# US 12,223,467 B2 · Systems and methods for inventory estimation > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 12,223,467 B2 - Document ID: US12223467B2 - Status: Granted - Kind: B2 - Application number: 17/456,525 - Filed: 2021-11-24 - Published: 2023-05-25 - Granted: 2025-02-11 - Earliest claimed: 2021-11-24 - Assignees: Coupang Corp. - Applicants: Coupang Corp. - Inventors: Hernan Awad Amar; YoungHoon Jeong; Je Kim; SeungRok Kim; KyuHoon Lim; Rajesh Medidhi; Smita Mohan - Web page: https://patentgrep.com/patent/US12223467B2 ## CPC - G06Q 10/06315: {Needs-based resource requirements planning or analysis} - G06Q 10/087: Inventory or stock management, e.g. order filling, procurement or balancing against orders - G06Q 10/04: Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" (market predictions or forecasting for commercial activities G06Q30/0202) - G06Q 10/083: Shipping - G06Q 10/08726: {for replenishment processing, procedures, or recommendations using forecasting or optimisation} - G06Q 10/0874: {Inventory fulfillment (shipping G06Q10/083)} - G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR ## Abstract Systems and methods, and computer readable media for target inventory estimation of a geographical region are disclosed. The method receives an item identifier associated with an item for target inventory estimation. The method may access the demand share estimate of the item in the geographical region and the mean and variance estimates of the demand share estimate in the geographical region. The method may then access overall demand forecast data for the item and calculate the mean and variance estimates of the demand forecast. The method may use the generated mean and variance estimates and demand share estimate of the geographical region to determine the target inventory estimation of the region. ## Claims ### Claim 1 A computer-implemented system for target inventory estimation of a geographical region, the system comprising: at least one memory storing instructions; and at least one processor configured to execute the instructions to perform operations comprising: receive an item identifier associated with an item for inventory estimation as an input to the system for target inventory estimation for the item in a geographical region; access a demand share estimate of the item associated with the received item identifier in the geographical region, a mean of the demand share estimate, and a variance of the demand share estimate; determine overall demand forecast of the item associated with the received item identifier, wherein the overall demand forecast of the item is based on order data associated with the item; calculate mean of the overall demand forecast and variance of the overall demand forecast, wherein the mean and variance of the overall demand forecast of the item are based on previously determined overall demand forecast of the item; determine a service level associated with the geographical region, wherein the service level of the geographical region is based on availability of one or more items at the geographical region to satisfy orders for the one or more items; generate target inventory estimation of the item associated with the received item identifier in the geographical region based on the mean and variance of the overall demand forecast of the item, and the mean and variance of the demand share estimate of the item in the geographical region, wherein the generated target inventory estimation meets the service level of the geographical region; and respond to the received item identifier with the generated target inventory estimation. ### Claim 2 (depends on 1) The computer-implemented system of claim 1, wherein accessing mean and variance of the demand share estimate of the item associated with the received item identifier in the geographical region includes: calculating mean and variance based on the combination of demand share estimation of the item in the geographical region and the mean and variance of the overall demand forecast of the item. ### Claim 3 (depends on 1) The computer-implemented system of claim 1, wherein accessing demand share estimate of the item associated with the received item identifier in the geographical region includes: determine a set of item identifiers associated with a segment of items associated with in the geographical region related to the item associated with the received item identifier; determine demand share estimates of the segment of items associated with the set of item identifiers in the geographical region; and generate demand share estimate of the item associated with the received item identifier by combining demand share estimates of the segment of items associated with the set of identifiers in the geographical region. ### Claim 4 (depends on 3) The computer-implemented system of claim 3, wherein the segment of items is related to each other, wherein the relationship is based on at least one of: similarity of type of items of the segment; or order combinations including the segment of items. ### Claim 5 (depends on 3) The computer-implemented system of claim 3, wherein combining demand share estimates of the segment of items associated with the set of identifiers in the geographical region includes: calculate average of demand share estimates of the segment of items. ### Claim 6 (depends on 1) The computer-implemented system