Arrangement for Dynamic Lean Replenishment and Methods Therefor

8/19/2019 Arrangement for Dynamic Lean Replenishment and Methods Therefor

1/17

US 20080215180A1

1 9 ) United S t a t e s

1 2 ) Patent Application Publication 1 0 )

P u b .

N o . : US

2 0 0 8 / 0 2 1 5 1 8 0 A 1

Kota

4 3 )

P u b .

D a t e : S e p . 4 ,

2008

5 4 )

7 6 )

2 1 )

2 2 )

5 1 )

ARRANGEMENTFORDYNAMIC LEAN

REPLENISHMENT

AND

METHODS

THEREFOR

I n v e n t o r :

Rao

o t a ,

C u p e r ‘ t i n o , CA

U

)

C o r r e s p o n d e n c e

A d d r e s s :

IPSG, P . C .

P . O .

BOX 00640

SAN

OSE,

CA 5170

A p p l .

N o . :

F i l e d :

1 1 / 6 8 1 , 7 1 8

Mar. , 2007

P u b l i c a t i o n

C l a s s i ? c a t i o n

I n t . C l .

G06F

7/00

2 0 0 6 . 0 1 )

( 5 2 ) US. l .

. . . . . . . . . . . . . . . . . . . . . . . . . .

.

700/236;

700/115;

700/51

5 7 )

ABSTRACT

A y n a m i c l e a n r e p l e n i s h m e n t m e t h o d o r h a n d l i n g i n v e n t o r y

m a n a g e m e n t i s p r o v i d e d . T h e

m e t h o d

i n c l u d e s

p e r f o r m i n g

a n a l y s i s t o

d e t e r m i n e

a p r o j e c t e d i n v e n t o r y s t o c k . T h e

a n a l y

s i s

i s

performed n a c c o r d a n c e W i t h a t l e a s t one

of

s y n c h r o

nous mode

and a n a s y n c h r o n o u s mode. I n t h e

s y n c h r o n o u s

m o d e , a c o m p u t e r i s c o n ? g u r e d t o

p e r f o r m

t h e a n a l y s i s t o

d e t e r m i n e

t h e p r o j e c t e d i n v e n t o r y s t o c k

a f t e r c o n s u m p t i o n

h a s o c c u r r e d . The c o n s u m p t i o n i s

deemed

o

h a v e

o c c u r r e d

When ? r s t b i n o f a p l u r a l i t y o f

i n s

i s

consumed and h a n g e s

from a b i n state of on-hand t o t h e b i n state of m p t y .

I n

t h e

a s y n c h r o n o u s m o d e , t h e c o m p u t e r i s c o n ? g u r e d t o

p e r f o r m

t h e a n a l y s i s to d e t e r m i n e t h e p r o j e c t e d i n v e n t o r y s t o c k

a f t e r

a

p r e s e t t i m e

i n t e r v a l .

The

method

l s o

i n c l u d e s

c o m p a r i n g

t h e

p r o j e c t e d i n v e n t o r y s t o c k t o a

s a f e t y

s t o c k t o d e t e r m i n e

r e p l e n i s h m e n t .

CONSUMER

302

l

SUPPLIER

312

V

MATERIALS 3 1 8

SIGNAL 324

SUPPLIER

SIGNAL 326 314

3 5 0

V

MATERIALS

3 2 0

V

M A T E R I A L S 3 2 2

SIGNAL

328

I

I

I N T E L L I G E N C E |

I

|

|

I W L I I T i i O i


2/17

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4 , 2 0 0 8 S h e e t

1 0 f 7

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2 0 0 8 / 0 2 1 5 1 8 0 A 1

@D

—

I N

STATE

S

ON-HAND

\/\

1 0 2

B I N I S CONSUMED

AND

B I N STATE S

CHANGED

TO

EMPTY 1 0 4

I

A

SIGNAL

S

SENT TO A

S U P P L I E R .

B I N STATE S SET TO

ON-ORDER

m

1 0 6

S U P P L I E R

R E C E I V E S THE R E Q U E S T .

\/\

IS U P P L I E R

HA NDLES THE REQUEST \/\

1 1 0

v

SUPPLIER

SENDS MATERIALS TO

CONSUMER 1 1 2

CONSUMER RECEIVES THE

MATERIALS AND B I N

I S

F I L L E D ,

LA

B I N STATE S SET

TO

ON-HAND 1 1 4

F I G . 1

P R I O R A R T )


3/17


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2 0 0 8 / 0 2 1 5 1 8 0 A 1

—>

N-HAND

\/\

2 0 0

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EMPTY \/\

2 0 2

ON-ORDER \/\

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F I G . 2

P R I O R

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4/17


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SUPPLIER

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l-— —I MATERIALS 1 s

I

SIGNAL 24

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B I N

STATE

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ON-HAND

I

B I N I S CONSUMED AND B I N STATE

S

4 0 4

CHANGED TO EMPTY \J

I 4 0 6

ANALYSIS AND

CALCULATE

N

PROJECTED

STOCK

l 4 0 8 4 1 0 4 1 2

\J V

\J

r\/

REPLENISH THE

REPLENISH THE CURRENT EMPTY

NO ACTION CURRENT

EMPTY

B I N AND ONE OR

B I N

MORE

OTHER

EMPTY

I N S

l 4

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f\/ S U P P L I E R R E C E I V E S THE R E Q U E S T .

I

f\./ S U P P L I E R

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8

1

S U P P L I E R SENDS

MATERIALS

TO

ONSUMER

4 2 0 l

CONSUMER RECE|vES THE

f\/

M A T E R I A L S

AND I N

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F I L L E D ,

2 B I N STATE S SET TO ON-HAND

F I G - 4

i


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T H I S

B I N I S CONSUMED

5 5 2

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A N A L Y Z E

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l r \ § 5 6

THE

NUMBER

OF B I N S TO

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OF

B I N S

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NO ACTION O R DE R ONE B I N

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THE

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F I G . 5


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D E N T I F Y

CURRENT

INVENTORY ON-HAND

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A D D INVENTORIES TO BE RECEIVED

6 0 / 6 \ ’

D U R I N G

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DETERMINE PROJECTED INVENTORY

r\/ STOCK

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6 0 8

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6 1 8

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NO RELEASE A

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AS

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SAME AS CURRENT

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F I G . 7


9/17

US 008/0215180

A 1

ARRANGEMENTFORDYNAMIC LEAN

REPLENISHMENT

AND

METHODS

THEREFOR

BACKGROUND

OF

THE

INVENTION

[ 0 0 0 1 ] I n

t o d a y ’ s

b u s i n e s s

W o r l d ,

i n v e n t o r y

m a n a g e m e n t

p l a y s a n

i m p o r t a n t

r o l e i n

a

c o m p a n y ’ s

e f ? c i e n c y

a n d

p r o ? t

a b i l i t y .

I n a

c o m p a n y ,

t h e h i g h i n v e n t o r y l e v e l s e . g . , r a W

m a t e r i a l , W o r k - i n p r o g r e s s m a t e r i a l s , e t c . ) c a n s i g n i ? c a n t l y

i n c r e a s e

c a r r y i n g

c o s t s

a n d

a r t s h a n d l i n g c o s t s .

I n i n v e n t o r y

management, a

company

r i e s t o

m a i n t a i n t h e l o W e s t

l e v e l of

i n v e n t o r y

W h i l e

p r e v e n t i n g i n v e n t o r y

s t o c k - o u t s .

As

d i s

c u s s e d h e r e i n ,

a

s t o c k - o u t r e f e r s t o

t h e s i t u a t i o n

i n Which

i n s u f ? c i e n t i n v e n t o r i e s a r e a v a i l a b l e r e su l t i n g i n

d e l a y e d p r o

d u c t i o n

of

one r m o r e

customer

r d e r s . T h u s , t h e a b i l i t y f o r

a

company t o d e t e r m i n e

When

m a t e r i a l r e p l e n i s h m e n t

m a y

need

o

occur s

e s s e n t i a l i n

m a i n t a i n i n g a loW e v e l of n v e n

t o r y

W h i l e

p r e v e n t i n g

s t o c k - o u t s .

[ 0 0 0 2 ] An n v e n t o r y s y s t e m t h a t h a s b e e n i m p l e m e n t ed b y

c o m p a n i e s

t o

a d d r e s s

m a t e r i a l

r e p l e n i s h m e n t

i s

t h e

Kanban

s y s t e m . I n t h e Kanban s y s t e m , a p u l l

b a s e d s y s t e m i s

i m p l e

mented

n

Which

s u p p l i e r r e p l e n i s h e s

m a t e r i a l

When con

sumer s e n d s a r e p l e n i s h m e n t

s i g n a l . T y p i c a l l y ,

m a t e r i a l s a r e

s t o r e d i n b i n s o r s t a n d a r d l o t s i Z e s i n a Kanban s y s t e m .

A s

a

b i n

i s c o n s u m e d , a s i g n a l i s

s e n t

t o t h e s u p p l i e r t o r e p l e n i s h

t h e b i n . Upon r e c e i v i n g t h e s i g n a l , t h e

s u p p l i e r

s e n d s t h e

m a t e r i a l s t o t h e consumer.

[ 0 0 0 3 ] To

a c i l i t a t e d i s c u s s i o n ,

F I G . 1

s h o W s

a s i m p l e ?oW

c h a r t d i a g r a m

i l l u s t r a t i n g

t h e

m e t h o d f o r i m p l e m e n t i n g

a

Kanban

s y s t e m .

[ 0 0 0 4 ] At ? r s t s t e p 1 0 2 , a b i n may ave state

of

n - h a n d .

I n

a n e x a m p l e , t h e b i n s f u l l o f a t e r i a l s and no consumption

h a s

o c c u r r e d .

[ 0 0 0 5 ] At a

n e x t

s t e p 1 0 4 , t h e

b i n h a s been consumed and

t h e

b i n

s t a t e

h a s

c h a n g e d

o

e m p t y .

G e n e r a l l y ,

c o n s u m p t i o n

s

de?ned s

e i t h e r a

neWly opened box r an

emptied o x . I n an

o p e n e d b o x s i t u a t i o n ,

t h e b i n

may a v e b e e n o p e n e d ;

hoW

e v e r ,

no

a c t u a l consumption may ave o c c u r r e d . I n an emp

t i e d

box i t u a t i o n ,

t h e m a t e r i a l s t o r e d i n t h e b i n h a s b e e n u l l y

c o n s u m e d . R e g a r d l e s s a s hoW c o n s u m p t i o n i s de?ned by a

company,

a consumed

b i n

changes t h e state of t h e

b i n

t o

e m p t y .

