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US 8,265,986 B2Granted
System and method for determining carbon emission-conscious order fulfillment alternatives with multiple supply modes
AssigneeInternational Business Machines Corporation
InventorsFeng Cheng, Young Min Lee
Life of this patent
Estimating the term…
Abstract
A system and method for optimizing order fulfillment by considering multiple supply modes in one aspect, plans supply of inventory by forecasting demand, estimating accuracy of said forecasted demand, and establishing reorder point policy based at least on said accuracy of said forecasted demand, a plurality of supply transportation modes, cost of carbon emissions and limit on carbon emission credits. Current inventory position is monitored and if the current inventory position is below the reorder point policy, orders are placed according to a selected shipping method. The selected shipping method may be based at least on customer order priority, transportation budget, and carbon emission limit.
Claims20
A computer implemented method for optimizing order fulfillment by considering multiple supply modes, comprising:
- planning supply of inventory, by a processor, said step of planning supply of inventory comprising at least, forecasting demand, estimating accuracy of said forecasted demand, and establishing reorder point policy based at least on said accuracy of said forecasted demand, a plurality of supply transportation modes, cost of carbon emissions and limit on carbon emission credits, wherein an objective function is modeled to solve for the reorder point policy and the reorder point policy includes reorder points comprising quantities ordered using different supply modes, wherein the objective function minimizes inventory cost and the cost of carbon emission and wherein the objective function enables prioritizing one or more of reducing the cost of carbon emissions or reducing the inventory cost,
- wherein the reorder point policy comprises reorder points determined by solving a minimization function,
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- subject to constraints
- ∑
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- k
-
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- ≤
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-
-
- for
-
-
- all
-
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- product
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- groups
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-
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- ∑
- k
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- 1
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- ≥
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- for
-
-
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- wherein,
- T represents total number of periods in a planning horizon,
- Xmk(1,T) represents total order quantity for product m using supply mode k,
- M represents a set of existing products indexed by m,
- J represents a set of product groups indexed by j,
- Aj represents a set of product I in product group jεJ,
- t represents time index for period, t=1, . . . , T, where T represents number of periods,
- Dmt represents demand forecast for product m in period t,
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-
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- t
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- D
- m
-
-
- s
- cumulative demand forecast for product m,
- Xmtk represents fulfillment quantity for product m using supply mode k in period t,
- Xmk(1,t) represents cumulative fulfillment quantity for product m using supply mode k in period t,
- cmk represents carbon emission cost for each unit of product m using supply mode k,
- Cimax represents carbon emission limit for transportation of product group j,
- hm represents inventory cost for each unit of product m per period,
- αm represents serviceability target for product m.
220 more elements
A system for optimizing order fulfillment by considering multiple supply modes, comprising:
- a processor;
- collection module operable to collect and analyze carbon emission data associated with a plurality of supply transportation modes;
- planning process module operable to at least forecast demand, estimate accuracy of said forecasted demand, and establish reorder point policy based at least on said accuracy of said forecasted demand, the plurality of supply transportation modes, cost of carbon emissions and carbon emission budget, to plan supply of inventory;
- and
- order execution module operable to run concurrently with said planning process module, and further operable to fill one or more orders received from a customer using said supply of inventory,
- wherein the reorder point policy comprises reorder points determined by solving a minimization function,
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- ∑
- m
- =
- 1
- M
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- ∑
- k
- =
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- 2
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- c
- m
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- =
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- subject to constraints
- ∑
- m
- ∈
- A
- j
-
-
- ∑
- k
- =
- 1
- 2
-
-
- c
- m
- k
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- X
- m
- k
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- ≤
- C
- j
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-
- for
-
-
- all
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-
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-
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- ∈
- J
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- P
-
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- ∑
- k
- =
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- 2
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- 1
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- ≥
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- m
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- 1
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- ]
- ≥
- α
- m
-
-
- for
-
-
- all
-
-
- m
- ∈
- M
-
-
- and
-
-
- t
- =
- 1
- ,
- …
-
- ,
- T
- wherein,
- T represents total number of periods in a planning horizon,
- Xmk(1,T) represents total order quantity for product m using supply mode k,
- M represents a set of existing products indexed by m,
- J represents a set of product groups indexed by j,
- Aj represents a set of product I in product group jεJ,
- t represents time index for period, t=1, . . . , T, where T represents number of periods,
- Dmt represents demand forecast for product m in period t,
- D
- m
-
- (
- 1
- ,
- t
- )
- :=
- ∑
- s
- =
- 1
- ,
-
- …
-
-
- t
-
- D
- m
-
-
- s
- cumulative demand forecast for product m,
- Xmtk represents fulfillment quantity for product m using supply mode k in period t,
- Xmk(1,t) represents cumulative fulfillment quantity for product m using supply mode k in period t,
- cmk represents carbon emission cost for each unit of product m using supply mode k,
- Cjmax represents carbon emission limit for transportation of product group j,
- hm represents inventory cost for each unit of product m per period,
- αm represents serviceability target for product m.
