GB2605111A - Fair share in distribution requirements planning - Google Patents
Fair share in distribution requirements planning Download PDFInfo
- Publication number
- GB2605111A GB2605111A GB2209212.6A GB202209212A GB2605111A GB 2605111 A GB2605111 A GB 2605111A GB 202209212 A GB202209212 A GB 202209212A GB 2605111 A GB2605111 A GB 2605111A
- Authority
- GB
- United Kingdom
- Prior art keywords
- demands
- supply
- supplies
- allocation
- demand
- Prior art date
- Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
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Classifications
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q10/00—Administration; Management
- G06Q10/08—Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
- G06Q10/087—Inventory or stock management, e.g. order filling, procurement or balancing against orders
Abstract
Systems and methods that distribute fairly, limited inventory across multi levels of warehouses, where each warehouse has its own inventory target. The goal is to first ensure that all real demands (e.g. sales orders and forecasts) are satisfied, fair-sharing as needed. Once real demands are satisfied, nodes in the distribution network should be brought up to their safety stock levels fairly: each downstream node should achieve an equal fraction of its desired days of coverage.
Claims (18)
1. A system comprising: a processor; and a memory storing instructions that, when executed by the processor, configure the system to: collect known supplies and demands; compare total supply and total demand; if the total supply does not equal the total demand, adjust the total supply or the total demand to make the total demand equal the total supply; determine downstream safety stock levels; create a plurality of events; and process the plurality of events by: maintaining each of a set of active demands, a set of active supplies and a set of late demands, for the purpose of ensuring all real demands are satisfied by their need dates; and fair-sharing by a ratio based on demand quantity if required, while simultaneously fair-sharing supply between demand due and demand need dates, by a ratio based on downstream safety stock requirements, when there is sufficient supply to do so.
2. The system of claim 1 wherein the instructions further configure the system to: merge one or more allotments.
3. The system of claim 1, wherein the instructions further configure the system to process the plurality of events by chronological sequence; and by the type of event.
4. The system of claim 3, wherein the instructions further configure the system to process demand due events by executing a Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of active supplies and active demands, the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine allocating a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability, the Single Supply Allocation by Downstream Safety Stock Ratio subroutine allocating a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible.
5. System of claim 3, wherein the instructions further configure the system to process supply available events, by: executing a Multiple Supply Allocation by Demand Quantity Ratio in Tiers on the set of active supplies to late demands; executing the Multiple Supply Allocation by Demand Quantity Ratio in Tiers on the set of new supplies to late demands; executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of active supplies to active demands; and executing the Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of new supplies and active demands; wherein: the Multiple Supply Allocation by Demand Quantity Ratio in Tiers allocates a set of supplies to a set of demands by repeatedly using a Multiple Supply Allocation by Demand Quantity Ratio subroutine on the given set of supplies and the highest tier of demands remaining in the given set, where tier refers to the set of outstanding demands with the highest priority among the set of outstanding demands with earliest need date; the Multiple Supply Allocation by Demand Quantity Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Demand Quantity Ratio subroutine on the set of supplies in non-decreasing order of availability; the Single Supply Allocation by Demand Quantity Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that each demand in the set is satisfied in as close to the same proportion as possible based on its quantity; the Multiple Supply Allocation by Downstream Safety Stock Ratio allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability; and the Single Supply Allocation by Downstream Safety Stock Ratio allocates a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible.
