Inventory Management Using Geographic User Data

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Solution Overview

Problem

Merchants face challenges in balancing customer demand and inventory costs, as maintaining optimal inventory levels is difficult due to variations in customer demand and supply chains, often leading to excessive inventory expenses.

Innovation Solution

A system and method for inventory management that utilizes geographic information and user data to analyze user preferences and behavior, determining demand parameters and current inventory levels to optimize inventory management decisions, such as ordering or removing items from facilities based on geographic location-specific data.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If merchants keep a certain number of items in inventory facilities to make items readily available for purchase and delivery, then customer experience is enhanced, but inventory expenses increase

Engineering Contradiction:

Improvecustomer experienceVSAvoidinventory expenses

Core Design Contradiction:

ReliabilityVSQuantity of substance

Solution Approach 1:

The patent segments the inventory management system into multiple components: inventory facilities, prediction systems, and geographic information databases. By dividing the system into these parts, merchants can manage inventory more precisely at different locations based on predicted demand, reducing overall inventory costs while maintaining customer experience.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent implements preliminary action by using prediction systems to forecast future demand before it occurs. By analyzing geographic information and historical data in advance, the system predicts what items will be needed at specific locations and times, allowing merchants to proactively adjust inventory levels rather than reacting to demand after it arises.

Inventive Principle:

Principle #10Preliminary action

2Reliability

If merchants keep an excessive amount of items in inventory facilities, then customer demand can be met, but unnecessary expenses are caused

Engineering Contradiction:

Improvecustomer demand fulfillmentVSAvoidunnecessary expenses

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The patent implements feedback mechanisms by continuously monitoring actual demand against predicted demand and adjusting inventory levels accordingly. The system uses geographic information and sales data to provide feedback loops that refine demand predictions and optimize inventory placement, ensuring items are stocked where and when they are actually needed rather than using excessive inventory everywhere.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The patent applies parameter changes by dynamically adjusting inventory levels based on multiple variables including geographic location, predicted demand, historical sales data, and seasonal factors. By changing these parameters continuously rather than using fixed inventory levels, the system optimizes the balance between meeting customer demand and minimizing unnecessary inventory expenses.

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS10679176B2Inventory management based on geographic information of users

Publication Date: 2020.06.09 WALMART APOLLO LLC

AI summary

Example systems and methods for inventory management are described. In one implementation, a method may analyze user profiles to retrieve geographic information and user online activity information. The method may identity an offline store corresponding to the retrieved geographic information such that the method may cause inventory management associated with the offline store.