Method for managing inventory within an integrated supply chain
A method for managing inventory within a supply chain. The method is performed by providing forecasts of demand for items distributed within the supply chain, using the forecasts to establish base stocking levels and reorder points within the supply chain, and using the established base stocking levels and reorder points to position items within the supply chain so as to maximize efficiency and profitability when responding to an order for an item.
1. A computer-readable media having computer-executable instructions for managing inventory of an item within a supply chain having a plurality of geographically distinct distribution points, the instructions performing steps comprising:
providing a forecast of demand over a forecast period for the item;
using the forecast of demand for the item to establish a critical stocking ratio for the item, the critical stocking ratio indicating a total quantity of the item which can be held in inventory over the forecast period;
using the critical stocking ratio for the item to apportion the total quantity of the item which can be held in inventory over the forecast period in shares to the plurality of geographically distinct distribution points in the supply chain by assigning over the forecast period a base stock level for the item at each of the plurality of geographically distinct distribution points in the supply chain and a reorder point for the item at each of the plurality of geographically distinct distribution points in the supply chain;
using an ontology, in which frames acting as nodes in a semantic network define attributes indicative of restrictions and allowable locations within the supply chain for the item to determine a shipping method for replenishing the item at each of the plurality of geographically distinct distribution points in the supply chain; and
executing the shipping method when any of the plurality of geographically distinct distribution points in the supply chain fails to have a base stock level for the item thereby causing inventory within the supply chain to be managed in accordance with the critical stocking ratio.
2. The computer-readable media as recited in claim 1 , wherein the ontology defines attributes indicative of one or more Hazmat shipping restrictions, and the instructions use the attributes indicative of one or more Hazmat shipping restrictions to determine the shipping method for replenishing the item at each of the plurality of geographically distinct distribution points in the supply chain.
3. The computer-readable media as recited in claim 1 , wherein providing the forecast of demand for the item comprises using aggregate historical demand data for the item.
4. The computer-readable media as recited in claim 3 , wherein the historical demand data comprises data representative of demand created by a need to replenish the item at various ones of the plurality of geographically distinct distribution points within the supply chain.
5. The computer-readable media as recited in claim 3 , wherein the historical demand data comprises data representative of demand created by a need to fulfill customer orders for the item.
6. The computer-readable media as recited in claim 1 , wherein providing the forecast of demand for the of item comprises taking into account historical effects of world factors.
7. The computer-readable media as recited in claim 1 , wherein providing the forecast of demand for the item comprises considering a need for the item in performance of a maintenance task.