Demand planning using exchange balances

• US 7,640,180 B1
• Filed: 03/19/2002
• Issued: 12/29/2009
• Est. Priority Date: 03/19/2002
• Status: Expired due to Fees

• Current Assignee: Blue Yonder Group, Inc. (Panasonic Holdings Corporation)
• Original Assignee: i2 Technologies US Incorporated (Panasonic Holdings Corporation)
• Inventors: Cao, Wei, Singh, Amanpreet, Guan, Yap O., Slocum, Gregory H., Venkatasubramanyan, Narayan
• Primary Examiner(s): Jarrett; Scott L
• Application Number:
  US10/103,384
• Time in Patent Office: 2,842 Days
• Field of Search: 705/10
• US Class Current: 705/7.25
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities

Abstract

A method for demand planning includes determining a demand value representing a demand quantity of an end product that a manufacturer is to produce. Production of the demand quantity of the end product includes production of a quantity of an intermediate product using a raw material. The intermediate product is to be further processed to produce the end product. The method also includes determining an additional quantity value representing an additional quantity of the intermediate product that the manufacturer can produce in addition to the quantity of the intermediate product used to produce the end product. At least one of the demand value and the additional quantity value is based at least partially on an exchange balance associated with at least one of the raw material, the intermediate product, and the end product. The method further includes making the additional quantity value for the intermediate product available for use in generating additional demand for the intermediate product.

Claims

1. A computer-implemented method for demand planning, comprising:

determining, by a server, a demand value representing a demand quantity of an end product to be produced by one or more entities, production of the demand quantity of the end product comprising production of a quantity of an intermediate product using a raw material, the intermediate product to be further processed to produce the end product;

determining, by the server, an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more entities in addition to the quantity of the intermediate product used to produce the end product, at least one of the demand value and the additional quantity value based on an exchange balance associated with at least one of the raw material, the intermediate product, and the end product, wherein the exchange balance identifies a balance representing the status of an exchange contract between the one or more entities;

determining, by the server, a reserve value that represents the quantity of the intermediate product used to produce the end product;

determining, by the server, a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

updating, by the server, the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

determining, by the server, a quantity of a by-product to be produced during the production of the end product;

determining, by the server, the quantity of the by-product to be produced during the production of at least a portion of the intermediate product;

making, by the server, the additional quantity value based on the updated exchange balance for the intermediate product available to generate additional demand for the intermediate product; and

making, by the server, the quantity of the by-product available to generate demand for the by-product.

2. The method of claim 1, wherein determining the demand value comprises:

determining a predicted demand value that represents a predicted demand quantity for the end product;

decreasing the predicted demand value when a quantity of the end product is obtained from an entity comprising the exchange balance; and

increasing the predicted demand value when a quantity of the end product is to be supplied to the entity.

3. The method of claim 2, further comprising using at least one business rule to determine whether to obtain a quantity of the end product from or supply a quantity of the end product to the entity.

4. The method of claim 2, further comprising:

updating the exchange balance to reflect a credit associated with the one or more entities when the quantity of the end product is to be supplied to the entity, the credit representing a commitment by the one or more entities to accept a quantity of the end product from the entity; and

updating the exchange balance to reflect a debit associated with the one or more entities when the quantity of the end product is to be obtained from the entity, the debit representing a commitment by the one or more entities to supply a quantity of the end product to the entity.

5. The method of claim 2, further comprising determining whether the predicted demand value represents a quantity of the end product that is larger than a total quantity of the end product to be produced by the one or more entities.

6. The method of claim 1, further comprising:

increasing at least one of the demand value and the additional quantity value when a quantity of the raw material is obtained from an entity comprising the exchange balance; and

decreasing at least one of the demand value and the additional quantity value when a quantity of the raw material is to be supplied to the entity.

7. The method of claim 1, further comprising:

decreasing the reserve value when a quantity of the intermediate product is obtained from an entity comprising the exchange balance;

increasing the reserve value when a quantity of the intermediate product is to be supplied to the manufacturer associated with the exchange balance.

8. The method of claim 7, further comprising determining whether the reserve value represents a quantity of the intermediate product that is larger than the total quantity of the intermediate product to be produced by the one or more entities.

9. The method of claim 1, further comprising:

determining a total value representing a total quantity of the by-product that would be produced during production of the demand quantity of the end product and production of at least a portion of the additional quantity of the intermediate product;

increasing the total value when a quantity of the by-product is to be obtained from a second server associated with a second entity, the second server comprising a second exchange balance, the second exchange balance associated with at least the by-product;

decreasing the total value when a quantity of the by-product is supplied to the second entity; and

making the total value for the by-product available to generate additional demand for the by-product.

