Optimization system and method for buying clubs

• US 7,467,103 B1
• Filed: 08/11/2004
• Issued: 12/16/2008
• Est. Priority Date: 04/17/2002
• Status: Expired due to Fees

• Current Assignee: Telegrow LLC
• Original Assignee: Telegrow LLC
• Inventors: Murray, Joseph L., Murray, Thomas G.
• Primary Examiner(s): Smith; Jeffrey A.
• Assistant Examiner(s): MISIASZEK, MICHAEL
• Application Number:
  US10/916,803
• Time in Patent Office: 1,588 Days
• Field of Search: 705/26, 705/27, 705/37, 705/1
• US Class Current: 705/26.2
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0603 Catalogue ordering
• CPC Class Codes: G06Q 30/0605 Supply or demand aggregation

Abstract

A system, and associated method, aggregates, optimizes, allocates, and prices products orders by members of buying clubs wherein a network interconnects a master computer having a database to a plurality of buyer computers connected to the network for data communication with said master computer, each of which buyer computers is operable by at least one respective buyer of at least one buying club, and is configured for generating to the master computer data defining orders of products placed by said respective buyers. Computer program code executable by the master computer compiles each of the respective orders into an aggregate order, and, with reference to data structures of said products, inventory, optimization criteria, and orders of all buyers including any specified minimum, preferred and maximum specified units, generates optimized orders and allocations to achieve improved outcomes for buyers, thereby facilitating purchasing and commerce by and between members, buying clubs, and suppliers.

Claims

1. A system comprising:

a network;

a web server connected to said network, said web server including a database for storing data;

two or more buyer computers connected to said network for data communication with said web server, each of which buyer computers is operable by two or more respective buyers of at least one buying club, and is configured for generating to said web server data defining orders of products placed by said two or more respective buyers, said data including a first range defined between a first quantity and a second quantity of a number of units of each product to order for each of said two or more respective buyers, wherein, for at least one of said two or more respective buyers of each product, said first quantity is not equal to said second quantity; and

a memory coupled to said web server, said memory comprising computer program code executable by said web server for;

generating for each respective product a first aggregate quantity equal to the sum of said first quantities specified by each of said respective two or more buyers for each respective product;

generating for each respective product a second aggregate quantity equal to the sum of said second quantities specified by each of said respective two or more buyers for each respective product;

determining two or more valid order quantities of units of each respective product, wherein, for each respective product, said two or more valid order quantities are defined by values which are equivalent to two or more respective integer multiples of a pre-defined number greater than one;

determining, for each of said respective products, at least one of said two or more valid order quantities within a second range defined between and including said first aggregate quantity and said second aggregate quantity;

selecting for each respective product, based on a predefined criterion, one of said at least one of said two or more valid order quantities; and

for each respective product, allocating units among said respective two or more buyers, wherein the sum of said units allocated among said respective two or more buyers is equal to said selected one of said at least one of said two or more valid order quantities.

2. The system of claim 1, wherein said first range further includes said first quantity and said second quantity.

3. The system of claim 1, wherein, for at least one buyer of at least product, said first range further includes said first quantity and said second quantity, and said first quantity is equal to said second quantity.

4. The system of claim 1, wherein said first quantity is a minimum quantity and said second quantity is a preferred quantity.

5. The system of claim 1, wherein said first quantity is a minimum quantity and said second quantity is a maximum quantity.

6. The system of claim 1, wherein said first quantity is a preferred quantity and said second quantity is a maximum quantity.

7. The system of claim 1, wherein said first quantity is a minimum quantity and said second quantity is a maximum quantity, and said first range includes a preferred quantity.

8. The system of claim 1, wherein said first quantity is zero and said second quantity is a maximum quantity.

9. The system of claim 1, wherein said memory further comprises computer program code executable by said web server for determining said second quantity as a predetermined deviation relative to said first quantity.

10. The system of claim 1, wherein said memory further comprises computer program code executable by said web server for calculating said second quantity as a predetermined percentage deviation relative to said first quantity.

11. The system of claim 1, wherein said memory further comprises computer program code executable by said web server for calculating said second quantity as a predetermined quantity deviation relative to said first quantity.

12. The system of claim 1, wherein said product excludes at least one of discontinued products, non-splittable cases, and products ordered from inventory.

13. The system of claim 1, wherein at least one of said first quantity and said second quantity is at least one of an integer quantity, a decimal quantity, and a fractional quantity.

14. The system of claim 1, wherein said criterion is one of closest to preferred, lowest cost per unit, and a combination of closest to preferred and lowest cost per unit.