[ 0 0 0 6 ] At a

n e x t

s t e p

1 0 6 , a s i g n a l h a s been s e n t

t o

t h e

s u p p l i e r . I n a n e x a m p l e , When

h e

b i n

s t a t e

i s e m p t y ,

a

s i g n a l

e . g . , e l e c t r o n i c s i g n a l ) may

e

s e n t t o t h e s u p p l i e r t o r e p l e n

i s h t h e

consumed

i n . I n t h e

t r a d i t i o n a l Kanban

s y s t e m , t h e

amount f e p l e n i s h m e n t

s

u s u a l l y e q u a l to t h e amount f h e

immediate consumption. I n an

e x a m p l e ,

When a b i n i s

con

sumed, a s i g n a l

may

be s e n t t o r e p l e n i s h one

b i n .

Once t h e

s i g n a l h a s

b e e n

s e n t , t h e b i n s t a t e may h a n g e to

o n - o r d e r .

[ 0 0 0 7 ] At a n e x t s t e p 1 0 8 , t h e s u p p l i e r r e c e i v e s t h e r e q u e s t

from

t h e

c o n s u m e r .

S i n c e a

Kanban system may be

a p p l i e d

i n t e r n a l l y

a s W e l l a s e x t e r n a l l y , a s u p p l i e r may e i t h e r

be an

o u t s i d e vendor or an n t e r n a l vendor.

I n

an example, an out

s i d e vendor may e

a s u p p l i e r t h a t p r o v i d e s

one o r m o r e

p a r t s / se r v i c e s f o r

t h e consum er and

s n o t

p a r t of h e co m

p a n y .

I n a n o t h e r

example,

an i n t e r n a l vendor may be a s u p

p l i e r

t h a t i s

p a r t o f

h e company

n d s

l o c a t e d u p s t r e a m

f r o m

t h e consumer,

and

s

r e s p o n s i b l e f o r

p r o v i d i n g

one

o r

m o r e

p a r t s /

s e r v i c e d o W n s t r e a m .

[ 0 0 0 8 ] At a n e x t s t e p 1 1 0 , t h e

s u p p l i e r

may h a n d l e t h e

r e q u e s t

from

t h e c o n s u m e r .

The s u p p l i e r

may

i t h e r p r o c u r e

t h e i n v e n t o r i e s ,

m a n u f a c t u r e

t h e i n v e n t o r i e s , o r

p r o v i d e

a

s e r v i c e

e . g . ,

p a i n t a c a r ) . T h e h a n d l i n g o f t h e r e q u e s t may e

S e p . 4 , 2 0 0 8

d e p e n d e n t upon p r e - a r r a n g e d

t e r m s .

The

consumer

and

t h e

s u p p l i e r m ay a v e

e s t a b l i s h e d p o l i c i e s

on hoW

r e q u e s t

may

be h a n d l e d . I n an example, i f a

r e q u e s t

i s

s e n t

b e f o r e

n o o n ,

t h e n

t h e s u p p l i e r

may a n d l e

t h e

r e q u e s t

W i t h i n t h e

d a y .

I n

a n o t h e r e x a m p l e ,

i f

a r e q u e s t

i s

r e c e i v e d

on

r i d a y ,

t h e s u p

p l i e r may

o t

h a n d l e t h e

r e q u e s t u n t i l

t h e n e x t

b u s i n e s s

d a y

e . g . ,

M o n d a y ) .

[ 0 0 0 9 ] At

s t e p

1 1 2 , t h e s u p p l i e r s e n d s t h e c o n s u m e r t h e

r e q u e s t e d m a t e r i a l s .

I n

a n e x a m p l e , f o r

a n

o u t s i d e s u p p l i e r ,

t h e

s u p p l i e r

may s h i p t h e m a t er i a l s to t h e c o n s u m e r .

[ 0 0 1 0 ] At t e p 1 1 4 ,

t h e consumer

may

e c e i v e t h e m a t e r i a l s

and h e

b i n may

e ? l l e d .

Once

h e

b i n h a s

been

l l e d ,

t h e

b i n

s t a t e m ay e changed from n - o r d e r back

o

o n - h a n d .

[ 0 0 1 1 ] The method d e s c r i b e d i n s t e p s 102 to 114

i s a n

i t e r a t i v e

method

h a t m a y be performed s b i n s

a r e consumed

a n d

r e p l e n i s h e d .

[ 0 0 1 2 ] F I G . 2 i s

a

s i m p l e d i a g r a m i l l u s t r a t i n g

t h e

d i f f e r e n t

b i n s t a t e s i n a t r a d i t i o n a l Kanban

s y s t e m .

[ 0 0 1 3 ] At state

2 0 0 ,

a b i n state i s o n - h a n d .

I n

an

example,

t h e

b i n

i s

? l l e d

W i t h

m a t e r i a l s

and no

consumption

h a s

o c c u r r e d .

[ 0 0 1 4 ] At a s t a t e

2 0 2 ,

t h e b i n s t a t e i s e m p t y .

A s

aforemen

t i o n e d , an empty s t a t e

may

ccur When

h e b i n

i s e i t h e r i n

an

o p e n e d box ( o p e n e d b u t n o t c o n s u m e d ) o r

a n

e m p t i e d

( o p e n e d a n d

h a s

b e e n

c o n s u m e d ) b o x s i t u a t i o n .

[ 0 0 1 5 ] At

state

2 0 4 ,

t h e b i n

state

i s o n - o r d e r . An

n - o r d e r

s t a t e may occur When

h e bin

has

been consumed

and

a


s i g n a l

h a s

b e e n s e n t

t o a s u p p l i e r .

[ 0 0 1 6 ]

The

t r a n s i t i o n from s t a t e s 202 t o

204

m ay o c c u r

W i t h o u t

d e l a y . I n an

x a m p l e ,

once

b i n

state

h a s

changed o

e m p t y ,

a


s i g n a l

may

be s e n t i m m e d i a t e l y to

a

s u p p l i e r a n d t h e

b i n

s t a t e i s

i m m e d i a t e l y

b e c h a n g e d t o on

o r d e r .

[ 0 0 1 7 ] S i n c e t h e


l o o p d e s c r i b e d

a b o v e

h a s a

o n e - t o - o n e r e p l a c e m e n t

r a t i o ,

a

company

m ay

be u n a b l e

t o

h a n d l e

a n u n e x p e c t e d

s p i k e i n demand

n d /

r may a v e h i g h

i n v e n t o r y c a r r y i n g c o s t s When demand

u n e x p e c t e d l y

d e c l i n e s .

To a d d r e s s

? u c t u a t i o n s , a company m ay m a i n t a i n

s a f e t y

s t o c k

i n

a n

a t t e m p t

t o a b s o r b t h e c h a n g i n g demands

a n d s e t t i n g t h e c o r r e c t

s a f e t y

s t o c k

i s

v e r y i m p o r t a n t .

[ 0 0 1 8 ]

The

r a d i t i o n a l

Kanban y s t e m

s an x c e l l e n t

i n v e n

t o r y management

system f a c t u a l demand

a t e s

a r e c o n s t a n t

and h a t

demand

a t e i s

t h e

s a me a t e t h a t

has

been

t i l i Z e d

t o

c a l c u l a t e

t h e r e p l e n i s h m e n t

l o o p

s i Z e . R e a l i s t i c a l l y , t h e a b i l

i t y t o p r o j e c t

an a c c u r a t e

demand a t e may

e i f ? c u l t .

I n an

e x a m p l e , i f d e m a n d s c h a n g e s a n d

s t a b i l i Z e s

a n d t h e s a f e t y

s t o c k

h a s n o t been a d j u s t e d , a t r a d i t i o n a l Kanban s y s t e m

e . g . , r e p l e n i s h m e n t l o o p W i t h h e s a f e t y s t o c k )

may

e i n s u f

? c i e n t to a d d r e s s

t h e

? u c t u a t i n g d e m a n d s .

I n

an e x a m p l e ,

demand

may

a v e i n c r e a s e d a n d s t a b i l i Z e d r e s u l t i n g i n s a f e t y

s t o c k

b e i n g

u t i l i Z e d

t o

a d d r e s s t h e i n c r e a s e

i n

demand.

Over

t i m e , t h e i n v e n t o r y l e v e l may d r o p a n d s a f e t y s t o c k may e

i n s u f ? c i e n t

t o p r o t e c t a g a i n s t u n e x p e c t e d

s p i k e s

r e s u l t i n g i n

s t o c k - o u t .

I n

a n o t h e r e x a m p l e , demand

may a v e d e c r e a s e d

a n d

s t a b i l i Z e d

r e s u l t i n g i n

f e W e r

i n v e n t o r i e s b e i n g u t i l i Z e d .

Over

t i m e , t h e i n v e n t o r y l e v e l may

become e l e v a t e d

a n d

e x c e s s i n v e n t o r i e s

may

e c a r r i e d r e s u l t i n g i n h i g h i n v e n t o r y

c o s t o n - h a n d . A s can be

s e e n , t h e

t r a d i t i o n a l Kanban system

may e s e n s i t i v e t o

demand h a n g e s

b u t may

o t

b e e q u i p p e d

t o

a d d r e s s

t h e demand

h a n g e s

W i t h o u t human n t e r v e n t i o n .

[ 0 0 1 9 ] I n

d d i t i o n , t h e Kanban y s t e m may l s o r e q u i r e h a t

t h e r e p l e n i s h m e n t t i m e e . g . ,

t i m e

a s u p p l i e r may t a k e

t o

p r o v i d e

t h e m a t e r i a l s t o

r e p l e n i s h

a b i n )

i s

t h e

same

s t h e one

t h a t h a s b e e n

u t i l i Z e d

o

c a l c u l a t e

t h e r e p l e n i s h m e n t l o o p

s i Z e .


10/17

US 008/0215180

A 1

H o w e v e r , s u p p l i e r s may

o t a l w a y s

b e a b l e to a d h e r e t o t h e


s c h e d u l e

as

a g r e e d upon

by h e consumer and

t h e s u p p l i e r s . I n s u c h a s i t u a t i o n , t h e

s a f e t y

s t o c k may

b e

e m p l o y e d t o a d d r e s s t h e

s h o r t a g e .

H o w e v e r , i f t h e

s u p p l i e r s

c o n t i n u e

t o

m i s s

d e a d l i n e s , s a f e t y s t o c k s

may

b e

q u i c k l y

d e p l e t e d .

S i n c e a

t r a d i t i o n a l Kanban

system

assumes

a r e l i

a b l e r e p l e n i s h m e n t t i m e , s t o c k - o u t s may

c c u r .

[ 0 0 2 0 ]

T o a d d r e s s t h e c h a n g e s i n demand a n d

r e p l e n i s h

m e n t , t h e Kanban r e p l e n i s h m e n t l o o p s i Z e

may h a v e

t o b e

r e s i Z e d . As d i s c u s s i n g h e r e i n , l o o p

s i Z e

r e f e r s t o

t h e number

o f i n s . R e s i z i n g

may

e a c o m p l e x

p r o c e s s t h a t may

e q u i r e

t r a i n e d

human

r e s o u r c e s .

