Method of estimating future replenishment requirements and inventory levels in physical distribution networks

Claim 2

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method for use in a physical distribution network, the method comprising: 1) using a distribution resource planning (DRP) logic for providing estimates of at least one of projected future on-hand inventory and replenishment requirements; 2) incorporating within the DRP logic an uncertainty of future demand for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; and 3) controlling said at least one of said future replenishment requirements and inventory levels in said physical distribution network based on said estimate, wherein said future demand is correlated across one of time and among different products.

Claim 3

A device as in claim 1, wherein said using a DRP logic comprises using higher moment information in estimating at least one of future replenishment requirements and inventory levels in the physical distribution network.

Claim 4

A device according to claim 2, further comprising using the higher moment information as input to a Monte Carlo simulation technique for estimating at least one of future replenishment requirements and inventory levels in the physical distribution network.

Claim 5

A device according to claim 2, further comprising using the higher moment information as input to an analytical technique for estimating at least one of future replenishment requirements and inventory levels in the physical distribution network.

Claim 6

The device according to claim 1, wherein said estimating future on-hand inventory and future replenishment requirements is performed at all echelons of said distribution network.

Claim 7

The device according to claim 1, wherein said incorporating within the DRP logic said uncertainty of future demand includes considering variability of unknown future demand.

Claim 8

The device according to claim 3, wherein said replenishment is performed for cases with order-quantity constraints, such that there are order size restrictions.

Claim 9

The device according to claim 4, wherein said replenishment is performed lot-for-lot, such that there are no order size restrictions.

Claim 10

A distribution resource planning engine comprising: 1) input means for inputting to the engine information derived from a database, a forecast engine, and an inventory planning engine and comprising respectively inventory status, planning parameters, and demand forecasts; 2) logic means, connectable to the input means and operable upon said information derived from the database and comprising a distribution resource planning agent incorporating an uncertainty of future demand, for providing an estimate of at least one of future replenishment requirements and inventory levels in a physical distribution network; 3) output means, connected to the logic means, for outputting estimates of at least one of future replenishment requirements and inventory levels in a physical distribution network, said at least one of said future replenishment requirements and inventory levels in said physical distribution network being controlled based on said estimate, wherein said future demand is correlated across one of time and among different products.

Claim 11

A distribution resource planning engine comprising: 1) input means for inputting to the engine information derived from a database, a forecast engine, and an inventory planning engine and comprising respectively inventory status, planning parameters, and demand forecasts; 2) logic means, connectable to the input means and operable upon said information derived from the database and comprising a distribution resource planning agent incorporating an uncertainty of future demand, for providing an estimate of at least one of future replenishment requirements and inventory levels in a physical distribution network; 3) output means, connected to the logic means, for outputting estimates of at least one of future replenishment requirements and inventory levels in a physical distribution network, said at least one of said future replenishment requirements and inventory levels in said physical distribution network being controlled based on said estimate, wherein said future demand is correlated across one of time and among different products.

Claim 12

An engine according to claim 9, wherein the logic means generates estimates of future on-hand inventory levels, future backordered demand quantities, future and current recommended order quantities, and future replenishment requirements.

Claim 13

The engine according to claim 10, wherein said logic means generates said estimates at all echelons of said distribution network.

Claim 14

The engine according to claim 9, wherein said planning agent considers variability of unknown future demand.

Claim 15

The engine according to claim 9, wherein said replenishment is performed lot-for-lot, such that there are no order size restrictions.

Claim 16

The engine according to claim 9, wherein said replenishment is performed for cases with order-quantity constraints, such that there are order size restrictions.

Claim 17

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method for use in a physical distribution network, the method comprising: 1) using a distribution resource planning (DRP) logic for providing estimates of at least one of projected future on-hand inventory and replenishment requirements; 2) incorporating within the DRP logic an uncertainty of future demand for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; and 3) controlling said at least one of said future replenishment requirements and inventory levels in said physical distribution network based on said estimate, wherein said future demand is treated non-deterministically such that demand for a predetermined time period has a standard deviation, and wherein demand per period is assumed to follow a normal distribution and each period's demand is independent of demand in other periods.

Claim 18

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method for use in a physical distribution network, the method comprising: 1) using a distribution resource planning (DRP) logic for providing estimates of at least one of projected future on-hand inventory and replenishment requirements; 2) incorporating within the DRP logic an uncertainty of future demand for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; and 3) controlling said at least one of said future replenishment requirements and inventory levels in said physical distribution network based on said estimate, wherein said future demand is treated non-deterministically such that demand for a predetermined time period has a standard deviation, and wherein demand per period is assumed to follow a normal distribution and each period's demand is independent of demand in other periods.

