Profit optimization system for supply chains with limited parts availability
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United States of America Patent
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Apr 5, 2011
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app pub date -
Apr 4, 2006
filing date -
Apr 4, 2006
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Abstract
A computer-based profit optimization model is provided that takes account of supply-side and demand-side factors in optimizing profit for an organization. The model takes into account which parts the organization uses to assemble various products. Demand curves are used to characterize the quantity of each product that will be demanded for various classes of product and classes of customer. Supply model data is used to determine which mix of products can be sold in view of parts availability. Using the demand model and supply model data, the optimization model can recommend a set of prices to use for selling the organization's products to various customers and at various shipment times. The model ensures that the organization has sufficient resources available to produce the products and enforces user-supplied business rules and other constraints.
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