System and method for managing available to promised product (ATP)

• US 6,188,989 B1
• Filed: 06/16/1995
• Issued: 02/13/2001
• Est. Priority Date: 06/16/1995
• Status: Expired due to Term

• Current Assignee: JDA Software Group Incorporated (Panasonic Holdings Corporation)
• Original Assignee: i2 Technologies Incorporated (Panasonic Holdings Corporation)
• Inventors: Kennedy, Brian M.
• Primary Examiner(s): Voeltz, Emanuel Todd
• Assistant Examiner(s): KALINOWSKI, ALEXANDER G
• Application Number:
  US08/491,167
• Time in Patent Office: 2,069 Days
• Field of Search: 395/208, 395/210, 705/8, 705/10, 709/103, 709/104, 700/99, 700/100, 700/101, 700/106
• US Class Current: 705/7.25
• 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 10/087 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
• CPC Class Codes: Y02P 90/80 Management or planning

Abstract

A system and method are disclosed for automatically managing available to promise product and making of promises to fulfill customer requests from the available to promise product. The system includes a data storage device that stores at least one seller model which represents a seller entity that is selling at least one product. The system also includes an execution memory operable to hold a software system, and a processor operable to execute the software system. When executed, the software system operates to use the at least one seller model to represent a forecast for the number of the at least one product that is expected to be sold by the seller and to define commitment levels with respect to the forecast in order to create forecast requests for the at least one product. The software system then provides the forecast requests to supplier sites and receives responsive promises made by the supplier sites to fill the forecast requests. The software system represents the promises made by the supplier sites to the seller entity as available to promise product to be used for promising to fill actual customer requests, and adjusts the available to promise product responsive to any promises made to fill actual customer requests. The available to promise product thereby automatically reflects product that has been promised by a supplier site but not promised to a customer.

Claims

1. A system for managing data associated with available to promise (ATP) products, comprising:

a memory operable to store a hierarchy of at least two seller models that each represent a seller for one or more products, each product being represented using a product forecast model comprising;

a forecast value representing forecasted sales of the product through the seller;

a supply value representing planned supply of the product;

a representation of customer orders for the product through the seller; and

an allocation value representing unconsumed supply allocated to the seller; and

a processor coupled to the memory and operable to;

adjust the allocation values for sellers throughout the hierarchy according to one or more business criteria; and

compute, for each product and each seller in the hierarchy, the amount of the product that is ATP at the seller according to the supply value for the seller, the allocation value for the seller, the amount of the product that is ATP at one or more parent sellers of the seller, the allocation values for one or more child sellers of the seller, and the representation of customer orders for the seller and its child sellers.

2. The system of claim 1, wherein the business criteria are selected from the group consisting of seller criteria, product criteria, forecast criteria, supply criteria, customer order criteria, and policy criteria.

3. The system of claim 1, wherein:

each forecast model is extensible such that one or more allocation policy rules may be associated with the corresponding product;

each allocation policy rule comprises a restriction on the allocation values for sellers throughout the hierarchy; and

the allocation values are computed according to the allocation policy rules.

4. The system of claim 1, wherein each forecast model further comprises a plurality of supply plans, allocation values are computed according to the sum of the supply plans, and supply plans are associated with customer orders according to the business criteria.

5. The system of claim 1, further operable to adjust allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

6. The system of claim 1, further operable to:

communicate forecast models of each seller to a remote system;

receive from the remote system a promise computed at the remote system for a customer order requesting a quantity of a product through a particular seller, the promise being computed according to the allocation value for the seller;

receive from the remote system adjusted forecast models reflecting the promise; and

recompute the amount of the product that is ATP at sellers throughout the hierarchy.

7. The system of claim 6, wherein:

all forecast models for one or more sellers within the hierarchy are communicated to the remote system;

the system receives from the remote system a promise also computed according to the amount of product that is ATP at one or more parent sellers of the seller; and

adjust the amount of the product that is ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

8. The system of claim 1, further operable to adjust forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

9. The system of claim 8, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.

10. The system of claim 1, further operable to:

accept a customer order requesting a quantity of a product through a particular seller; and

compute a promise for the customer order according to the planned supply and one or more already existing customer orders for the product, the promise restricted according to the allocation value for the seller.

