System and method for managing manufacturing, ordering, and distribution in a supply chain

• US 7,877,301 B2
• Filed: 04/04/2006
• Issued: 01/25/2011
• Est. Priority Date: 04/04/2005
• Status: Active Grant

• Current Assignee: Balancedflow Supply Chain Solutions, LLC
• Original Assignee: Balancedflow Supply Chain Solutions, LLC
• Inventors: Peck, John C., Davis, John S., Kernodle, Joseph W.
• Primary Examiner(s): Gart; Matthew S
• Assistant Examiner(s): CRAWLEY, TALIA F
• Application Number:
  US11/397,951
• Publication Number:
  US 20060282346A1
• Time in Patent Office: 1,757 Days
• Field of Search: 345/440, 705/1, 705/7, 705/8, 705/810, 705/26, 705/28
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

The present disclosure relates to systems and methods for minimizing stock outs and costs by managing manufacturing, ordering, and distribution in a supply chain. In one embodiment of the present disclosure, a method for coordinating production across a supply network is provided. The method includes the steps of identifying one or more items in a supply network, identifying one or more constraints for such items in the supply network, identifying one or more strategic target buffers for such constraints, and generating make, order, and ship recommendations for one or more such items based upon one or more constraints and one or more strategic target buffers.

Claims

1. A computer implemented method for synchronizing ordering, production, and distribution across a supply network comprising:

defining, by a processor, one or more supply chain sections across a supply network, each supply chain section comprising a series of processes and non-strategic buffers, a strategic target buffer, and a process constraint, and a group of items,

each supply chain section being defined by beginning and end points determined by considering optimum locations for each strategic target buffer, each process constraint, and natural breaks in the each series of processes and non-strategic buffers as defined by one or more bills of materials, and each group of items across the supply network, said beginning and end points for each supply chain section being defined, by said processor, by steps in each bills of materials,

each process constraint comprising lowest process capacity within each supply chain section or component availability from other upstream supply chain sections,

each strategic buffer being defined as the buffer at the end of each series of processes and non-strategic buffers within each supply chain section, and

each group of items being defined as those that pass through the constraint processes of each supply chain section;

inputting data into a computer system, the data comprising each supply chain section, the process constraint of each supply chain section, items in each supply chain section, status, demand forecast information, batch rules, capacity requirements, available constraint capacity, and user-specified target inventory levels and lead-times for the items in each supply chain section in days of supply and;

managing the entire supply network by utilizing the computer system to generate make, order, and ship recommendations for each item in each supply chain section based upon the data, the computer system recommendations being capable of maintaining the target inventory level in days of supply for each item in each supply chain section while honoring the inputted batch rules and available constraint capacity.

2. The method of claim 1, wherein the process constraints comprise a measurable constraint comprising one or more of cash to spend, credit, cubic feet, weight, labor time, and machine hours.

3. The method of claim 1, further comprising:

utilizing the computer to maintain target inventory level in days of supply for each item in each supply chain section based upon inventory status and the demand forecast for the item.

4. The method of claim 1, further comprising:

utilizing the computer system to generate a batch and capacity constrained make, order, or ship requirement for each item in each supply chain section.

5. A computer-implemented method to manage ordering, manufacturing and distributing across a supply network, said method comprising the steps of:

determining, by a processor, an ordered set of one or more mutually exclusive supply chain sections, each supply chain section comprising a managed, ordered process-buffer pair whose buffer contains a group of related products outputted from the process;

where said process is one of an indivisible process or an ordered set of unmanaged process-buffer pairs;

where a set of candidate supply chain sections is identified containing the most restrictively constrained processes within the supply network; and

where the supply chain sections from within the set of candidates are identified, such that the cost/benefit ratio of managing each supply chain section having a divisible process is less than the ratio for managing one or more of the process-buffer pairs in the ordered set comprising that process;

inputting data into a computer system, said data comprising;

for each product one or more of product identifier, inventory status, batching rules, demand forecast, user-specified target inventory level in days-of-supply, fixed-stockage quantity overrides, required constraint capacity, cost, process groups, lead-times, processing yields, and supply chain section identity, and;

values of constraints on each process that limit process capacity comprising one or more of credit, volume, weight, labor time, rates, quantities, machine hours, process time, availability of components, and cash;

managing the supply network based upon said data by utilizing the computer system to recommend, subject to said constraints, for each product in each supply chain section a quantity to order, manufacture, or distribute, to return inventory level to the target inventory level, while minimizing the standard deviation of all inventory levels from target inventory levels, where the inventory level accounts for amounts comprising one or more of on hand, on order, scheduled for production, in process, in transit, due in, and due out.