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Network-based supply chain management method

  • US 8,086,506 B2
  • Filed: 08/17/2009
  • Issued: 12/27/2011
  • Est. Priority Date: 07/20/2001
  • Status: Expired due to Fees
First Claim
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1. A method for facilitating replenishment execution in a network environment, said supply chain including an enterprise and at least one supplier, the method comprising:

  • aggregating demand received, at a central server of the enterprise, from a plurality of enterprise sites associated with the enterprise, the demand comprising materials requirements;

    wherein each of the plurality of enterprise sites comprises divisions that share common material requirements with divisions from others of the plurality of enterprise sites, the common material requirements for each of the divisions corresponding with a product or commodity;

    generating, using a material requirement planning system (MRP) located at an enterprise site;

    an unconstrained forecast to said at least one supplier, the unconstrained forecast resulting from the aggregating, the unconstrained forecast generated at a product or commodity level, wherein the unconstrained forecast represents at least one of an aggregated demand and a projected forecast received from a group scattered among the plurality of enterprise sites, and wherein the unconstrained forecast does not take into consideration any resource constraints;

    transmitting the unconstrained forecast over the network to each of the suppliers that service the enterprise sites for which the unconstrained forecast is generated;

    receiving, from said at least one supplier, a supplier capability statement over the network, the supplier capability statements received by the division at each of the enterprise sites from corresponding suppliers in response to the transmitting;

    performing, using the central server, a squared set analysis by generating square sets and adding capacity constraints to the unconstrained forecast by imploding component data related to the unconstrained forecast and tracing the component data through a manufacturing cycle while factoring at least one of constraints and business rules, wherein square sets represent an exploded demand for the components, wherein the square sets thereby avoid generation of demand for components that will not be consumed;

    based on the results of the squared set analysis, generating, using the central server, a constrained forecast using at least one supplier capability statement, wherein the constrained forecast is at least one of equal or less than the unconstrained forecast, and wherein the constrained forecast takes into consideration all resource constraints and limits the constrained forecast to most limiting constraints;

    receiving, from said at least one supplier, a formal commitment to product a needed supply indicated in said constrained forecast;

    transmitting the constrained forecasts to the suppliers at an enterprise site level over the network, wherein the constrained forecasts are sent to only the suppliers who provided the formal commitment;

    monitoring inventory levels at a replenishment service center by said at least one supplier based upon said formal commitment;

    refilling inventory items at said replenishment service center according to said formal commitment;

    facilitating delivery of said inventory items to a site location for said enterprise by transmitting a pull signal to said replenishment service center; and

    receiving said inventory items in response to said pull signal,wherein a warehouse management system application monitors the inventory levels at the replenishment center, and is configured to receive a request for parts, pick the parts and deliver the parts.

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