System and method for ensuring order fulfillment
First Claim
1. A computer implemented method utilizing code stored in a computer storage medium for fulfilling an order that requests items by a requested date, comprising:
- storing supply chain data including information identifying the items by stock-keeping unit (SKU), a physical location for each SKU, a quantity of each SKU at each location, replenishment data for each SKU, a minimum inventory level for each SKU at each location, a storage cost for each SKU at each location, and distribution data for each SKU in a database comprising a computer storage medium provided by a database server;
tracking changes in the supply chain and determining actions to meet requirements of the order given the changes to the supply chain by a computer implemented distribution module provided by a fulfillment server for calculating replenishment requirements by applying leveling logic based on sourcing requirements, generating planned replenishments, adjusting coverage durations, and making adjustments to avoid waste, and for flagging potential issues with planning to replenish inventory;
generating shipments of SKUs and managing distribution and transportation requirements based on the shipments by a computer implemented deployment module provided by the fulfillment server;
managing a production schedule of the SKUs in view of the orders by a computer implemented production module provided by the fulfillment server;
adjusting the distribution module to replenish SKUs in line with material availability by a computer implemented material allocation module provided by the fulfillment server; and
producing an output by the fulfillment server comprising a date sensitive replenishment requirement using an expiration date, shelf life duration, coverage cycle, maximum waste factor, and projected unusable on-hand inventory information in generating planned replenishment of inventory,wherein the date sensitive replenishment requirement applies a first effective shelf life for an item of inventory that is one of;
a) produced in the winter;
or b) being shipped to a geographic location having a cold climate, and a second effective shelf life for an item of inventory that is one of;
a) produced in the summer;
or b) being shipped to a geographic location having a warm climate,wherein the replenishment requirement determines an inventory level for a physical location that considers for an arrival date an amount of usable inventory at that physical location, wherein the usable inventory is equal to the on-hand inventory less the unusable inventory, wherein the unusable inventory includes SKUs that have exceeded their effective shelf life, wherein the effective shelf life of an SKU is the difference between the shelf life of the SKU and the minimum shelf life of that SKU, and wherein the minimum shelf life of an SKU is the amount of shelf life the SKU must have remaining to be acceptable to a consumer.
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Accused Products
Abstract
The present invention provides a system and method whereby companies can optimally resolve the conflicts with respect to product availability. Embodiments of the invention allow users to search for product availability throughout its entire supply chain network to address conflicts as they arise. In particular, the present invention creates time-phased inventory plans that meet customer requirements while minimizing inventory and maximizing profit by ensuring that a company is carrying the right inventory at the right locations. Using the present invention, companies can orchestrate the time-phased storage and flow of a given product'"'"'s supply to match demand by creating an optimal inventory strategy that includes deployment plans, master production schedules, and procurement requirements.
430 Citations
18 Claims
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1. A computer implemented method utilizing code stored in a computer storage medium for fulfilling an order that requests items by a requested date, comprising:
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storing supply chain data including information identifying the items by stock-keeping unit (SKU), a physical location for each SKU, a quantity of each SKU at each location, replenishment data for each SKU, a minimum inventory level for each SKU at each location, a storage cost for each SKU at each location, and distribution data for each SKU in a database comprising a computer storage medium provided by a database server; tracking changes in the supply chain and determining actions to meet requirements of the order given the changes to the supply chain by a computer implemented distribution module provided by a fulfillment server for calculating replenishment requirements by applying leveling logic based on sourcing requirements, generating planned replenishments, adjusting coverage durations, and making adjustments to avoid waste, and for flagging potential issues with planning to replenish inventory; generating shipments of SKUs and managing distribution and transportation requirements based on the shipments by a computer implemented deployment module provided by the fulfillment server; managing a production schedule of the SKUs in view of the orders by a computer implemented production module provided by the fulfillment server; adjusting the distribution module to replenish SKUs in line with material availability by a computer implemented material allocation module provided by the fulfillment server; and producing an output by the fulfillment server comprising a date sensitive replenishment requirement using an expiration date, shelf life duration, coverage cycle, maximum waste factor, and projected unusable on-hand inventory information in generating planned replenishment of inventory, wherein the date sensitive replenishment requirement applies a first effective shelf life for an item of inventory that is one of;
a) produced in the winter;
or b) being shipped to a geographic location having a cold climate, and a second effective shelf life for an item of inventory that is one of;
a) produced in the summer;
