
US Patent No: 5,287,267
Number of patents in Portfolio can not be more than 2000
Methods for parts procurement quantity determination where demand is uncertain for the product in which the parts are used
Stats
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Feb 15, 1994
Issued date -
May 10, 1991
filing date -
07/698,632
serial no -
Expired
status
Importance
Abstract
Methods are described for predicting parts procurement requirements for products over a plurality of time periods, with certain of the parts being common to a plurality of products. The actual demand for the products is unknown, but the method assures that a specified service level is met for all products and minimizes expected excess part inventories. The methods are provided with inputs which, among others, includes lists of parts for each product, prices for the parts, and demand forecasts for each product in each time period, each forecast in the form of a mean and standard deviation. The description of the problem includes an objective function of minimizing expected excess inventory while satisfying the constraint that a specified service level be achieved. The problem is transformed into an unconstrained problem through the use of a Lagrange multiplier. The solution is achieved by performing a one parametric search on the value of the multiplier. The solution may achieve higher service levels than specified. Additional methods are described for improving the procurement decisions to more closely meet the service requirement.
First Claim
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International Classification(s)
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Cited Art
| Patent Info | (Count) | # Cites | Year |
|---|---|---|---|
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| 4,887,206 Automated system for estimating impact on inventory cost due to an engineering change to a component | 58 | 1987 | |
| 4,887,207 Automated system for evaluating the sensitivity of inventory costs due to fluctuations in customer demand | 79 | 1987 | |
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| 4,459,663 Data processing machine and method of allocating inventory stock for generating work orders for producing manufactured components | 111 | 1981 | |
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| 4,646,238 Material requirements planning system and procedures for use in process industries | 70 | 1984 | |
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| 4,924,385 Method of detecting types of parts constituting a larger group of parts | 22 | 1988 | |
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| 5,128,861 Inventory control method and system | 140 | 1989 | |
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| 4,920,488 Physical inventory system | 48 | 1989 | |