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Generating a supply chain plan

  • US 7,672,862 B1
  • Filed: 12/04/2001
  • Issued: 03/02/2010
  • Est. Priority Date: 04/02/2001
  • Status: Active Grant
First Claim
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1. A computer-implemented method of generating a supply chain plan and using the supply chain plan to generate an order plan, comprising:

  • accessing, by a server, data in a database describing a supply chain network comprising a plurality of buffers, each buffer configured to store a plurality of items and associated with a corresponding time variable, the supply chain network constrained by one or more constraints selected from the group consisting of a lead time constraint, a lot size constraint and a capacity constraint;

    generating, by the server, a linear programming problem for the supply chain network;

    approximating, by the server, the linear programming problem by discretizing the corresponding time variables of the buffers to yield a plurality of discretized corresponding time variables and by relaxing the one or more constraints to yield a relaxed constraint;

    calculating, by the server, an optimized supply chain plan for the approximated linear programming problem, the optimized supply chain plan describing a quantity of items at each buffer for at least one time value of the corresponding time variable and including a list of producers configured to supply the items to each buffer; and

    adjusting, by the server, the optimized supply chain plan to satisfy the one or more constraints, wherein adjusting the optimized supply chain plan comprises;

    repeating the following until a last upstream buffer is reached;

    selecting a buffer;

    sorting the list of producers in order of preference according to the optimized supply chain plan and the amount of items across a time horizon that each producer may be able to supply;

    selecting a producer from the list;

    determining whether the producer selected is capable of producing all, some, or none of the quantity of items at the buffer;

    adjusting one of (a) the quantity of items at the selected buffer, and (b) at least one time value of the corresponding time variable of the selected buffer, to satisfy the one or more constraints; and

    proceeding to a next upstream buffer; and

    repeating the following until a last downstream buffer is reached;

    selecting a buffer;

    determining whether there is a remaining quantity of items to be produced;

    deciding whether to delay delivery or delay planning to the next buffer based on the determining whether there is a remaining quantity of items to be produced and delaying planning of the remaining quantity until a next buffer or delay delivery in accordance with the decision;

    determining whether there is a next downstream buffer;

    planning production to either (a) supply the items to the selected buffer at the adjusted time value, or (b) supply the adjusted quantity of items to the selected buffer; and

    proceeding to a next downstream buffer; and

    generating, by the server, an order plan by planning production to supply the quantity of items to each buffer according to the list of producers associated with the buffer.

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