Inventory Balancing Application for Multi-Site Redistribution
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Solution Overview
Problem
Inventory management for large enterprises with multiple geographically diverse locations faces challenges in efficiently balancing and redistributing excess inventory in a timely manner, especially in on-demand markets where instantaneous replenishment is required, and existing methods lack automation for complex forecasting processes.
Innovation Solution
A method and system for determining excess inventory and shortfalls across multiple sites, applying business logic to create an inventory balancing plan for optimal redistribution, and generating orders for excess inventory before developing supplier forecasts, utilizing a host system and inventory balancing application to automate the process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If manual inquiry methods are used to check other site locations for needed inventory items, then inventory balancing can be performed, but the process is too slow to meet on-demand market requirements for near instantaneous replenishment
Solution Approach 1:
The patent replaces manual inquiry mechanisms with an automated computer-based system that uses algorithms to identify excess inventory across site locations and generate redistribution orders automatically, eliminating the slow manual process while achieving near-instantaneous replenishment
Solution Approach 2:
The system enables self-service inventory balancing by automatically detecting excess inventory at various sites, calculating optimal redistribution plans, and generating purchase orders without human intervention, allowing the inventory system to self-regulate in real-time
2Productivity
If automated planning processes are implemented for large enterprises with millions of forecast rows, then forecasting efficiency improves, but the system complexity increases significantly
Solution Approach 1:
The patent segments the complex forecasting process into distinct modules: excess inventory identification, shortfall determination, business logic application, and order generation. This modular approach handles millions of forecast rows efficiently while keeping system complexity manageable through clear separation of functions
Solution Approach 2:
The system introduces an intermediary inventory balancing application that sits between raw forecast data and supplier ordering, processing and simplifying the data through structured business logic rules before generating final orders, thereby managing complexity at each processing stage
3Productivity
If inventory balancing is performed after supplier forecasts are developed, then supplier planning is simplified, but excess inventory cannot be redistributed at an early stage reducing overall efficiency
Solution Approach 1:
The patent performs inventory balancing actions before supplier forecasts are finalized, identifying excess inventory and generating redistribution orders in advance. This preliminary action allows time for supplier forecast adjustments and achieves faster overall inventory optimization
Solution Approach 2:
The system creates a cushioning layer of analyzed inventory data before supplier forecasting begins, pre-identifying excess inventory opportunities that can be acted upon immediately when confirmed, reducing the time penalty of early intervention
Data Source
AI summary
A method, system, and computer program product for performing inventory management. The method includes determining excess inventory for a plurality of site locations, determining inventory shortfalls for a plurality of site locations, and applying business logic to the excess inventory resulting in an inventory balancing plan. The inventory balancing plan includes optimal redistribution of excess inventory to site locations determined to be in need of the excess inventory. The method also includes generating and transmitting orders for the excess inventory in accordance with the inventory balancing plan prior to developing a supplier forecast.