Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Inventory management
Reexamination Certificate
2007-07-24
2007-07-24
Cuff, Michael (Department: 3627)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Inventory management
C705S026640
Reexamination Certificate
active
09608057
ABSTRACT:
An inventory planning scheme is described in which an optimal safety stock level of a product is estimated to cover uncertainty in demand over an exposure period with a desired service level based at least in part upon product availability from a spot market. The inventory planning scheme enables an asset manager to cover uncertainty in future end customer demand with a safety stock level that is less than the safety stock level required to cover expected demand with a desired service level when supply is available only from non-spot market sources. In this way, an asset manager may trade some certainty in product price for a shorter and more certain product delivery time to reduce overall product costs by reducing the level of safety stock kept on hand. In particular, per unit prices of products supplied by spot market sources may be higher than the prices of comparable products and components supplied by non-spot market sources. However, depending upon market conditions, overall product costs may be lowered by reducing safety stock levels (and, consequently, lowering total safety stock costs), and supplying from spot market sources the fraction of unmet actual demand needed to reach target service levels.
REFERENCES:
patent: 4744027 (1988-05-01), Bayer et al.
patent: 5003473 (1991-03-01), Richards
patent: 5168446 (1992-12-01), Wiseman
patent: 5287267 (1994-02-01), Jayaraman et al.
patent: 5596493 (1997-01-01), Tone et al.
patent: 5715402 (1998-02-01), Popolo
patent: 5819232 (1998-10-01), Shipman
patent: 5946662 (1999-08-01), Ettl et al.
patent: 5963919 (1999-10-01), Brinkley et al.
patent: 5963923 (1999-10-01), Garber
patent: 6006196 (1999-12-01), Feigin et al.
patent: 6144945 (2000-11-01), Garg et al.
patent: 6341271 (2002-01-01), Salvo et al.
patent: 6415266 (2002-07-01), Do
patent: 893775 (1999-01-01), None
Choudhury et al., “Uses and consequences of electronic markets: An empirical investigation in aircraft parts industry”, MIS Quarterly, v22n4, pp. 471-507.
Callioni Gianpaolo
Kakouros Steve
Neale John J.
Cuff Michael
Hewlett--Packard Development Company, L.P.
LandOfFree
Spot market-based inventory planning does not yet have a rating. At this time, there are no reviews or comments for this patent.
If you have personal experience with Spot market-based inventory planning, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Spot market-based inventory planning will most certainly appreciate the feedback.
Profile ID: LFUS-PAI-O-3781659