Systems and methods for determining pack allocations

• US 8,688,497 B2
• Filed: 01/10/2011
• Issued: 04/01/2014
• Est. Priority Date: 01/10/2011
• Status: Active Grant

• Current Assignee: SAS Institute Incorporated
• Original Assignee: SAS Institute Incorporated
• Inventors: McMains, Teresa DePaola, Burkhardt, Thomas, Pratt, Robert William
• Primary Examiner(s): Boyce, Andre
• Assistant Examiner(s): FEACHER, LORENA R
• Application Number:
  US12/987,495
• Publication Number:
  US 20120179507A1
• Time in Patent Office: 1,177 Days
• Field of Search: 705/7.25, 705/7.11, 705/7.12
• US Class Current: 705/7.25
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

Systems and methods are provided for determining a distribution of each of a plurality of inner packs to a plurality of stores. Mismatch cost data and product demand data are received for the plurality of stores. A first inner pack quantity for distribution is determined based on the product demand data. A supply difference amount is determined, where the supply difference amount is a difference between the first inner pack quantity and the number of first inner packs available for distribution. A determination is made that adjusting the first inner pack quantity for the particular store based on the supply difference amount would have less effect on mismatch costs than other stores, and the first inner pack quantity is adjusted for the particular store based on the supply difference.

Claims

1. A computer-implemented method comprising:

accessing, on a computing device, inner pack configuration information depicting contents of multiple commonly-configured inner packs, wherein the inner packs are used to provide multiple varieties of a product to multiple stores, the stores including stores supplied by a first distribution center and stores supplied by a second distribution center, wherein depicting the contents includes depicting a quantity of each variety of the product in the inner packs, and wherein the inner packs are shipped in outer packs, the outer packs being sized to contain a first number of inner packs;

for each of the stores, accessing mismatch cost data;

for each of the stores, accessing a demand profile, wherein a demand profile for a store depicts demand for each of the multiple varieties of the product at that store;

repeatedly performing a series of operations on the computing device until an allocation condition is satisfied, the allocation condition becoming satisfied when;

the stores supplied by the first distribution center are allocated, in the aggregate, a first quantity of inner packs such that the first quantity is a multiple of the first number of inner packs; and

concurrently, the stores supplied by the second distribution center are allocated, in the aggregate, a second quantity of inner packs such that the second quantity is a multiple of the first number of inner packs,

wherein the series of operations includes;

accessing allocation data for each of the stores, wherein allocation data for a store depicts an allocation quantity of inner packs for that store,

calculating, on the computing device, a mismatch cost for each of the stores, wherein calculating a mismatch cost for a store is based on the allocation quantity, mismatch cost data and demand profile for that store, and the accessed inner pack configuration information,

determining a first marginal mismatch cost for each of the stores supplied by the first distribution center, wherein, with respect to each store, the first marginal mismatch cost is associated with decreasing the allocation quantity of inner packs for the respective store;

determining a second marginal mismatch cost for each of the stores supplied by the second distribution center, wherein, with respect to each store, the second marginal mismatch cost is associated with increasing the allocation quantity of inner packs for the respective store;

selecting one of the stores for allocation reduction, wherein the store selected for allocation reduction is the store for which the first marginal mismatch cost is lowest,

selecting another one of the stores for allocation expansion, wherein the store selected for allocation expansion is the store for which the second marginal mismatch cost is lowest, and

subtracting one inner pack from the allocation quantity of inner packs for the store selected for allocation reduction; and

adding one inner pack to the allocation quantity of inner packs for the store selected for allocation expansion; and

subsequent to determining that the allocation condition has been satisfied, initiating a shipment to each of the stores, wherein, for each store, the respective shipment is based on the allocation quantity of inner packs for that store.

2. The method of claim 1, wherein mismatch cost data for a store includes information depicting:

overdelivery costs incurred by the store, the overdelivery costs including separate costs for each variety of the product; and

underdelivery costs incurred by the store, the underdelivery costs including separate costs for each variety of the product.

