Method and system for multi-enterprise optimization using flexible trade contracts

• US 7,720,747 B2
• Filed: 03/27/2007
• Issued: 05/18/2010
• Est. Priority Date: 04/13/2000
• Status: Expired due to Fees

• Current Assignee: JDA Software Group Incorporated (RedPrairie Holding Incorporated)
• Original Assignee: i2 Technologies US Incorporated (Panasonic Holdings Corporation)
• Inventors: Dalal, Mukesh, Dalal, Leenam
• Primary Examiner(s): APPLE, KIRSTEN SACHWITZ
• Application Number:
  US11/691,957
• Publication Number:
  US 20070288344A1
• Time in Patent Office: 1,148 Days
• Field of Search: 705/36.R, 705/35
• US Class Current: 705/37
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A method of multi-enterprise optimization at a buyer computer includes accessing a forecasted demand for at least one item and generating one or more proposed flexible trade contracts using the forecasted demand for the item. The proposed flexible trade contract is communicated to a seller computer and subsequently executed after acceptance of the proposed flexible trade contract at the seller computer to create a flexible trade contract. Each proposed flexible trade contract may be a forward contract, an option contract, or a flexible forward contract.

Claims

1. A system for supply chain activity optimization involving multiple enterprises, comprising:

a computer system, comprising;

a negotiation module configured to;

receive a forecasted demand for at least one item;

automatically and without user input subsequent to receiving the forecasted demand, generate one or more proposed flexible trade contracts using the forecasted demand for the item;

automatically and without user input subsequent to generating the proposed flexible trade contracts, communicate each proposed flexible trade contract to a seller computer system to initiate an automatic collaborative negotiation over the proposed flexible trade contract with the seller computer system;

automatically and without user input subsequent to communicating the proposed flexible trade contract, as part of the automatic collaborative negotiation, receive at least one modification of the proposed flexible trade contract from the seller computer system for automatic evaluation and possible acceptance in response to communicating the proposed flexible trade contract;

automatically and without user input subsequent to receiving the modification of the proposed flexible trade contract from the seller computer system, as part of the automatic collaborative negotiation, evaluate the modification to determine whether the modification is acceptable; and

automatically and without user input subsequent to evaluating the modification of the proposed flexible trade contract, as part of the automatic collaborative negotiation, accept the modification if the modification is acceptable;

an execution module configured to execute a flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation to enable one or more actions to be taken to perform under the executed flexible trade contract; and

a tracking module configured to monitor the terms of the flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation to enable one or more actions to be taken to enforce the executed flexible trade contract.

2. The system of claim 1, wherein the negotiation module receives the forecasted demand from a user.

3. The system of claim 1, further comprising a forecast module configured to determine the forecasted demand.

4. The system of claim 1, wherein each proposed flexible trade contract is selected from the group consisting of a forward contract, an option contract, and a flexible forward contract.

5. The system of claim 4, wherein each forward contract comprises a quantity of the item that a buyer is obligated to purchase and a seller is obligated to supply.

6. The system of claim 5, wherein each forward contract comprises a unit forward contract, and wherein the buyer is obligated to purchase and the seller is obligated to supply a quantity of one unit of the item.

7. The system of claim 4, wherein each option contract comprises an option, the option comprising at least one parameter selected from the group consisting of:

a maximum quantity of the item that a seller is obligated to supply;

a maximum number of item types that the seller is obligated to supply; and

a maximum number of locations where the item must be provided.

8. The system of claim 7, wherein each option contract comprises a unit option contract, and wherein the parameter is selected from the group consisting of:

a maximum of one unit of the item;

a maximum of one item type; and

a maximum of one location.

9. The system of claim 7, wherein each option contract comprises an exercise period after the execution of the option contract during which a buyer must exercise the option.

10. The system of claim 4, wherein each flexible forward contract comprises:

a total quantity of one or more items that a buyer is obligated to purchase and a seller is obligated to supply; and

a plurality of subcontracts each comprising an option, each option comprising at least one parameter selected from the group consisting of;

a range of quantities for one item;

a range of quantities for one item type; and

a range of quantities for one location where the item must be provided.

11. The system of claim 10, wherein each flexible forward contract comprises a unit flexible forward contract, and wherein the total quantity is one unit and the parameter is selected from the group consisting of:

a range of zero to one unit for the item;

a range of zero to one unit for the item type; and

a range of zero to one unit for the location.

12. The system of claim 10, wherein each flexible forward contract comprises an exercise period after the execution of the flexible forward contract during which the buyer must exercise the option.

13. The system of claim 1, wherein the negotiation module is configured to:

receive an alternate contract term from the seller computer system for automatic evaluation and possible acceptance;

automatically and without user input subsequent to receiving the alternate contract term from the seller computer system, accept the alternate contract term without user input if the alternate contract term falls within a range of acceptable contract terms; and

automatically and without user input subsequent to receiving the alternate contract term from the seller computer system, identify the alternate contract term as requiring user input if the alternate contract term falls outside the range of acceptable contract terms.

14. The system of claim 1, further comprising an exercise module configured to:

receive an updated forecasted demand for the item; and

automatically and without user input subsequent to receiving the updated forecast demand for the item, exercise an option in the flexible trade contract based on the updated forecasted demand.

15. The system of claim 1, further comprising a tracking module configured to, automatically and without user input subsequent to execution of the flexible trade contract, calculate a penalty if a seller fails to comply with a term of the flexible trade contract.

16. The system of claim 1, wherein the negotiation module is configured to communicate the proposed flexible trade contract to the seller computer system through an intermediary.

17. The system of claim 1, wherein the negotiation module is configured, as part of the collaborative negotiation, to communicate with the seller computer system in a series of rounds in which the negotiation module and the seller computer system further successively propose one or more counter-modifications of the proposed flexible trade contract for automatic evaluation and possible acceptance to create the flexible trade contract.