Dynamic Reserve Management for Product Stock and Semifinished Inventory
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Solution Overview
Problem
Current product reserve management systems face challenges in efficiently managing stock levels across multiple production bases and shops, leading to increased costs and lead times due to the inability to quickly respond to urgent orders and prevent excess inventory from being abandoned.
Innovation Solution
A system and method that utilizes two databases to store product and semifinished product stock information, allowing for real-time determination and reservation of products and semifinished products based on availability, including current and future stock levels, and selecting optimal production bases and shops as supply sources to fulfill orders.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If products are manufactured at first production bases with short lead time, then delivery speed is improved, but manufacturing cost increases
Solution Approach 1:
The system dynamically selects production bases based on order characteristics. For urgent orders, first production bases with short lead time are selected; for non-urgent orders, second production bases with lower cost are selected. This dynamic allocation resolves the contradiction by matching production base characteristics to order requirements rather than using a fixed approach.
Solution Approach 2:
The system changes the parameter of production base selection based on order priority and product availability. By varying which production base is used for different orders, the system optimizes the balance between delivery speed and manufacturing cost for each specific situation.
2Quantity of substance
If products are manufactured at second production bases with low manufacturing cost, then cost is reduced, but lead time for production increases
Solution Approach 1:
The system dynamically adjusts production base selection based on order characteristics. For time-sensitive orders, it switches to first production bases; for cost-sensitive orders with flexible timing, it uses second production bases. This resolves the contradiction by making the system adaptable to different requirements.
Solution Approach 2:
The system segments orders into different categories (urgent vs. non-urgent) and assigns them to different production bases accordingly. This segmentation allows the system to optimize for cost where possible while maintaining service levels for time-critical orders.
3Reliability
If shops maintain large quantity of product stock to prevent missed sales opportunities, then sales reliability is improved, but inventory cost increases
Solution Approach 1:
The system merges the inventory functions of multiple production bases and shops into a unified virtual inventory pool. When a shop receives an order, the system checks availability across all production bases and shops, allowing any available stock to fulfill the order. This eliminates the need for each shop to maintain large individual stocks while maintaining overall sales reliability.
Solution Approach 2:
The unified inventory pool serves multiple shops and production bases simultaneously. A single unit of stock can fulfill orders from any shop that has demand, making the inventory system universal rather than shop-specific. This reduces total inventory requirements while maintaining service levels.
4Adaptability or versatility
If product line or transportation方式 changes to fulfill urgent orders, then order fulfillment flexibility is improved, but additional cost increases
Solution Approach 1:
The system performs preliminary checks of product availability and production capacity across all bases before accepting urgent orders. By预先 identifying available stock and production capabilities, it can fulfill urgent orders using existing resources without needing to change product lines or transportation methods, thereby avoiding additional costs.
Solution Approach 2:
The unified inventory pool automatically identifies and allocates available stock from any shop or production base to fulfill orders. This self-service mechanism reduces the need for manual intervention and costly expedited actions, as the system autonomously optimizes fulfillment using existing resources.
Data Source
AI summary
A receiving section receives a supply request for product from a terminal set up at a shop or a terminal used by a client. A first determination processing section determines whether a product in stock can be reserved for an order. A first reserve processing section reserves the product in stock for the order when the first determination processing section determines that the product can be reserved. A second determination processing section determines whether a semifinished product necessary for manufacturing a final product can be reserved when the first determination processing section determines that the product reserve is impossible. A second reserve processing section reserves the semifinished product for the order when the second determination processing section determines that the semifinished product can be reserved.