Methods and systems for distributing stock in a distribution network

• US 8,655,749 B2
• Filed: 09/30/2004
• Issued: 02/18/2014
• Est. Priority Date: 09/30/2004
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Schweitzer, Michael, Huber, Edward W., McDonald, Marlon S., Monson, Michael J., Newbanks, Larry M., McCoy, Gregory A., Baermann, Guenther J., Eich, Eric P., Schmitz, Hans, Taylor, Brian R., Czach, Michael J., Matthews, Ryan G.
• Primary Examiner(s): FEENEY, BRETT A
• Application Number:
  US10/955,266
• Publication Number:
  US 20060069598A1
• Time in Patent Office: 3,428 Days
• Field of Search: None
• US Class Current: 705/28
• 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
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities

Abstract

Systems and methods are disclosed for distributing stock in a distribution network. The distribution network may include a source location and a plurality of target locations. In the disclosed systems and methods, the stock requirements of the target locations may be categorized into a plurality of requirement types, wherein each requirement type reflects a category of stock requirements for one of the target locations. In addition, the plurality of requirement types may be prioritized by order of importance and/or the plurality of target locations may be prioritized for each requirement type based on at least one sequence rule. Based on the prioritized requirement types and/or prioritized sequence of the target locations, the stock may be distributed to the plurality of target locations.

Claims

1. A computer-implemented method for distributing stock to a plurality of target locations, the method comprising the steps performed by a computer of:

categorizing stock requirements of the plurality of target locations into a plurality of requirement types, wherein the plurality of requirement types includes at least two of;

stock requirements to fulfill backorders;

fixed stock requirements having a high priority;

forecasted stock requirements over lead time;

safety stock requirements;

non-priority fixed requirements over lead time;

a source location'"'"'s requirements;

or

economic order quantity over the lead time;

prioritizing the plurality of requirement types by order of importance;

prioritizing the plurality of target locations having the same requirement type based on a sequence rule, wherein;

the sequence rule for at least one requirement type is different than the sequence rule for at least one other requirement type; and

the sequence rule is based on;

a proportional basis of a fixed requirement quantity daily rate of at least one of the plurality of target locations determined by calculating fixed requirements of the at least one of the plurality of target locations divided by forecasted requirements of the at least one of the plurality of target locations;

or

a proportional basis of a safety stock daily rate of at least one of the plurality of target locations determined by calculating safety stock of the at least one of the plurality of target locations divided by forecasted requirements of the at least one of the plurality of target locations; and

determining a distribution of the stock to the target locations based on the prioritized requirement types and the prioritized sequence of the target locations, such that the stock requirements are fulfilled from the highest priority requirement type to the lowest priority requirement type and, for each prioritized requirement type, the stock requirements are fulfilled from the highest priority target location to the lowest priority target location.

2. The method of claim 1, wherein the sequence rule defines criteria for determining the priority between target locations for receiving distributed stock.

3. The method of claim 1, wherein the sequence rule is further based on at least one of:

(a) a forecasted amount of stock required by the target location beyond a lead time;

(b) a lead time for the target location;

(c) demand at the target location;

(d) a predefined sequence order for the target location; and

(e) a filling percentage process.

4. The method of claim 3, wherein the filling percentage process comprises rounding the stock requirements for each of the prioritized requirement types and the prioritized the target locations.

5. The method of claim 4, wherein the stock requirements for each of the prioritized requirement types and the prioritized the target locations are rounded to a next higher multiple of a minimum allowed pack size for the stock.

6. The method of claim 4, wherein determining the distribution of the stock further comprises excluding a current target location in a current requirement type from receiving stock if the current target location was allocated, due to rounding, enough stock to meet a previous requirement type'"'"'s requirement and the current requirement type'"'"'s requirements, wherein the current target location comprises one of the prioritized plurality of target locations and the current and the previous requirement types comprise ones of the prioritized plurality of requirement types.

