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Demand planning for configure-to-order and building blocks-based market environment

  • US 6,816,839 B1
  • Filed: 05/04/2000
  • Issued: 11/09/2004
  • Est. Priority Date: 05/04/2000
  • Status: Expired due to Fees
First Claim
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1. A computer implemented method for demand planning of products, the method comprising the steps of:

  • digitally constructing a configure-to-order operation/multiple building block environment;

    digitally forecasting the demand of building blocks within the constructed building block environment using a top-down approach, which considers sales volume of a product family, and feature ratios of the building blocks;

    digitally capturing dependencies among building blocks by combining methodologies of statistical forecast, categorical data analysis, and information theory;

    digitally forecasting demand quantity of each product family using dependencies among building block families comprising a pairwise correlation between any two building block families;

    digitally propagating an adjustment by tracing a spanning tree nodes of which correspond to building block families, by starting from a most dominant building block family as a root node of the spanning tree;

    using mutual information as an index for the pairwise correlation;

    fitting a joint distribution for the building blocks to be consistent with the pairwise correlation; and

    establishing an efficient supply chain management.

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