Claim 19

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method for use in a physical distribution network, the method comprising: 1) using a distribution resource planning (DRP) logic for providing estimates of at least one of projected future on-hand inventory and replenishment requirements; 2) incorporating within the DRP logic an uncertainty of future demand for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; 3) controlling said at least one of said future replenishment requirements and inventory levels in said physical distribution network based on said estimate, wherein said using a DRP logic comprises using higher moment information in estimating at least one of future replenishment requirements and inventory levels in the physical distribution network; and 4) using said higher moment information as input to a Monte Carlo simulation technique for estimating at least one of future replenishment requirements and inventory levels in the physical distribution network, and wherein said estimating is based on a set of randomly sampled demands.

Claim 20

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method for use in a physical distribution network, the method comprising: 1) using a distribution resource planning (DRP) logic for providing estimates of at least one of projected future on-hand inventory and replenishment requirements; 2) incorporating within the DRP logic an uncertainty of future demand for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; 3) controlling said at least one of said future replenishment requirements and inventory levels in said physical distribution network based on said estimate, wherein said using a DRP logic comprises using higher moment information in estimating at least one of future replenishment requirements and inventory levels in the physical distribution network; and 4) using said higher moment information as input to a Monte Carlo simulation technique for estimating at least one of future replenishment requirements and inventory levels in the physical distribution network, and wherein said estimating is based on a set of randomly sampled demands.

Claim 21

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method for use in a physical distribution network, the method comprising: 1) using a distribution resource planning (DRP) logic for providing estimates of at least one of projected future on-hand inventory and replenishment requirements; 2) incorporating within the DRP logic an uncertainty of future demand for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; 3) controlling said at least one of said future replenishment requirements and inventory levels in said physical distribution network based on said estimate, wherein said using a DRP logic comprises using higher moment information in providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; and 4) using said higher moment information as input to an analytical technique for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network, wherein a back-ordered demand is estimated as being any of zero (0) and a positive number such that fill rate is less than 100%, said fill rate being a fraction of demand that is filled by an on-hand, off-the-shelf quantity.

Claim 22

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method for use in a physical distribution network, the method comprising: 1) using a distribution resource planning (DRP) logic for providing estimates of at least one of projected future on-hand inventory and replenishment requirements; 2) incorporating within the DRP logic an uncertainty of future demand for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; 3) controlling said at least one of said future replenishment requirements and inventory levels in said physical distribution network based on said estimate, wherein said using a DRP logic comprises using higher moment information in providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network; and 4) using said higher moment information as input to an analytical technique for providing an estimate of at least one of future replenishment requirements and inventory levels in the physical distribution network, wherein a back-ordered demand is estimated as being any of zero (0) and a positive number such that fill rate is less than 100%, said fill rate being a fraction of demand that is filled by an on-hand, off-the-shelf quantity.

Claim 23

A distribution resource planning engine comprising: 1) input means for inputting to the engine information derived from a database, a forecast engine, and an inventory planning engine and comprising respectively inventory status, planning parameters, and demand forecasts; 2) logic means, connected to the input means and operable upon its information and comprising a distribution resource planning agent incorporating an uncertainty of future demand, for providing an estimate of at least one of future replenishment requirements and inventory levels in a physical distribution network; and 3) output means, connected to the logic means, for outputting estimates of at least one of future replenishment requirements and inventory levels in a physical distribution network, said at least one of said future replenishment requirements and inventory levels in said physical distribution network being controlled based on said estimate, wherein said future demand is treated non-deterministically such that demand for a predetermined time period has a standard deviation, wherein demand per period is assumed to follow a normal distribution and each period's demand is independent of demand in other periods, wherein a set of randomly sampled demands is used as a basis for said estimating by said logic means, and said demand is correlated across one of time and among different products, a back-ordered demand being estimated as any of zero (0) and a positive number such that fill rate is less than 100%, said fill rate being a fraction of demand that is filled by an on-hand, off-the-shelf quantity.

Claim 24

A distribution resource planning engine comprising: 1) input means for inputting to the engine information derived from a database, a forecast engine, and an inventory planning engine and comprising respectively inventory status, planning parameters, and demand forecasts; 2) logic means, connected to the input means and operable upon its information and comprising a distribution resource planning agent incorporating an uncertainty of future demand, for providing an estimate of at least one of future replenishment requirements and inventory levels in a physical distribution network; and 3) output means, connected to the logic means, for outputting estimates of at least one of future replenishment requirements and inventory levels in a physical distribution network, said at least one of said future replenishment requirements and inventory levels in said physical distribution network being controlled based on said estimate, wherein said future demand is treated non-deterministically such that demand for a predetermined time period has a standard deviation, wherein demand per period is assumed to follow a normal distribution and each period's demand is independent of demand in other periods, wherein a set of randomly sampled demands is used as a basis for said estimating by said logic means, and said demand is correlated across one of time and among different products, a back-ordered demand being estimated as any of zero (0) and a positive number such that fill rate is less than 100%, said fill rate being a fraction of demand that is filled by an on-hand, off-the-shelf quantity.