11. The system of claim 10, wherein:

the promise is also computed according to the amount of product that is ATP at one or more parent sellers of the seller; and

the amount of the product that is ATP at sellers is adjusted throughout the hierarchy if the promise exceeds the allocation value for the seller.

12. The system of claim 10, wherein:

a customer order promised less than its requested quantity may be queued for further consideration; and

the system is further operable to reconsider a queued customer order for opportunity to provide a more satisfactory promise in response to a supply plan being changed, an allocation value being adjusted, or a promise to another customer order being reduced.

13. The system of claim 1, wherein the forecast model further comprises a committed quantity representing an amount of the product the seller has committed to selling, the processor operable to adjust the allocation values for sellers throughout the hierarchy also according to the committed quantity.

14. The system of claim 13, further operable to adjust committed quantities for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

15. The system of claim 13, further operable to adjust allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

16. The system of claim 13, further operable to:

communicate forecast models of each seller to a remote system;

receive from the remote system a promise computed at the remote system for a customer order requesting a quantity of a product through a particular seller, the promise being computed according to the allocation value for the seller;

receive from the remote system adjusted forecast models reflecting the promise; and

recompute the amount of the product that is ATP at sellers throughout the hierarchy.

17. The system of claim 16, wherein:

all forecast models for one or more sellers within the hierarchy are communicated to the remote system;

the system receives from the remote system a promise also computed according to the amount of product that is ATP at one or more parent sellers of the seller; and

adjust the amount of the product that is ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

18. The system of claim 13, further operable to adjust forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

19. The system of claim 18, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.

20. A system for managing data associated with available to promise (ATP) products, comprising:

a memory operable to store at least one seller model representing a seller for a plurality of products, each product corresponding to a physical item with one or more restrictions on its sale, at least two products corresponding to the same physical item but with at least one different restriction, each product being represented using a product forecast model comprising;

a forecast value representing forecasted sales of the product through the seller;

a supply value representing planned supply of the product;

a representation of customer orders for the product through the seller; and

an allocation value representing unconsumed supply allocated to the seller; and

a processor coupled to the memory and operable to;

allow planned supply of a particular physical item to be distributed, according to one or more business criteria, among a plurality of products corresponding to the physical item,

adjust the allocation values for sellers throughout the hierarchy according to the business criteria; and

compute, for each product and each seller in the hierarchy, the amount of the product that is ATP at the seller according to the supply value for the seller, the allocation value for the seller, the amount of the product that is ATP at any one or more parent sellers of the seller, the allocation values for any one or more child sellers of the seller, and the representation of customer orders for the seller and its child sellers.

21. The system of claim 20, wherein the restrictions are selected from the group consisting of price restrictions, quantity restrictions, and lead time restrictions.

22. The system of claim 20, wherein the business criteria are selected from the group consisting of seller criteria, product criteria, forecast criteria, supply criteria, customer order criteria, and policy criteria.

23. The system of claim 20, wherein:

each forecast model is extensible such that one or more allocation policy rules may be associated with the corresponding product;

each allocation policy rule comprises a restriction on the allocation values for sellers throughout the hierarchy; and

the allocation values are computed according to the allocation policy rules.

24. The system of claim 20, wherein allocation rules allocate supply plans for physical items to one or more corresponding products for sellers throughout the hierarchy.

25. The system of claim 20, wherein each forecast model further comprises a plurality of supply plans, allocation values are computed according to the sum of the supply plans, and supply plans are associated with customer orders according to the business criteria.