I n an

example,

t r a i n e d human

r e s o u r c e s m ay have t o

monitor

and a n a l y Z e t h e demands i n

o r d e r

t o

d e t e r m i n e

t h e r e c e n t demand

p a t t e r n s .

F u r t h e r ,

t r a i n e d r e s o u r c e s m ay have t o monitor

t h e


c y c l e t o

d e t e r m i n e t h e


t r e n d .

The

p r o c e s s o f

m o n i t o r i n g

may

e

t e d i o u s a n d may

e

s u s c e p t i b l e to

human

e r r o r s ,

e s p e c i a l l y i f

t h e number f i n s i s l a r g e .

C o n s i d e r

t h e

s i t u a t i o n W h e r e i n , f o r e x a m p l e , a t y p i c a l m a n u f a c t u r i n g l a n t

may h a v e 2 , 0 0 0

to 5 , 0 0 0 d i f f e r e n t

p a r t s

t h a t a r e needed i n

o r d e r o p r o d u c e

a

p r o d u c t . Each a r t may e a s s o c i a t e d W i t h

one

r m o re i n s . A s a r e s u l t , t h e nu mb e r of i n s t h a t have o

be

m o n i t o r e d m ay become a

l a r g e

a d m i n i s t r a ti v e t a s k t h a t

r e q u i r e s s e v e r a l s k i l l e d

W o r k e r s .

[ 0 0 2 1 ]

Once t h e t ed i o u s a n d c o m p l e x p r o c e s s o f m o n i t o r

i n g

h a s

o c c u r r e d , t h e

c h a n g e s

i n

t h e

number

f

b i n s may e

d e t e r m i n e d . I n t h e s i t u a t i o n d e s c r i b e d a b o v e , t h e s t o r a g e o f

t h e

v a s t

number f a r t s

may

e q u i r e a complex t o r a g e i n f r a

s t r u c t u r e to be s t a b l i s h e d . A s r e s u l t , changes o t h e number

o f b i n s may r e q u i r e c h a n g e s t o t h e c o m p l e x s t o r a g e i n f r a

s t r u c t u r e

t h a t r e q u i r e s

t i m e

a n d s p a c e .

I n a d d i t i o n ,

t h e

c h a n g e s may a v e

o b e g r a d u a l l y i n t e g r a t e d

n t o

a c o m p a n y ’ s

c u r r e n t

Kanban

system s i n c e most companies

a r e unable

t o

a c c o m m o d a t e

t h e c h a n g e s q u i c k l y . T h u s , i n v e n t o r y

m a n a g e

ment

i n t h e

Kanban

system can

be

a

l a r g e endeavor

t h a t

becomes

c o s t l y

t o

m a i n t a i n

i f

demand

h a n g e s

r e s u l t

i n

con

s t a n t

r e s i Z i n g .

SUMMARYOF

INVENTION

[ 0 0 2 2 ]

The

i n v e n t i o n r e l a t e s , i n a n embodiment, to a

d y n a m i c l e a n


m e t h o d

f o r h a n d l i n g

i n v e n t o r y

m a n a g e m e n t . The

m e t h o d i n c l u d e s

p e r f o r m i n g a n a l y s i s t o

d e t e r m i n e

a p r o j e c t e d i n v e n t o r y

s t o c k .

The a n a l y s i s

i s

p e r

formed n accordance With

t l e a s t

one of synchronous

m o d e

and an asynchronous

mode. n t h e


mode, a com

p u t e r i s

c o n ? g u r e d t o

p e r f o r m t h e

a n a l y s i s t o

d e t e r m i n e t h e

p r o j e c t e d i n v e n t o r y s t o c k a f t e r


h a s

o c c u r r e d .

The

consumption s deemed o have c c u r r e d When ? r s t b i n

o f

p l u r a l i t y

o f i n s

i s consumed

and h a n g e s

from b i n

state

o f o n - h a n d t o t h e

b i n

s t a t e o f

e m p t y .

I n t h e a s y n c h r o n o u s

m o d e , t h e c o m p u t e r

i s

c o n ? g u r e d

t o

p e r f o r m

t h e a n a l y s i s

t o

d e t e r m i n e

t h e

p r o j e c t ed i n v e n t o r y

s t o c k a f t e r a p r e s e t

t i m e

i n t e r v a l . The

method

a l s o i n c l u d e s c o m p a r i n g t h e p r o j e c t e d

i n v e n t o r y s t o c k

t o a s a f e t y

s t o c k

to

d e t e r m i n e r e p l e n i s h m e n t .

[ 0 0 2 3 ] I n

a n o t h e r embodiment, t h e

i n v e n t i o n

r e l a t e s t o a


r e p l e n i s h m e n t a r r a n g e m e n t o r h a n d l i n g i n v e n

t o r y m a n a g e m e n t . The a r r a n g e m e n t i n c l u d e s a p l u r a l i t y o f

b i n s , e a c h b i n o f t h e p l u r a l i t y o f

i n s b e i n g a s s o c i a t e d

W i t h a

b i n s t a t e . The i n

t a t e i n c l u d e s

o n - h a n d , e m p ty , and n - o r d e r .

The r r a n g e m e n t

a l s o

i n c l u d e s a computer

o r

p e r f o r m i n g an

a n a l y s i s t o

d e t e r m i n e a

p r o j e c t e d i n v e n t o r y s t o c k . T h e

a n a l y

s i s i s performed n a c c o r d a n c e W i t h a t l e a s t one

of

s y n c h r o

nous

mode and an a s y n c h r o n o u s

mode. I n t h e


m o d e ,

t h e c o m p u t e r i s

c o n ? g u r e d t o p e r f o r m t h e a n a l y s i s

t o

S e p . 4 , 2 0 0 8

d e t e r m i n e t h e p r o j e c t e d i n v e n t o r y

s t o c k

a f t e r c o n s u m p t i o n

h a s

o c c u r r e d .

The


i s deemed

o h a v e

o c c u r r e d

When a ? r s t b i n o f t h e p l u r a l i t y o f b i n s

i s consumed and

changed

from t h e b i n s t a t e o f on-hand

t o

t h e b i n s t a t e o f

e m p t y .

I n t h e

a s y n c h r o n o u s

m o d e ,

t h e

c o m p u t e r s c o n ? g u r e d

t o

p e r f o r m t h e

a n a l y s i s t o d e t e r m i n e

t h e


s t o c k

a f t e r

a

p r e s e t t i m e i n t e r v a l .

[ 0 0 2 4 ] I n y e t

a n o t h e r e m b o d i m e n t , t h e

i n v e n t i o n

r e l a t e s

t o

an

a r t i c l e of manufacture

c o m p r i s i n g

a program

s t o r a g e

medium

h a v i n g

c o m p u t e r

r e a d a b l e

c o d e e m b o d i e d t h e r e i n .

The o m p u t e r r e a d a b l e c o d e s c o n ? g u r e d o h a n d l e i n v e n t o r y

m a n a g e m e n t .

The

r t i c l e o f

m a n u f a c t u r e

i n c l u d e s

c o m p u t e r

r e a d a b l e c o d e

f o r

p e r f o r m i n g a n a l y s i s to d e t e r m i n e

a

p r o

j e c t e d i n v e n t o r y s t o c k .

T h e a n a l y s i s i s p e r f o r m e d

i n a c c o r

dance

With at l e a s t one of

synchronous

mode nd an

asyn

c h r o n o u s mode. I n t h e s y n c h r o n o u s mode, a c o m p u t e r i s

c o n ? g u r e d o

p e r f o r m t h e

a n a l y s i s

t o

d e t e r m i n e

t h e

p r o j e c t e d

i n v e n t o r y s t o c k a f t e r c o n s u m p t i o n h a s o c c u r r e d . The

c o n

sumption s

deemed

t o

have

o c c u r r e d

When a ? r s t b i n of a

p l u r a l i t y o f

i n s

i s consumed and h a n g e s from b i n

s t a t e

o f

o n - h a n d to t h e b i n s t a t e o f e m p t y . I n t h e a s y n c h r o n o u s mode,

t h e

c o m p u t e r

i s

c o n ? g u r e d t o

p e r f o r m t h e

a n a l y s i s t o d e t e r

mine h e p r o j e c t e d i n v e n t o r y s t o c k

f t e r

a p r e s e t t i m e n t e r v a l .

The

r t i c l e

o f m a n u f a c t u r e

a l s o i n c l u d e s c o m p u t e r

r e a d a b l e

c o d e f o r

c o m p a r i n g t h e p r o j e c t e d i n v e n t o r y s t o c k t o a

s a f e t y

s t o c k to d e t e r m i n e r e p l e n i s h m e n t .

[ 0 0 2 5 ] I n y e t


i n v e n t i o n

r e l a t e s

t o

a

d y n a m i c

l e a n r e p l e n i s h m e n t m e t h o d

o r

h a n d l i n g i n v e n t o r y

m a n a g e m e n t . The m e t h o d i n c l u d e s p e r f o r m i n g a n a l y s i s t o

d e t e r m i n e

a

r e o r d e r

p o i n t .

The

a n a l y s i s

i s p e r f o r m e d

i n a n


m o d e .

I n

t h e


m o d e , t h e

com

p u t e r

i s

c o n ? g u r e d t o p e r f o r m t h e a n a l y s i s t o d e t e r m i n e t h e

r e o r d e r

p o i n t

a f t e r

a p r e s e t t i m e i n t e r v a l .

The method

a l s o

i n c l u d e s comparing t h e r e o r d e r p o i n t

t o a c u r r e n t

r e o r d e r

p o i n t t o d e t e r m i n e r e p l e n i s h m e n t .

[ 0 0 2 6 ] I n y e t

a n o t h e r

e m b o d i m e n t ,

t h e i n v e n t i o n

r e l a t e s

t o

a d y n a m i c l e a n r e p l e n i s h m e n t a r r a n g e m e n t f o r

h a n d l i n g

i n v e n t o r y

management

i n

a c o m p a n y . The

a r r a n g e m e n t

i n c l u d e s a p l u r a l i t y o f o t

s i Z e s .

Each o t s i Z e o f t h e p l u r a l i t y

of l o t s i Z e s

i n c l u d e s a

set of l o t s .

The

arrangement a l s o

i n c l u d e s a

computer

f o r

p e r f o r m i n g

a n a l y s i s

t o d e t e r m i n e

a

r e o r d e r p o i n t . T h e a n a l y s i s i s

p e r f o r m e d

i n a n a s y n c h r o n o u s

m o d e .

I n t h e a s y n c h r o n o u s

mode

h e c o m p u t e r i s c o n ? g u r e d

t o p e r f o r m t h e a n a l y s i s t o d e t e r m i n e t h e r e o r d e r p o i n t

a f t e r

a

p r e s e t t i m e i n t e r v a l .

