System and method to incorporate node fulfillment capacity and capacity utilization in balancing fulfillment load across retail supply networks

A computer system for determining node order assignment, comprising:

• a memory;
• and
• a processor configured to:
• receiving a current order for node order assignment;
• retrieving data of each node from a plurality of nodes, the retrieved data of each node comprising current capacity utilization;
• determining a probability of backlog on an expected ship date of each node of the plurality of nodes, the probability of backlog being based on the retrieved current capacity utilization;
• automatically converting the probability of backlog, backlog cost, and labor cost of each node of the plurality of nodes into a capacity utilization cost of each node of the plurality of nodes using a capacity utilization cost model defining a set of predetermined capacity utilization threshold values;
• automatically calculating a fulfillment cost of each node of the plurality of nodes of the current order by adding a plurality of costs, the plurality of costs comprising shipping cost and the capacity utilization cost;
• identifying one or more nodes from the plurality of nodes of the current order with the lowest fulfillment cost;
• and
• automatically generating a node order assignment assigning the current order to one of the one or more nodes of the plurality of nodes with the lowest fulfillment cost.

A non-transitory article of manufacture tangibly embodying computer readable instructions, which when implemented, cause a computer to perform the steps of a method for determining node order assignment, comprising:

• receiving a current order for node order assignment;
• retrieving data of each node from a plurality of nodes, the retrieved data of each node comprising current capacity utilization;
• determining a probability of backlog on an expected ship date of each node of the plurality of nodes, the probability of backlog being based on the retrieved current capacity utilization;
• automatically converting the probability of backlog, backlog cost, and labor cost of each node of the plurality of nodes into a capacity utilization cost of each node of the plurality of nodes using a capacity utilization cost model defining a set of predetermined capacity utilization threshold values;
• automatically calculating a fulfillment cost of each node of the plurality of nodes of the current order by adding a plurality of costs, the plurality of costs comprising shipping cost and the capacity utilization cost;
• identifying one or more nodes from the plurality of nodes of the current order with the lowest fulfillment cost;
• and
• automatically generating a node order assignment assigning the current order to one of the one or more nodes of the plurality of nodes with the lowest fulfillment cost.