System and method for lean inventory management

Software for inventory management, the software being embodied in at least one computer-readable medium and operable when executed by a processor to:

• determine a cumulative demand value for each of a plurality of time windows within a planning horizon, the cumulative demand value for a time window representing a cumulative demand for at least one product over the time window and all previous time windows in the planning horizon;
• determine a cumulative production value for each time window, the cumulative production value for a time window representing a cumulative quantity of the product that can be manufactured over the time window and all previous time windows in the planning horizon;
• determine a lean buffer stock value using the cumulative demand values and the cumulative production values, the lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the planning horizon;
• and
• make the lean buffer stock value available for use in manufacturing the product.

A system for inventory management, comprising:

• memory containing:
• a cumulative demand value for each of a plurality of time windows within a planning horizon, the cumulative demand value for a time window representing a cumulative demand for at least one product over the time window and all previous time windows in the planning horizon;
• and
• a cumulative production value for each time window, the cumulative production value for a time window representing a cumulative quantity of the product that can be manufactured over the time window and all previous time windows in the planning horizon;
• and
• one or more processors collectively operable to:
• determine a lean buffer stock value using the cumulative demand values and the cumulative production values, the lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the planning horizon;
• and
• make the lean buffer stock value available for use in manufacturing the product.

A method for inventory management, comprising:

• determining a cumulative demand value for each of a plurality of time windows within a first planning horizon, the cumulative demand value for a time window representing a cumulative demand for at least one product over the time window and all previous time windows in the first planning horizon;
• determining a first production quantity value for the first planning horizon using a first total demand value that represents total demand for the product during the first planning horizon, the first production quantity value representing a quantity of the product to be manufactured during each time window of the first planning horizon;
• determining a cumulative production value for each time window of the first planning horizon using the first production quantity value, the cumulative production value for a time window representing a cumulative quantity of the product that can be manufactured over the time window and all previous time windows in the first planning horizon;
• determining a first lean buffer stock value using the cumulative demand values and the cumulative production values for the first planning horizon, the first lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the first planning horizon;
• determining a cumulative demand value for each of a plurality of time windows within a second planning horizon preceding the first planning horizon;
• determining a second production quantity value for the second planning horizon using the first lean buffer stock value and a second total demand value that represents total demand for the product during the second planning horizon;
• determining a cumulative production value for each time window of the second planning horizon using the second production quantity value;
• determining a second lean buffer stock value using the cumulative demand values and the cumulative production values for the second planning horizon, the second lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the second planning horizon;
• and
• making the first and second lean buffer stock values available for use in manufacturing the product.

Software for inventory management, the software being embodied in at least one computer-readable medium and operable when executed by a processor to:

• determine a cumulative demand value for each of a plurality of time windows within a first planning horizon, the cumulative demand value for a time window representing a cumulative demand for at least one product over the time window and all previous time windows in the first planning horizon;
• determine a first production quantity value for the first planning horizon using a first total demand value that represents total demand for the product during the first planning horizon, the first production quantity value representing a quantity of the product to be manufactured during each time window of the first planning horizon;
• determine a cumulative production value for each time window of the first planning horizon using the first production quantity value, the cumulative production value for a time window representing a cumulative quantity of the product that can be manufactured over the time window and all previous time windows in the first planning horizon;
• determine a first lean buffer stock value using the cumulative demand values and the cumulative production values for the first planning horizon, the first lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the first planning horizon;
• determine a cumulative demand value for each of a plurality of time windows within a second planning horizon preceding the first planning horizon;
• determine a second production quantity value for the second planning horizon using the first lean buffer stock value and a second total demand value that represents total demand for the product during the second planning horizon;
• determine a cumulative production value for each time window of the second planning horizon using the second production quantity value;
• determine a second lean buffer stock value using the cumulative demand values and the cumulative production values for the second planning horizon, the second lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the second planning horizon;
• and
• make the first and second lean buffer stock values available for use in manufacturing the product.

A system for inventory management, comprising:

• memory containing:
• a cumulative demand value for each of a plurality of time windows within a first planning horizon, the cumulative demand value for a time window representing a cumulative demand for at least one product over the time window and all previous time windows in the first planning horizon;
• and
• a cumulative demand value for each of a plurality of time windows within a second planning horizon preceding the first planning horizon;
• and
• one or more processors collectively operable to:
• determine a first production quantity value for the first planning horizon using a first total demand value that represents total demand for the product during the first planning horizon, the first production quantity value representing a quantity of the product to be manufactured during each time window of the first planning horizon;
• determine a cumulative production value for each time window of the first planning horizon using the first production quantity value, the cumulative production value for a time window representing a cumulative quantity of the product that can be manufactured over the time window and all previous time windows in the first planning horizon;
• determine a first lean buffer stock value using the cumulative demand values and the cumulative production values for the first planning horizon, the first lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the first planning horizon;
• determine a second production quantity value for the second planning horizon using the first lean buffer stock value and a second total demand value that represents total demand for the product during the second planning horizon;
• determine a cumulative production value for each time window of the second planning horizon using the second production quantity value;
• determine a second lean buffer stock value using the cumulative demand values and the cumulative production values for the second planning horizon, the second lean buffer stock value representing a quantity of the product to use as a lean buffer stock for the second planning horizon;
• and
• make the first and second lean buffer stock values available for use in manufacturing the product.