[ 0 0 2 7 ]

The above summary e l a t e s t o o n l y one f t h e many

embodiments o f t h e i n v e n t i o n d i s c l o s e d

h e r e i n

and i s n o t

i n t e n d e d t o l i m i t t h e

s c o p e

o f t h e i n v e n t i o n ,

Which s s e t

f o r t h

i n t h e c l a i m s h e r e i n . T h e s e and o t h e r f e a t u r e s

o f

t h e p r e s e n t

i n v e n t i o n

W i l l be d e s c r i b e d i n

more

d e t a i l beloW i n t h e

d e t a i l e d d e s c r i p t i o n

o f


a n d

i n

c o n j u n c t i o n W i t h

t h e f o l l o W i n g ? g u r e s .

B R I E F DESCRIPTIONOFTHEDRAWINGS

[ 0 0 2 8 ]

The

p r e s en t i n v e n t i o n i s

i l l u s t r a t e d b y

Way o f

e x a m p l e ,

a n d n o t

b y

Way o f l i m i t a t i o n , i n t h e

? g u r e s

o f t h e

accompanying d r a W i n g s and n Which

i k e r e f e r e n c e

numer

a l s r e f e r t o

s i m i l a r

e l e m e n t s and n W h i c h :

[ 0 0 2 9 ] F I G . 1 s h o W s a s i m p l e ?oW h a r t d i a g r a m

i l l u s t r a t

i n g

t h e

m e t h o d f o r

i m p l e m e n t i n g t h e

Kanban s y s t e m .

[ 0 0 3 0 ] F I G .

2

i s a s i m p l e d i a g r a m i l l u s t r a t i n g t h e d i f f e r e n t

b i n

s t a t e s

i n a t r a d i t i o n a l

Kanban

s y s t e m .

[ 0 0 3 1 ]

F I G .

3 s h o W s , i n a n embodiment f t h e i n v e n t i o n , a

b l o c k

d i a g r a m

o f

a d y n a m i c l e a n


a r r a n g e m e n t .


11/17

US 008/0215180

A 1

[ 0 0 3 2 ]

F I G .

4 s h o w s , i n

an

embodiment f t h e i n v e n t i o n , a

s i m p l e

?oW h a r t i l l u s t r a t i n g

a



m e t h o d .

[ 0 0 3 3 ] F I G . 5 s h o w s ,

i n

a n embodiment

o f t h e i n v e n t i o n ,

s i m p l e

d i a g r a m


t h e d i f f e r e n t

b i n

s t a t e s

i n a

d y n a m i c

l e a n

r e p l e n i s h m e n t a r r a n g e m e n t .

[ 0 0 3 4 ]

F I G .

6

s h o W s ,

i n

an


s i m p l e

?oW c h a r t

i l l u s t r a t i n g t h e

m e t h o d s

f o r

p e r f o r m i n g

a n a l y s i s

a n d

c a l c u l a t i n g t h e p r o j e c t e d

i n v e n t o r y

s t o c k .

[ 0 0 3 5 ]

F I G .

7

s h o W s ,

i n a n embodiment f h e i n v e n t i o n ,

an

e x a m p l e o f a How c h a r t i l l u s t r a t i n g

hoW

t h e


r e p l e n i s h m e n t method

may e

a p p l i e d

i n a n

MRP y s t e m .

DETAILEDDESCRIPTIONOFEMBODIMENTS

[ 0 0 3 6 ]

The

p r e s e n t i n v e n t i o n W i l l noW be d e s c r i b e d i n

d e t a i l With r e f e r e n c e t o

a

feW

embodiments

t h e r e o f

a s

i l l u s

t r a t e d i n

t h e

a c c o m p a n y i n g

d r a W i n g s . I n t h e f o l l o W i n g

d e s c r i p t i o n , numerous s p e c i ? c

d e t a i l s

a r e set

f o r t h

i n

o r d e r

t o

p r o v i d e a

t h o r o u g h

u n d e r s t an d i n g o f t h e p r e s e n t i n v e n t i o n .

I t

W i l l

b e

a p p a r e n t ,

h o W e v e r ,

to

one

s k i l l e d i n

t h e

a r t ,

t h a t

t h e

p r e s en t i n v e n t i o n m ay be p r a c t i c e d

W i t h o u t s ome o r

a l l of

t h e s e s p e c i ? c d e t a i l s . I n

o t h e r

i n s t a n c e s , W e l l knoWn r o c e s s

s t e p s a n d / o r s t r u c t u r e s

h a v e

n o t

been

d e s c r i b e d i n

d e t a i l i n

o r d e r

to

n o t u n n e c e s s ar i l y o b s c u r e

t h e

p r e s e n t i n v e n t i o n .

[ 0 0 3 7 ] V a r i o u s

embodiments

a r e d e s c r i b e d h e r e i n b e l o W ,

i n c l u d i n g

m e t h o d s

a n d t e c h n i q u e s . I t

s h o u l d

b e k e p t i n

mind

t h a t t h e i n v e n t i o n

might

a l s o

c o v e r

a r t i c l e s o f m a n u f a c t u r e

t h a t i n c l u d e s a

computer readable

medium on Which com

p u t e r - r e a d a b l e

i n s t r u c t i o n s f o r

c a r r y i n g o u t

e m b o d i m e n t s o f

t h e i n v e n t i v e

t e c h n i q u e a r e s t o r e d .

The computer

r e a d a b l e

medium

ay n c l u d e ,

f o r

e x a m p l e ,

s e m i c o n d u c t o r , m a g n e t i c ,

o p t o - m a g n e t i c , o p t i c a l , o r o t h e r f o r m s o f c o m p u t e r r e a d a b l e

medium

f o r s t o r i n g c o m p u t e r

r e a d a b l e

c o d e . F u r t h e r , t h e

i n v e n t i o n may l s o

c o v e r

a p p a r a t u s e s f o r p r a c t i c i n g embodi

m e n t s o f

t h e

i n v e n t i o n .

Such

p p a r a t u s

may

n c l u d e

c i r c u i t s ,

d e d i c a t e d a n d / o r p r o g r a m m a b l e , t o

c a r r y

o u t

t a s k s p e r t ai n i n g

t o embodiments f h e

i n v e n t i o n .

Examples f

s u c h

a p p a r a t u s

i n c l u d e a

g e n e r a l - p u r p o s e

computer a n d / o r a

d e d i c a t e d com

p u t i n g d e v i c e When a p p r o p r i a t e l y p r o g r a m m e d a n d may

i n c l u d e

a combination

of

computer/computing d e v i c e and

d e d i c a t e d / p r o g r a m m a b l e c i r c u i t s a d a p t e d f o r

t h e

v a r i o u s

t a s k s

p e r t a i n i n g t o embodiments

o f t h e i n v e n t i o n .

[ 0 0 3 8 ] I n

a c c o r d a n c e W i t h embodiments o f

t h e p r e s e n t

i n v e n t i o n ,

t h e r e i s p r o v i d e d a d y n a m i c l e a n r e p l e n i s h m e n t

a r r a n g e m e n t a n d /

r

method

o r s u s t a i n i n g

a n o p t i m a l i n v e n

t o r y l e v e l W h i l e m a i n t a i n i n g a s u ? i c i e n t s a f e t y s t o c k .

Embodiment o f t h e

i n v e n t i o n f u r t h e r p r o v i d e s

a s t a t i s t i c a l

method

o r

a n a l y Z i n g

t h e

h i s t o r i c a l

d a t a i n o r d e r o d e t e r m i n e

t h e

p r o j e c t e d

i n v e n t o r y

s t o c k

i n o r d e r t o d e t e r m i n e t h e

amount

o f

i n v e n t o r y

t h a t may need

t o b e


A s

d i s c u s s e d

h e r e i n ,


s t o c k

r e f e r s t o

t h e

amount f

n v e n t o r y

t h a t may e e d t o b e

r e p l e n i s h e d

i n

o r d e r

t o m a i n t a i n t h e

s a f e t y

s t o c k .

[ 0 0 3 9 ] I n o n e a s p e c t o f

t h e

i n v e n t i o n ,

t h e

i n v e n t o r h e r e i n

r e a l i Z e d t h a t t h e p r i o r

a r t Kanban

s y s t e m p r o v i d e s f o r a

one

t o - o n e r e p l e n i s h m e n t . I n t h e p r i o r a r t ,


o c c u r s

a s consumption

c c u r s .

A s r e s u l t , replenishmentmay

ccur

r e g a r d l e s s o f t h e r a t e o f


r e s u l t i n g i n i n a c c u r a t e

i n v e n t o r y

l e v e l When

demand

a t t e r n

c h a n g e s .

[ 0 0 4 0 ]

I n o n e

a s p e c t

o f

t h e

i n v e n t i o n ,

t h e i n v e n t o r

h e r e i n

r e a l i Z e d t h a t


may

o t

have t o

occur immedi

a t e l y

a f t e r c o n s u m p t i o n h a s o c c u r r e d .

I n s t e a d ,

h i s t o r i c a l d a t a

may b e e m p l o y e d t o p r o j e c t

u p c o m i n g i n v e n t o r y

n e e d s

t h e r e b y e n ab l i n g r e p l e n i s h m e n t o o c c u r

d y n a m i c a l l y .

H e n c e ,

S e p . 4 , 2 0 0 8

b y d y n a m i c a l l y a d j u s t i n g t h e


a m o u n t , t h e

i n v e n t o r s

h e r e i n

r e a l i Z e d

t h a t

d a i l y

? u c t u a t i o n s may

b e

a c c o m m o d a t e d W i t h o u t

b e i n g

e n c u m b e r e d b y t h e c o m p l e x

a n d

e x p e n s i v e

r e s i Z i n g

m e t h o d ,

W h i c h

may e a c o m p l e x

a n d

e x p e n s i v e

m e t h o d

t h a t

may

e q u i r e

t i m e

t o

b e i m p l e m e n t e d .

[ 0 0 4 1 ] I n t h i s d o c u m e n t , v a r i o u s

i m p l e m e n t a t i o n s

may e

d i s c u s s e d u s i n g a n

e x t e r n a l i n v e n t o r y

management s y s t e m

i n

W h i c h t h e s u p p l i e r s a r e e x t e r n a l

s u p p l i e r s .

T h i s i n v e n t i o n ,

h o W e v e r , i s n o t

l i m i t e d to

a n

e x t e r n a l i n v e n t o r y

management

s y s t e m

a n d

may i n c l u d e a n i n t e r n a l i n v e n t o r y

management

s y s t e m .

I n s t e a d ,

t h e

d i s c u s s i o n s

a r e

meant a s examples and

t h e

i n v e n t i o n

i s n o t l i m i t e d b y t h e

e x a m p l e s

p r e s e n t e d .

