Rule-Based Source Sequencing for Inventory Allocation
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Solution Overview
Problem
Current inventory allocation systems lack efficiency in sourcing inventory across multiple warehouses, leading to inefficient sourcing, inventory imbalances, increased costs, and customer dissatisfaction due to manual evaluation of numerous warehouse options without considering business entities, channels, and logistical implications.
Innovation Solution
Implementing a rule-based source sequencing system that intelligently selects warehouses based on priority rules, such as business entity, distribution channel, and logistical criteria, to identify the most cost-effective and efficient target warehouse for fulfilling item requests, reducing the need for manual evaluation and processing resources.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If inventory is arbitrarily sourced from any warehouse with available units, then inventory availability is improved, but sourcing efficiency deteriorates due to cost, time, and import/export implications
Solution Approach 1:
The system changes the parameters of warehouse selection by introducing a priority sequencing mechanism that evaluates warehouses based on multiple criteria (default supply chain, business entity, distribution channel, proximity, etc.) rather than simply selecting any warehouse with inventory. This transforms the selection process from arbitrary to optimized, resolving the contradiction between availability and efficiency.
Solution Approach 2:
The system segments the warehouse selection process into multiple priority levels and criteria (default supply chain first, then business entity, then distribution channel, then proximity). This segmentation allows the system to systematically evaluate warehouses in a structured manner, improving sourcing efficiency while maintaining inventory availability.
2Adaptability or versatility
If the default supply chain is bypassed to source from any warehouse, then flexibility in inventory sourcing is improved, but cost and time efficiency deteriorate
Solution Approach 1:
The system implements dynamic warehouse selection that adapts to different scenarios through a prioritized rule set. Instead of a static default supply chain or completely arbitrary selection, the system dynamically evaluates warehouses based on the specific item request and current inventory status, balancing flexibility with efficiency by considering multiple factors in a structured sequence.
3Ease of operation
If manual evaluation of warehouse options is performed, then control over inventory sourcing is improved, but processing resources are wasted evaluating numerous unused options
Solution Approach 1:
The system performs self-service by automatically evaluating and ranking warehouses based on the prioritized rule set without requiring manual intervention. The algorithm independently assesses multiple warehouses, applies the sequencing rules, and selects the optimal target warehouse, eliminating the waste of processing resources on evaluating numerous unused options while maintaining full control over the sourcing process.
4Adaptability or versatility
If hundreds of warehouse sourcing options are created for manual consideration, then comprehensive inventory options are provided, but processing and storage resources are wasted
Solution Approach 1:
The system extracts only the necessary evaluation criteria and applies them in a prioritized sequence, rather than generating and storing all possible warehouse combinations. By taking out only the essential factors (default supply chain, business entity, distribution channel, proximity) and evaluating warehouses against these in order, the system provides comprehensive coverage without the complexity of managing hundreds of sourcing options.
Data Source
AI summary
Systems, methods, and other embodiments associated with rule based source sequencing for allocation are described. In one embodiment, a method includes receiving an item request from an entity. The example method may also include executing rules of an allocation sequence rule set upon attributes of warehouses until a target warehouse capable of satisfying the item request is identified. The rules are executed in a sequential order based upon priorities assigned to the rules. The example method may also include generating a set of control instructions within a data structure identifying the target warehouse and the item request. The example method may also include sending the data structure to a remote computer, associated with the target warehouse, for causing the item request to be processed from the target warehouse.