26. The system of claim 20, further operable to adjust allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

27. The system of claim 20, further operable to adjust forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

28. The system of claim 27, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.

29. The system of claim 20, further operable to:

communicate forecast models of each seller to a remote system;

receive from the remote system a promise computed at the remote system for a customer order requesting a quantity of one or more physical items through a particular seller, the promise being computed according to at least the allocation values for corresponding products for the seller;

receive from the remote system adjusted forecast models reflecting the promise; and

recompute the amounts of the corresponding products that are ATP at sellers throughout the hierarchy.

30. The system of claim 29, wherein the promise comprises a plurality of options each with one or more of the restrictions specified for the products corresponding to the physical items.

31. The system of claim 29, wherein:

all forecast models for one or more sellers within the hierarchy are communicated to the remote system;

the system receives from the remote system a promise also computed according to the amounts of the corresponding products that are ATP at one or more parent sellers of the seller; and

adjust the amounts of the corresponding products that are ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

32. The system of claim 30, further operable to:

accept a customer order requesting quantities of one or more physical items through a particular seller; and

compute a promise for the customer order according to the allocation values for at least corresponding products for the seller, wherein the promise comprises a plurality of options each with one or more of the restrictions specified for these products.

33. The system of claim 32, wherein:

a customer order promised less than its requested quantity may be queued for further consideration; and

the system is further operable to reconsider a queued customer order for opportunity to provide a more satisfactory promise in response to a supply plan being changed, an allocation value being adjusted, or a promise to another customer order being reduced.

34. The system of claim 32, further operable to:

compute the promise also according to the amounts of the corresponding products that are ATP at one or more parent sellers of the seller; and

adjust the amounts of the corresponding products that are ATP at sellers throughout the hierarchy if the promise exceeds the allocation values for the corresponding products for the seller.

35. The system of claim 20, wherein the forecast model further comprises a committed quantity representing amounts of the corresponding products the seller has committed to selling, the processor operable to adjust the allocation values for sellers throughout the hierarchy also according to the committed quantity.

36. The system of claim 35, further operable to adjust committed quantities for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

37. The system of claim 35, further operable to adjust allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

38. The system of claim 35, further operable to:

communicate forecast models for each seller to a remote system;

receive from the remote system a promise computed at the remote system for a customer order requesting a quantity of one or more physical items through a particular seller, the promise being computed according to at least the allocation values for corresponding products for the seller;

receive from the remote system adjusted forecast models reflecting the promise; and

recompute the amounts of the corresponding products that are ATP at sellers throughout the hierarchy.

39. The system of claim 38, wherein:

all forecast models for one or more sellers within the hierarchy are communicated to the remote system;

the system receives from the remote system a promise also computed according to the amounts of the corresponding products that are ATP at one or more parent sellers of the seller; and

adjust the amounts of the corresponding products that are ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

40. The system of claim 35, further operable to adjust forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

41. The system of claim 40, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.

42. A method for managing data associated with available to promise (ATP) products, comprising:

storing a hierarchy of at least two seller models that each represent a seller for one or more products, each product being represented using a product forecast model comprising;

a forecast value representing forecasted sales of the product through the seller;

a supply value representing planned supply of the product;

a representation of customer orders for the product through the seller; and

an allocation value representing unconsumed supply allocated to the seller; and

adjusting the allocation values for sellers throughout the hierarchy according to one or more business criteria; and

computing, for each product and each seller in the hierarchy, the amount of the product that is ATP at the seller according to the supply value for the seller, the allocation value for the seller, the amount of the product that is ATP at any one or more parent sellers of the seller, the allocation values for any one or more child sellers of the seller, and the representation of customer orders for the seller and its child sellers.

43. The method of claim 42, wherein the business criteria are selected from the group consisting of seller criteria, product criteria, forecast criteria, supply criteria, customer order criteria, and policy criteria.

44. The method of claim 42, wherein:

each forecast model is extensible such that one or more allocation policy rules may be associated with the corresponding product;

each allocation policy rule comprises a restriction on the allocation values for sellers throughout the hierarchy; and

the allocation values are computed according to the allocation policy rules.