[ 0 0 4 2 ]

A l s o , i n

t h i s d o c u m e n t v a r i o u s i m p l e m e n t a t i o n s

may e

d i s c u s s e d u s i n g a s y n c h r o n o u s d y n a m i c l e a n r e p l e n

i s h m e n t a r r a n g e m e n t a n d / o r m e t h o d . T h i s i n v e n t i o n ,

hoW

e v e r ,

i s n o t

l i m i t e d t o a


dynamic e a n r e p l e n i s h

ment

arrangement a n d / o r method

and

may i n c l u d e an

a s y n c h r o n o u s d y n a m i c l e a n



o r

m e t h o d . As

i s c u s s e d h e r e i n , a


dynamic e a n


method

r e f e r s

t o

a n

i n v e n t o r y

management

s y s t e m t h a t i s b a s e d on c o n s u m p t i o n . A s a l s o d i s c u s s e d

h e r e i n , a n a s y n c h r o n o u s

d y n a m i c

l e a n r e p l e n i s h m e n t m e t h o d

r e f e r s t o an n v e n t o r y management system h a t i s based

on

a

s e t

time

n t e r v a l .

The

i s c u s s i o n s

a r e meant a s

examples

and


i s n o t

l i m i t e d b y t h e e x a m p l e s p r e s e n t e d .

[ 0 0 4 3 ] I n

a n

embodiment f t h e

i n v e n t i o n ,

p r o j e c t e d i n v e n

t o r y

s t o c k may be

c a l c u l a t e d

based on h i s t o r i c a l demand

t r e n d s

a n d

r e p l e n i s h m e n t t r e n d s . Based

on demand

t r e n d s ,

p r o j e c t e d c o n s u m p t i o n o v e r

t h e

l e a d t i m e may

e

c a l c u l a t e d .

Based on r e p l e n i s h m e n t

t r e n d s , t h e

amount

o f


i n v e n t o r i e s W i t h i n a

l e a d t i m e

m a y be c a l c u l a t e d . A s d i s

c u s s e d h e r e i n ,

l e a d

t i m e

r e f e r s t o t h e amount f

t i m e

t h a t may

be

e q u i r e d

i n

o r d e r

t o

r e c e i v e

an r d e r .

[ 0 0 4 4 ] I n

a n e m b o d i m e n t ,

p r o j e c t e d


o v e r t h e

l e a d

time

may

e determined based

on

r a t e

of consumption

and a l e a d t i m e . A s d i s c u s s e d

h e r e i n ,

r a t e o f

consumption

r e f e r s t o t h e amount o f i n v e n t o r y t h a t may be consumed n

a

g i v e n

p e r i o d o f

t i m e . T o c a l c u l a t e e i t h e r r a t e

o f


o r l e a d t i m e ,

d i f f e r e n t

s t a t i s t i c a l

methods

may e e m p l o y e d .

Examples i n c l u d e , b u t a r e n o t

l i m i t e d

t o ,

a

moving a v e r a g e

m e t h o d ,

a

W e i g h t e d

moving a v e r a g e

m e t h o d ,

a n d a s i m p l e

l i n e a r

r e g r e s s i o n

m e t h o d .

[ 0 0 4 5 ] I n a n e m b o d i m e n t , t h e amount f

e p l e n i

s h e d

i n v e n

t o r i e s m ay

be

based on t h e amount

of

i n v e n t o r y

t h a t

i s

e x p e c t e d t o b e r e p l e n i s h e d W i t h i n

t h e

l e a d t i m e p e r i o d . T o

d e t e r m i n e

t h e amount, i n an embodiment, an o r d e r

method

may

e

employed i n Which t h e

amount

o n - o r d e r r e p r e s e n t s

t h e

amount f e p l e n i s h m e n t i n v e n t o r i e s t h a t

may

e r e c e i v e d

d u r i n g

t h e

l e a d t i m e .

I n

a n o t h e r e m b o d i m e n t ,

a

r u l e - b a s e d

o r d e r

method

may

b e

employed

i n

Which

t h e

amount

o f


i n v e n t o r i e s m a y

be

based on a set of system

r u l e s as de?ned by a consumer and s u p p l i e r s .

[ 0 0 4 6 ] I n a n e m b o d i m e n t ,

t h e

p r o j e c t e d i n v e n t o r y s t o c k

a t

t h e end o f l e a d t i m e may b e c a l c u l a t e d by

d e d u c t i n g

c o n

s u m p t i o n o v e r t h e l e a d

t i m e

a n d a d d i n g t h e

amount

f

e p l e n

i s h e d i n v e n t o r i e s

t o

c u r r e n t i n v e n t o r y

o n - h a n d .

With

a p r o

j e c t e d i n v e n t o r y s t o c k , t h e s y s t e m

i s

a b l e

t o

c o m p a r e t h e

p r o j e c t e d

i n v e n t o r y

s t o c k

a g a i n s t a s a f e t y

s t o c k

l e v e l . D i f f e r

e n t a c t i o n s

may

c c u r d e p e n d i n g upon

h e

c o m p a r i s o n .

[ 0 0 4 7 ] I n a n


a p r o j e c t e d i n v e n t o r y s t o c k t h a t

i s

g r e a t e r

t h a n

o r

e q u a l t o

t h e

s a f e t y s t o c k may e q u i r e

t h a t

n o


s i g n a l

t o

b e s e n t to a

s u p p l i e r .

U n l i k e t h e p r i o r

a r t , a r e p l e n i s h m e n t

s i g n a l

i s

n o t s e n t

u n l e s s t h e p r o j e c t e d


12/17

US 008/0215180

A 1

i n v e n t o r y s t o c k s l o w e r t h a n t h e s a f e t y s t o c k

t h u s

p r e v e n t i n g

u n n e c e s s a r y

h i g h i n v e n t o r y c a r r y i n g c o s t .

[ 0 0 4 8 ] I n a n e m b o d i m e n t , i f t h e p r o j e c t e d i n v e n t o r y s t o c k s

l e s s

t h a n

t h e s a f e t y

s t o c k ,

a

r e p l e n i s h m e n t s i g n a l may

e s e n t .

I n

an embodim ent,

a


s i g n a l

may

o t be

s e n t

i f

an empty b i n i s n o t a v a i l a b l e . I n a n o t h e r embodiment, t h e

number o f r e p l e n i s h m e n t

s i g n a l s

t h a t may b e s e n t may b e

based on t h e amount t h a t i s needed i n o r d e r t o m a k e t h e

p r o j e c t e d i n v e n t o r y s t o c k e q u a l

t o

t h e

s a f e t y s t o c k .

[ 0 0 4 9 ] T h e d y n a m i c l e a n



o r method,

i n

an embodiment,

may

n s u r e an optimum

e v e l

o f i n v e n t o r y

W i t h o u t i n c u r r i n g s t o c k

o u t . U n l i k e t h e

t r a d i

t i o n a l Kanban

s y s t e m , Which s b e s t a p p l i e d i n

a

c o n s i s t e n t

d e m a n d

e n v i r o n m e n t ,

t h e d y n a m i c l e a n


a r r a n g e m e n t may


? u c t u a t i n g d e m a n d s .

[ 0 0 5 0 ]

The

e a t u re s a n d a d v a n t a g e s o f

h e

p r e s en t i n v e n t i o n

may b e b e t t e r u n d e r s t o o d W i t h r e f e r e n c e t o t h e ? g u r e s and

d i s c u s s i o n s

t h a t

f o l l o W .

[ 0 0 5 1 ]

F I G .

3 s h o W s , i n

an


b l o c k d i a g r a m o f

a

d y n a m i c

l e a n



A

onsumer 302

may

i n c l u d e

a p l u r a l i t y o f b i n s e . g . , b i n s

3 0 4 , 3 0 6 , 3 0 8 , a n d 3 1 0 ) . B i n s 3 0 4 , 3 0 6 , a n d

3 0 8

may

e p r e

s e nt

t h e

b i n s t h a t a r e

c u r r e n t l y

b e i n g e m p l o y e d b y company

3 0 2 .

Bin

310 may r e p r e s e n t an a d d i t i o n a l empty b i n t h a t

company

302

m ay a v e r e a d y

i n o r d e r to accommodate ?uc

t u a t i o n .

[ 0 0 5 2] I n an embodiment, t h e number

of

i n s

t h a t

a

con

sumer

m ay have a v a i l a b l e may

depend upon

an n i t i a l

a n a l y

s i s

o f h e

c o n s u m e r ’ s

h i s t o r i c a l demand r e n d . I n a n e x a m p l e ,

a

consumer’s

dema nd

i s t o r i c a l

t r e n d

has

s h o Wn

h a t

on aver

a g e 1 0 b i n s

m ay

be s u f ? c i e n t to

h a n d l e

t h e

d a i l y

d e m a n d s .

H o W e v e r , t h e

demand

h i s t o r i c a l t r e n d h a s a l s o

shoWn

t h a t

noW and

t h e n 30 i n s may be e q u i r e d i n o r d e r to h a n d l e t h e

? u c t u a t i o n i n demands.

A s

a r e s u l t , t h e consumer

may

l a c e

30

i n s on t s company ?oor and l l o n l y 1 0

b i n s .

The x t r a 20

b i n s may r e m a i n e m p t y u n t i l

c h a n g e s

i n

demand r e q u i r e

a d d i t i o n a l b i n s t o b e

? l l e d . T h i s method

o f a n t i c i p a t i n g

demand

i t h o u t

c a r r y i n g t h e i n v e n t o r y

c o t i s

a c o s t e f f e c t i v e

method

f

a d d r e s s i n g

? u c t u a t i o n i n

demands

h a t m i n i m i Z e s

t h e p o s s i b i l i t y

o f

a s t o c k - o u t

a n d /

r t h e p o s s i b i l i t y o f

h a v i n g

t o c o n s t a n t l y

r e s i Z e t h e

r e p l e n i s h m e n t l o o p

s i Z e .

[ 0 0 5 3 ]

C o n s i d e r t h e s i t u a t i o n W h e r e i n , f o r

e x a m pl e , b i n

3 0 4

h a s

b e e n c o n s u m e d . The d y n a m i c

l e a n r e p l e n i s h m e n t

s y s t e m

may i n c l u d e

a n i n t e l l i g e n c e 350 t h a t

i s

c a p a b l e o f

p e r f o r m i n g

a n a l y s i s

a n d

c a l c u l a t i n g t h e

p r o j e c t e d

i n v e n t o r y

s t o c k . I n a n embodiment, n t e l l i g e n c e 350 may be computer

s y s t e m t h a t m ay

i n c l u d e a

d a t a b a s e c a p a b l e o f

s t o r i n g con

s u m p t i o n e v e n t s a n d r e c e i p t e v e n t s o f r e p l e n i s h e d

m a t e r i a l s .

