Dynamic Inventory Restock Calculation for E-Commerce Logistics
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Solution Overview
Problem
Current e-commerce ERP systems face challenges in managing inventory restock for products with unstable sales or low sales per item, as they rely on fixed restock cycles and do not account for factors like minimum shipment quantities and delivery times, leading to inefficiencies and increased costs.
Innovation Solution
An inventory target-based restock method that adjusts restock frequency and quantity based on target inventory levels, interval days, and logistics lead times, allowing for flexible restock timing and simultaneous restocking of multiple products, and accommodating specified delivery times.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a fixed restock cycle is used to simplify restock management, then restock timing is convenient and regular, but restock quantity cannot be flexibly adjusted for different products with different sales patterns
Solution Approach 1:
The patent transforms the static fixed restock cycle into a dynamic restock interval that adapts to different product characteristics. The system calculates optimal restock intervals based on product type (boutique-type with stable sales vs. distribution-type with unstable sales), allowing the restock timing to be dynamically adjusted while maintaining operational simplicity through automated calculations.
Solution Approach 2:
The patent changes the restock parameter from a fixed cycle to a flexible interval based on product-specific parameters. By introducing product classification and calculating different restock intervals for different product types, the system achieves both operational convenience through standardization and adaptability through parameter customization.
2Reliability
If restock quantity is calculated to cover logistics limitation period plus safety days, then stockouts are prevented, but excess inventory occurs resulting in higher stocking expenses
Solution Approach 1:
The patent applies partial action by calculating restock quantity based on actual needs rather than covering the entire logistics limitation period plus safety days. The system determines the precise quantity required to maintain target inventory levels, avoiding the excessive inventory that would result from covering the full safety period.
Solution Approach 2:
The patent implements feedback mechanisms by continuously monitoring current inventory levels, sales velocity, and restock status. The system adjusts restock quantities based on real-time data, ensuring that enough inventory is maintained to prevent stockouts while avoiding excess inventory through continuous optimization based on actual performance feedback.
3Loss of time
If restock is reminded on the day of restock, then immediate restock is required, but operational personnel cannot control the pace of restocking
Solution Approach 1:
The patent applies preliminary action by providing restock reminders in advance of the actual restock date rather than on the day of restock. The system calculates and notifies operational personnel of upcoming restock requirements with sufficient lead time, allowing them to plan and control the restock pace while still ensuring timely fulfillment.
4Reliability
If restock quantity includes sales volume during logistics limitation period, then future stock availability is ensured, but excess inventory is created increasing procurement and warehouse costs
Solution Approach 1:
The patent applies partial action by including only the necessary portion of sales volume in the restock calculation, rather than the entire logistics limitation period sales volume. The system calculates restock quantity as the difference between target inventory and current inventory, plus anticipated sales during the restock interval, avoiding the excessive inventory that would result from including the full logistics limitation period.
Solution Approach 2:
The patent changes the parameter for inventory calculation from a fixed logistics limitation period to a dynamic restock interval based on actual product performance. By using product-specific restock intervals and target inventory levels, the system optimizes the balance between ensuring future stock availability and minimizing excess inventory that ties up capital.
5Measurement precision
If individual product restock is calculated separately, then precise restock quantity is achieved, but multiple products cannot be consolidated for simultaneous restock
Solution Approach 1:
The patent applies merging by consolidating multiple individual product restock calculations into a single comprehensive restock plan. The system maintains precise calculation for each product based on its specific parameters, then combines these into a consolidated restock recommendation that can be executed simultaneously, improving efficiency while preserving accuracy.
Solution Approach 2:
The patent applies universality by creating a multi-functional restock system that handles both individual product calculations and consolidated multi-product restocking. The system provides precise individual restock quantities for each product while also generating consolidated restock plans that can include multiple products, making the system versatile for different operational needs.
Data Source
AI summary
An inventory target-based product restock method, including obtaining the FBA inventory data of the product, setting the shipping logistics and duration from the pre-storage warehouse to the FBA warehouse, setting the daily average sales, interval days, and safety days of the product, so that the sum of the interval days and safety days multiplied by the daily average sales equals the target stock; calculating the restock time for the product to arrive at the FBA warehouse on the day when the FBA inventory is reduced to the safety stock as the temporary restock day; calculating the quantity of products needed to reach the target stock on the day when the temporarily restocked products arrive at the FBA warehouse as the temporary restock quantity; and using the temporary restock day and quantity as the recommended restock day and quantity for this restock, and generate restock suggestions.