224 more elements
A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method of optimizing order fulfillment by considering multiple supply modes, comprising:
- planning supply of inventory, said step of planning supply of inventory comprising at least, forecasting demand, estimating accuracy of said forecasted demand, and establishing reorder point policy based at least on said accuracy of said forecasted demand, a plurality of supply transportation modes, cost of carbon emissions and limit on carbon emission credits,
- wherein the reorder point policy comprises reorder points determined by solving a minimization function,
- min
-
- ∑
- m
- =
- 1
- M
-
- (
- ∑
- k
- =
- 1
- 2
-
- c
- m
- k
-
- X
- m
- k
-
- (
- 1
- ,
- T
- )
- +
- ∑
- t
- =
- 1
- T
-
- h
- m
-
- E
-
- [
- ∑
- k
- =
- 1
- 2
-
- X
- m
- k
-
- (
- 1
- ,
- t
- -
- l
- k
- )
- -
- D
- m
-
- (
- 1
- ,
- t
- )
- ]
- +
- )
- subject to constraints
- ∑
- m
- ∈
- A
- j
-
-
- ∑
- k
- =
- 1
- 2
-
-
- c
- m
- k
-
- X
- m
- k
-
- (
- 1
- ,
- T
- )
- ≤
- C
- j
- max
-
-
- for
-
-
- all
-
-
- product
-
-
- groups
-
-
- j
- ∈
- J
- ,
-
- P
-
- [
- ∑
- k
- =
- 1
- 2
-
-
- X
- m
- k
-
- (
- 1
- ,
- t
- -
- l
- k
- )
- ≥
- D
- m
-
- (
- 1
- ,
- t
- )
- ]
- ≥
- α
- m
-
-
- for
-
-
- all
-
-
- m
- ∈
- M
-
-
- and
-
-
- t
- =
- 1
- ,
- …
-
- ,
- T
- wherein,
- T represents total number of periods in a planning horizon,
- Xmk(1,T) represents total order quantity for product m using supply mode k,
- M represents a set of existing products indexed by m,
- J represents a set of product groups indexed by j,
- Aj represents a set of product I in product group jεJ,
- t represents time index for period, t=1, . . . , T, where T represents number of periods,
- Dmt represents demand forecast for product m in period t,
- D
- m
-
- (
- 1
- ,
- t
- )
- :=
- ∑
- s
- =
- 1
- ,
-
- …
-
-
- t
-
- D
- m
-
-
- s
- cumulative demand forecast for product m,
- Xmtk represents fulfillment quantity for product m using supply mode k in period t,
- Xmk(1,t) represents cumulative fulfillment quantity for product m using supply mode k in period t,
- cmk represents carbon emission cost for each unit of product m using supply mode k,
- Cjmax represents carbon emission limit for transportation of product group j,
- hm represents inventory cost for each unit of product m per period,
- αm represents serviceability target for product m.
220 more elements
Dependencies are inferred from the claim text.