As

d i s c u s s e d

h e r e i n ,

p r o j e c t e d i n v e n t o r y s t o c k r e f e r s t o

a n

amount

f

n v e n t o r y s t o c k h a t s u b s t a n t i a l l y

m i n i m i Z e s

i n v e n

t o r y c a r r y i n g

c o s t

b u t p r e v e n t

s t o c k - o u t .

[ 0 0 5 4 ]

I f n t e l l i g e n c e 3 5 0 d e t e r m i n e s t h a t b i n 3 0 4 may a v e

t o

b e r e p l e n i s h e d i n

o r d e r t o

m e e t t h e

p r o j e c t e d i n v e n t o r y

s t o c k , t h e n a

s i g n a l

324 m ay e s e n t t o a s u p p l i e r 3 1 2 . Upon

r e c e i v i n g

t h e s i g n a l , s u p p l i e r 3

1 2

may

r o d u c e / p r o v i d e

m a t e

r i a l s

3 1 8 , Which

m a y

be e n t t o

consumer 302

o r e p l e n i s h b i n

3 0 4 .

[ 0 0 5 5 ]

H o W e v e r ,

a consumed i n

may

o t

a l W a y s

r e q u i r e


to o c c u r .

C o n s i d e r

t h e

s i t u a t i o n W h e r e i n ,

f o r

e x a m p l e ,

b i n 3 0 6 h a s b e e n c o n s u m e d . H o W e v e r , upon

n a l y

s i s ,

t h e

p r o j e c t e d i n v e n t o r y s t o c k h a s

b e e n

d e t e r m i n e d

t o

b e

met by

t h e


c u r r e n t

i n v e n t o r y s t o c k . As

a

r e s u l t ,

e v e n

t h o u g h

b i n 306 a s

been

m p t i e d ,

t h e

b i n d o e s n o t h a v e

t o b e r e p l e n i s h e d .

S e p . 4 , 2 0 0 8

[ 0 0 5 6 ]

C o n s i d e r

a n o t h e r

s i t u a t i o n

W h e r e i n ,

f o r

e x a m p l e ,

more h a n one i n

m a y

have o be e p l e n i sh e d . I n an

example,

b i n

3 0 8

h a s

b e e n c o n s u m e d .

Upon a n a l y s i s , tWo b i n s may

h a v e

t o b e r e p l e n i s h e d

i n

o r d e r

t o meet t h e

p r o j e c t e d i n v e n

t o r y

s t o c k r e q u i r e m e n t .

I n t e l l i g e n c e

3 5 0

may

s e n d

a

s i g n a l

328 o a

s u p p l i e r

314 o r e p l e n i s h b i n 308 i t h m a t e r i a l s

3 2 2 .

I n a d d i t i o n , i n t e l l i g e n c e 3 5 0

may

d e n t i f y a

s e c o n d

b i n e . g . ,

b i n 3 0 6 ) t h a t may l s o h a v e t o b e r e p l e n i s h e d . T h u s , a s i g n a l

326

m ay have t o b e s e n t t o s u p p l i e r

314

t o r e p l e n i s h b i n

306

W i t h

m a t e r i a l s

3 2 0 .

[ 0 0 5 7 ]

F I G .

3

s h o W s


d y n a m i c

l e a n r e p l e n

i s h m e n t


H o W e v e r ,

t h e d y n a m i c l e a n r e p l e n i s h

m e n t

a r r a n g e m e n t may l s o b e

i m p l e m e n t e d

a s y n c h r o n o u s l y .

I n a n e x a m p l e , i n s t e a d

o f

p e r f o r m i n g a n

a n a l y s i s

e a c h

t i m e

When

c o n s u m p t i o n o c c u r s , a n a l y s i s

may b e p e r f o r m e d a t

p r e s e t t i m e i n t e r v a l s .

[ 0 0 5 8 ]

T h e d y n a m i c l e a n r e p l e n i s h m e n t


shoWn n F I G . 3 i s

an

example f hoW h e a r r a n g e m e n t m ay e

i m p l e m e n t e d i n o r d e r t o a c c o m m o d a t e t h e d y n a m i c c h a n g e s

i n

d e m a n d .

I n s t e a d

o f

a u t o m a t i c a l l y r e p l e n i s h i n g

e a c h

emp

t i e d b i n , t h e d y n a m i c l e a n r e p l e n i s h m e n t


a l l o W s

f o r a n a l y s i s

t o

be performed i n a t i m e l y manner n o r d e r

t o

c a l c u l a t e a

p r o j e c t e d i n v e n t o r y

s t o c k a n d

d e t e r m i n e

t h e

r e q u i r e d number f i n s t h a t may a v e to

b e

r e p l e n i s h e d . With

t h e d y n a m i c

l e a n


a r r a n g e m e n t ,

i n v e n t o r y c a r

r y i n g c o s t may b e s u b s t a n t i a l l y m i n i m i z e d a n d

s t o c k - o u t s

may e p r e v e n t e d .

[ 0 0 5 9 ]

F I G . 4 s h o W s , i n a n

embodiment

f t h e i n v e n t i o n , a

s i m p l e ?oW

h a r t

i l l u s t r a t i n g a d y n a m i c

l e a n


m e t h o d .

[ 0 0 6 0 ] At

a

? r s t

s t e p 4 0 2 , a b i n

state

i s o n - h a n d . I n an

e x a m p l e , t h e

b i n

i s

f u l l o f

a t e r i a l s

a n d c o n s u m p t i o n h a s n o t

o c c u r r e d .

[ 0 0 6 1 ] At t e p 4 0 4 , t h e b i n s consumed

n d

t h e

b i n

s t a t e i s

changed

o

e m p t y .

U n l i k e

t h e

p r i o r

r t ,

a n

empty

t a t e

may

o t

r e q u i r e a n i m m e d i a t e s i g n a l t o

b e

s e n t

t o

t h e s u p p l i e r f o r

r e p l e n i s h m e n t .

I n s t e a d , a n a l y s i s may e p e r f o r m e d n

o r d e r o

d e t e r m i n e t h e amount o f r e p l e n i s h m e n t

t h a t

may c c u r .

[ 0 0 6 2 ] A t s t e p 4 0 6 , a n a l y s i s

may

b e

p e r f o r m e d

a n d p r o

j e c t e d i n v e n t o r y

s t o c k

may

e


I n a n e m b o d i m e n t ,

t h e a n a l y s i s

may e p e r f o r m e d

a u t o m a t i c a l l y b y a c o m p u t e r

s y s t e m , Which

may

s t o r e c o n s u m p t i o n e v e n t s a n d r e c e i p t

e v e n t s

o f


m a t e r i a l s . The method f o r

a n a l y Z i n g

a n d c a l c u l a t i n g p r o j e c t ed i n v e n t o r y s t o c k i s d i s c u s s e d i n

d e t a i l s

i n t h e

l a t e r

? g u r e s .

[ 0 0 6 3 ] O n c e a n a l y s i s h a s

b e e n

p e r f o r m e d a n d

h e

p r o j e c t e d

i n v e n t o r y

h a s

b e e n d e t e r m i n e d , t h r e e a l t e r n a t i v e s a s s h o W n

i n s t e p s 4 0 8 , 4 1 0 , and 1 2 ) a r e a v ai l a b l e , i n

a n e m b o d i m e n t .

[ 0 0 6 4 ]

The method

may d e t e r m i n e t h a t , a t s t e p

4 0 8 , n o

a c t i o n

i s

n e e d e d

s i n c e t h e

p r o j e c t e d i n v e n t o r y s t o c k h a s

b e e n

d e t e r m i n e d t o be t a s u ? i c i e n t l e v e l (enough s a f e t y s t o c k t o

h a n d l e

u n e x p e c t e d s p i k e s ) .

I n

a n

e x a m p l e ,

t h e b i n t h a t

i s

c u r r e n t l y

i n

a n

empty t a t e a s

d e s c r i b e d i n s t e p 4 0 4 ) i s n o t

i m m e d i a t e l y r e p l a c e d b e c a u s e t h e

company h a s s u f ? c i e n t

s a f e t y

s t o c k

a n d / o r

demand may e c u r r e n t l y

d e c l i n i n g .

[ 0 0 6 5 ] A l t e r n a t i v e l y , a t s t e p

4 1 0 ,

t h e method may

d e t e r

mine

h a t t h e c u r r e n t

empty

i n ( f r o m

s t e p

4 0 4 )

may

e e d

o

b e


[ 0 0 6 6 ] A l t e r n a t i v e l y , a t

a

n e x t

s t e p

4 1 2 ,

t h e

method

may

d e t e r m i n e

h a t

n o t o n l y d o e s

t h e c u r r e n t empty i n

( f r o m s t e p

4 0 4 ) need

o

be e p l e n i s h e d b u t

one

r more empty i n s may

a l s o n e e d

o

b e

r e p l e n i s h e d s i n c e demand s r i s i n g a n d / o r t h e

s a fe t y s t o c k

i s

i n s u ? i c i e n t .


13/17

US 008/0215180

A 1

[ 0 0 6 7 ]

I f

t h e method

e t e r m i n e s

t h a t

e i t h e r

s t e p 410 r

s t e p

412 b e s t d e s c r i b e s t h e c o n s u m e r ’ s c u r r e n t

s i t u a t i o n ,

a t

s t e p

4 1 4 ,

one

o r

m o r e

replenishment

s i g n a l s may

be

s e n t t o a

s u p p l i e r .

Upon

s e n d i n g t h e s i g n a l , t h e b i n

h a t

i s i m p a c t e d s

changed fr om an

empty

s t a t e t o

an

on-order

t a t e .

[ 0 0 6 8 ] At n e x t

s t e p

4 1 6 , t h e s u p p l i e r r e c e i v e s t h e

r e q u e s t .

[ 0 0 6 9 ]

At

a n e x t s t e p

4 1 8 ,

t h e s u p p l i e r h a n d l e s t h e

r e q u e s t .

[ 0 0 7 0 ] At a n e x t s t e p 4 2 0 , t h e s u p p l i e r s e n d s t h e m a t e r i a l s

t o the consumer.

[ 0 0 7 1 ] At

a

l a s t s t e p 4 2 2 ,

t h e

consumer

e c e i v e s t h e

mate

r i a l s and

one

or

m o r e

b i n s a r e ? l l e d . Once

t h e

bin has

been

r e p l e n i s h e d , t h e

b i n

s t a t e may e c h a n g e d f r o m o n - o r d e r to

o n - h a n d .

[ 0 0 7 2 ] The method d e s c r i b e d

i n

s t e p s

402 t o

422

i s

an

i t e r a t i v e

process t h a t occurs a s bins a r e

consumed.

[ 0 0 7 3 ] F I G .

