US 8,620,707 B1Granted

Systems and methods for allocating inventory in a fulfillment network

AssigneeAmazon Technologies, Inc.

InventorsDmitriy Belyi, Xiao Yu Li

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Abstract

Systems and methods systems and methods for allocating inventory in a fulfillment network are disclosed. In some embodiments, a method may include identifying orders fulfilled by a fulfillment center, where each of the identified orders specifies one or more of a plurality of items. The method may also include determining, for each identified order, a probability that the identified order will occur in the future and calculating, for each identified order, a cost savings. Items may then be selected based, at least in part, upon the determined probability and cost savings of each identified order. Additionally or alternatively, a method may include, for a selected item, receiving a customer demand forecast, determining a bind factor, and calculating a target inventory for the selected item to be stored in the fulfillment center based, at least in part, upon the customer demand forecast and the bind factor.

Claims20

Dependent claims

A method, comprising:

performing, via one or more computers:
selecting items to be stored at a fulfillment center, wherein said selecting comprises:
identifying orders fulfilled by a fulfillment center during a previous time period, wherein each of the identified orders specifies one or more of a plurality of items, and wherein at least one of the identified orders specifies a plurality of distinct items;
determining, for each identified order, a probability that the identified order will occur in a subsequent time period;
calculating, for each identified order, a cost savings associated with fulfilling the identified order from the fulfillment center instead of another fulfillment center;
selecting a limited number of distinct items to be stored at the fulfillment center, wherein said selecting comprises selecting items among the plurality of items to be stored in the fulfillment center during at least a portion of the subsequent time period based, at least in part, upon the determined probability and cost savings of each identified order, wherein said selecting attempts to maximize the cost savings for the limited number of distinct items;
and
for each of the selected items, calculating a target inventory level, wherein calculating the target inventory level comprises:
receiving a customer demand forecast corresponding to the selected item;
determining a bind factor for the selected item;
and
calculating the target inventory level for the selected item to be stored in the fulfillment center based, at least in part, upon the customer demand forecast and the bind factor.

9 more elements

A system, comprising:

at least one processor;
and
a memory coupled to the at least one processor, wherein the memory stores program instructions, and wherein the program instructions are executable by the at least one processor to cause the system to select items to be stored at a fulfillment center, wherein to select items to be stored at a fulfillment center the program instructions are further executable to:
identify orders fulfilled by a fulfillment center during a previous time period, wherein each of the identified orders specifies one or more of a plurality of items, and wherein at least one of the identified orders specifies a plurality of distinct items that are ordered together;
determine, for each identified order, a probability that the identified order will occur in a subsequent time period;
calculate, for each identified order, a cost savings associated with fulfilling the identified order from the fulfillment center instead of another fulfillment center;
and
select items among the plurality of items to be stored in the fulfillment center during at least a portion of the subsequent time period based, at least in part, upon the determined probability and cost savings of each identified order.

5 more elements

Dependencies are inferred from the claim text.