Adaptive Inventory Estimation Using Historical Stock and Shipment Data
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Solution Overview
Problem
Traditional inventory estimation methods in the digital technology manufacturing industry are subjective, time-consuming, and difficult to scale, leading to inaccurate results as the number of products and production sites increase.
Innovation Solution
An inventory quantity calculation system utilizing a receiving unit, calculation unit, and output unit, which incorporates the Experience Model and Adaptive Weight Assignment Model to calculate stock quantity estimates, integrating historical data and expert experience to assign adaptive weights for improved estimation accuracy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional manual inventory estimation methods are used, then personnel can provide inventory estimates based on experience, but the results are highly subjective and inaccurate
Solution Approach 1:
The patent replaces manual experience-based estimation with an automated calculation system that computes inventory estimates using historical data and predefined models. The system substitutes human judgment with algorithmic processing, eliminating subjectivity while maintaining manageable complexity through standardized calculation procedures.
Solution Approach 2:
The system enables self-service inventory estimation by automatically calculating results based on input data without requiring human intervention in the calculation process. The automated computation serves itself by processing historical data through established models to generate inventory estimates independently.
2Productivity
If manual calculation of inventory age is performed, then detailed inventory information can be obtained, but the process is time-consuming and labor-intensive
Solution Approach 1:
The patent replaces manual calculation processes with automated computational systems that rapidly process inventory data. The system substitutes time-consuming human arithmetic with instant computer-based calculations, dramatically increasing productivity while eliminating the time loss associated with manual methods.
Solution Approach 2:
The system enables continuous inventory calculation by automatically processing data without interruption. Unlike manual methods that require periodic human intervention, the automated system maintains continuous operation, constantly updating inventory estimates as new data becomes available, thereby maximizing productivity and minimizing time loss.
3Adaptability or versatility
If manual inventory calculation is used, then inventory estimates can be obtained, but the method is difficult to scale as the number of products and production sites increases
Solution Approach 1:
The patent creates a universal inventory calculation system that can handle multiple products and production sites through a single standardized platform. The system uses consistent calculation models and data structures that automatically adapt to different scales, enabling the same system to serve both small and large organizations without requiring separate manual processes for each site or product line.
Solution Approach 2:
The system dynamically adapts to changing scales by automatically adjusting its processing capacity and data handling capabilities. As the number of products and sites increases, the system dynamically scales its computational resources and data processing routines, maintaining performance and accuracy without requiring fundamental changes to the underlying calculation methodology.
4Reliability
If different personnel use different estimation methods, then individual expertise can be utilized, but the results vary due to high subjectivity
Solution Approach 1:
The patent applies homogeneity by standardizing the inventory estimation process across all users. The system uses uniform calculation models, consistent data requirements, and identical computation algorithms for every user, eliminating the variability introduced by different individual methods. This homogeneous approach ensures that all users receive consistent, reliable results regardless of their personal expertise or estimation preferences.
Data Source
AI summary
An inventory quantity calculation system includes a receiving unit, a calculation unit, and an output unit. The receiving unit receives historical beginning-of-period stock quantity estimates, historical end-of-period stock quantity estimates, historical end-of-period actual stock quantities, and historical estimated shipment quantities. Based on the received historical beginning-of-period stock quantity estimates, historical end-of-period stock quantity estimates, historical end-of-period actual stock quantities, and historical estimated shipment quantities, the calculation unit determines a decision value and calculates a first stock quantity estimate and a second stock quantity estimate for the end of the next time period. The output unit outputs the first stock quantity estimate, the second stock quantity estimate, or a third stock quantity estimate based on the decision value. The third stock quantity estimate is calculated based on the first stock quantity estimate and the second stock quantity estimate.