# US 2010/0169167 A1 · Computer Implemented System for Determining a Distribution Policy for a Single Period Inventory System, Optimization Application Therefor, and Method Therefor, and Decision Support Tool for Facilitating User Determination of a Distribution Policy for a Single Period Inventory System > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 2010/0169167 A1 - Document ID: US20100169167A1 - Status: Published application - Kind: A1 - Application number: 12/693,311 - Filed: 2010-01-25 - Published: 2010-07-01 - Earliest claimed: 2002-04-08 - Assignees: Demantra Ltd.; Oracle International Corporation - Inventors: Bart C. Feldman; Michael Aronowich; Ofra Natan; Sofia Mariamova; Henry Harel - Web page: https://patentgrep.com/patent/US20100169167A1 ## CPC - G06Q 10/06: Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling - G06Q 10/0631: Resource planning, allocation, distributing or scheduling for enterprises or organisations - 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 10/0872: {using inventory planning} - G06Q 20/203: {Inventory monitoring} - G06Q 30/0202: Market predictions or forecasting for commercial activities - G06Q 10/08744: {by distributed inventory management} - 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 Computer implemented system for determining a distribution policy for a single period inventory system on the basis of the relative merit of allocating a draw unit of one of a multitude of different consumer items to one of a multitude of different locations in accordance with an allocation decision criterion subject to one or more constraints, an optimization application therefor, and method therefor, and including a Decision Support Tool for facilitating user determination of a distribution policy for a single period inventory system. ## Claims ### Claim 1 An optimization application for determining a distribution policy for a single period inventory system comprising a plurality of locations, the optimization application operating on a computer system comprising of at least a processor and a memory, the optimization application operable to: allocate draw units of a consumer item to each location of the plurality of locations; determine a location from the plurality of locations such that the determined location meets a pre-selected allocation decision criterion based on at least the draw units allocated to each location of the plurality of locations; allocate one and only one additional draw unit of the consumer item to the determined location; and repeat the determine the location step and the allocate the one and only one additional draw unit step until at least one constraint is satisfied. ### Claim 2 (depends on 1) The optimization application of claim 1 wherein the pre-selected allocation decision criterion is a maximum incremental availability, where availability is a probability of completely satisfying a demand for the consumer item at the location without occurrence of a sellout due to an insufficient draw at the location and is computed using a cumulative distribution function (cdf) of a mean demand and draw units of the consumer item allocated for the location, wherein incremental availability for the location is difference between a first availability of the consumer item at the location and a second availability of the consumer item at the location, the second availability computed with one additional draw unit of the consumer item allocated to the location in comparison to the draw units allocated for computation of the first availability and the maximum incremental availability is a maximum of the incremental availability of the consumer item computed for each location of the plurality of locations, and wherein the determined location has the maximum incremental availability. ### Claim 3 (depends on 1) The optimization application of claim 1 wherein the pre-selected allocation decision criterion is a minimum availability, where availability is a probability of completely satisfying a demand for the consumer item at the location without occurrence of a sellout due to insufficient draw at the location and is computed using a cumulative distribution function (cdf) of the mean demand and draw units of the consumer item allocated for the location, where minimum availability is a minimum of the availability of the consumer item computed for each location of the plurality of locations and wherein the determined location has the minimum availability. ### Claim 4 (depends on 1) The optimization application of claim 1 wherein the pre-selected allocation decision criterion is a maximum decremental expected stockout, where expected stockout is expected quantity of unsatisfied demand of the consumer item at the location and is computed using demand, mean demand and draw units of the consumer item allocated for the location wherein, the decremental expected stockout is difference between a first expected stockout and a second expected stockout, the first expected stockout computed for one additional draw unit of the consumer item allocated at the location in comparison to the draw units allocated for computation of the second expected stockout, where the maximum decremental expected stockout is a maximum of the decremental expected stockout of the consumer item computed for each location and wherein the determined location has the maximum decremental expected return. ### Claim 5 (depends on 1) The optimization application of claim 1 wherein the pre-selected allocation decision criterion is a sum of two weighted components, a first weighted component based on a difference between two expected return percentages with at least one expected return percentage calculated based on an initial allocation of the draw units and a second weighted component based on a difference between two expected sellout percentages with at least one expected sellout percentage calculated based on the initial allocation of the draw units. ### Claim 6 (depends on 1) The optimization application of claim 1 wherein the pre-selected allocation decision criterion is a sum of two weighted components, a first weighted component based on a difference between two expected return percentages with at least one expected return percentage calculated based on an initial allocation of the draw units and a second weighted component based on a difference between two expected stockout percentages with at least one expected stockout percentages calculated based on the initial allocation of the draw units. ### Claim 7 (depends on 1) The optimization application of claim 1 wherein the pre-selected allocation decision criterion comprises a maximum incremental availability criterion and a minimum decremental availability criterion and the determine the location step determines a first location that has a maximum incremental availability and a second location that has a minimum decremental availability and wherein the allocate the one and only one additional draw unit step allocates the one and only one additional draw unit from the second location to the first location. ### Claim 8 (depends on 1) The optimization application of claim 1 further comprising a forecast engine for forecasting the mean demand