Sub-Tote Retail Replenishment for Low-Inventory Store Supply
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Solution Overview
Problem
Conventional retail supply chain systems rely on case-level replenishment, leading to excessive inventory and inefficient use of store space, as retailers must stock multiple cases of products regardless of their sales velocity.
Innovation Solution
An automated retail supply chain system that uses a tote/sub-tote containment architecture, where products are decanted from cases into sub-totes within totes, allowing for more granular inventory management and reduced replenishment quantities based on real-time demand.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If case-level replenishment is used, then operational efficiency is improved, but inventory levels and storage space requirements increase excessively
Solution Approach 1:
The patent segments the traditional case-level replenishment unit into smaller sub-totes containing individual products or smaller quantities. This segmentation allows stores to receive precise replenishment quantities matching actual demand rather than receiving entire cases, thereby reducing excess inventory while maintaining operational efficiency through automated handling of the segmented units.
Solution Approach 2:
The patent introduces a new dimensional approach by implementing a two-level container system (totes containing sub-totes) that adds a hierarchical dimension to inventory management. This dimensional change enables granular control over replenishment quantities while preserving the efficiency of automated case-picking processes at the distribution center.
2Device complexity
If case-level replenishment is used, then automated case-picking processes are simplified, but store space utilization becomes inefficient
Solution Approach 1:
By segmenting cases into smaller sub-totes, the patent enables more granular inventory delivery that matches actual store needs. This reduces the amount of storage space required in stores while the automated handling systems maintain process simplicity by treating sub-totes as standardized units throughout the supply chain.
Solution Approach 2:
The patent changes the fundamental parameter of replenishment quantity from case-level to sub-tote-level units. This parameter change allows precise matching of inventory deliveries to actual demand, optimizing store space utilization while the automated systems adapt to handle the new unit size through modified picking and handling parameters.
3Reliability
If minimum safe replenishment quantity is calculated based on delivery service level, then out-of-stock prevention is improved, but inventory excess occurs for low-velocity products
Solution Approach 1:
The patent segments replenishment into smaller sub-tote units that can be precisely matched to the calculated minimum safe replenishment quantity for each product. This segmentation eliminates inventory excess for low-velocity products by allowing deliveries in exact quantities needed rather than in fixed case units, while maintaining out-of-stock prevention through accurate MSRQ calculation and fulfillment.
Data Source
AI summary
A system and method are disclosed for supplying one or more goods to a physical store location. The goods may be received at a distribution center (DC). At the DC, the goods may be decanted from their shipping containers into one or more sub-totes, which are contained within one or more product totes. The sub-totes may be transferred from the one or more product totes to one or more order totes based on a velocity of movement of the plurality of goods at the physical store location.