System and method for determining carbon emission-conscious order fulfillment alternatives with multiple supply modes
First Claim
1. A computer implemented method for optimizing order fulfillment by considering multiple supply modes, comprising:
- planning, by a processor, supply of inventory, said step of planning supply of inventory comprising at least, forecasting demand and estimating accuracy of said forecasted demand, andestablishing reorder point policy based at least on said forecasting demand, said accuracy of said forecasted demand, a plurality of supply transportation modes, cost of carbon emissions and limit on carbon emission credits,wherein the reorder point policy comprises reorder points comprising quantities ordered using different supply modes, based on modeling an objective function,wherein the objective function minimizes a weighted overall inventory cost, transportation cost and the cost of carbon emission and wherein the objective function enables prioritizing one or more of reducing the cost of carbon emissions or reducing the inventory cost by assigning weighing factors in the objective function, subject to constraint that the total amount of carbon emission for all orders is less than or equal to the limit for entire time period and service level for all orders is greater than or equal to a desired target level, andwherein the objective function is solvable by time period and by product group and by using a recursion algorithm.
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Abstract
A system and method for optimizing order fulfillment by considering multiple supply modes in one aspect, plans supply of inventory by forecasting demand, estimating accuracy of said forecasted demand, and establishing reorder point policy based at least on said accuracy of said forecasted demand, a plurality of supply transportation modes, cost of carbon emissions and limit on carbon emission credits. Current inventory position is monitored and if the current inventory position is below the reorder point policy, orders are placed according to a selected shipping method. The selected shipping method may be based at least on customer order priority, transportation budget, and carbon emission limit.
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Citations
20 Claims
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1. A computer implemented method for optimizing order fulfillment by considering multiple supply modes, comprising:
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planning, by a processor, supply of inventory, said step of planning supply of inventory comprising at least, forecasting demand and estimating accuracy of said forecasted demand, and establishing reorder point policy based at least on said forecasting demand, said accuracy of said forecasted demand, a plurality of supply transportation modes, cost of carbon emissions and limit on carbon emission credits, wherein the reorder point policy comprises reorder points comprising quantities ordered using different supply modes, based on modeling an objective function, wherein the objective function minimizes a weighted overall inventory cost, transportation cost and the cost of carbon emission and wherein the objective function enables prioritizing one or more of reducing the cost of carbon emissions or reducing the inventory cost by assigning weighing factors in the objective function, subject to constraint that the total amount of carbon emission for all orders is less than or equal to the limit for entire time period and service level for all orders is greater than or equal to a desired target level, and wherein the objective function is solvable by time period and by product group and by using a recursion algorithm. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17)
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18. A system for optimizing order fulfillment by considering multiple supply modes, comprising:
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a processor; collection module operable to collect and analyze carbon emission data associated with a plurality of supply transportation modes; planning process module operable to execute on the processor and also operable to at least forecast demand and estimate accuracy of said forecasted demand, and establish reorder point policy based at least on said forecasted demand, said accuracy of said forecasted demand, the plurality of supply transportation modes, cost of carbon emissions and carbon emission budget, to plan supply of inventory; and order execution module operable to run concurrently with said planning process module, and further operable to fill one or more orders received from a customer using said supply of inventory, wherein the reorder point policy comprises reorder points comprising quantities ordered using different supply modes, based on modeling an objective function, wherein the objective function minimizes a weighted overall inventory cost, transportation cost and the cost of carbon emission and wherein the objective function enables prioritizing one or more of reducing the cost of carbon emissions or reducing the inventory cost by assigning weighing factors in the objective function, subject to constraint that the total amount of carbon emission for all orders is less than or equal to the limit for entire time period and service level for all orders is greater than or equal to a desired target level, and wherein the objective function is solvable by time period and by product group and by using a recursion algorithm. - View Dependent Claims (19)
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20. A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method of optimizing order fulfillment by considering multiple supply modes, comprising:
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planning supply of inventory, said step of planning supply of inventory comprising at least, forecasting demand and estimating accuracy of said forecasted demand, and establishing reorder point policy based at least on said forecasting demand, said accuracy of said forecasted demand, a plurality of supply transportation modes, cost of carbon emissions and limit on carbon emission credits, wherein the reorder point policy comprises reorder points comprising quantities ordered using different supply modes, based on modeling an objective function, wherein the objective function minimizes a weighted overall inventory cost, transportation cost and the cost of carbon emission and wherein the objective function enables prioritizing one or more of reducing the cost of carbon emissions or reducing the inventory cost by assigning weighing factors in the objective function, subject to constraint that the total amount of carbon emission for all orders is less than or equal to the limit for entire time period and service level for all orders is greater than or equal to a desired target level, and wherein the objective function is solvable by time period and by product group and by using a recursion algorithm.
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Specification