Method and system for managing material movement and inventory

• US 7,904,352 B2
• Filed: 02/17/2006
• Issued: 03/08/2011
• Est. Priority Date: 02/17/2006
• Status: Expired due to Fees

• Current Assignee: Xerox Corporation (Xerox Holdings Corp.)
• Original Assignee: Xerox Corporation (Xerox Holdings Corp.)
• Inventors: Carruthers, Cathie
• Primary Examiner(s): Gart; Matthew S
• Assistant Examiner(s): ADE, OGER GARCIA
• Application Number:
  US11/357,574
• Publication Number:
  US 20070198313A1
• Time in Patent Office: 1,845 Days
• Field of Search: 705/30
• US Class Current: 705/30
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method is provided that involves entering input data into a computer program including at least one of item number, manufacturing cost, material demand, supplier site, shipping frequency, transit time, and container cost, determining material management costs for a plurality of shipment options, and outputting from the computer program at least one of a first set of material management data based on the input shipping frequency and at least one of a second set of material management data based on an optimized shipping frequency of full inbound containers. A corresponding system is also disclosed. The method and system are useful for managing material movement and inventory.

Claims

1. A method comprising:

entering input data using a computer, the input data including shipping frequency and at least one of item number, manufacturing cost, material demand, supplier site, transit time, and container cost,

determining material management costs for a plurality of shipment options using a processor, and

outputting using a computer a first set of material management data based on the input shipping frequency and a second set of material management data based on an optimized shipping frequency of full inbound containers, the second set of material management data including a first part that assumes the full inbound containers are sent to a first location and a portion of material in the full inbound containers subsequently is transferred to a second location, and a second part that assumes the full inbound containers are sent to the second location and a portion of material in the full inbound containers subsequently is transferred to the first location, and

selecting one of at least two alternative a shipping methods based upon review of the first and second sets of material management data output by the computer, wherein the shipping method is selected by a user of the computer.

2. The method of claim 1, wherein a first part of the first set of material management data assumes that full, mixed inbound containers are sent to a first location and a portion of material in the full, mixed inbound containers subsequently is transferred to a second location.

3. The method of claim 2, wherein a second part of the first set of material management data assumes that full, mixed inbound containers are sent to the second location and a portion of material in the full, mixed inbound containers subsequently is transferred to the first location.

4. The method of claim 1, wherein the second set of material management data includes a third part that assumes that full inbound containers are sent from the supplier site directly to both a first location and a second location.

5. The method of claim 3, wherein a third part of the first set of material management data assumes that full, mixed inbound containers are sent from the supplier site directly to both a first location and a second location.

6. The method of claim 1, wherein the second set of material management data is determined assuming that the full inbound containers are unmixed containers.

7. The method of claim 1, wherein the second set of material management data is determined assuming that the full inbound containers are mixed containers.

8. The method of claim 7, wherein the first and second sets of material management data are determined assuming that the full inbound containers originate with a single supplier.

9. The method of claim 1, further comprising, before determining material management costs, entering standard data including inventory carrying costs.

10. The method of claim 9, wherein inventory carrying costs include costs of capital.

11. The method of claim 1, wherein a portion of the input data is imported from at least one of a transportation cost database and a historical shipment database.

12. The method of claim 1, wherein the first and second sets of material management data are reviewed by an inventory planner and a transportation analyst.

13. A system comprising a computer having a memory containing standard data, a processor configured to determine material management costs for a plurality of shipment options, and software that generates an input form on a computer, the input form being configured to receive material management data for an item to be shipped, and an output form that provides a first set of material management data based on a preferred shipping frequency and a second set of material management data based on an optimized shipping frequency of full inbound containers,

the second set of material management data including a first part that assumes the full inbound containers are sent to a first location and a portion of material in the full inbound containers subsequently is transferred to a second location, and a second part that assumes the full inbound containers are sent to the second location and a portion of material in the full inbound containers subsequently is transferred to the first location,

the software further generating a selection box in which a user inputs data indicative of a selection of either a first shipment option based on the first set of material management data or a second shipment option based on the second set of material management data.

14. The system of claim 13, wherein the processor determines a first part of the first set of material management data using an assumption that full, mixed inbound containers are sent to a first location and a portion of material in the full, mixed inbound containers subsequently is sent to a second location, and a second part of the first set of material management data using an assumption that full, mixed inbound containers are sent to a second location and a portion of material in the full, mixed inbound containers subsequently is sent to the first location.