Logistics planning in a business environment

• US 8,340,990 B2
• Filed: 07/22/2008
• Issued: 12/25/2012
• Est. Priority Date: 07/22/2008
• Status: Active Grant

• Current Assignee: Caterpillar Incorporated
• Original Assignee: Caterpillar Incorporated
• Inventors: Cline, Robert L., Pick, Sarah N., Newton, William P.
• Primary Examiner(s): Frenel, Vanel
• Application Number:
  US12/219,437
• Publication Number:
  US 20100023363A1
• Time in Patent Office: 1,617 Days
• Field of Search: 705 7- 8, 705/11
• US Class Current: 705/7
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management

Abstract

A method for supply chain design may include identifying nodes, links connecting the nodes, and replenishment strategies for moving materials along the links, in a supply chain. The method may also include determining a value indicative of the complexity of the supply chain based on a characteristic of the nodes, links, and replenishment strategies. The method may also include identifying whether core competencies of the nodes are underutilized. The method may also include reducing the complexity of the supply chain to increase utilization of the core competencies of the nodes.

Claims

1. A system for supply chain design, comprising:

a supply chain network operable to;

identify nodes, links connecting the nodes, and replenishment strategies for moving materials along the links, in a supply chain;

determine whether the supply chain has inefficiencies based on a characteristic of the nodes, links, and replenishment strategies; and

reduce the inefficiencies by reducing an underutilization of core competencies of the nodes.

2. The system of claim 1, wherein the supply chain network is operable to determine whether the supply chain has inefficiencies by determining a number of unique paths that material can flow through in the supply chain.

3. The system of claim 2, wherein the supply chain network is operable to determine whether the supply chain has inefficiencies by multiplying the number of unique paths by the number of replenishment strategies to determine a number of supply chain combinations.

4. The system of claim 3, wherein the supply chain network is operable to determine whether the supply chain has inefficiencies by determining whether the number of supply chain combinations is unequal to a target value.

5. The system of claim 1, wherein the core competencies of the nodes are tasks that can be performed at the nodes at a target level of performance.

6. The system of claim 5, wherein the supply chain network is operable to reduce the underutilization of core competencies by modifying an operation of at least one of the nodes, links, and replenishment strategies.

7. The system of claim 5, wherein the supply chain network is operable to reduce the underutilization of core competencies by removing at least one of a node, a link, and a replenishment strategy, from the supply chain.

8. A non-transitory computer readable medium, including instructions for:

identifying nodes, links connecting the nodes, and replenishment strategies for moving materials along the links, in a supply chain;

identifying tasks performed at the nodes at a target level of performance and core competencies of the nodes; and

modifying the supply chain to increase utilization of the identified tasks by increasing utilizations of the core competencies of the nodes.

9. The non-transitory computer readable medium of claim 8, wherein the instructions for modifying the supply chain include instructions for removing at least one of a node, a link, and a replenishment strategy, from the supply chain.

10. The non-transitory computer readable medium of claim 8, wherein instructions for modifying the supply chain include instructions for modifying an operation of at least one of a node, a link, and a replenishment strategy.

11. The non-transitory computer readable medium of claim 8, further including instructions for determining whether the supply chain has inefficiencies by determining a number of unique paths that material can flow through in the supply chain.

12. The non-transitory computer readable medium of claim 11, further including instructions for determining whether the supply chain has inefficiencies by multiplying the number of unique paths by the number of replenishment strategies to determine a number of supply chain combinations.

13. The non-transitory computer readable medium of claim 12, further including instructions for determining whether the supply chain has inefficiencies by determining whether the number of supply chain combinations is unequal to a target value.

14. A method for supply chain design, comprising:

identifying nodes, links connecting the nodes, and replenishment strategies for moving materials along the links, in a supply chain;

determining, with a computer, a value indicative of the complexity of the supply chain based on a characteristic of the nodes, links, and replenishment strategies;

identifying, with the computer, whether core competencies of the nodes are underutilized; and

increasing utilization of the core competencies of the nodes to reduce the complexity of the supply chain, by using the computer to modify an operation of at least one of the nodes, links, and replenishment strategies.

15. The method for supply chain design of claim 14, wherein determining a value indicative of the complexity of the supply chain includes determining a number of unique paths that material can flow through in the supply chain.

16. The method for supply chain design of claim 15, wherein determining a value indicative of the complexity of the supply chain includes multiplying the number of unique paths by the number of replenishment strategies.

17. The method for supply chain design of claim 14, wherein increasing utilization of the core competencies includes removing at least one of a node, a link, and a replenishment strategy, from the supply chain.

18. The method for supply chain design of claim 14, wherein identifying whether core competencies of the nodes are underutilized includes identifying tasks that can be performed at the nodes at a target level of performance, and determining whether the nodes are capable of performing more of the identified tasks than are currently being performed.

19. The method for supply chain design of claim 14, further including identifying whether core competencies of the nodes are underutilized only if the value indicative of the complexity of the supply chain is unequal to a target value.