3. The method of claim 1, wherein inner packs are shipped to the stores in commonly-configured outer packs, each outer pack containing a same quantity of inner packs.

10. The method of claim 1, wherein each first marginal mismatch cost is an expected cost increase associated with decrementing an inner pack allocation quantity by an amount of one inner pack.

11. The method of claim 1, wherein each second marginal mismatch cost is an expected cost increase associated with incrementing an inner pack allocation quantity by an amount of one inner pack.

12. The method of claim 1, wherein, prior to the repeated performance of the operations, constraints are imposed on at least two of the stores, and wherein the repeated performance of the operations is used to reallocate inner packs amongst the stores so that the constraints are not violated.

13. The method of claim 3, wherein, after the repeated performance of the operations, each allocation quantity of inner packs is a multiple of the quantity of inner packs contained in each outer pack.

4. A system, comprising:

one or more processing units;

one or more non-transitory computer-readable storage mediums containing instructions configured to cause the one or more processing units to perform steps including;

accessing inner pack configuration information depicting contents of multiple commonly-configured inner packs, wherein the inner packs are used to provide multiple varieties of a product to multiple stores, the stores including stores supplied by a first distribution center and stores supplied by a second distribution center, wherein depicting the contents includes depicting a quantity of each variety of the product in the inner packs, and wherein the inner packs are shipped in outer packs, the outer packs being sized to contain a first number of inner packs;

for each of the stores, accessing mismatch cost data;

for each of the stores, accessing a demand profile, wherein a demand profile for a store depicts demand for each of the multiple varieties of the product at that store;

repeatedly performing a series of operations until an allocation condition is satisfied, the allocation condition becoming satisfied when;

the stores supplied by the first distribution center are allocated, in the aggregate, a first quantity of inner packs such that the first quantity is a multiple of the first number of inner packs; and

concurrently, the stores supplied by the second distribution center are allocated, in the aggregate, a second quantity of inner packs such that the second quantity is a multiple of the first number of inner packs,

wherein the series of operations includes;

accessing allocation data for each of the stores, wherein allocation data for a store depicts an allocation quantity of inner packs for that store,

calculating a mismatch cost for each of the stores, wherein calculating a mismatch cost for a store is based on the allocation quantity, mismatch cost data and demand profile for that store, and the accessed inner pack configuration information,

determining a first marginal mismatch cost for each of the stores supplied by the first distribution center, wherein, with respect to each store, the first marginal mismatch cost is associated with decreasing the allocation quantity of inner packs for the respective store;

determining a second marginal mismatch cost for each of the stores supplied by the second distribution center, wherein, with respect to each store, the second marginal mismatch cost is associated with increasing the allocation quantity of inner packs for the respective store;

selecting one of the stores for allocation reduction, wherein the store selected for allocation reduction is the store for which the first marginal mismatch cost is lowest,

selecting another one of the stores for allocation expansion, wherein the store selected for allocation expansion is the store for which the second marginal mismatch cost is lowest, and

subtracting one inner pack from the allocation quantity of inner packs for the store selected for allocation reduction; and

adding one inner pack to the allocation quantity of inner packs for the store selected for allocation expansion; and

subsequent to determining that the allocation condition has been satisfied, initiating a shipment to each of the stores, wherein, for each store, the respective shipment is based on the allocation quantity of inner packs for that store.

5. The system of claim 4, wherein mismatch cost data for a store includes information depicting:

overdelivery costs incurred by the store, the overdelivery costs including separate costs for each variety of the product; and

underdelivery costs incurred by the store, the underdelivery costs including separate costs for each variety of the product.

6. The system of claim 4, wherein inner packs are shipped to the stores in commonly-configured outer packs, each outer pack containing a same quantity of inner packs.

14. The system of claim 4, wherein each first marginal mismatch cost is an expected cost increase associated with decrementing an inner pack allocation quantity by an amount of one inner pack.

15. The system of claim 4, wherein each second marginal mismatch cost is an expected cost increase associated with incrementing an inner pack allocation quantity by an amount of one inner pack.