7. The method of claim 3, wherein the filling percentage process comprises:

establishing a cumulated net requirement and a rounded cumulated net requirement for each target location and requirement type, the rounded cumulated net requirement being equal to the corresponding cumulated net requirement rounded to a next higher multiple of a minimum allowed pack size for the stock;

selecting a first requirement type and a second requirement type from the plurality of requirement types, wherein the available quantity of stock is sufficient to meet the rounded cumulated net requirement of the first requirement type but insufficient to meet the rounded cumulated net requirement of the second requirement type; and

calculating, for each target location, a filling percentage configured to be used in prioritizing the plurality of target locations for the second requirement type.

8. The method of claim 7, wherein the lowest priority is given to the highest filling percentage and the highest priority is given to the lowest filling percentage.

9. The method of claim 7, wherein calculating, for each target location, a filling percentage comprises using the following equation:

10. The method of claim 7, wherein determining the distribution of the stock further comprises excluding a current target location in the second requirement type from receiving stock if the current target location'"'"'s filling percentage is greater than or equal to 100%, wherein the current target location comprises one of the prioritized plurality of target locations.

11. The method of claim 1, wherein the stock comprises parts.

12. The method of claim 1, wherein at least one of the plurality of target locations comprise at least one of a factory, a warehouse, a retail store, a distribution center, and a bulk warehouse.

13. The method of claim 1, wherein the stock requirements comprise backorders.

14. The method of claim 1, wherein prioritizing the plurality of target locations further includes determining whether a first sequence rule resulted in identifying the priority between each target location, and applying a second sequence rule if the first sequence rule did not result in identifying the priority between each target location.

15. The method of claim 1, wherein the prioritized order of target locations for at least one requirement type is different than the prioritized order of target locations for at least one other requirement type.

16. The method of claim 1, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations comprises using at least one of regular mail, e-mail, facsimile, the Internet, and an interactive voice response system to communicate stock requirements.

17. The method of claim 1, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations further comprises communicating stock requirements over a network.

18. A system for distributing stock to a plurality of target locations, the system comprising:

a processor and a storage device, the storage device storing instructions that are executed by the processor, the instructions comprising;

instructions for categorizing stock requirements of the plurality of target locations into a plurality of requirement types, wherein the plurality of requirement types includes at least two of;

stock requirements to fulfill backorders;

fixed stock requirements having a high priority;

forecasted stock requirements over lead time;

safety stock requirements;

non-priority fixed requirements over lead time;

a source location'"'"'s requirements;

or

economic order quantity over the lead time;

instructions for prioritizing the plurality of requirement types by order of importance;

instructions for prioritizing the plurality of target locations having the same requirement type based on a sequence rule, wherein;

the sequence rule for at least one requirement type is different than the sequence rule for at least one other requirement type; and

the sequence rule is based on;

a proportional basis of a fixed requirement quantity daily rate of at least one of the plurality of target locations determined by calculating fixed requirements of the at least one of the plurality of target locations divided by forecasted requirements of the at least one of the plurality of target locations;

or

a proportional basis of a safety stock daily rate of at least one of the plurality of, target locations determined by calculating safety stock of the at least one of the plurality of, target locations divided by forecasted requirements of the at least one of the plurality of target locations; and

instructions for determining a distribution of the stock to the target locations based on the prioritized requirement types and the prioritized sequence of the target locations, such that the stock requirements are fulfilled from the highest priority requirement type to the lowest priority requirement type and, for each prioritized requirement type, the stock requirements are fulfilled from the highest priority target location to the lowest priority target location.

19. The system of claim 18, wherein the sequence rule defines criteria for determining the priority between target locations for receiving distributed stock.

20. The system of claim 18, wherein the sequence rule is further based on at least one of:

(a) a forecasted amount of stock required by the target location beyond a lead time;

(b) a lead time for the target location;

(c) demand at the target location;

(d) a predefined sequence order for the target location; and

(e) a filling percentage process.

21. The system of claim 20, wherein the filling percentage process comprises rounding the stock requirements for each of the prioritized requirement types and the prioritized the target locations.