45. The method of claim 42, wherein each forecast model further comprises a plurality of supply plans, allocation values are computed according to the sum of the supply plans, and supply plans are associated with customer orders according to the business criteria.

46. The method of claim 42, further comprising adjusting allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

47. The method of claim 42, further comprising:

communicating forecast models of each seller to a remote system;

receiving a promise computed at the remote system for a customer order requesting a quantity of a product through a particular seller, the promise having been computed according to the allocation value for the seller;

receiving from the remote system adjusted forecast models reflecting the promise; and

recomputing the amount of the product that is ATP at sellers throughout the hierarchy.

48. The method of claim 47:

wherein all forecast models for one or more sellers in the hierarchy are communicated to the remote system;

wherein the promise has also been computed according to the amount of product that is ATP at one or more parent sellers of the seller; and

further comprising adjusting the amount of the product that is ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

49. The method of claim 42, further comprising adjusting forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

50. The method of claim 49, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.

51. The method of claim 42, further comprising:

accepting a customer order requesting a quantity of a product through a particular seller; and

computing a promise for the customer order according to the planned supply and one or more already existing customer orders for the product, the promise restricted according to the allocation value for the seller.

52. The method of claim 51, wherein:

the promise is also computed according to the amount of product that is ATP at one or more parent sellers of the seller; and

the amount of the product that is ATP at sellers is adjusted throughout the hierarchy if the promise exceeds the allocation value for the seller.

53. The method of claim 51, further comprising:

queuing for further consideration a customer order promised less than its requested quantity; and

reconsidering a queued customer order for opportunity to provide a more satisfactory promise in response to a supply plan being changed, an allocation value being adjusted, or a promise to another customer order being reduced.

54. The method of claim 42:

wherein the forecast model further comprises a committed quantity that represents an amount of the product the seller has committed to selling; and

further comprising adjusting allocation values for sellers throughout the hierarchy also according to the committed quantity.

55. The method of claim 54, further comprising adjusting the committed quantities for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

56. The method of claim 54, further comprising adjusting allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

57. The method of claim 54, further operable to:

communicating forecast models of each seller to a remote system;

receiving a promise computed at the remote system for a customer order requesting a quantity of a product through a particular seller, the promise having been computed according to the allocation value for the seller;

receiving from the remote system adjusted forecast models reflecting the promise; and

recomputing the amount of the product that is ATP at sellers throughout the hierarchy.

58. The method of claim 57:

wherein all forecast models for one or more sellers in the hierarchy are communicated to the remote system;

wherein the promise has also been computed according to the amount of product that is ATP at one or more parent sellers of the seller; and

further comprising adjusting the amount of the product that is ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

59. The method of claim 54, further comprising adjusting forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

60. The method of claim 59, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.

61. A method for managing data associated with available to promise (ATP) products, comprising:

storing at least one seller model representing a seller for a plurality of products, each product corresponding to a physical item with one or more restrictions on its sale, at least two products corresponding to the same physical item but with at least one different restriction, each product being represented using a product forecast model comprising;

a forecast value representing forecasted sales of the product through the seller;

a supply value representing planned supply of the product;

a representation of customer orders for the product through the seller; and

an allocation value representing unconsumed supply allocated to the seller; and

allowing planned supply of a particular physical item to be distributed, according to one or more business criteria, among a plurality of products corresponding to the physical item,

adjusting the allocation values for sellers throughout the hierarchy according to the business criteria; and

computing, for each product and each seller in the hierarchy, the amount of the product that is ATP at the seller according to the supply value for the seller, the allocation value for the seller, the amount of the product that is ATP at any one or more parent sellers of the seller, the allocation values for any one or more child sellers of the seller, and the representation of customer orders for the seller and its child sellers.

62. The method of claim 61, wherein the restrictions are selected from the group consisting of price restrictions, quantity restrictions, and lead time restrictions.

63. The method of claim 61, wherein the business criteria are selected from the group consisting of seller criteria, product criteria, forecast criteria, supply criteria, customer order criteria, and policy criteria.

