Total inventory management

• US 7,840,449 B2
• Filed: 09/07/2004
• Issued: 11/23/2010
• Est. Priority Date: 09/07/2004
• Status: Expired due to Fees

• Current Assignee: LinkedIn Corporation (Microsoft Corporation)
• Original Assignee: International Business Machines Corporation
• Inventors: Loughrey, Kristin D., Ebel, Janice D., Pilkinton, Tracey L.
• Primary Examiner(s): Zeender; F. Ryan
• Assistant Examiner(s): HAYLES, ASHFORD S
• Application Number:
  US10/711,271
• Publication Number:
  US 20060053069A1
• Time in Patent Office: 2,268 Days
• Field of Search: 705/28, 705/26, 364/468
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

A method, system and program product to manage total inventory. Existing inventory, optimum inventory, excess inventory and inventory consumption are calculated according to different sets of data regarding whether one is considering a policy inventory and/or a manufacturing limitation. Results of the calculations with different sets of data are compared to determine an impact of the policy inventory and an inventory trapped in manufacturing. This invention has application in the microelectronics industry as well as other industries.

Claims

1. A method of managing inventory, the method comprising:

selecting an analysis duration and at least one analysis point (AP) within the analysis duration;

determining an excess inventory with a manufacturing limitation and an excess inventory without the manufacturing limitation for each analysis point using at least one computer;

determining a trapped inventory (OT) based on a difference between the excess inventory with the manufacturing limitation and the excess inventory without the manufacturing limitation using the at least one computer;

determining a policy inventory (P) using the at least one computer;

determining a policy and trapped inventory (PT) based on a difference between the excess inventory with the manufacturing limitation and the policy inventory and the excess inventory without the manufacturing limitation using the at least one computer;

determining an optimum inventory (O) for each analysis point based on the policy and trapped inventory (PT) and the trapped inventory (OT), for each analysis point using the at least one computer according to the following algorithms

AP-P=max (0, AP_OT−

AP_PT)

and;

AP-O=AP_OT−

AP-P

wherein AP_OT, is the consumption calculated with the trapped only (OT) data;

AP_PT, is the consumption calculated with the policy and trapped (PT) data;

AP-O are part of the AP_OT, that is not affected by the policy inventory; and

determining an impact of the policy inventory on an inventory consumption using the at least one computer.

2. The method of claim 1, further comprising selecting a cycle time after each analysis point.

3. The method of claim 2, wherein the cycle time is selected based on a time period required for manufacturing an inventory.

4. The method of claim 2, wherein the optimum inventory is a demand occurring within the cycle time.

5. The method of claim 1, further comprising determining a total optimum inventory based on the optimum inventory at each analysis point using the at least one computer.

6. The method of claim 1, further comprising determining an inventory that will be consumed in a short term, an inventory that will be consumed in a mid term, an inventory that will be consumed in a long term and an inventory that will not be consumed in a period of time, wherein the short term, mid term and long term are within the analysis duration using the at least one computer.

7. The method of claim 1, further comprising deciding an inventory size based on the excess inventory, the trapped inventory and the impact of the policy inventory.

8. The method of claim 1, wherein the excess inventory can be a negative number.

9. A system for managing inventory, the system comprising:

means for selecting an analysis duration and at least one analysis point (AP) within the analysis duration;

means for determining an excess inventory with a manufacturing limitation and an excess inventory without the manufacturing limitation for each analysis point;

means for determining a trapped inventory (OT) based on a difference between the excess inventory with the manufacturing limitation and the excess inventory without the manufacturing limitation;

means for determining a policy inventory (P);

means for determining a policy and trapped inventory (PT) based on a difference between the excess inventory with the manufacturing limitation and the policy inventory and the excess inventory without the manufacturing limitation;

means for determining an optimum inventory (O) for each analysis point based on the policy and trapped inventory (PT) and the trapped inventory (OT) for each analysis point using the at least one computer according to the following algorithms

AP-P=max (0, AP_OT−

AP_PT)

and;

AP-O=AP_OT−

AP-P

wherein AP_OT, is the consumption calculated with the trapped only (OT) data;

AP_PT, is the consumption calculated with the policy and trapped (PT) data;

AP-O are part of the AP_OT, that is not affected by the policy inventory; and

means for determining an impact of the policy inventory on an inventory consumption.

10. The system of claim 9, further comprising a means for determining a total optimum inventory based on the optimum inventory at each analysis point.

11. The system of claim 9, further comprising a means for determining an inventory that will be consumed in a short term, an inventory that will be consumed in a mid term, an inventory that will be consumed in a long term and an inventory that will not be consumed in a period of time, wherein the short term, mid term and long term are within the analysis duration.

12. A computer program product comprising a computer useable medium having computer readable program code embodied therein for reporting on performance of a plurality of parameters, the program product comprising:

program code configured to select an analysis duration and at least one analysis point within the analysis duration;

program code configured to determine an excess inventory with a manufacturing limitation and an excess inventory without the manufacturing limitation for each analysis point (AP);

program code configured to determine a trapped inventory (OT) based on a difference between the excess inventory with the manufacturing limitation and the excess inventory without the manufacturing limitation;

program code configured to determine a policy inventory (P);

program code configured to determine a policy and trapped inventory (PT) based on a difference between the excess inventory with the manufacturing limitation and the policy inventory and the excess inventory without the manufacturing limitation;

program code configured to determine an optimum inventory (O) for each analysis point based on the policy and trapped inventory (PT) and the trapped inventory (OT) for each analysis point using the at least one computer according to the following algorithms

AP-P=max (0, AP_OT−

AP_PT)

and;

AP-O=AP_OT−

AP-P

wherein AP_OT, is the consumption calculated with the trapped only (OT) data;

AP_PT is the consumption calculated with the policy and trapped (PT) data;

AP-O are part of the AP_OT that is not affected by the policy inventory; and

program code configured to determine an impact of the policy inventory on an inventory consumption.

13. The computer program product of claim 12, further comprising program code configured to determine a total optimum inventory based on the optimum inventory at each analysis point.

14. The computer program product of claim 12, further comprising program code configured to determine an inventory that will be consumed in a short term, an inventory that will be consumed in a mid term, an inventory that will be consumed in a long term and an inventory that will not be consumed in a period of time, wherein the short term, mid term and long term are within the analysis duration.

15. The computer program code of claim 12, further comprising program code configured to decide an inventory size based on the excess inventory, the trapped inventory and the impact of the policy inventory.