Leveled-flow replenishment using deadband limits

• US 8,655,753 B2
• Filed: 12/27/2007
• Issued: 02/18/2014
• Est. Priority Date: 11/28/2007
• Status: Active Grant

• Current Assignee: Callahan Cellular LLC (Intellectual Ventures LLC)
• Original Assignee: Ziti Technologies LLC (Intellectual Ventures LLC)
• Inventors: McCormick, Kevin L., Kelly, Jayne M., Knoespel, Wesley J.
• Primary Examiner(s): OBAID, FATEH M
• Application Number:
  US11/965,424
• Publication Number:
  US 20090138384A1
• Time in Patent Office: 2,245 Days
• Field of Search: None
• US Class Current: 705/29
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/083 Shipping
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

Inventory replenishment that levels the flow of products from a collection of supplying distribution centers (DCs) to a receiving DC. Products are shipped in calculated, predetermined quantities at calculated, predetermined intervals to match the outflow rates at the receiving DC. Inventory levels at the receiving DC are monitored daily, and exceptions or adjustments to the shipment pattern (e.g., quantities and time intervals) are executed in a systematic manner when they stray outside of calculated minimum and maximum levels.

Claims

1. A system comprising:

memory for storing current inventory levels of products, the memory further storing minimum inventory levels and maximum inventory levels for each of the products; and

a processor configured to execute instructions in order to cause the system to;

generate a shipment schedule for a first time period indicating a plurality of scheduled shipments of the products to a location, the plurality of scheduled shipments being defined to occur at regular intervals during the first time period, each scheduled shipment including a quantity of products for the location; and

generate a minimum inventory level and a maximum inventory level for each product based on the shipment schedule and stock flow for the product at the location;

wherein, at a plurality of intervals occurring during the first time period, the system is further configured to;

receive current inventory levels of products for the location;

determine first products having current inventory levels below the generated respective minimum inventory level for the product at the location;

determine second products having current inventory levels above the generated respective maximum inventory for the product at the location;

determine add exceptions for the first products based on a comparison of current inventory levels of the first products to the generated respective minimum inventory levels for the first products at the location, the add exceptions representing respective quantities of ones of the first products to add to one or more scheduled shipments for the location;

determine withhold exceptions for the second products based on a comparison of current inventory levels of the second products to the generated respective maximum inventory levels for the second products at the location, the withhold exceptions representing respective quantities of ones of the second products to withhold from one or more scheduled shipments for the location;

apply the determined withhold exceptions to one or more scheduled shipments for the location; and

after applying the determined withhold exceptions, apply the determined add exceptions to one or more scheduled shipments for the location.

2. The system of claim 1, further comprising an order management system, wherein the processor is further configured to enter the determined withhold exceptions and the determined add exceptions into the order management system.

3. The system of claim 1, wherein the processor is further configured to adjust a quantity of one or more of the products to ship to the location as a function of said comparing of current inventory levels of products to minimum inventory levels or as a function of said comparing of current inventory levels of products to maximum inventory levels.

4. The system of claim 1, further comprising an assessment component for calculating the minimum inventory level and for calculating the maximum inventory level.

5. The system of claim 1, further comprising an implementation component for adjusting the scheduled shipments as a function of the determined withhold exceptions and the determined add exceptions.

6. The system of claim 1, further comprising a design component for defining the shipments of the products from said one of the locations to another location.

7. The system of claim 1, wherein the location comprises a distribution center.

8. The system of claim 1, wherein the memory and the processor are associated with a supplier distribution center.

9. The system of claim 1, wherein a shipment of the plurality of scheduled shipments of products comprises a fixed quantity of one or more of the products.

10. The system of claim 1, wherein the determined withhold exceptions and the determined add exceptions are applied to the same one or more scheduled shipments.

27. The system of claim 1, wherein the first time period comprises at least one month and the intervals occurring during the first time period are daily intervals.