6. The system of claim 3, wherein the instructions further configure the system to process demand need events, by: comparing the amount of active supply to the amount of newly needed demand; where there is sufficient active supply: executing a Safety Stock Allocation for Needed Demands subroutine; and where there is insufficient active supply: executing a Multiple Supply Allocation by Demand Quantity Ratio subroutine on the set of active supplies and new demands; if any newly needed demand remains unsatisfied: executing a Reclaim subroutine; comparing the amount of active supply to the amount of outstanding newly needed demand; where there is sufficient active supply, executing a Safety Stock Allocation for Needed Demands in Tiers subroutine; and where there is insufficient active supply, executing the Multiple Supply Allocation by Demand Quantity Ratio subroutine on the set of active supplies and newly needed demands; and executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of active supplies and active demands; wherein: the Safety Stock allocation for Needed Demands subroutine allocates a set of supplies to a set of demands by using the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine on the given set of supplies, except a most recent set of supplies, and the given set of demands; and uses the Multiple Supply Allocation by Demand Quantity Ratio subroutine on the given set of supplies and the given set of demands; the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability; the Single Supply Allocation by Downstream Safety Stock Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible; the Multiple Supply Allocation by Demand Quantity Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Demand Quantity Ratio subroutine on the set of supplies in non decreasing order of availability; the Single Supply Allocation by Demand Quantity Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that each demand in the set is satisfied in as close to the same proportion as possible based on its quantity; the Reclaim subroutine takes a set of demands and attempts to free supply from other later-needed, lower-priority demands to attempt to satisfy the given set of demands instead; and the Safety Stock Allocation for Needed Demands in Tiers subroutine allocates a set of supplies to a set of demands by repeatedly using the Safety Stock Allocation for Needed Demands subroutine on the given set of supplies and the highest tier of demands remaining in the given set, where a tier refers to the set of outstanding demands with the highest priority among the set of outstanding demands with earliest need date.
7. A computer-implemented method comprising: collecting known supplies and demands; comparing total supply and total demand; if the total supply does not equal the total demand, adjusting the total supply or the total demand to make the total demand equal the total supply; determining downstream safety stock levels; creating a plurality of events; and processing the plurality of events by: maintaining each of a set of active demands, a set of active supplies and a set of late demands, for the purpose of ensuring all real demands are satisfied by their need dates; and fair-sharing by a ratio based on demand quantity if required, while simultaneously fair-sharing supply between demand due and demand need dates, by a ratio based on downstream safety stock requirements, when there is sufficient supply to do so.
8. The method of claim 7 further comprising: merging one or more allotments.
9. The method of claim 7, further comprising processing the plurality of events by chronological sequence; and by the type of event.
10. The method of claim 9, further comprising: processing demand due events by executing a Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of active supplies and active demands, the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine allocating a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability, the Single Supply Allocation by Downstream Safety Stock Ratio subroutine allocating a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible.
11. The method of claim 9, further comprising processing the supply available events, by: executing a Multiple Supply Allocation by Demand Quantity Ratio in Tiers on the set of active supplies to late demands; executing the Multiple Supply Allocation by Demand Quantity Ratio in Tiers on the set of new supplies to late demands; executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of active supplies to active demands; and executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of new supplies and active demands; wherein: a Multiple Supply Allocation by Demand Quantity Ratio in Tiers allocates a set of supplies to a set of demands by repeatedly using thethethethe Multiple Supply Allocation by Demand Quantity Ratio subroutine on the given set of supplies and the highest tier of demands remaining in the given set, where tier refers to the set of outstanding demands with the highest priority among the set of outstanding demands with earliest need date; the Multiple Supply Allocation by Demand Quantity Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Demand Quantity Ratio subroutine on the set of supplies in non-decreasing order of availability; the Single Supply Allocation by Demand Quantity Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that each demand in the set is satisfied in as close to the same proportion as possible based on its quantity; the Multiple Supply Allocation by Downstream Safety Stock Ratio allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability; and the Single Supply Allocation by Downstream Safety Stock Ratio allocates a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible.