22. The system of claim 21, wherein the stock requirements for each of the prioritized requirement types and the prioritized the target locations are rounded to a next higher multiple of a minimum allowed pack size for the stock.

23. The system of claim 21, wherein determining the distribution of the stock further comprises excluding a current target location in a current requirement type from receiving stock if the current target location was allocated, due to rounding, enough stock to meet a previous requirement type'"'"'s requirement and the current requirement type'"'"'s requirements, wherein the current target location comprises one of the prioritized plurality of target locations and the current and the previous requirement types comprise ones of the prioritized plurality of requirement types.

24. The system of claim 20, the instructions further comprising:

instructions for establishing a cumulated net requirement and a rounded cumulated net requirement for each target location and requirement type, the rounded cumulated net requirement being equal to the corresponding cumulated net requirement rounded to a next higher multiple of a minimum allowed pack size for the stock;

instructions for selecting a first requirement type and a second requirement type from the plurality of requirement types, wherein the available quantity of stock is sufficient to meet the rounded cumulated net requirement of the first requirement type but insufficient to meet the rounded cumulated net requirement of the second requirement type; and

instructions for calculating, for each target location, a filling percentage configured to be used in prioritizing the plurality of target locations for the second requirement type.

25. The system of claim 24, wherein the lowest priority is given to the highest filling percentage and the highest priority is given to the lowest filling percentage.

26. The system of claim 24, wherein for each target location, the filling percentage is configured for using the following equation:

27. The system of claim 24, wherein determining the distribution of the stock excludes a current target location in the second requirement type from receiving stock if the current target location'"'"'s filling percentage is greater than or equal to 100%, wherein the current target location comprises one of the prioritized plurality of target locations.

28. The system of claim 18, wherein the stock comprises parts.

29. The system of claim 18, wherein at least one of the plurality of target locations comprise at least one of a factory, a warehouse, a retail store, a distribution center, and a bulk warehouse.

30. The system of claim 18, wherein the stock requirements comprise backorders.

31. The system of claim 18, wherein prioritizing the plurality of target locations comprises determining whether a first sequence rule resulted in identifying the priority between each target location, and applying a second sequence rule if the first sequence rule did not result in identifying the priority between each target location.

32. The system of claim 18, wherein the stock requirements are categorized into a plurality of requirement types and the prioritized order of target locations for at least one requirement type is different than the prioritized order of target locations for at least one other requirement type.

33. The system of claim 18, wherein prioritizing the plurality of target locations comprises using at least one of regular mail, e-mail, facsimile, the Internet, and an interactive voice response system to communicate stock requirements.

34. The system of claim 18, wherein prioritizing the plurality of target locations comprises communicating stock requirements over a network.

35. A non-transitory computer-readable medium which stores a set of instructions which when executed by a processor performs a method for distributing stock to a plurality of target locations, the method executed by the set of instructions comprising the steps performed by the processor of:

categorizing stock requirements of the plurality of target locations into a plurality of requirement types, wherein the plurality of requirement types includes at least two of;

stock requirements to fulfill backorders;

fixed stock requirements having a high priority;

forecasted stock requirements over lead time;

safety stock requirements;

non-priority fixed requirements over lead time;

a source location'"'"'s requirements;

or

economic order quantity over the lead time;

prioritizing the plurality of requirement types by order of importance;

prioritizing the plurality of target locations having the same requirement type based on a sequence rule, wherein;

the sequence rule for at least one requirement type is different than the sequence rule for at least one other requirement type; and

the sequence rule is based on;

a proportional basis of a fixed requirement quantity daily rate of at least one of the plurality of target locations determined by calculating fixed requirements of the at least one of the plurality of target locations divided by forecasted requirements of the at least one of the plurality of target locations;

or

a proportional basis of a safety stock daily rate of at least one of the plurality of target locations determined by calculating safety stock of the at least one of the plurality of target locations divided by forecasted requirements of the at least one of the plurality of target locations; and

determining a distribution of the stock to the target locations based on the prioritized requirement types and the prioritized sequence of the target locations, such that the stock requirements are fulfilled from the highest priority requirement type to the lowest priority requirement type and, for each prioritized requirement type, the stock requirements are fulfilled from the highest priority target location to the lowest priority target location.