15. The system of claim 1, wherein said data further includes a preferred quantity of a number of units of each product to order for each of said two or more respective buyers;

wherein said memory further comprises computer program code executable by said web server for generating for each respective product an aggregate preferred quantity equal to the sum of said preferred quantities specified by each of said respective two or more buyers for each respective product; and

wherein said computer program code for selecting further comprises computer program code for selecting for each respective product one of said at least one of said two or more valid order quantities according to which one of said at least one of said two or more valid order quantities is closest to said aggregate preferred quantity.

18. The system of claim 1 wherein the price per unit of each unit of a first one of said two or more valid order quantities of units is the same as the price per unit of each unit of a second one of said two or more valid order quantities of units, wherein said first one of said two or more valid order quantities of units is determined using a first respective integer multiple, said second one of said two or more valid order quantities of units is determined using a second respective integer multiple, said first respective integer multiple being unequal to said second respective integer multiple.

16. A method operable on a network having a web server connected to the network, the web server including a database for storing data, wherein two or more buyer computers are connected to said network for data communication with said web server, each of which buyer computers is operable by two or more respective buyers of at least one buying club, and is configured for generating to said web server data defining orders of products placed by said two or more respective buyers, said data including a first range defined between a first quantity and a second quantity of a number of units of each product to order for each of said two or more respective buyers, wherein, for at least one of said two or more respective buyers of each product, said first quantity is not equal to said second quantity, the method comprising steps of:

generating for each respective product a first aggregate quantity equal to the sum of said first quantities specified by each of said respective two or more buyers for each respective product;

generating for each respective product a second aggregate quantity equal to the sum of said second quantities specified by each of said respective two or more buyers for each respective product;

determining two or more valid order quantities of units of each respective product, wherein, for each respective product, said two or more valid order quantities are defined by values which are equivalent to two or more respective integer multiples of a pre-defined number greater than one;

determining, for each of said respective products, at least one of said two or more valid order quantities within a second range defined between and including said first aggregate quantity and said second aggregate quantity;

selecting for each respective product, based on a predefined criterion, one of said at least one of said two or more valid order quantities; and

for each respective product, allocating units among said respective two or more buyers, wherein the sum of said units allocated among said respective two or more buyers units is equal to said at least one valid order quantity.

17. The method of claim 16, wherein said data further includes a preferred quantity of a number of units of each product to order for each of said two or more respective buyers;

wherein said method further comprises the step of generating for each respective product an aggregate preferred quantity equal to the sum of said preferred quantities specified by each of said respective two or more buyers for each respective product; and

wherein said step of selecting further comprises selecting for each respective product one of said at least one of said two or more valid order quantities according to which one of said at least one of said two or more valid order quantities is closest to said aggregate preferred quantity.

19. The method of claim 16 wherein the price per unit of each unit of a first one of said two or more valid order quantities of units is the same as the price per unit of each unit of a second one of said two or more valid order quantities of units, wherein said first one of said two or more valid order quantities of units is determined using a first respective integer multiple, said second one of said two or more valid order quantities of units is determined using a second respective integer multiple, said first respective integer multiple being unequal to said second respective integer multiple.

20. A method operable on a network having a web server connected to the network, the web server including a database for storing data, wherein two or more buyer computers are connected to said network for data communication with said web server, each of which buyer computers is operable by two or more respective buyers of at least one buying club, and is configured for generating to said web server data defining orders of products placed by said two or more respective buyers, said data including a first range defined between a first quantity and a second quantity of a number of units of each product to order for each of said two or more respective buyers, wherein, for at least one of said two or more respective buyers of each product, said first quantity is not equal to said second quantity, the method comprising steps of:

generating for each respective product a first aggregate quantity equal to the sum of said first quantities specified by each of said respective two or more buyers for each respective product;

generating for each respective product a second aggregate quantity equal to the sum of said second quantities specified by each of said respective two or more buyers for each respective product;

determining two or more valid order quantities of units of each respective product, wherein, for each respective product, said two or more valid order quantities are defined by values which are equivalent to two or more respective integer multiples of a pre-defined number greater than one, wherein the price per unit of each unit of a first one of said two or more valid order quantities of units is the same as the price per unit of each unit of a second one of said two or more valid order quantities of units, wherein said first one of said two or more valid order quantities of units is determined using a first respective integer multiple, said second one of said two or more valid order quantities of units is determined using a second respective integer multiple, said first respective integer multiple being unequal to said second respective integer multiple;

determining, for each of said respective products, at least one of said two or more valid order quantities within a second range defined between and including said first aggregate quantity and said second aggregate quantity;

selecting for each respective product, based on a predefined criterion, one of said at least one of said two or more valid order quantities; and

for each respective product, allocating units among said respective two or more buyers, wherein the sum of said units allocated among said respective two or more buyers units is equal to said at least one valid order quantity.