11. A method comprising:

generating information for a first time period regarding a plurality of scheduled shipments of products to a location, the shipments scheduled to occur at set intervals during the first time period, each scheduled shipment including a quantity of products for the location;

generating a minimum inventory level and a maximum inventory level for each product based on the shipment schedule and stock flow for the product at the location; and

at each of a plurality of intervals occurring during the first time period;

receiving current inventory levels of products for the location;

determining first products having current inventory levels below the generated respective minimum inventory levels for the product at the location;

determining second products having current inventory levels above the generated respective maximum inventory levels for the product at the location;

determining, by a computing device having one or more hardware computer processors, add exceptions for the first products, the add exceptions representing respective quantities of ones of the first products to add to one or more of the plurality of scheduled shipments to the location, said determining based on a comparison of current inventory levels of the first products to the generated respective minimum inventory levels for the first products at the location;

determining, by the computing device, withhold exceptions for the second products, the withhold exceptions representing respective quantities of ones of the second products to withhold from one or more scheduled shipments to the location, said determining based on a comparison of current inventory levels of the second products to the generated respective maximum inventory levels for the second products at the location;

applying the determined withhold exceptions to one or more of the plurality of scheduled shipments for the location; and

after applying the determined withhold exceptions, applying the determined add exceptions to the one or more of the plurality of scheduled shipments for the location.

12. The method of claim 11, further comprising submitting the determined withhold exceptions and the determined add exceptions to an order management system.

13. The method of claim 11, wherein the location is a distribution center.

14. The method of claim 11, wherein quantities of the products are shipped in containers, wherein at least some containers maintain a reserve capacity to accommodate adjustment of the quantities of the products.

15. The method of claim 11, wherein comparing the current inventory levels of products to maximum inventory levels comprises determining a maximum inventory level for a product based at least on a minimum inventory level, a range of desired inventory level, and a buffer value.

16. The method of claim 11, wherein comparing the current inventory levels of products to minimum inventory levels comprises determining a minimum inventory level for a product based at least on expected outflow of the product from the location and a safety stock quantity.

17. The method of claim 11, further comprising scheduling an additional shipment for a portion of the add exceptions if insufficient capacity exists for the add exceptions on the plurality of the scheduled shipments.

18. The method of claim 17, wherein the additional shipment is sourced from a location having quantities of multiple ones of the first products and the additional shipment comprises quantities of multiple ones of the first products.

19. A non-transitory computer-readable medium having stored thereon instructions that, in response to execution by a computing system, cause the computing system to perform operations comprising:

generating for a first time period a plurality of scheduled shipments of products to a location at regular intervals during the first time period, each scheduled shipment including a quantity of products for the location; and

generating a minimum inventory level and a maximum inventory level for each product based on the shipment schedule and stock flow for the product at the location;

wherein, at a plurality of intervals occurring during the first time period, the computing system further performs operations comprising;

receiving current inventory levels of the products for the location;

determining first products having current inventory levels below the generated minimum inventory levels at the location;

determining second products having current inventory levels above the generated maximum inventory levels at the location;

accessing the plurality of scheduled shipments of products to the location;

reducing quantities of the second products in one or more of the plurality of scheduled shipments of products to the location based on a comparison of current inventory levels of the second products to the generated respective maximum inventory levels for the second products at the location; and

increasing quantities of the first products in one or more of the plurality of scheduled shipments of products to the location based on a comparison of current inventory levels of the first products to the generated respective minimum inventory levels for the first products at the location.

20. The computer-readable medium of claim 19, wherein the location is a distribution center.

21. The computer-readable medium of claim 19, wherein quantities of the products are shipped in containers, wherein at least some containers maintain a reserve capacity to accommodate adjustment of the quantities of the products.

22. The computer-readable medium of claim 19, wherein the increased quantities of the first products replace at least some of the decreased quantities of the second products in shipping containers associated with the plurality of scheduled shipments.

23. The computer-readable medium of claim 19, wherein determining desired minimum inventory levels and desired maximum inventory levels comprises determining a maximum inventory level for a product based at least on a minimum inventory level, a range of desired inventory level, and a buffer value.

24. The computer-readable medium of claim 19, wherein determining desired minimum inventory levels and desired maximum inventory levels comprises determining a minimum inventory level for a product based at least on expected outflow of the product from the location and a safety stock quantity.

25. The computer-readable medium of claim 19, wherein the operations further comprise scheduling an additional shipment for a portion of the increased quantities of the first products if insufficient capacity exists for the increased quantities of the first products on the plurality of the scheduled shipments.

26. The computer-readable medium of claim 25, wherein the additional shipment is sourced from a location having quantities of multiple ones of the first products and the additional shipment comprises quantities of multiple ones of the first products.