12. The method of claim 9, further comprising processing demand need events, by: comparing the amount of active supply to the amount of newly needed demand; where there is sufficient active supply: executing a Safety Stock Allocation for Needed Demands subroutine; and where there is insufficient active supply: executing a Multiple Supply Allocation by Demand Quantity Ratio subroutine on the set of active supplies and new demands; if any newly needed demand remains unsatisfied: executing a Reclaim subroutine; comparing the amount of active supply to the amount of outstanding newly needed demand; where there is sufficient active supply, executing a Safety Stock Allocation for Needed Demands in Tiers subroutine; and where there is insufficient active supply, executing the Multiple Supply Allocation by Demand Quantity Ratio subroutine on the set of active supplies and newly needed demands; and executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of active supplies and active demands; wherein: the Safety Stock allocation for Needed Demands subroutine allocates a set of supplies to a set of demands by using the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine on the given set of supplies, except a most recent set of supplies, and the given set of demands; and uses the Multiple Supply Allocation by Demand Quantity Ratio subroutine on the given set of supplies and the given set of demands; the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability; the Single Supply Allocation by Downstream Safety Stock Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible; the Multiple Supply Allocation by Demand Quantity Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Demand Quantity Ratio subroutine on the set of supplies in non decreasing order of availability; the Single Supply Allocation by Demand Quantity Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that each demand in the set is satisfied in as close to the same proportion as possible based on its quantity; the Reclaim subroutine takes a set of demands and attempts to free supply from other later-needed, lower-priority demands to attempt to satisfy the given set of demands instead; and the Safety Stock Allocation for Needed Demands in Tiers subroutine allocates a set of supplies to a set of demands by repeatedly using the Safety Stock Allocation for Needed Demands subroutine on the given set of supplies and the highest tier of demands remaining in the given set, where a tier refers to the set of outstanding demands with the highest priority among the set of outstanding demands with earliest need date.
13. A non-transitory computer-readable storage medium, the computer- readable storage medium including instructions that when executed by a computer, cause the computer to: collect known supplies and demands; compare total supply and total demand; if the total supply does not equal the total demand, adjust the total supply or the total demand to make the total demand equal the total supply; determine downstream safety stock levels; create a plurality of events; and process the plurality by: maintaining each of a set of active demands, a set of active supplies and a set of late demands, for the purpose of ensuring all real demands are satisfied by their need dates; and fair-sharing by a ratio based on demand quantity if required, while simultaneously fair-sharing supply between demand due and demand need dates, by a ratio based on downstream safety stock requirements, when there is sufficient supply to do so.
14. The computer-readable storage medium of claim 13 wherein the instructions further configure the computer to: merge one or more allotments.
15. The computer-readable storage medium of claim 13, wherein the instructions further configure the computer to: process the plurality of events by chronological sequence; and by the type of event.
16. The computer-readable storage medium of claim 15, wherein the instructions further configure the computer to: process demand due events by executing a Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of active supplies and active demands, the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine allocating a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability, the Single Supply Allocation by Downstream Safety Stock Ratio subroutine allocating a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible.
17. The computer-readable storage medium of claim 15, the instructions further configure the computer to: process the supply available events, by: executing a Multiple Supply Allocation by Demand Quantity Ratio in Tiers on the set of active supplies to late demands; executing the Multiple Supply Allocation by Demand Quantity Ratio in Tiers on the set of new supplies to late demands; executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of active supplies to active demands; and executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of new supplies and active demands; wherein: a Multiple Supply Allocation by Demand Quantity Ratio in Tiers allocates a set of supplies to a set of demands by repeatedly using thethethethe Multiple Supply Allocation by Demand Quantity Ratio subroutine on the given set of supplies and the highest tier of demands remaining in the given set, where tier refers to the set of outstanding demands with the highest priority among the set of outstanding demands with earliest need date; the Multiple Supply Allocation by Demand Quantity Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Demand Quantity Ratio subroutine on the set of supplies in non-decreasing order of availability; the Single Supply Allocation by Demand Quantity Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that each demand in the set is satisfied in as close to the same proportion as possible based on its quantity; the Multiple Supply Allocation by Downstream Safety Stock Ratio allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability; and the Single Supply Allocation by Downstream Safety Stock Ratio allocates a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible..
