Optimal reallocation of inventory under capacity violations
View Patent ↗A method of reallocating inventory in a fulfillment network is disclosed herein. The fulfillment network can include a plurality of distribution centers. An allocation plan can be created in a one of a variety of different manners, where the allocation plan involves allocating an item to one or more distribution centers in the fulfillment network. Thereafter, the allocation plan can be analyzed for feasibility. If the allocation plan is not feasible, each distribution center in the allocation plan can be analyzed to determine if using the distribution center is feasible. If the distribution center cannot be used, another distribution in the same cluster of distribution centers is examined for feasibility. This process is repeated for each distribution center in the allocation plan. Once an alternative allocation plan has been developed in this manner, items can be allocated. Existing inventory can be taken into account in the allocation plan.
1. A system having improved processing time comprising:
one or more processors; and
one or more non-transitory memory storage devices storing computing instructions configured to run on the one or more processors and perform acts of:
receiving an allocation plan for an item in a fulfillment network, the fulfillment network comprising a plurality of clusters of distribution centers, wherein:
each cluster of distribution centers of the plurality of clusters of distribution centers comprises one or more distribution centers;
the plurality of clusters contribute to the improved processing time; and
the allocation plan is created by estimating demand for the item and utilizing mirroring techniques based on:
(1) the demand, as estimated and as collected in real time and from multiple sources;
(2) a weight of the item; and
(3) a selling velocity of the item;
storing the allocation plan in the one or more non-transitory memory storage devices;
determining:
when the allocation plan is feasible; and
when the allocation plan is not feasible;
when the allocation plan is determined to be feasible, automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the allocation plan; and
when the allocation plan is determined to be not feasible:
determining an alternative allocation plan;
storing the alternative allocation plan in the one or more non-transitory memory storage devices; and
after determining the alternative allocation plan, automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the alternative allocation plan.
2. The system of claim 1 , wherein determining the alternative allocation plan comprises:
receiving a list of distribution centers that are part of the allocation plan;
for each distribution center in the list of distribution centers, determining at least one of:
when a distribution center in the list of distribution centers is feasible; or
when the distribution center in the list of distribution centers is not feasible; and
for each distribution center in the list of distribution centers when the distribution center in the list of distribution centers is not feasible:
determining a cluster in which the distribution center in the list of distribution centers is located;
determining an alternative distribution center in the list of distribution centers that is located in within the cluster;
determining when the alternative distribution center in the list of distribution centers is feasible; and
when the alternative distribution center in the list of distribution centers is feasible, replacing the distribution center in the list of distribution centers in the cluster with the alternative distribution center in the list of distribution centers.
3. The system of claim 2 , wherein determining when the alternative distribution center in the list of distribution centers is feasible comprises:
analyzing a status of the alternative distribution center in the list of distribution centers to determine a total capacity and a used capacity;
comparing the used capacity of the alternative distribution center in the list of distribution centers to the total capacity of the alternative distribution center in the list of distribution centers to determine an available capacity; and
determining when the available capacity of the alternative distribution center in the list of distribution centers is sufficient for an allocation under the alternative allocation plan to the alternative distribution center in the list of distribution centers.
4. The system of claim 3 , wherein:
analyzing the status of the alternative distribution center in the list of distribution centers further comprises adjusting the total capacity for unplanned events.
5. The system of claim 4 , wherein:
the unplanned events include weather-related events and manpower-related events.
6. The system of claim 2 , wherein determining when the allocation plan is not feasible comprises:
notating a failure of the allocation plan when there is no distribution center within the cluster of distribution centers that is feasible.
7. The system of claim 1 , wherein:
the fulfillment network is utilized by a retailer to distribute goods to consumers; and
the allocation plan is arranged to distribute the goods through the fulfillment network to result in a distribution of lower shipping costs to consumers.
8. A method being implemented via execution of computing instructions configured to run at one or more processors and configured to be stored at non-transitory computer-readable media, the method having improved processing time and comprising:
receiving an allocation plan for an item in a fulfillment network, the fulfillment network comprising a plurality of clusters of distribution centers, wherein:
each cluster of distribution centers of the plurality of clusters of distribution centers comprises one or more distribution centers;
the plurality of clusters contribute to the improved processing time;
the allocation plan is created by estimating demand for the item and utilizing mirroring techniques based on:
(1) the demand, as estimated and as collected in real time and from multiple sources;
(2) a weight of the item; and
(3) a selling velocity of the item;
storing the allocation plan in the non-transitory computer-readable media;
determining:
when the allocation plan is feasible; and
when the allocation plan is not feasible;
when the allocation plan is determined to be feasible, automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the allocation plan; and
when the allocation plan is determined to be not feasible:
determining an alternative allocation plan;
storing the alternative allocation plan in the non-transitory computer-readable media; and
after determining the alternative allocation plan, automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the alternative allocation plan.