10. The method of claim 9, further comprising determining whether the quantity of the by-product to be supplied to the second entity is larger than the total quantity of the by-product.

11. The method of claim 9, wherein the end product comprises a chemical end product, the intermediate product comprises a chemical intermediate product, and the byproduct comprises a chemical by-product.

12. A computer-implemented system for demand planning, comprising:

an entity comprising a demand server, the demand server comprising a storage medium stored therein an exchange balance, the exchange balance configured to provide at least one of a raw material, an intermediate product, and an end product to one or more other entities, the demand server configured to;

determine a demand value representing a demand quantity of the end product to be produced by the one or more other entities, production of the demand quantity of the end product comprising production of a quantity of the intermediate product using the raw material, the intermediate product is further processed to produce the end product;

determine an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more other entities in addition to the quantity of the intermediate product used to produce the end product, at least one of the demand value and the additional quantity value based on the exchange balance, wherein the exchange balance identifies a balance representing the status of an exchange contract between the entity and the one or more other entities;

determine a reserve value that represents the quantity of the intermediate product used to produce the end product;

determine a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

update the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

determine a quantity of a by-product to be produced during the production of the end product;

determine the quantity of the by-product to be produced during the production of at least a portion of the intermediate product;

make the additional quantity value based on the updated exchange balance for the intermediate product available to generate additional demand for the intermediate product; and

make the quantity of the by-product available to generate demand for the by-product.

13. The system of claim 12, wherein the demand server is further configured to determine the demand value by:

determining a predicted demand value that represents a predicted demand quantity for the end product;

decreasing the predicted demand value when a quantity of the end product is obtained from the entity; and

increasing the predicted demand value when a quantity of the end product is to be supplied to the entity.

14. The system of claim 13, wherein the demand server is further configured to use at least one business rule to determine whether to obtain a quantity of the end product from or supply a quantity of the end product to the entity.

15. The system of claim 13, wherein the demand server is further configured to:

update the exchange balance to reflect a credit associated with the one or more other entities when the quantity of the end product is to be supplied to the entity, the credit representing a commitment by the one or more other entities to accept a quantity of the end product from the entity; and

update the exchange balance to reflect a debit associated with the one or more other entities when the quantity of the end product is to be obtained from the entity, the debit representing a commitment by the one or more other entities to supply a quantity of the end product to the entity.

16. The system of claim 12, wherein the demand server is further configured to determine whether the predicted demand value represents a quantity of the end product that is larger than a total quantity of the end product to be produced by the one or more other entities.

17. The system of claim 12, wherein the demand server is further configured to:

increase at least one of the demand value and the additional quantity value when a quantity of the raw material is obtained from the entity; and

decrease at least one of the demand value and the additional quantity value when a quantity of the raw material is to be supplied to the entity.

18. The system of claim 12, wherein the demand server is further configured to:

decrease the reserve value when a quantity of the intermediate product is obtained from the entity; and

increase the reserve value when a quantity of the intermediate product is to be supplied to the entity.

19. The system of claim 18, wherein the demand server is further configured to determine whether the reserve value represents a quantity of the intermediate product that is larger than the total quantity of the intermediate product to be produced by the one or more other entities.

20. The system of claim 12, wherein the demand server is further configured to:

determine a total value representing a total quantity of the by-product that would be produced during production of the demand quantity of the end product and production of at least a portion of the additional quantity of the intermediate product;

increase the total value when a quantity of the by-product is to be obtained from a second demand server associated with a second entity, the second demand server comprising a second exchange balance, the second exchange balance associated with at least the by-product;

decrease the total value when a quantity of the by-product is supplied to the second entity; and

make the total value for the by-product available to generate additional demand for the by-product.

21. The system of claim 20, wherein the demand server is further configured to determine whether the quantity of the by-product to be supplied to the second entity is larger than the total quantity of the by-product.

22. The system of claim 20, wherein the end product comprises a chemical end product, the intermediate product comprises a chemical intermediate product, and the byproduct comprises a chemical by-product.

23. A computer-readable media embodied with software for demand planning, the software when executed using a computer is configured to:

determine a demand value representing a demand quantity of an end product to be produced by one or more entities, production of the demand quantity of the end product comprising production of a quantity of an intermediate product using a raw material, the intermediate product to be further processed to produce the end product;

determine an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more entities in addition to the quantity of the intermediate product used to produce the end product, at least one of the demand value and the additional quantity value based on an exchange balance associated with at least one of the raw material, the intermediate product, and the end product, wherein the exchange balance identifies a balance representing the status of an exchange contract between the one or more entities;

determine a reserve value that represents the quantity of the intermediate product used to produce the end product;

determine a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

update the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

determine a quantity of a by-product to be produced during the production of the end product;

determine the quantity of the by-product to be produced during the production of at least a portion of the intermediate product;

make the additional quantity value based on the updated exchange balance for the intermediate product available to generate additional demand for the intermediate product; and

make the quantity of the by-product available to generate demand for the by-product.