of claim 1, wherein probability distribution of the overall demand forecast of the item associated with the received item identifier is at least one of: unimodal or non-negative. ### Claim 7 (depends on 1) The computer-implemented system of claim 1, wherein determining service level associated with the geographical region is performed on a just-in-time basis. ### Claim 8 (depends on 1) The computer-implemented system of claim 1, wherein the service level associated with the geographical region is based on at least one of: desired in stock rate of the item; or threshold of fraction of orders served from a first region served by a second region. ### Claim 9 (depends on 1) The computer-implemented system of claim 1, wherein the service level associated with the geographical region is based on at least one of: type of the item associated with the received item identifier; or type of delivery service for the orders associated with the item associated with the received item identifier. ### Claim 10 A computer-implemented method for target inventory estimation of a geographical region, the method comprising: receiving an item identifier associated with an item for inventory estimation as input to the system for target inventory estimation for the item in a geographical region; accessing a demand share estimate of the item associated with the received item identifier in the geographical region, mean of the demand share estimate, and variance of the demand share estimate; determining overall demand forecast of the item associated with the received item identifier, wherein the overall demand forecast of the item is based on order data associated with the item; calculating mean of the overall demand forecast and variance of the overall demand forecast, wherein the mean and variance of the overall demand forecast of the item are based on previously determined overall demand forecast of the item; determining a service level associated with the geographical region, wherein the service level of the geographical region is based on availability of one or more items at the geographical region to satisfy order for the one or more items; generating target inventory estimation of the item associated with the received item identifier in the geographical region based on the mean and variance of the overall demand forecast of the item, and the mean and variance of the demand share estimate of the item in the geographical region, wherein the generated target inventory estimation meets the service level of the geographical region; and responding to the received item identifier with the generated target inventory estimation. ### Claim 11 (depends on 10) The computer-implemented system of claim 10, wherein accessing mean and variance of the demand share estimate of the item associated with the received item identifier in the geographical region includes: calculating mean and variance based on the combination of demand share estimation of the item in the geographical region and the mean and variance of the overall demand forecast of the item. ### Claim 12 (depends on 10) The method of claim 10, wherein accessing a demand share estimation of the item associated with the received item identifier in the geographical region includes: determine a set of item identifiers associated with a segment of items associated with the geographical region related to the item associated with the received item identifier; and determine a demand share estimation of the segment of items associated with the set of item identifiers in the geographical region. ### Claim 13 (depends on 12) The method of claim 12, wherein the segment of items is related to each other, wherein the relation is based on at least one of: similarity of type of items of the segment; or order combination including the segment of items. ### Claim 14 (depends on 11) The method of claim 11, wherein the probability distribution of the overall demand forecast of the item associated with the received item identifier is at least one of: unimodal or non-negative. ### Claim 15 (depends on 11) The method of claim 11, wherein determining service level associated with the geographical region is performed on a just-in-time basis. ### Claim 16 (depends on 11) The method of claim 11, wherein the service level associated with the geographical region is based on at least one of: desired in stock rate of the item; or threshold fraction of orders served from a first region served by a second region. ### Claim 17 (depends on 11) The method of claim 11, wherein the service level associated with the geographical region is based on at least one of: type of the item associated with the received item identifier; or type of delivery service for the orders associated with the item associated with the received item identifier. ### Claim 18 (depends on 1) The computer-implemented system of claim 1, wherein the at least one processor is further configured to refresh, at a set time interval, the service level associated with the geographic region and generate a new target inventory estimation of the item based on the refreshed service level. ### Claim 19 (depends on 18) The computer-implemented system of claim 18, wherein the at least one processor determines the set time interval for the refresh of the service level using a machine learning model and at least one of: data on storage capacity or data on throughput capacity.