Optimizing inventory in accordance with a constrained network
In one embodiment, optimizing inventory includes accessing service level band sets. Each service level band set is associated with a policy group, and includes service level bands. Each service level band of a service level band set has a service level priority with respect to any other service level bands of the same service level band set. An inventory band set is determined for each service level band set. Each inventory band set includes inventory bands, where each inventory band satisfies a corresponding service level band assuming an unconstrained network. Each inventory band of an inventory band set has an inventory priority with respect to any other inventory bands of the same inventory band set. A feasible supply chain plan that satisfies the inventory band sets is generated in order of the inventory priorities until a constrained network is depleted.
1. A supply chain network, comprising:
two or more supply chain entities comprising at least one starting entity and at least one ending entity, wherein the at least one starting entity receives items directly from one or more suppliers and supplies items to the at least one ending entities, and the at least one ending entity supplies items directly to at least one customer; and
two or more supply chain arcs connecting the one or more suppliers, the two or more supply chain entities, and the at least one customer; and
a database that stores:
at least one prioritized service level band associated with a policy group and assigned to an entity of the supply chain network; and
at least one feasibility constraint that constrains the two or more supply chain entities by restricting a network of the two or more supply chain entities; and
a computer system coupled with the database and configured to:
calculate two or more prioritized inventory bands corresponding with the at least one prioritized service level band; and
generate a feasible supply chain plan that satisfies the prioritized inventory bands in order of priority until a constrained network is depleted.
2. The supply chain network of claim 1 , wherein the feasibility constraint comprises a capacity constraint that restricts inventory on hand of the two or more supply chain entities.
3. The supply chain network of claim 1 , wherein the feasibility constraint comprises a constraint restricting the ability to store items at one of the two or more supply chain entities.
4. The supply chain network of claim 1 , wherein the feasibility constraint comprises a constraint that restricts the ability to provide items to one of the two or more supply chain entities.
5. A method, comprising:
accessing, by a computer, two or more service level band sets stored in a database, each service level band set associated with a policy group and comprising two or more service level bands, each service level band of a service level band set comprising a service level priority with respect to any other service level bands of the same service level band set;
accessing, by the computer, two or more supply chain entities stored in a database, the two or more supply chain entities comprising at least one starting entity and at least one ending entity, wherein the at least one starting entity receives items directly from one or more suppliers and supplies items to the at least one ending entity, and the at least one ending entity supplies items directly to at least one customer;
determining, by the computer, an inventory band set for each service level band set, each inventory band set comprising two or more inventory bands, each inventory band satisfying a corresponding service level band assuming an unconstrained network, each inventory band of an inventory band set having an inventory priority with respect to any other inventory bands of the inventory band set;
restricting, by the computer, a network of the two or more supply chain entities with a feasibility constraint that constrains the two or more supply chain entities; and
generating, by the computer, a feasible supply chain plan that satisfies the inventory band sets in order of the inventory priorities until a constrained network is depleted.
6. The method of claim 5 , wherein generating a feasible supply chain plan comprises:
selecting a current inventory band of each inventory band set in accordance with the inventory priority of the current inventory band;
generating a current supply chain plan that satisfies the current inventory band and any previously selected inventory band; and
identifying the feasible supply chain plan in accordance with the determination.
7. The method of claim 6 , further comprising selecting an inventory band having the highest inventory priority of the inventory bands not previously selected from an inventory band set as the current inventory band to select the current inventory band of each inventory band set in accordance with the inventory priority of the current inventory band.
8. The method of claim 6 , wherein identifying the feasible supply chain plan in accordance with the determination further comprises adding a satisfaction of the current inventory band to a constraint set constraining the constrained network for a next inventory band.
9. The method of claim 6 , further comprising identifying the current supply chain plan as the feasible supply chain plan when the current supply chain plan minimizes violation of the current inventory band and the previously selected inventory band to identify the feasible supply chain plan in accordance with the determination.
10. The method of claim 6 , further comprising establishing an expected service level for the policy group in accordance with the feasible supply chain plan.
11. The method of claim 5 , further comprising:
defining the policy group; and
assigning a service level band set to the policy group.
12. A non-transitory computer-readable medium embodied with software, the software when executed using one or more computers is configured to:
access two or more service level band sets stored in a database, each service level band set associated with a policy group and comprising two or more service level bands, each service level band of a service level band set comprising a service level priority with respect to any other service level bands of the same service level band set;
access two or more supply chain entities stored in the database, the two or more supply chain entities comprising at least one starting node and at least one ending entity, wherein the at least one starting entity receives items directly from one or more suppliers and supplies items to the at least one ending entity, and the at least one ending entity supplies items directly to at least one customer;
determine an inventory band set for each service level band set, each inventory band set comprising two or more inventory bands, each inventory band satisfying a corresponding service level band assuming an unconstrained network, each inventory band of an inventory band set having an inventory priority with respect to any other inventory bands of the inventory band set;
restrict a network of the two or more supply chain entities with a feasibility constraint that constrains the two or more supply chain entities; and
generate a feasible supply chain plan that satisfies the inventory band sets in order of the inventory priorities until a constrained network is depleted.
13. The non-transitory computer-readable medium of claim 12 , wherein the software is further configured to:
select a current inventory band of each inventory band set in accordance with the inventory priority of the current inventory band;
generate a current supply chain plan that satisfies the current inventory band and any previously selected inventory band; and identify the feasible supply chain plan in accordance with the determination.
14. The non-transitory computer-readable medium of claim 13 , wherein the software is further configured to select an inventory band having the highest inventory priority of the inventory bands not previously selected from an inventory band set as the current inventory band to select the current inventory band of each inventory band set in accordance with the inventory priority of the current inventory band.
15. The non-transitory computer-readable medium of claim 13 , wherein the software is further configured to add a satisfaction of the current inventory band to a constraint set constraining the constrained network for a next inventory band.
16. The non-transitory computer-readable medium of claim 13 , wherein the software is further configured to identify the current supply chain plan as the feasible supply chain plan when the current supply chain plan minimizes violation of the current inventory band and the previously selected inventory band to identify the feasible supply chain plan in accordance with the determination.
17. The non-transitory computer-readable medium of claim 12 , wherein the software is further configured to establish an expected service level for the policy group in accordance with the feasible supply chain plan.
18. The non-transitory computer-readable medium of claim 12 , wherein the software is further configured to:
define the policy group; and
assign a service level band set to the policy group.