of the consumer item at each location of the plurality of locations. ### Claim 9 (depends on 8) The optimization application of claim 8 wherein the allocate the draw units of the consumer item to each location allocates draw units equal to the mean demand of the consumer item at that location. ### Claim 10 (depends on 1) The optimization application of claim 1 wherein the at least one constraint is based on performance metrics including at least one of safety stock, expected sellout, expected stockout, or expected return. ### Claim 11 (depends on 10) The optimization application of claim 10 wherein, the safety stock is the difference between an actual draw of the consumer item at the location and its demand forecast at that location and can assume one of positive, or negative value and wherein the optimization application is further operable to compute the draw units of the consumer item to be allocated to each location even when the safety stock assumes a negative value. ### Claim 12 (depends on 1) The optimization application of claim 1 wherein the consumer item is a printed media publication. ### Claim 13 A computer implemented method for determining a distribution policy for a single period inventory system comprising a plurality of locations, the method comprising the steps of: allocating draw units of a consumer item to each location of the plurality of locations; determining a location from the plurality of locations such that the determined location meets a pre-selected allocation decision criterion based on at least the draw units allocated to each location of the plurality of locations; allocating one and only one additional draw unit of the consumer item to the determined location; and repeating the determining the location step and the allocating the one and only one additional draw unit step until at least one constraint is satisfied. ### Claim 14 (depends on 13) The computer implemented method of claim 13 wherein the pre-selected allocation decision criterion is a maximum incremental availability, where availability is a probability of completely satisfying a demand for the consumer item at the location without occurrence of a sellout due to an insufficient draw at the location and is computed using a cumulative distribution function (cdf) of a mean demand and draw units of the consumer item allocated for the location, wherein incremental availability for the location is difference between a first availability of the consumer item at the location and a second availability of the consumer item at the location, the second availability computed with one additional draw unit of the consumer item allocated to the location in comparison to the draw units allocated for computation of the first availability and the maximum incremental availability is a maximum of the incremental availability of the consumer item computed for each location of the plurality of locations, and wherein the determining the location step determines a location that has the maximum incremental availability. ### Claim 15 (depends on 14) The computer implemented method of claim 14 wherein the pre-selected allocation decision criterion is a minimum availability, where availability is a probability of completely satisfying a demand for the consumer item at the location without occurrence of a sellout due to insufficient draw at the location and is computed using a cumulative distribution function (cdf) of the mean demand and draw units of the consumer item allocated for the location, where minimum availability is a minimum of the availability of the consumer item computed for each location of the plurality of locations and wherein the determining the location step determines a location with the minimum availability. ### Claim 16 (depends on 13) The computer implemented method of claim 13 wherein the pre-selected allocation decision criterion is a minimum incremental expected return, where expected return is expected number of the consumer item unsold at the location and is computed using demand, mean demand and draw units of the consumer item allocated for the location wherein, the incremental expected return is difference between a first expected return and a second expected return, the second expected return computed for one additional draw unit of the consumer item allocated at the location in comparison to the draw units allocated for computation of the first expected return, where the minimum incremental expected return is a minimum of the incremental expected return of the consumer item computed for each location and wherein the determined location has the minimum incremental expected return. ### Claim 17 (depends on 13) The computer implemented method of claim 13 wherein the at least one constraint is based on performance metrics including at least one of safety stock, expected sellout, expected stockout, or expected return. ### Claim 18 A machine readable storage medium storing a plurality of instructions execution of which by a processor causes the processor to determine a distribution policy for a single period inventory system comprising a plurality of locations, the execution of the plurality of instructions by the processor causing the processor to perform the actions of: allocating draw units of a consumer item to each location of the plurality of locations; determining a location from the plurality of locations such that the determined location meets a pre-selected allocation decision criterion based on at least the draw units allocated to each location of the plurality of locations; allocating one and only one additional draw unit of the consumer item to the determined location; and repeating the determining the location step and the allocating the one and only one additional draw unit step until at least one constraint is satisfied. ### Claim 19 (depends on 18) The machine readable storage medium of claim 18 wherein the pre-selected allocation decision criterion is a maximum incremental availability, where availability is a probability of completely satisfying a demand for the consumer item at the location without occurrence of a sellout due to an insufficient draw at the location and is computed using a cumulative distribution function (cdf) of a mean demand and draw units of the consumer item allocated for the location, wherein incremental availability for the location is difference between a first availability of the consumer item at the location and a second availability of the consumer item at the location, the second availability computed with one additional draw unit of the consumer item allocated to the location in comparison to the draw units allocated for computation of the first availability and the maximum incremental availability is a maximum of the incremental availability of the consumer item computed for each location of the plurality of locations, and wherein the determining the location step determines a location that has the maximum incremental availability. ### Claim 20 (depends on 18) The machine readable storage medium of claim 18 wherein the at least one constraint is based on performance metrics including at least one of safety stock, expected sellout, expected stockout, or expected return.