d.1) maintaining year-to-date (YTD) obsolescence value for excess materials for the platform product.

10. A method as in claim 9 wherein substep (d.1) includes performing the following calculation to calculate the YTD obsolescence value for excess materials for the platform product:

space="preserve" listing-type="equation">YTD obsolescence value=((last period YTD obsolescence value +actual accruals)-de-accruals)-direct dispositions-recovery dollars.

11. A method for monitoring excess inventory comprising the following steps:

(a) determining requirements for material over a predetermined period from material requirements planning (MRP) data;

(b) recording the number of excess material within an excess inventory table, the excess inventory table including a record for each component part for which there is excess; and

,

(c) summarizing information in the excess inventory table and placing the summarized information into a summarized excess inventory table, the summarized excess inventory table including a record for a platform product which includes component parts for which there is excess, including the following substep;

(c.1) maintaining actual accruals for excess materials for the platform product.

12. A method as in claim 11 wherein substep (c.1) includes performing the following calculation to calculate current actual accruals:

space="preserve" listing-type="equation">current actual accruals=((last period actual accruals+new accruals)-de-accruals)-dispositions against accruals.

13. A method for monitoring excess inventory comprising the following steps:

(a) determining requirements for material over a predetermined period from material requirements planning (MRP) data;

(b) recording the number of excess material within an excess inventory table, the excess inventory table including a record for each component part for which there is excess; and

,

(c) summarizing information in the excess inventory table and placing the summarized information into a summarized excess inventory table, the summarized excess inventory table including a record for a platform product which includes component parts for which there is excess, including the following substep;

(c.1) maintaining year-to-date (YTD) obsolescence value for excess materials for the platform product.

14. A method as in claim 13 wherein substep (c.1) includes performing the following calculation to calculate the YTD obsolescence value for excess materials for the platform product:

space="preserve" listing-type="equation">YTD obsolescence value=((last period YTD obsolescence value +actual accruals)-de-accruals)-direct dispositions-recovery dollars.

15. An excess inventory monitoring system, comprising:

an excess inventory table, containing records which track excess material;

a strip program which determines, from material requirements planning (MRP) data, requirements for a component part over a predetermined period and a number of excess component parts; and

a load program for recording the number of excess components in a record for the component part within the excess inventory table;

wherein when forecasting for the component part is to be determined using an MRP planning method, the number of excess component parts is determined from the MRP data; and

,

wherein when forecasting for the component part is to be determined using an alternate planning method which is alternate to MRP, the number of excess component parts is determined from the alternate planning method and a notation indicating the alternate planning method used is placed in the record.

16. An excess inventory monitoring system as in claim 15 wherein when forecasting for the component part is to be determined using an MRP planning inventory monitoring system, the number of excess component parts is determined using the following formula:

space="preserve" listing-type="equation">excess component parts=number of component parts on hand +number of component parts on order-requirements for the component part over the predetermined period.

17.

17. An excess inventory monitoring system as in claim 15 wherein the excess inventory monitoring system, in response to an exclusion value entered by a user, excludes a certain amount of component parts from being regarded as excess.

18. An excess inventory monitoring system as in claim 15 additionally comprising:

a summarized excess inventory table into which is placed summarized information from the excess inventory table, the summarized excess inventory table including a summarized record for a platform product which includes the component part.

19. An excess inventory monitoring system as in claim 18 the summarized record includes a field for maintaining actual accruals for excess materials for the platform product.

20. An excess inventory monitoring system as in claim 19 wherein the actual accruals for excess materials for the platform product is calculated as below:

space="preserve" listing-type="equation">current actual accruals=((last period actual accruals+new accruals)-de-accruals)-dispositions against accruals.

21. An excess inventory monitoring system as in claim 18 the summarized record includes a field for maintaining year-to-date (YTD) obsolescence value for excess materials for the platform product.

22. An excess inventory monitoring system as in claim 21 wherein the YTD obsolescence value for excess materials for the platform product is calculated as below:

space="preserve" listing-type="equation">YTD obsolescence value=((last period YTD obsolescence value +actual accruals)-de-accruals)-direct dispositions-recovery dollars.