36. The non-transitory computer-readable medium of claim 35, wherein the sequence rule defines criteria for determining the priority between target locations for receiving distributed stock.

37. The non-transitory computer-readable medium of claim 35, wherein the sequence rule is further based on at least one of:

(a) a forecasted amount of stock required by the target location beyond a lead time;

(b) a lead time for the target location;

(c) demand at the target location;

(d) a predefined sequence order for the target location; and

(e) a filing percentage process.

38. The non-transitory computer-readable medium of claim 37, wherein the filling percentage process comprises rounding the stock requirements for each of the prioritized requirement types and the prioritized the target locations.

39. The non-transitory computer-readable medium of claim 38, wherein the stock requirements for each of the prioritized requirement types and the prioritized the target locations are rounded to a next higher multiple of a minimum allowed pack size for the stock.

40. The non-transitory computer-readable medium of claim 38, wherein determining the distribution of the stock further comprises excluding a current target location in a current requirement type from receiving stock if the current target location was allocated, due to rounding, enough stock to meet a previous requirement type'"'"'s requirement and the current requirement type'"'"'s requirements, wherein the current target location comprises one of the prioritized plurality of target locations and the current and the previous requirement types comprise ones of the prioritized plurality of requirement types.

41. The non-transitory computer-readable medium of claim 37, wherein the filling percentage process comprises:

establishing a cumulated net requirement and a rounded cumulated net requirement for each target location and requirement type, the rounded cumulated net requirement being equal to the corresponding cumulated net requirement rounded to a next higher multiple of a minimum allowed pack size for the stock;

selecting a first requirement type and a second requirement type from the plurality of requirement types, wherein the available quantity of stock is sufficient to meet the rounded cumulated net requirement of the first requirement type but insufficient to meet the rounded cumulated net requirement of the second requirement type; and

calculating, for each target location, a filling percentage configured to be used in prioritizing the plurality of target locations for the second requirement type.

42. The non-transitory computer-readable medium of claim 41, wherein the lowest priority is given to the highest filling percentage and the highest priority is given to the lowest filling percentage.

43. The non-transitory computer-readable medium of claim 41, wherein calculating, for each target location, a filling percentage comprises using the following equation:

44. The non-transitory computer-readable medium of claim 41, wherein determining the distribution of the stock further comprises excluding a current target location in the second requirement type from receiving stock if the current target location'"'"'s filling percentage is greater than or equal to 100%, wherein the current target location comprises one of the prioritized plurality of target locations.

45. The non-transitory computer-readable medium of claim 35, wherein the stock comprises parts.

46. The non-transitory computer-readable medium of claim 35, wherein at least one of the plurality of target locations comprise at least one of a factory, a warehouse, a retail store, a distribution center, and a bulk warehouse.

47. The non-transitory computer-readable medium of claim 35, wherein the stock requirements comprise backorders.

48. The non-transitory computer-readable medium of claim 35, wherein prioritizing the plurality of target locations further includes determining whether a first sequence rule resulted in identifying the priority between each target location, and applying a second sequence rule if the first sequence rule did not result in identifying the priority between each target location.

49. The non-transitory computer-readable medium of claim 35, wherein the prioritized order of target locations for at least one requirement type is different than the prioritized order of target locations for at least one other requirement type.

50. The non-transitory computer-readable medium of claim 35, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations comprises using at least one of regular mail, e-mail, facsimile, the Internet, and an interactive voice response system to communicate stock requirements.

51. The non-transitory computer-readable medium of claim 35, wherein at least one of prioritizing the plurality of requirement types and prioritizing the plurality of target locations further comprises communicating stock requirements over a network.