US 10,504,057 B2Granted

Executing multi-echelon online and store retail network stocking plan based on stock-out costs

AssigneeWalmart Apollo, LLC

InventorsJohn Bowman, Jagtej Bewli, Bradley Weill, Yamini Kangude, Sony Gregory

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Abstract

In many embodiments, a method can comprise receiving an online order for an item from a user and receiving an estimate of a network stockout cost of a network associated with the item, the network comprising at least a first fulfillment center and a second fulfillment center. In some embodiments, the method further can comprise updating a first local stockout cost and updating a second local stockout. In various embodiments, the method further can comprise executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first local stockout cost, executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second local stockout cost, and selecting the first fulfillment center to deliver the item pursuant to the online order from the user based at least in part on the first stocking plan. Other embodiments of related methods and systems are also provided.

Claims20

Dependent claims

A system comprising:

one or more processors;
and
one or more non-transitory computer-readable media configured to store computing instructions configured to run on the one or more processors and perform:
receiving an online order for an item from a user;
receiving an estimate of a network stockout cost of a network associated with the item, the network comprising at least a first fulfillment center and a second fulfillment center;
determining a first local stockout cost of the first fulfillment center for the item by allocating a first portion of the network stockout cost to the first fulfillment center;
determining a second local stockout cost of the second fulfillment center for the item by allocating a second portion of the network stockout cost to the second fulfillment center;
updating the first local stockout cost by a first formula:
b1*=EFR2*b1+(1−EFR2)*bN;
wherein:
b1* is an updated first local stockout cost;
EFR2 is a second expected fill rate of the second fulfillment center;
b1 is the first local stockout cost;
and
bN is the network stockout cost;
updating the second local stockout cost by a second formula:
b2*=EFR1*b2+(1−EFR1)*bN;
wherein:
b2* is an updated second local stockout cost;
EFR1 is a first expected fill rate of the first fulfillment center;
and
b2 is the second local stockout cost;
executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first local stockout cost, wherein the first stocking plan comprises a maximum number of units of the item to order for the first fulfillment center;
after delivery of a first shipment comprising the item to the first fulfillment center, sending instructions to re-order a first supply of the item for the first fulfillment center based on at least the first stocking plan;
executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second local stockout cost, wherein the second stocking plan comprises a maximum number of units of the item to order for the second fulfillment center;
after delivery of a second shipment comprising the item to the second fulfillment center, sending instructions to re-order a second supply of the item for the second fulfillment center based on at least the second stocking plan;
in response to receiving the online order for the item from the user, selecting the first fulfillment center to deliver the item pursuant to the online order from the user;
and
after selecting the first fulfillment center to deliver the item, sending instructions for delivering the item from the first fulfillment center to the user based at least in part on the first stocking plan.

26 more elements

A method comprising:

receiving an online order for an item from a user;
receiving an estimate of a network stockout cost of a network associated with the item, the network comprising at least a first fulfillment center and a second fulfillment center;
determining a first local stockout cost of the first fulfillment center for the item by allocating a first portion of the network stockout cost to the first fulfillment center;
determining a second local stockout cost of the second fulfillment center for the item by allocating a second portion of the network stockout cost to the second fulfillment center;
updating the first local stockout cost by a first formula:
b1*=EFR2*b1+(1−EFR2)*bN;
wherein:
bi* is an updated first local stockout cost;
EFR2 is a second expected fill rate of the second fulfillment center;
b1 is the first local stockout cost;
and
bN is the network stockout cost;
updating the second local stockout cost by a second formula:
b2*=EFR1*b2+(1−EFR1)*bN;
wherein:
b2* is an updated second local stockout cost;
EFRi is a first expected fill rate of the first fulfillment center;
and
b2 is the second local stockout cost;
executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first local stockout cost, wherein the first stocking plan comprises a maximum number of units of the item to order for the first fulfillment center;
after delivery of a first shipment comprising the item to the first fulfillment center, sending instructions to re-order a first supply of the item for the first fulfillment center based on at least the first stocking plan;
executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second local stockout cost, wherein the second stocking plan comprises a maximum number of units of the item to order for the second fulfillment center;
after delivery of a second shipment comprising the item to the second fulfillment center, sending instructions to re-order a second supply of the item for the second fulfillment center based on at least the second stocking plan;
in response to receiving the online order for the item from the user, selecting the first fulfillment center to deliver the item pursuant to the online order from the user;
and
after selecting the first fulfillment center to deliver the item, sending instructions for delivering the item from the first fulfillment center based at least in part on the first stocking plan.

23 more elements

A method comprising:

determining a network stockout cost of an item in a network, the network comprising at least a first fulfillment center and a second fulfillment center;
allocating a first portion of the network stockout cost of the item to the first fulfillment center of the network;
allocating a second portion of the network stockout cost of the item to the second fulfillment center of the network;
and
updating the first portion of the network stockout cost by a first formula:
b1*=EFR2*b1+(1−EFR2)*bN;
wherein:
b1* is an updated first portion of the network stockout cost;
EFR2 is a second expected fill rate of the second fulfillment center;
b1 is the first portion of the network stockout cost;
and
bN is the network stockout cost;
updating the second portion of the network stockout cost by a second formula:
b2*=EFR1*b2+(1−EFR1)*bN;
wherein:
b2* is an updated second portion of the network stockout cost;
EFR1 is a first expected fill rate of the first fulfillment center;
and
b2 is the second portion of the network stockout cost;
executing a first stocking plan for the item at the first fulfillment center based at least in part on the updated first portion of the network stockout cost, wherein the first stocking plan comprises a maximum number of units of the item to order for the first fulfillment center;
after delivery of a first shipment comprising the item to the first fulfillment center, sending instructions to re-order a first supply of the item for the first fulfillment center based on at least the first stocking plan;
executing a second stocking plan for the item at the second fulfillment center based at least in part on the updated second portion of the network stockout cost, wherein the second stocking plan comprises a maximum number of units of the item to order for the second fulfillment center;
after delivery of a second shipment comprising the item to the second fulfillment center, sending instructions to re-order a second supply of the item for the second fulfillment center based on at least the second stocking plan;
in response to receiving an online order for the item from a user, selecting the first fulfillment center to deliver the item pursuant to the online order from the user;
and
after selecting the first fulfillment center to deliver the item, sending instructions for delivering the item from the first fulfillment center based at least in part on the first stocking plan.

23 more elements

Dependencies are inferred from the claim text.

Facts

Application: 15/420,769Filed 31 Jan 2017
Published: US 2018/0218314 A12 Aug 2018
Granted: 10 Dec 2019
Term ends: Not estimatedThe source records don’t support an estimate.

Classification4 codes

G06Q 10/087
Logistics, e.g. warehousing, loading or distribution; Inventory or stock management: inventory or stock management, e.g. order filling,…
G06Q 10/08726
Using inventory planning: for replenishment processing, procedures, or recommendations using forecasting or optimisation
G06Q 30/0202
Market modelling; Market analysis; Collecting market data: market predictions or forecasting for commercial activities
G06Q
Information and communication technology [ict] specially adapted for administrative, commercial, financial, managerial

Family

US 2018/0218314 A1Pre-grant publication · published 2 Aug 2018
US 10,504,057 B2This patent

From the US filing history. Foreign family members aren’t listed.

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