24. A computer-implemented method for demand planning, comprising:

determining, by a server, a demand value representing a demand quantity of an end product to be produced by one or more entities, production of the demand quantity of the end product comprising production of a quantity of an intermediate product to be further processed to produce the end product and a quantity of a by-product that is not to be further processed to produce the end product;

determining, by the server, an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more entities in addition to the quantity of the intermediate product used to produce the end product;

determining, by the server, a quantity value representing a quantity of the by-product that would be produced during production of the end product, at least one of the demand value and the quantity value based on an exchange balance associated with at least one of the raw material, the by-product, and the end product, wherein the exchange balance identifies a balance representing the status of an exchange contract between the one or more entities;

determining, by the server, a reserve value that represents the quantity of the intermediate product used to produce the end product;

determining, by the server, a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

updating, by the server, the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

making, by the server, the additional quantity value based on the updated exchange balance for the intermediate product available to generate additional demand for the intermediate product; and

making, by the server, the quantity value for the by-product available to generate additional demand for the by-product.

25. The method of claim 24, further comprising:

determining a total quantity value representing a total quantity of the by-product that would be produced during production of the end product and production of at least a portion of the additional quantity of the intermediate product.

26. The method of claim 25, further comprising:

decreasing the reserve value when a quantity of the intermediate product is obtained from a second server associated with a second entity, the second server comprising a second exchange balance, the second exchange balance associated with at least the intermediate product; and

increasing the reserve value when a quantity of the intermediate product is to be supplied to the second entity.

27. The method of claim 25, wherein the end product comprises a chemical end product, the intermediate product comprises a chemical intermediate product, and the by-product comprises a chemical by-product.

28. A computer-implemented system for demand planning, comprising:

an entity comprising a demand server comprising a storage medium stored therein an exchange balance, the exchange balance configured to provide at least one of a raw material, a by-product, and an end product to one or more other entities, the demand server configured to;

determine a demand value representing a demand quantity of the end product to be produced by the one or more other entities, production of the demand quantity of the end product comprising production of a quantity of an intermediate product to be further processed to produce the end product and a quantity of the by-product that is not further processed to produce the end product;

determine an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more other entities in addition to the quantity of the intermediate product used to produce the end product;

determine a quantity value representing a quantity of the by-product that would be produced during production of the end product, at least one of the demand value and the quantity value based on the exchange balance, wherein the exchange balance identifies a balance representing the status of an exchange contract between the one or more other entities;

determine a reserve value that represents the quantity of the intermediate product used to produce the end product;

determine a difference between a total quantity of the intermediate product to be produced by the entity and the quantity of the intermediate product represented by the reserve value;

update the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

make the additional quantity value based on the updated exchange balance for the intermediate product available to generate additional demand for the intermediate product; and

make the quantity value for the by-product available to generate additional demand for the by-product.

29. The system of claim 28, wherein the demand server is further configured to:

determine a total quantity value representing a total quantity of the by-product that would be produced during production of the end product and production of at least a portion of the additional quantity of the intermediate product.

30. The system of claim 29, wherein the demand server is further configured to:

decrease the reserve value when a quantity of the intermediate product is obtained from a second demand server associated with a second entity, the second demand server comprising a second exchange balance, the second exchange balance associated with at least the intermediate product; and

increase the reserve value when a quantity of the intermediate product is to be supplied to the second entity.

31. The system of claim 29, wherein the end product comprises a chemical end product, the intermediate product comprises a chemical intermediate product, and the by-product comprises a chemical by-product.

32. A computer-readable media embodied with software for demand planning, the software when executed using a computer is configured to:

determine a demand value representing a demand quantity of an end product to be produced by one or more entities, production of the demand quantity of the end product comprising production of a quantity of a quantity of an intermediate product to be further processed to produce the end product and a by-product that is not to be further processed to produce the end product;

determine an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more entities in addition to the quantity of the intermediate product used to produce the end product;

determine a quantity value representing a quantity of the by-product that would be produced during production of the end product, at least one of the demand value and the quantity value based on an exchange balance associated with at least one of the raw material, the by-product, and the end product, wherein the exchange balance identifies a balance representing the status of an exchange contract between the one or more entities;

determine a reserve value that represents the quantity of the intermediate product used to produce the end product;

determine a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

update the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

make the additional quantity value based on the updated exchange balance for the intermediate product available to generate additional demand for the intermediate product; and

make the quantity value for the by-product available to generate additional demand for the by-product.