64. The method of claim 61, wherein:

each forecast model is extensible such that one or more allocation policy rules may be associated with the corresponding product;

each allocation policy rule comprises a restriction on the allocation values for sellers throughout the hierarchy; and

the allocation values are computed according to the allocation policy rules.

65. The method of claim 61, wherein allocation rules allocate supply plans for physical items to one or more corresponding products for sellers throughout the hierarchy.

66. The method of claim 61, wherein each forecast model further comprises a plurality of supply plans, allocation values are computed according to the sum of the supply plans, and supply plans are associated with customer orders according to the business criteria.

67. The method of claim 61, further comprising adjusting allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

68. The method of claim 61, further comprising adjusting forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

69. The method of claim 68, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.

70. The method of claim 61, further comprising:

communicating forecast models of each seller to a remote system;

receiving a promise computed at the remote system for a customer order requesting a quantity of one or more physical items through a particular seller, the promise having been computed according to at least the allocation values for corresponding products for the seller;

receiving from the remote system adjusted forecast models reflecting the promise; and

recomputing the amounts of the corresponding products that are ATP at sellers throughout the hierarchy.

71. The method of claim 70, wherein the promise comprises a plurality of options each with one or more of the restrictions specified for the products corresponding to the physical items.

72. The method of claim 70:

wherein all forecast models for one or more sellers in the hierarchy are communicated to the remote system;

wherein the system receives from the remote system a promise also computed according to the amounts of the corresponding products that are ATP at one or more parent sellers of the seller; and

further comprising adjusting the amounts of the corresponding products that are ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

73. The method of claim 61, further comprising:

accepting a customer order requesting quantities of one or more physical items through a particular seller; and

computing a promise for the customer order according to the allocation values for at least corresponding products for the seller, wherein the promise comprises a plurality of options each with one or more of the restrictions specified for these products.

74. The method of claim 73, further comprising:

queuing for further consideration a customer order promised less than its requested quantity; and

reconsidering a queued customer order for opportunity to provide a more satisfactory promise in response to a supply plan being changed, an allocation value being adjusted, or a promise to another customer order being reduced.

75. The method of claim 73, further operable to:

computing the promise also according to the amounts of the corresponding products that are ATP at one or more parent sellers of the seller; and

adjusting the amounts of the corresponding products that are ATP at sellers throughout the hierarchy if the promise exceeds the allocation values for the corresponding products for the seller.

76. The method of claim 61, wherein the forecast model further comprises a committed quantity representing amounts of the corresponding products the seller has committed to selling, the processor operable to adjust the allocation values for sellers throughout the hierarchy also according to the committed quantity.

77. The method of claim 76, further comprising adjusting the committed quantities for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

78. The method of claim 76, further comprising adjusting allocated values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

79. The method of claim 76, further comprising:

communicating forecast models for each seller to a remote system;

receiving a promise computed at the remote system for a customer order requesting a quantity of one or more physical items through a particular seller, the promise having been computed according to at least the allocation values for corresponding products for the seller;

receiving from the remote system adjusted forecast models reflecting the promise; and

recomputing the amounts of the corresponding products that are ATP at sellers throughout the hierarchy.

80. The method of claim 79:

wherein all forecast models for one or more sellers in the hierarchy are communicated to the remote system;

wherein the system receives from the remote system a promise also computed according to the amounts of the corresponding products that are ATP at one or more parent sellers of the seller; and

further comprising adjusting the amounts of the corresponding products that are ATP at sellers throughout the hierarchy if the promise exceeds the allocation value for the seller.

81. The method of claim 76, further comprising adjusting forecast values for one or more products for sellers throughout the hierarchy according to an arrival rate of customer orders for those products through those sellers.

82. The method of claim 81, wherein:

each forecast model is extensible such that one or more forecast policy rules may be associated with the corresponding product;

each forecast policy rule comprises at least one restriction on forecast values for sellers throughout the hierarchy; and

either the forecast values or the allocation values for sellers throughout the hierarchy are computed according to the forecast policy rules.