# US 2022/0284386 A1 · Computerized inventory redistribution control system

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- Number: US 2022/0284386 A1
- Document ID: US20220284386A1
- Status: Published application
- Kind: A1
- Application number: 17/825,334
- Filed: 2022-05-26
- Published: 2022-09-08
- Earliest claimed: 2019-04-05
- Assignees: Oracle International Corporation
- Applicants: Oracle International Corporation
- Inventors: Su-Ming WU; Kiran PANCHAMGAM; Bernard GRIFFITHS
- Web page: https://patentgrep.com/patent/US20220284386A1

## CPC

- G06Q 10/087: Inventory or stock management, e.g. order filling, procurement or balancing against orders
- G06Q 10/0833: Tracking
- G06Q 10/0837: Return transactions
- G06Q 10/0838: {Historical data}
- G06Q 10/08726: {for replenishment processing, procedures, or recommendations using forecasting or optimisation}
- 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

One example of computerized inventory redistribution control includes, for each location inventory record in a set of location inventory records, calculating a quantity change that will bring a current item quantity to a different item quantity for the location inventory record. Determining a cost of a minimum-cost redistribution among the physical locations to effect the quantity changes. Determining a scaling factor that maximizes total revenue when the quantity changes are scaled by the scaling factor after deducting the cost scaled by the scaling factor. Generating transfer instructions for a redistribution of the item by scaling the transfer quantities of the minimum-cost redistribution by the scaling factor. Transmitting each transfer instruction to a computing device associated with a physical location indicated in the transfer instruction.

## Claims

### Claim 1

A non-transitory computer-readable medium storing computer-executable instructions that when executed by at least a processor and a memory of a computer cause the processor to:
for each location inventory record of a set of location inventory records,
calculate a quantity change for an item that changes a current item quantity to a different item quantity for the location inventory record,
wherein the quantity change for the item is a function of, at least in part, a remaining number of weeks before the item is to sell out at the physical location;
determine, by the processor accessing the memory,
(i) a redistribution of the item among the physical locations to affect the quantity change for each location inventory record at a minimum cost, and
(ii) an overall cost of the redistribution based on the sum of the minimum costs;
simultaneously and interdependently resolve the quantity changes and the cost of redistribution by determining at least one scaling factor from a set of possible scaling factors that satisfies a threshold condition of maximizing a total revenue received from sales of the item when the quantity changes for each location inventory record are scaled by the one scaling factor after deducting the overall cost scaled by the one scaling factor;
for the one scaling factor that exists that satisfies the threshold condition:
generate an electronic output including a set of transfer instructions to perform the redistribution of the item with transfer quantities of the item to be transferred between the physical locations scaled by the one scaling factor; and
transmit the set of transfer instructions over a network to a computing device to cause the computing device to print a pick/pack list of the item with the transfer quantities scaled by the one scaling factor.

### Claim 2 (depends on 1)

The non-transitory computer-readable medium of claim 1, wherein the computer-executable instructions further cause the processor to:
for each location inventory record of a set of location inventory records, determine the quantity change that maximizes income from sales of the item across the set of physical locations without altering a total quantity of the item across the set of location inventory records; and
store the redistribution as a data structure that indicates for each individual inventory transfer of the redistribution at least (i) a source physical location in the set of physical locations, (ii) a destination physical location in the set of physical locations, and (iii) the transfer quantity of the item between the source physical location and destination physical location.

### Claim 3 (depends on 2)

The non-transitory computer-readable medium of claim 2, further comprising instructions that when executed by at least the processor cause the processor to:
for each location inventory record in the set of location inventory records, classify the physical location associated with location inventory record as belonging (i) to a set of inventory surplus locations if the quantity change is negative, or (ii) to a set of inventory deficit locations if the quantity change is positive;
and wherein (i) each source physical location of the redistribution always belongs to the set of inventory surplus locations and (ii) each destination physical location of the redistribution always belongs to the set of inventory deficit locations, ensuring that inventory imbalances are not increased.

### Claim 4 (depends on 1)

The non-transitory computer-readable medium of claim 1, wherein the calculation of the quantity change for each location inventory record of the set of location inventory records is expressed by a first equation:
c
k
=
(
(
∑
w
=
1
W
k
b
kw
)
-
1
γ
k
⁢
γ
k
-
1
+
γ
k
⁢
λ
)
-
γ
k
-
I
k
wherein:
k represents the location inventory record;
ck is the quantity change for the location inventory record;
Wk is the remaining number of weeks before the item is required to sell out at the physical location associated with the location inventory record;
w is a given week between 1 and Wk, inclusive;
bkw is a base demand for the item at the physical location associated with the location inventory record in the given week;
γk is a constant price elasticity for the item at the physical location associated with the location inventory record;
λ is a scalar constant at which there is no net change in the total quantity of the item across the set of location inventory records; and
Ik is a current item quantity of the location inventory record.