18. The computer-readable storage medium of claim 15, the instructions further configure the computer to: process the demand need events, by: comparing the amount of active supply to the amount of newly needed demand; where there is sufficient active supply: executing a Safety Stock Allocation for Needed Demands subroutine; and where there is insufficient active supply: executing a Multiple Supply Allocation by Demand Quantity Ratio subroutine on the set of active supplies and new demands; if any newly needed demand remains unsatisfied: executing a Reclaim subroutine; comparing the amount of active supply to the amount of outstanding newly needed demand; where there is sufficient active supply, executing a Safety Stock Allocation for Needed Demands in Tiers subroutine; and where there is insufficient active supply, executing the Multiple Supply Allocation by Demand Quantity Ratio subroutine on the set of active supplies and newly needed demands; and executing a Multiple Supply Allocation by Downstream Safety Stock Ratio on the set of active supplies and active demands; wherein: the Safety Stock allocation for Needed Demands subroutine allocates a set of supplies to a set of demands by using the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine on the given set of supplies, except a most recent set of supplies, and the given set of demands; and uses the Multiple Supply Allocation by Demand Quantity Ratio subroutine on the given set of supplies and the given set of demands; the Multiple Supply Allocation by Downstream Safety Stock Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Downstream Safety Stock Ratio subroutine on the set of supplies in non-decreasing order of availability; the Single Supply Allocation by Downstream Safety Stock Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that, once allocated, the safety stock attainment at the set of destinations downstream of each demand are as equal as possible; the Multiple Supply Allocation by Demand Quantity Ratio subroutine allocates a set of supplies to a set of demands by repeatedly using a Single Supply Allocation by Demand Quantity Ratio subroutine on the set of supplies in non decreasing order of availability; the Single Supply Allocation by Demand Quantity Ratio subroutine allocates a single supply or portion of supply to a given set of demands so that each demand in the set is satisfied in as close to the same proportion as possible based on its quantity; the Reclaim subroutine takes a set of demands and attempts to free supply from other later-needed, lower-priority demands to attempt to satisfy the given set of demands instead; and the Safety Stock Allocation for Needed Demands in Tiers subroutine allocates a set of supplies to a set of demands by repeatedly using the Safety Stock Allocation for Needed Demands subroutine on the given set of supplies and the highest tier of demands remaining in the given set, where a tier refers to the set of outstanding demands with the highest priority among the set of outstanding demands with earliest need date.
Applications Claiming Priority (3)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| US16/697,009 US20210158277A1 (en) | 2019-11-26 | 2019-11-26 | Transformation of demands in a supply chain network |
| US202063017070P | 2020-04-29 | 2020-04-29 | |
| PCT/CA2020/051621 WO2021102578A1 (en) | 2019-11-26 | 2020-11-26 | Fair share in distribution requirements planning |
Publications (2)
| Publication Number | Publication Date |
|---|---|
| GB202209212D0 GB202209212D0 (en) | 2022-08-10 |
| GB2605111A true GB2605111A (en) | 2022-09-21 |
Family
ID=76129088
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| GB2209212.6A Pending GB2605111A (en) | 2019-11-26 | 2020-11-26 | Fair share in distribution requirements planning |
Country Status (3)
| Country | Link |
|---|---|
| DE (1) | DE112020005805T5 (en) |
| GB (1) | GB2605111A (en) |
| WO (1) | WO2021102578A1 (en) |
Citations (3)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US20020188499A1 (en) * | 2000-10-27 | 2002-12-12 | Manugistics, Inc. | System and method for ensuring order fulfillment |
| US20090063251A1 (en) * | 2007-09-05 | 2009-03-05 | Oracle International Corporation | System And Method For Simultaneous Price Optimization And Asset Allocation To Maximize Manufacturing Profits |
| US20110125543A1 (en) * | 2008-07-25 | 2011-05-26 | Makoto Saito | Supply chain optimization system and method for optimizing supply chain |
-
2020
- 2020-11-26 DE DE112020005805.0T patent/DE112020005805T5/en active Pending
- 2020-11-26 WO PCT/CA2020/051621 patent/WO2021102578A1/en active Application Filing
- 2020-11-26 GB GB2209212.6A patent/GB2605111A/en active Pending
Patent Citations (3)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US20020188499A1 (en) * | 2000-10-27 | 2002-12-12 | Manugistics, Inc. | System and method for ensuring order fulfillment |
| US20090063251A1 (en) * | 2007-09-05 | 2009-03-05 | Oracle International Corporation | System And Method For Simultaneous Price Optimization And Asset Allocation To Maximize Manufacturing Profits |
| US20110125543A1 (en) * | 2008-07-25 | 2011-05-26 | Makoto Saito | Supply chain optimization system and method for optimizing supply chain |
Also Published As
| Publication number | Publication date |
|---|---|
| DE112020005805T5 (en) | 2022-10-06 |
| WO2021102578A1 (en) | 2021-06-03 |
| GB202209212D0 (en) | 2022-08-10 |
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