5

s h o W s , i n a n embodiment o f t h e

i n v e n t i o n ,

s i m p l e

d i a g r a m

i l l u s t r a t i n g t h e

d i f f e r e n t

b i n s t a t e s

i n

a

d y n a m i c

l e a n


s y s t e m .

[ 0 0 7 4 ] At state

5 5 0 ,

t h e b i n h a s a state of n - h a n d . I n an

e x a m p l e ,

t h e b i n h a s b e e n ? l l e d a n d c o n s u m p t i o n h a s n o t

o c c u r r e d .

[ 0 0 7 5 ] At t e p 5 5 2 , t h e

b i n

i s c o n s u m e d .

[ 0 0 7 6 ]

At

t a t e

5 5 4 ,

t h e b i n s t a t e

i s

c h a n g e d f r o m

o n - h a n d

to

e m p t y .

[ 0 0 7 7 ] At

a

n e x t s t e p 5 5 6 , a n a l y s i s i s p e r f o r m e d .

W i t h

a n a l y s i s , t h e p r o j e c t e d i n v e n t o r y s t o c k may

e

c a l c u l a t e d a n d

t h e

number

f a d d i t i o n a l b i n s

r e q u i r e d

s i d e n t i ? e d .

A s

f o r e

m e n t i o n e d , more e t a i l s W i l l b e p r o v i d e d f o r t h e a n a l y s i s i n

l a t e r

? g u r e s .

[ 0 0 7 8 ]

I f t a

n e x t

s t e p

5 5 8 ,

t h e

number

f a d d i t i o n a l

b i n s

t h a t

may ave

o be e p l e n i s h e d i s Z e r o o r l e s s ,

then t

a

n e x t

s t e p 5 6 0 , no a c t i o n m ay e

needed and

t h e b i n m ay remain

e m p t y .

[ 0 0 7 9 ]

H o W e v e r ,

i f a t n e x t s t e p 5 5 8 , t h e number o f a d d i

t i o n a l b i n s t h a t h a v e t o b e r e p l e n i s h e d

i s

g r e a t e r

t h a n

Z e r o ,

t h e n

t

s t e p

5 6 2 ,

a n

o r d e r

s

p l a c e d

W i t h

a

s u p p l i e r ,

Which

may

i n c l u d e s e n d i n g

a

s i g n a l t o

t h e s u p p l i e r

r e q u e s t i n g f o r

a

b i n

to

be

e ? l l e d .

[ 0 0 8 0 ]

Once

h e o r d e r h a s b e e n p l a c e d ,

a t s t e p

5 6 4 , t h e

b i n

s t a t e i s changed from empty o

o n - o r d e r .

[ 0 0 8 1 ] At

ste p

5 6 6 ,

t h e number o f

b i n s

n e e d e d may b e

r e d u c e d

by

o n e .

[ 0 0 8 2 ]

The methods

f o r

p l a c i n g

a n

o r d e r

W i t h a s u p p l i e r a s

d e s c r i b e d i n s t e p s 558 o

566

m a y be an t e r a t i v e p r o c e s s u n t i l

t h e number

o f

b i n s

needed

t o

b e

r e p l e n i s h e d based on t h e


number h a s

been m e t . I n an


t h e

d y n a m i c

l e a n


s y s t e m

may

e n a b l e more than one i n

t o be

ordered i n c e

a d d i t i o n a l

empty

b i n s a r e

a v a i l a b l e .

I n

an

x a m p l e , empty i n s may e v a i l a b l e

due

o

b i n s

t h a t m ay a v e been

r e v i o u s l y

consumed

u t

n o t

r e p l e n i s h e d d u e t o t h e


r e q u i r e m e n t

a t

t h e

t i m e . I n

a n o t h e r e x a m p l e , t h e

company

m ay

have

s e t

a s i d e 30

b i n s

b u t may o t

have needed t o

? l l more

t h a n

10

b i n s . H o W e v e r ,

W i t h

t h e c u r r e n t pr o j e c t e d i n v e n t o r y s t o c k

r e q u i r e m e n t ,

one

r more

of

h e c u r r e n t l y empty

20

i n s

m a y

b e r e p l e n i s h e d .

[ 0 0 8 3 ] At s t e p 5 6 8 , t h e m a t e r i a l s a r e r e c e i v e d by t h e con

sumer

and

t h e b i n i s r e ? l l e d . The method e s c r i b e d i n s t e p s

550 t o 568 i s an

i t e r a t i v e

p r o c e s s and

m a y be employed

t o


d a i l y ? u c t u a t i o n s .

[ 0 0 8 4 ]

F I G .

4

a n d

5

a r e

e x a m p l e s o f t h e dynamic l e a n


method. A s can

be

s e e n , t h e

method m a y

o t

a u t o m a t i c a l l y r e q u i r e a consumed b i n t o b e r e p l e n i s h e d .

I n s t e a d ,

t h e method may

i m p l e m e n t a n i n t e l l i g e n c e

t h a t i s

c a p a b l e o f

a n a l y Z i n g a

c o m p a n y ’ s demand

a t t e r n

t o

d e t e r

mine

When

e p l e n i s h m e n t

m a y

need o o c c u r .

S e p . 4 , 2 0 0 8

[ 0 0 8 5 ]

F I G .

6 s h o W s , i n a n embodiment f t h e i n v e n t i o n , a

s i m p l e ?oW h a r t


a n e x a m p l e o f

hoW

n a l y s i s a n d

c a l c u l a t i n g

t h e

p r o j e c t e d i n v e n t o r y s t o c k a s

s h o W n

i n s t e p s

4 0 6

a n d 5 5 6 ) may e

p e r f o r m e d .

[ 0 0 8 6 ]

At

t e p

6 0 2 , t h e

method

d e n t i ? e s t h e c u r r e n t

i n v e n

t o r y o n - h a n d . C o n s i d e r t h e s i t u a t i o n W h e r e i n , f o r

e x a m p l e ,

a

company

a s

1 0

b i n s

a v a i l a b l e o n - h a n d . Once

a b i n

h a s been

c o n s u m e d , t h e s y s t e m may h e c k a d a t a b a s e , f o r e x a m p l e ,

t o

determine

hoW many

i n s

a r e

a v a i l a b l e . I n

an embodiment,

n

a n


d y n a m i c l e a n r e p l e n i s h m e n t a r r a n g e m e n t ,

i n s t e a d o f

p e r f o r m i n g a n a l y s i s

e a c h t i m e c o n s u m p t i o n

o c c u r s ,

a n a l y s i s may e p er f o r m e d a t

a p r e s e t

t i m e

i n t e r v a l .

[ 0 0 8 7 ] At a n e x t s t e p

6 0 4 ,

p r o j e c t e d c o n s u m p t i o n

may

e

s u b t r a c t e d

from

t h e c u r r e n t i n v e n t o r y

o n - h a n d . As d i s c u s s e d

h e r e i n , p r o j e c t e d c o n s u m p t i o n e f e r s t o

t h e amount

f

i n v e n

t o r i e s e . g . ,

b i n s ) t h a t may e

consumed u r i n g t h e

l e a d t i m e .

T o d e t e r m i n e

p r o j e c t e d

c o n s u m p t i o n , a

r a t e

o f c o n s u m p t i o n

and

a l e a d time may e


[ 0 0 8 8 ]

I n

an embodiment, a r a t e

o f

consumption may

b e

based on

moving

average

method.

I n

an

example,

t h e

com

pany m ay e t e r m i n e t h a t

t h e

r a t e of consumption s based

on

a n a v e r a g e

o f

h e

l a s t

1 0

d a y s . F o r

e x a m p l e ,

d u r i n g t h e

l a s t

1 0

d a y s ,

30

i n s

may a v e

been consumed.

T h u s , a n a v e r a g e o f

3 b i n s h a s b e e n

consumed

a c h d a y . The a t e o f c o n s u m p t i o n

i s

t h e n compared to t h e m a x i m u m and minimum r a t e s o f

c o n s u m p t i o n . The m a x i m u m and m ini m u m r a t e s o f con

s u m p t i o n may e employed

n

o r d e r t o p r e v e n t

a n

i n d e ? n i t e

i n c r e a s e i n i n v e n t o r y a n d / r a d r o p i n i n v e n t o r y l e v e l t h a t

may

c a u s e s t o c k - o u t .

As su me

n t h i s

e x a m p l e , t h a t

t h e m a xi m u m

r a t e o f o n s u m p t i o n s 4

b i n s p e r

day and

h e

minimum ate o f

c o n s u m p t i o n i s l

b i n p e r

d a y .

S i n c e t h e r a t e

o f


e . g . ,

3

b i n s )

i s

b e t W e e n

t h e

minimum

and

maximum

a t e s o f


e . g . ,

l

b i n a n d 4 b i n s , r e s p e c t i v e l y ) , t h e r a t e o f

consumption m ay be s e t t o

t h e c a l c u l a t e d a v e r a g e

r a t e of

c o n s u m p t i o n . H o W e v e r ,

i f

t h e

r a t e

o f c o n s u m p t i o n s

g r e a t e r

t h a n t h e m a x i m u m r a t e o f c o n s u m p t i o n , th e n t h e r a t e o f

consumption

may

e

s e t

t o t h e

m a x i m u m ate o f

o n s u m p t i o n

e . g . , 4 b i n s ) . L i k e w i s e ,

i f

t h e r a t e o f c o n s u m p t i o n s l e s s t h a n

t h e

m ini m u m

a t e o f

c o n s u m p t i o n , t h e n

t h e r a t e o f consump

t i o n may be e t to t h e minimum ate o f consumption

e . g . ,

l

b i n ) .

[ 0 0 8 9 ]

The moving

a v e r a g e

method s a s l i d i n g WindoW

method h a t t a k e s i n t o a c c o u n t c h a n g i n g

c o n d i t i o n s b u t

a t

t h e

same t i m e

g i v e s

l i t t l e o r no W e i g h t to consumption t h a t h a s

o c c u r r e d

beyond de?ned i m e

p e r i o d .

I n a n e x a m p l e , i f t h e

i n i t i a l

t i m e

p e r i o d o f a n a l y s i s

i s

f r o m J u n e

1 t o

J u n e

1 4 , t h e

n e x t

d a y

a n a l y s i s may

e

f r o m J u n e 2 t o J u n e 1 5 . T h u s , o n l y

t h e most r e c e n t c o n s u m p t i o n d a t a may e employed n

c a l

c u l a t i n g t h e m o v i n g a v e r a g e .

[ 0 0 9 0 ] I n

a n e m b o d i m e n t , a W e i g h t e d

moving

a v e r a g e

method

may

b e

employed

i n s t e a d

o f

a

moving

a v e r a g e

m e t h o d . The W e i g h t e d moving a v e r a g e method s

s i m i l a r

t o

t h e moving a v e r a g e

method

e x c e p t d i f f e r e n t W e i g h t s may e

a p p l i e d

t o t h e d a t a

d e p e n d i n g

upon r e l e v a n c y

e . . ,

more

r e c e n t d a t a

v s . l e s s

r e c e n t

d a t a ) .