16. The system of claim 4, wherein, prior to the repeated performance of the operations, constraints are imposed on at least two of the stores, and wherein the repeated performance of the operations is used to reallocate inner packs amongst the stores so that the constraints are not violated.

17. The system of claim 6, wherein, after the repeated performance of the operations, each allocation quantity of inner packs is a multiple of the quantity of inner packs contained in each outer pack.

7. A computer-program product, tangibly embodied in a machine-readable non-transitory storage medium, including instructions configured to cause a data processing apparatus to perform steps including:

accessing inner pack configuration information depicting contents of multiple commonly-configured inner packs, wherein the inner packs are used to provide multiple varieties of a product to multiple stores, the stores including stores supplied by a first distribution center and stores supplied by a second distribution center, wherein depicting the contents includes depicting a quantity of each variety of the product in the inner packs, and wherein the inner packs are shipped in outer packs, the outer packs being sized to contain a first number of inner packs;

for each of the stores, accessing mismatch cost data;

for each of the stores, accessing a demand profile, wherein a demand profile for a store depicts demand for each of the multiple varieties of the product at that store;

repeatedly performing a series of operations until an allocation condition is satisfied, the allocation condition becoming satisfied when;

the stores supplied by the first distribution center are allocated, in the aggregate, a first quantity of inner packs such that the first quantity is a multiple of the first number of inner packs; and

concurrently, the stores supplied by the second distribution center are allocated, in the aggregate, a second quantity of inner packs such that the second quantity is a multiple of the first number of inner packs,

wherein the series of operations includes;

accessing allocation data for each of the stores, wherein allocation data for a store depicts an allocation quantity of inner packs for that store,

calculating a mismatch cost for each of the stores, wherein calculating a mismatch cost for a store is based on the allocation quantity, mismatch cost data and demand profile for that store, and the accessed inner pack configuration information,

determining a first marginal mismatch cost for each of the stores supplied by the first distribution center, wherein, with respect to each store, the first marginal mismatch cost is associated with decreasing the allocation quantity of inner packs for the respective store;

determining a second marginal mismatch cost for each of the stores supplied by the second distribution center, wherein, with respect to each store, the second marginal mismatch cost is associated with increasing the allocation quantity of inner packs for the respective store;

selecting one of the stores for allocation reduction, wherein the store selected for allocation reduction is the store for which the first marginal mismatch cost is lowest,

selecting another one of the stores for allocation expansion, wherein the store selected for allocation expansion is the store for which the second marginal mismatch cost is lowest, and

subtracting one inner pack from the allocation quantity of inner packs for the store selected for allocation reduction; and

adding one inner pack to the allocation quantity of inner packs for the store selected for allocation expansion; and

subsequent to determining that the allocation condition has been satisfied, initiating a shipment to each of the stores, wherein, for each store, the respective shipment is based on the allocation quantity of inner packs for that store.

8. The computer-program product of claim 7, wherein mismatch cost data for a store includes information depicting:

overdelivery costs incurred by the store, the overdelivery costs including separate costs for each variety of the product; and

underdelivery costs incurred by the store, the underdelivery costs including separate costs for each variety of the product.

9. The computer-program product of claim 7, wherein inner packs are shipped to the stores in commonly-configured outer packs, each outer pack containing a same quantity of inner packs.

18. The computer-program product of claim 7, wherein each first marginal mismatch cost is an expected cost increase associated with decrementing an inner pack allocation quantity by an amount of one inner pack.

19. The computer-program product of claim 7, wherein each second marginal mismatch cost is an expected cost increase associated with incrementing an inner pack allocation quantity by an amount of one inner pack.

20. The computer-program product of claim 7, wherein, prior to the repeated performance of the operations, constraints are imposed on at least two of the stores, and wherein the repeated performance of the operations is used to reallocate inner packs amongst the stores so that the constraints are not violated.

21. The computer-program product of claim 9, wherein, after the repeated performance of the operations, each allocation quantity of inner packs is a multiple of the quantity of inner packs contained in each outer pack.