9. The method of claim 8 , wherein determining the alternative allocation plan comprises:
receiving a list of distribution centers that are part of the allocation plan;
for each distribution center in the list of distribution centers, determining at least one of:
when a distribution center in the list of distribution centers is feasible; or
when the distribution center in the list of distribution centers is not feasible; and
for each distribution center in the list of distribution centers, when the distribution center in the list of distribution centers is not feasible:
determining a cluster in which the distribution center in the list of distribution centers is located;
determining an alternative distribution center in the list of distribution centers that is located in within the cluster;
determining when the alternative distribution center in the list of distribution centers is feasible; and
when the alternative distribution center in the list of distribution centers is feasible, replacing the distribution center in the list of distribution centers in the cluster with the alternative distribution center in the list of distribution centers.
10. The method of claim 9 , wherein determining when the alternative distribution center in the list of distribution centers is feasible comprises:
analyzing a status of the alternative distribution center in the list of distribution centers to determine a total capacity and a used capacity;
comparing the used capacity of the alternative distribution center in the list of distribution centers to the total capacity of the alternative distribution center in the list of distribution centers to determine an available capacity; and
determining when the available capacity of the alternative distribution center in the list of distribution centers is sufficient for an allocation under the alternative allocation plan to the alternative distribution center in the list of distribution centers.
11. The method of claim 10 , wherein:
analyzing the status of the alternative distribution center in the list of distribution centers further comprises adjusting the total capacity for unplanned events.
12. The method of claim 11 , wherein:
the unplanned events include weather-related events and manpower-related events.
13. The method of claim 9 further comprising:
notating a failure of the allocation plan when there is no distribution center within the cluster of distribution centers that is feasible.
14. The method of claim 8 , wherein:
the fulfillment network is utilized by a retailer to distribute goods to consumers; and
the allocation plan is arranged to distribute the goods through the fulfillment network to result in a distribution of lower shipping costs to consumers.
15. A method being implemented via execution of computing instructions configured to run at one or more processors and configured to be stored at non-transitory computer-readable media, the method having improved processing time and comprising:
receiving an allocation plan for an item in a fulfillment network, the fulfillment network comprising a plurality of clusters of distribution centers, wherein:
each cluster of distribution centers of the plurality of clusters of distribution centers comprises one or more distribution centers;
the plurality of clusters contribute to the improved processing time;
the allocation plan is created by estimating demand for the item and utilizing mirroring techniques based on:
(1) the demand, as estimated and as collected in real time and from multiple sources;
(2) a weight of the item; and
(3) a selling velocity of the item; and
the allocation plan comprises placing one or more copies of each item into a first distribution center and one or more copies of each item into a second distribution center;
storing the allocation plan in the non-transitory computer readable media;
determining an existing inventory at the first distribution center and an existing inventory at the second distribution center;
adjusting the allocation plan based on the existing inventory at the first distribution center and the existing inventory at the second distribution center;
storing the allocation plan, as adjusted, in the non-transitory computer readable media; and
automatically shipping the item to the one or more distribution centers of the plurality of clusters of distributions centers based on the allocation plan, as adjusted.
16. The method of claim 15 , wherein adjusting the allocation plan comprises:
extracting a planned allocation for the first distribution center from the allocation plan;
extracting a planned allocation for the second distribution center from the allocation plan;
adding the planned allocation for the first distribution center, the planned allocation for the second distribution center, the existing inventory at the first distribution center, and the existing inventory at the second distribution center to result in a total; and
dividing the total between the first distribution center and the second distribution center based on the allocation plan to result in an adjusted allocation plan.
17. The method of claim 15 , wherein adjusting the allocation plan further comprises:
dividing the allocation plan into two or more allocations of a subset of the allocation plan, as adjusted.
18. The method of claim 15 , wherein:
the fulfillment network is utilized by a retailer to distribute goods to consumers; and
the allocation plan is arranged to distribute the goods through the fulfillment network to result in a distribution of lower shipping costs to consumers.
19. The system of claim 1 , wherein the allocation plan comprises:
estimating a location specific demand for an item (i) at a demand zone (z) using an equation comprising:
d i,z =d i β i,z
wherein d i,z is the location specific demand, d i is a total demand, and β i,z is a time-static geo-demand distribution.
20. The system of claim 1 , wherein:
automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the allocation plan comprises allowing the item to be shipped from a first distribution center to a second distribution center different than the first distribution center; and
automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the alternative allocation plan comprises allowing the item to be shipped from the first distribution center to the second distribution center.
21. The method of claim 8 , wherein the allocation plan comprises:
estimating a location specific demand for an item (i) at a demand zone (z) using an equation comprising:
d i,z =d i β i,z
wherein d i,z is the location specific demand, d i is a total demand, and β i,z is a time-static geo-demand distribution.
22. The method of claim 8 , wherein:
automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the allocation plan comprises allowing the item to be shipped from a first distribution center to a second distribution center different than the first distribution center; and
automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the alternative allocation plan comprises allowing the item to be shipped from the first distribution center to the second distribution center.
23. The method of claim 15 , wherein the allocation plan comprises:
estimating a location specific demand for an item (i) at a demand zone (z) using an equation comprising:
d i,z =d i β i,z
wherein d i,z is the location specific demand, d i is a total demand, and β i,z is a time-static geo-demand distribution.
24. The method of claim 15 , wherein automatically shipping the item to the one or more distribution centers of the plurality of clusters of distribution centers based on the adjusted allocation plan comprises allowing the item to be shipped from a first distribution center to a second distribution center different than the first distribution center.