[ 0 0 9 1 ]

I n a n o t h e r e m b o d i m e n t ,

a

r a t e

o f


may

be

a l c u l a t e d b a s e d

on

a s i m p l e l i n e a r r e g r e s s i o n method. I n

t h i s m e t h o d , consumption v e r

a de?ned

i m e p e r i o d

may e

c o l l e c t e d and l o t t e d

on g r a p h . L i n e a r r e g r e s s i o n m ay c c u r

i n Which t h e d a t a p l o t t e d may b e a p p r o x i m a t e d

i n

o r d e r t o

d e t e r m i n e

a

t r e n d

l i n e .

A l o p e

and

n t e r c e p t

may

e c a l c u

l a t e d

b a s e d

on

h e p l o t t e d

h i s t o r i c a l d a t a .

With h e s l o p e

a n d

i n t e r c e p t , a p r o j e c t e d r a t e o f

c o n s u m p t i o n may b e

d e t e r

m i n e d .

The l o p e

a n d i n t e r c e p t method

s

W e l l - k n o w n to t h o s e

s k i l l e d i n

t h e

a r t .

T h u s , no u r t h e r d i s c u s s i o n W i l l be r o v i d e d .


14/17

US 008/0215180

A 1

[ 0 0 9 2 ]

The

t h r e e methods

d e s c r i b e d

a b o v e a r e o n l y

e x a m p l e s o f

t h e m e t h o d s t h a t may e

employed

o c a l c u l a t e

t h e r a t e o f c o n s u m p t i o n .

[ 0 0 9 3 ] B e s i d e s t h e

r a t e o f c o n s u m p t i o n ,

t h e l e a d t i m e may

a l s o

be


A s

d i s c u s s e d

h e r e i n ,

a l e a d

t i m e

r e f e r s t o

t h e

t i m e

i n t e r v a l an

r d e r

m a y be u l ? l l e d

by

s u p p l i e r .

I n

an

e m b o d i m e n t , o n e method f o r d e t e r m i n i n g

t h e

l e a d t i m e i s

based

on

s e t v a l u e .

I n

an example,

a

s e t

value

of days may

have been

e s t a b l i s h e d

a s

t h e l e a d

t i m e . T h u s ,

t h e

company

may

s s ume h a t an

r d e r

t o

? l l

an empty bin

may

a k e

6 days

to be

e c e i v e d .

[ 0 0 9 4 ]

I n

a n o t h e r e m b o d i m e n t , a method f o r c a l c u l a t i n g

t h e

l e a d

t i m e m ay be a s e d

on

i s t o r i c a l r e p l e n i s h m e n t t r e n d .

I n a n

e x a m p l e ,

a moving

a v e r a g e m ay be employed

o c a l c u

l a t e t h e h i s t o r i c a l l e a d t i m e .

I n

a n e x a m p l e , t h e company m ay

d e t e r m i n e t h a t l e a d t i m e may be based

on

h e a v e r a g e

r e p l e n

i s h m e n t t i m e p e r i o d f o r t h e l a s t 1 0 o r d e r s . F o r e x a m p l e ,

d u r i n g

t h e l a s t 1 0 o r d e r s , 5 0 d a y s

may a v e

b e e n r e q u i r e d t o

r e c e i v e

a l l 1 0

o r d e r s . T h u s ,

on

a v e r a g e , a

s h i p m e n t

m ay

be

r e c e i v e d i n 5 d a y s f r o m t h e d a t e o f r d e r . A l t h o u g h d a y s a r e

b e i n g e m p l o y e d , t i m e

i n t e r v a l

may

b e

e x p r e s s e d

i n

h o u r s ,

m i n u t e s ,

W e e k s ,

a n d

t h e

l i k e s . The i m e i n t e r v a l may h a n g e

d e p e n d i n g

upon

h e


n e e d s .

[ 0 0 9 5 ] S i m i l a r o

t h e

r a t e o f o n s u m p t i o n ,

t h e

moving v e r

a g e

may

e W e i g h t e d . I n a n

e x a m p l e ,

d i f f e r e n t W e i g h t s

may

b e

a p p l i e d

t o

t h e

d a t a d e p e n d i n g

upon e l e v a n c y

e . g . ,

more

r e c e n t d a t a v s . l e s s r e c e n t

d a t a ) .

[ 0 0 9 6 ] I n


l e a d t i m e

may e

c a l

c u l a t e d b a s e d on a s i m p l e l i n e a r r e g r e s s i o n m e t h o d .

I n

t h i s

m e t h o d , r e p l e n i s h m e n t t i m e p e r i o d

f o r

a

p r e d e t e r m i n e d

num

b e r

o f o r d e r s m ay be

o l l e c t e d

and

l o t t e d on

g r a p h . L i n e a r

r e g r e s s i o n may o c c u r i n Which t h e d a t a p l o t t e d may b e

a p p r o x i m a t e d i n

o r d e r to

d e t e r m i n e

a t r e n d

l i n e . A

l o p e

and

i n t e r c e p t may

b e

c a l c u l a t e d

b a s e d

on

t h e p l o t t e d h i s t o r i c a l

d a t a . With h e s l o p e a n d i n t e r c e p t , a p r o j e c t e d l e a d

t i m e may

be d e t e r m i n e d .

[ 0 0 9 7 ]

Once

h e

a t e

o f o n s u m p t i o n

a n d

t h e l e a d

t i m e

h a v e

b e e n d e t e r m i n e d , p r o j e c t e d c o n s u m p t i o n o v e r t h e l e a d t i m e

may

be a l c u l a t e d . I n a n e x a m p l e , t h e r a t e o f consumption s

3 b i n s p e r

d a y a n d

t h e l e a d t i m e i s 5 d a y s . To

c a l c u l a t e

t h e

p r o j e c t e d

c o n s u m p t i o n , t h e

r a t e

o f

c o n s u m p t i o n may e m u l

t i p l i e d b y t h e l e a d t i m e .

P r o j e c t e d

c O n S u I n p t i O n I R a t e

o f

c o n s u r n p t i o n x L e a d

t i m e

P r o j e c t e d c o n s u r n p t i o n : 3 > < 5

P r o j e c t e d c o n s u r n p t i o n : l 5 b i n s

[ 0 0 9 8 ] E q u a t i o n 1 a b o v e s h o W s a n e x a m p l e o f a

p r o j e c t e d

c o n s u m p t i o n c a l c u l a t i o n . Based on

t h e

c a l c u l a t i o n ,

l 5

b i n s

may

be consumed

i t h i n t h e

n e x t

5

d a y s .

T h u s , t h e

amount

o

b e

consumed

i t h i n

t h e l e a d

t i m e

i s

t h e c a l c u l a t e d p r o j e c t e d

c o n s u m p t i o n .

[ 0 0 9 9 ] I n

an

embodiment, same o r d i f f e r e n t s t a t i s t i c a l

method

may

e

employed

n c a l c u l a t i n g

t h e r a t e o f

consump

t i o n a n d t h e

l e a d

t i m e . I n a n e x a m p l e , i f t h e

W e i g h t e d

moving

a v e r a g e

method

a s

been

employed

t o c a l c u l a t e t h e r a t e o f

c o n s u m p t i o n ,

t h e n

a s i m p l e moving a v e r a g e method

may

e

employed o

c a l c u l a t e

t h e l e a d

t i m e .

[ 0 1 0 0 ] A t

a

n e x t s t e p 6 0 6 , t h e i n v e n t o r y e . g . , b i n s ) t h a t may

be

r e c e i v e d d u r i n g t h e l e a d

t i m e

may

be

added

t o

c u r r e n t

i n v e n t o r y

o n - h a n d . D i f f e r e n t m e t h o d s may

b e

employed o

d e t e r m i n e

t h e amount

f

e p l e n i s h e d i n v e n t o r y . I n an embodi

m e n t ,

t h e

o r d e r method may

b e e m p l o y e d . With t h e

o r d e r

m e t h o d ,

t h e a m o u n t

o f

e p l e n i s h e d i n v e n t o r y t h a t i s

c u r r e n t l y

o n - o r d e r s

assumed

o b e

r e c e i v e d by h e

company i t h i n

t h e

E q u a t i o n 1

S e p . 4 , 2 0 0 8

l e a d

t i m e .

I n

a n e x a m p l e , i f 1 6

b i n s a r e

c u r r e n t l y o n - o r d e r ,

t h e n t h e amount f


i n v e n t o r y i s 1 6 b i n s .

[ 0 1 0 1 ] I n

a n o t h e r

embodiment, a r u l e - b a s e d o r d e r method

may b e e m p l o y e d . W i t h

t h e

r u l e - b a s e d o r d e r m e t h o d ,

t h e

amount

of

e p l e n i s h e d i n v e n t o r y

m a y

be based

on

a

set

of

s y s t e m r u l e s ,

Which

may

e

d e p e n d e n t

upon When a n o r d e r

m ay a v e been p l a c e d W i t h

a

s u p p l i e r .

I n

an e x a m p l e ,

i f

a n

o r d e r

i s p l a c e d

b e f o r e

a

c e r t a i n d a t e

t h e n t h e

o r d e r

m ay be

f u l ? l l e d

W i t h i n

a c e r t a i n

number f

d a y s and t h e r e f o r e ,

may

be r e c e i v e d W i t h i n t h e

l e a d t i m e .

HoWever, i f an

o r d e r

i s

p l a c e d

a f t e r

a

c e r t a i n

d a t e o r

t i m e t h e n

t h e o r d e r may o t

be

f u l ? l l e d i m m e d i a t e l y and

may

o t b e r e c e i v e d by

t h e com

pany i t h i n t h e

l e a d

t i m e . I n

an x a m p l e ,

i f

an

r d e r

s p l a c e d

W i t h a s u p p l i e r

b e f o r e

W e d n e s d a y ,

t h e n

t h e o r d e r W i l l b e

h a n d l e d on T h u r s d a y .

H o W e v e r , i f

a n o r d e r i s p l a c e d a f t e r

Wednesday, t h e n t h e o r d e r

W i l l

n o t b e h a n d l e d

u n t i l

n e x t

M o n d a y . C o n s i d e r t h e s i t u a t i o n W h e r e i n , f o r e x a m p l e , o f t h e

1 6 b i n s o n - o r d e r , o n l y 9 b i n s

may a v e

b e e n o r d e r e d p r i o r

t o

W e d n e s d a y .

The

u l e - b a s e d

o r d e r

m e t h o d , i n a n e m b o d i m e n t ,

may e

p r e - s e t b a s e d on

g

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