### Claim 5 (depends on 4)

The non-transitory computer-readable medium of claim 4, wherein the scalar constant is identified by solving a second equation
∑
k
(
(
∑
w
=
1
W
k
b
kw
)
-
1
γ
k
⁢
γ
k
-
1
+
γ
k
⁢
λ
)
-
γ
k
-
I
k
=
0
for the scalar constant λ.

### Claim 6 (depends on 1)

The non-transitory computer-readable medium of claim 1, wherein the instructions for the determining if a set of possible scaling factors includes one scaling factor further cause the processor to:
solve an equation
[
∑
k
(
∑
w
=
1
W
k
b
kw
)
-
1
γ
k
⁢
(
-
1
γ
k
+
1
)
⁢
(
I
k
+
α
⁢
c
k
*
)
1
γ
k
⁢
c
k
*
]
-
C
=
0
for the one scaling factor, wherein:
α represents the one scaling factor;
k represents the location inventory record;
ck is the quantity change for the location inventory record;
Wk is a remaining number of weeks before the item is required to sell out at the physical location associated with the location inventory record;
w is a given week between 1 and Wk, inclusive;
bkw is a base demand for the item at the physical location associated with the location inventory record in the given week;
γk is a constant price elasticity for the item at the physical location associated with the location inventory record;
λ is a scalar constant at which there is no net change in the total quantity of the item across the set of location inventory records;
Ik is the current item quantity of the location inventory record; and
C is the cost of the minimum-cost shipment; and
if the solution is between zero, non-inclusive, and one, inclusive, provide an indication that the one scaling factor maximizes total revenue.

### Claim 7 (depends on 6)

The non-transitory computer-readable medium of claim 6, wherein the instructions for the determining if a set of possible scaling factors includes one scaling factor further cause the computer to, if (i) the solution is zero, or (ii) there is no solution between zero and one, inclusive, provide an indication that there is no profitable redistribution.

### Claim 8 (depends on 1)

The non-transitory computer-readable medium of claim 1, further comprising instructions that when executed by at least the processor cause the processor to transmit each transfer instruction over a network to at least one of: (i) a computing device associated with a source physical location indicated in the transfer instruction; (ii) a computing device associated with a destination physical location indicated in the transfer instruction; and (iii) a computing device associated with a retailer of the item.

### Claim 9

A computer-implemented method, the method comprising:
for each location inventory record of a set of location inventory records,
calculating a quantity change for an item that changes a current item quantity to a different item quantity for the location inventory record,
wherein the quantity change for the item is a function of, at least in part, a remaining number of weeks before the item is to sell out at the physical location and a current item quantity of the location inventory record;
determining:
(i) a redistribution of the item among the physical locations to affect the quantity change for each location inventory record at a minimum cost, and
(ii) an overall cost of the redistribution based on the sum of the minimum costs;
simultaneously and interdependently resolve the quantity changes and the cost of redistribution by determining at least one scaling factor from a set of possible scaling factors that maximizes a total revenue received from sales of the item when the quantity changes for each location inventory record are scaled by the one scaling factor after deducting the cost scaled by the one scaling factor;
generating an electronic output including a set of transfer instructions to perform the redistribution of the item with transfer quantities of the item to be transferred between the physical locations scaled by the one scaling factor; and
transmitting the set of transfer instructions over a network to a computing device to cause the computing device to generate a pack list of the item with the transfer quantities scaled by the one scaling factor.

### Claim 10 (depends on 9)

The computer-implemented method of claim 9, further comprising:
for each location inventory record of a set of location inventory records, determining the quantity change that maximizes income from sales of the item across the set of physical locations without altering a total quantity of the item across the set of location inventory records; and
storing the redistribution as a data structure that indicates for each individual inventory transfer of the redistribution at least (i) a source physical location in the set of physical locations, (ii) a destination physical location in the set of physical locations, and (iii) the transfer quantity of the item between the source physical location and destination physical location.

### Claim 11 (depends on 9)

The computer-implemented method of claim 9, further comprising:
for each location inventory record in the set of location inventory records, classifying, by at least the processor, the physical location associated with location inventory record as belonging (i) to a set of inventory surplus locations if the quantity change is negative, or (ii) to a set of inventory deficit locations if the quantity change is positive; and
wherein (i) each source physical location of the redistribution always belongs to the set of inventory surplus locations and (ii) each destination physical location of the redistribution always belongs to the set of inventory deficit locations, ensuring that inventory imbalances are not increased.

### Claim 12 (depends on 9)

The computer-implemented method of claim 9, wherein the calculation of the quantity change for each location inventory record of the set of location inventory records is expressed by a first equation:
c
k
=
(
(
∑
w
=
1
W
k
b
kw
)
-
1
γ
k
⁢
γ
k
-
1
+
γ
k
⁢
λ
)
-
γ
k
-
I
k
wherein:
k represents the location inventory record;
ck is the quantity change for the location inventory record;
Wk is the remaining number of weeks before the item is required to sell out at the physical location associated with the location inventory record;
w is a given week between 1 and Wk, inclusive;
bkw is a base demand for the item at the physical location associated with the location inventory record in the given week;
γk is a constant price elasticity for the item at the physical location associated with the location inventory record;
λ is a scalar constant at which there is no net change in the total quantity of the item across the set of location inventory records; and
Ik is a current item quantity of the location inventory record.