or b) being shipped to a geographic location having a warm climate,wherein the replenishment requirement determines an inventory level for a physical location that considers for an arrival date an amount of usable inventory at that physical location, wherein the usable inventory is equal to the on-hand inventory less the unusable inventory, wherein the unusable inventory includes SKUs that have exceeded their effective shelf life, wherein the effective shelf life of an SKU is the difference between the shelf life of the SKU and the minimum shelf life of that SKU, and wherein the minimum shelf life of an SKU is the amount of shelf life the SKU must have remaining to be acceptable to a consumer. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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10. A computer readable storage medium containing computer readable program code usable with a programmable computer processor, comprising:
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computer readable program code which provides for a database containing supply chain data including the items by stock-keeping units (SKU); computer readable program code which provides a distribution module for tracking changes in the supply chain in the database and determining actions to meet a date sensitive replenishment requirement of the order given the changes to the supply chain, the distribution module including, (a) a planning component for replenishing inventory of SKUs based on orders, arrivals, and forecasts, wherein the planning component uses an expiration date, shelf life duration, coverage cycle, maximum waste factor, and projected unusable on hand inventory information in generating a planned replenishment of inventory, wherein the date sensitive replenishment requirement applies a first effective shelf life for an SKU that is one of;
a) produced in the winter;
or b) being shipped to a geographic location having a cold climate, and a second effective shelf life for an SKU that is one of;
a) produced in the summer;
or b) being shipped to geographic location having a warm climate,(b) a dynamic deployment component for resolving shortages by moving SKUs from a source with a surplus to a destination with a shortage, and (c) a scheduling component for releasing the orders of SKUs; computer readable program code which provides a deployment module for generating shipments of SKUs and managing distribution and transportation requirements based on the shipments; computer readable program code which provides a production module for managing and generating a production schedule of the SKUs in view of the orders and forecasts; and computer readable program code which provides a material allocation module for adjusting the distribution module to replenish SKUs in line with material availability, wherein SKUs available for shipment do not include SKUs determined to be unusable, wherein SKUs determined to be unusable include those SKUs that have exceeded their effective shelf life, wherein the effective shelf life of an SKU is equal to the difference between the shelf life of the SKU and the minimum shelf life for the SKU. - View Dependent Claims (11, 12, 13)
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14. A computer system for fulfilling orders, comprising:
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means for providing a database containing supply chain data including the items by stock-keeping units (SKU); means for providing a distribution module for tracking changes in the supply chain in the database and determining actions to meet requirements of the order given the changes to the supply chain, the distribution module including, (a) a planning component for replenishing inventory of SKUs based on orders, arrivals, and forecasts, wherein the planning component calculates replenishment requirements by applying leveling logic based on sourcing requirements, generating planned replenishments, adjusting coverage durations, and making adjustments to avoid waste, and flagging potential issues with planning to replenish inventory, (b) a dynamic deployment component for resolving shortages by moving SKUs from sources with a surplus to destinations with shortages, and (c) a scheduling component for releasing the orders of SKUs; means for providing a deployment module for generating shipments of SKUs and managing distribution and transportation requirements based on the shipments; means for providing a production module for managing a production schedule of the SKUs in view of the orders and forecasts; and means for providing a material allocation module for adjusting the distribution module to replenish SKUs in line with material availability, wherein a date sensitive replenishment requirement is determined using an expiration date, shelf life duration, coverage cycle, maximum waste factor, and projected unusable on hand inventory information, wherein the date sensitive replenishment requirement applies a first effective shelf life for an item of inventory that is one of;
a) produced in the winter;
or b) being shipped to a geographic location having a cold climate, and a second effective shelf life for an item of inventory that is one of;
a) produced in the summer;
or b) being shipped to a geographic location having a warm climate,wherein the date sensitive replenishment requirement determines an inventory level for a physical location that considers for an arrival date an amount of usable inventory at that physical location, wherein the usable inventory is equal to the on hand inventory less the unusable inventory, wherein the unusable inventory includes SKUs that have exceeded their effective shelf life, wherein SKUs available for shipment do not include SKUs determined to be unusable, wherein SKUs determined to be unusable include those SKUs that have exceeded their effective shelf life, wherein the effective shelf life of an SKU is equal to the difference between the shelf life of the SKU and the minimum shelf life for the SKU, and wherein the minimum shelf life for an SKU is the amount of shelf life the SKU must have remaining to be acceptable to a consumer. - View Dependent Claims (15, 16, 17, 18)
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Specification