33. A computer-implemented system for demand planning, comprising:

an entity comprising a demand server, the demand server comprising a storage medium stored therein an exchange balance, the exchange balance comprising;

means for providing at least one of a raw material, an intermediate product, a by-product to one or more other entities;

means for determining a demand value representing a demand quantity of the end product to be produced by the one or more other entities, production of the demand quantity of the end product comprising production of a quantity of the intermediate product using the raw material, the intermediate product to be further processed to produce the end product, production of at least one of the intermediate product and the end product comprising production of a quantity of the by-product that is not to be further processed to produce the end product;

means for determining an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more other entities in addition to the quantity of the intermediate product used to produce the end product;

means for determining a total quantity value representing a total quantity of the by-product that would be produced during production of the demand quantity of the end product and production of at least a portion of the additional quantity of the intermediate product, at least one of the demand value, the additional quantity value, and the total quantity value based on the exchange balance, wherein the exchange balance identifies a balance representing the status of an exchange contract between the entity and the one or more other entities;

means for determining a reserve value that represents the quantity of the intermediate product used to produce the end product;

means for determining a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

means for updating the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value; and

means for making the additional quantity value based on the updated exchange balance for the intermediate product and the total quantity value for the by-product available to generate additional demand for the intermediate product and the by-product.

34. A computer-implemented system for demand planning, comprising:

an entity comprising a demand server comprising a storage medium stored therein an exchange balance, the exchange balance configured to provide at least one of a raw material, an intermediate product, a by-product, and an end product to one or more other entities, the demand server containing;

a demand value representing a demand quantity of the end product to be produced by the one or more other entities, production of the demand quantity of the end product comprising production of a quantity of the intermediate product using the raw material, the intermediate product to be further processed to produce the end product, production of at least one of the intermediate product and the end product comprising production of a quantity of the by-product that is not to be further processed to produce the end product; and

a value representing a total quantity of the intermediate product to be produced by the one or more other entities; and

the demand server configured to;

determine the demand value for the end product;

determine an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more other entities in addition to the quantity of the intermediate product used to produce the end product; and

determine a total quantity value representing a total quantity of the by-product that would be produced during production of the demand quantity of the end product and production of at least a portion of the additional quantity of the intermediate product, at least one of the demand value, the additional quantity value, and the total quantity value based on the exchange balance, wherein the exchange balance identifies a balance representing the status of an exchange contract between the entity and the one or more other entities;

determine a reserve value that represents the quantity of the intermediate product used to produce the end product;

determine a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

update the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value; and

make the additional quantity value based on the updated exchange balance for the intermediate product and the total quantity value for the by-product available to generate additional demand for the intermediate product and the by-product.

35. A computer-implemented method for demand planning, comprising:

determining, by a server, a demand value representing a demand quantity of an end product to be produced by one or more entities, production of the demand quantity of the end product comprising production of a quantity of an intermediate product using a raw material, the intermediate product to be further processed to produce the end product, production of at least one of the intermediate product and the end product comprising production of a quantity of a by-product that is not to be further processed to produce the end product;

determining, by the server, an additional quantity value representing an additional quantity of the intermediate product to be produced by the one or more entities in addition to the quantity of the intermediate product used to produce the end product, the additional quantity value determined using a total quantity value representing a total quantity of the intermediate product to be produced by the one or more entities produce;

determining, by the server, a total quantity value representing a total quantity of the by-product that would be produced during production of the demand quantity of the end product and production of at least a portion of the additional quantity of the intermediate product, at least one of the demand value, the additional quantity value, and the total quantity value based on an exchange balance associated with a manufacturer, the exchange balance identifies a balance representing the status of an exchange contract between the manufacturer and the one or more entities, wherein the manufacturer may supply at least one of the raw material, the intermediate product, the by-product, and the end product to the one or more entities, and wherein the one or more entities supply at least one of the raw material, the intermediate product, the by-product, and the end product to the manufacturer;

determining, by the server, a reserve value that represents the quantity of the intermediate product used to produce the end product;

determining, by the server, a difference between a total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value;

updating, by the server, the exchange balance to reflect the difference between the total quantity of the intermediate product to be produced by the one or more entities and the quantity of the intermediate product represented by the reserve value; and

making, by the server, the additional quantity value based on the updated exchange balance for the intermediate product and the total quantity value for the by-product available to generate additional demand for the intermediate product and the by-product.