### Claim 13 (depends on 9)

The computer-implemented method of claim 9, wherein the scalar constant is identified by solving a second equation
∑
k
(
(
∑
w
=
1
W
k
b
kw
)
-
1
γ
k
⁢
γ
k
-
1
+
γ
k
⁢
λ
)
-
γ
k
-
I
k
=
0
for the scalar constant λ.

### Claim 14 (depends on 9)

The method of claim 9, further comprising:
solving, by at least the processor, an equation
[
∑
k
(
∑
w
=
1
W
k
b
kw
)
-
1
γ
k
⁢
(
-
1
γ
k
+
1
)
⁢
(
I
k
+
α
⁢
c
k
*
)
-
1
γ
k
⁢
c
k
*
]
-
C
=
0
for the one scaling factor, wherein:
α represents the one scaling factor;
k represents the location inventory record;
ck is the quantity change for the location inventory record;
Wk is a remaining number of weeks before the item is required to sell out at the physical location associated with the location inventory record;
w is a given week between 1 and Wk, inclusive;
bkw is a base demand for the item at the physical location associated with the location inventory record in the given week;
γk is a constant price elasticity for the item at the physical location associated with the location inventory record;
λ is a scalar constant at which there is no net change in the total quantity of the item across the set of location inventory records;
Ik is the current item quantity of the location inventory record; and
C is the cost of the minimum-cost shipment; and
if the solution is between zero, non-inclusive, and one, inclusive, providing, by at least the processor, an indication that the one scaling factor maximizes total revenue.

### Claim 15 (depends on 14)

The computer-implemented method of claim 14, further comprising, if (i) the solution is zero, or (ii) there is no solution between zero and one, inclusive, providing an indication that there is no profitable redistribution.

### Claim 16 (depends on 9)

The computer-implemented method of claim 9, further comprising transmitting each transfer instruction over a network to at least one of: (i) a computing device associated with a source physical location indicated in the transfer instruction; (ii) a computing device associated with a destination physical location indicated in the transfer instruction; and (iii) a computing device associated with a retailer of the item.

### Claim 17 (depends on 9)

The computer-implemented method of claim 9, wherein the determining if the set of possible scaling factors includes the one scaling factor accounts for both the cost and the total revenue received from sales of the item simultaneously to avoid overly aggressive revenue maximization.

### Claim 18 (depends on 9)

The computer-implemented method of claim 9, further comprising controlling one or more remote devices in order to bring about the redistribution.

### Claim 19 (depends on 9)

The computer-implemented method of claim 9, wherein each step of the method is executed by a processor accessing memory to (i) perform the step, (ii) retrieve any necessary information, or (iii) store any data calculated, determined, generated, classified, or otherwise created.

### Claim 20

A computing system, comprising:
a processor;
a memory operably connected to the processor;
a non-transitory computer-readable medium operably connected to the processor and storing computer-executable instructions that when executed by at least the processor cause the computing system to:
for each location inventory record of a set of location inventory records,
calculate a quantity change for an item that changes a current item quantity to a different item quantity for the location inventory record using the processor, and
update the inventory record in memory to store the quantity change,
wherein the quantity change for the item is a function of, at least in part, a remaining number of weeks before the item is to sell out at the physical location, and a current item quantity of the location inventory record;
determine a redistribution of the items among the physical locations to affect the quantity change for each location inventory record at a minimum cost by using the processor to retrieve from memory the quantity change and location identifier for each location inventory record and
writing to the memory:
(i) the redistribution resulting from providing the location identifiers and quantity changes to a transportation problem solver, and
(ii) an overall cost of the redistribution based on the sum of the minimum costs;
wherein the processor simultaneously and interdependently resolves the quantity changes and the cost of redistribution by determining at least one scaling factor from a set of possible scaling factors that satisfies a threshold condition of maximizing a total revenue received from sales of the item when the quantity changes for each location inventory record are scaled by the processor by the one scaling factor after deducting by the processor the cost scaled by the processor by the one scaling factor;
store the one scaling factor in the memory;
for the one scaling factor that exists that satisfies the threshold condition:
generate transfer instructions to perform the redistribution of the item in memory, using the processor to scale by the one scaling factor transfer quantities retrieved from the redistribution in memory; and
transmit, by the processor, the transfer instructions retrieved from memory over a network to a computing device associated with a physical location indicated in the transfer instructions to cause the computing device to operate an automated picking and packing system to retrieve the transfer quantity of the item scaled by the one scaling factor and to print a shipping label to affect the transfer between physical locations.