Patent Application
20090164343
1. Field of the Invention
The present invention relates to supply chain management and more particularly to an inventory management system utilizing clear to build inventory analysis.
2. Description of the Related Art
As the global economy provides a proliferation of options for businesses to expand into emerging markets, manufacturing success is increasingly defined by how fast you act and how well you react to supply chain volatility. Modern production facilities are increasingly becoming more complex as customers expect manufacturers to keep prices low while readily accommodating last-minute changes in quantity, product configuration or delivery date.
Effectively managing the timing, order policy, and supply and inventory considerations involved in new product introductions or upgrades, greatly impact cycle times, potential business opportunities, and most importantly sales and profits. Typical operations manufacture multiple products in numerous discrete areas called stocking locations within a single facility. Moreover, the parts needed to manufacture a specific product may be utilized and stocked in multiple discrete areas throughout a facility due to their common usage across various sub-assemblies and end products. Component parts may be stocked in warehouses, at sub-assembly lines, in multiple final build lines or in any number of other internal plant locations.
One problem that arises in such complex facilities is whether all the components necessary to build a specific product are available to support the build. After part coverage is determined, a secondary obstacle is determining what stock, from which inventory stocking areas needs to be utilized to complete the build in question. A common method in the art by which inventory is analyzed to determine whether an order can be built is often called “Clear to Build inventory analysis” (CTB).
Essentially, CTB is a process by which the component Bill of Material (BOM) needed to manufacture the product in question is compared against available inventory stocked in a facility. Although, the parts necessary to build a product can be stocked in multiple stocking locations, conventional CTB analysis can only operate upon one discrete inventory stocking location at a time. A discrete inventory stocking location can either be defined globally or locally.
When global CTB is performed an operation can quickly ascertain if it possesses the total number of parts necessary to support an order in a whole facility. However, performing global CTB does not efficiently allow determining which parts from which stocking location need to be aggregated to support the build in question. For instance, if Order X needed 2 quantities of Part A and 1 quantity of Part B, global CTB would be able to determine that there is an aggregate total of 17 Part A and 8 Part B in the whole facility without taking into account stocking locations. Thus, performing global CTB does not efficiently allow determination of which parts from which area need to be aggregated to support Order X in question. Moreover, as manual actions are taken to decide which parts from the various stocking locations need to be moved and allocated to a specific build, subsequent CTB analysis may be driving other manual activities that will be competing for the same parts.
Local CTB analysis allows determination of the ability to support a specific build with parts from one stocking location within a facility. However, when part shortages are determined in one specific area, additional manual actions are required to search other stocking locations for parts coverage. This could include additional separate CTB analyses in those other areas. Once again, these local CTB analyses often result in numerous manual activities to identify, isolate and move parts from one area to facilitate a build. For instance, if Order Y needed 2 quantities of Part A and 2 quantities of Part B, CTB inventory analysis would only be able to determine that there is zero quantities of Part A, and 4 quantities of Part B in stocking location S, 2 quantities of the 4 which satisfy the required amount for Part B. However, since Part A is not found in stocking location S, Order Y cannot be released. In order to find available quantities of Part A additional manual actions can be required to search other stocking locations for parts coverage.
Conventional CTB analysis lacks an efficient reservation mechanism. Merely searching each location at a time can cause the possibility that another order may ‘snatch’ a part that was previously contemplated by another order looking in another location. Also, with conventional CTB processes there is a chance that inventory may be ‘locked up’ in multiple orders that can only be partially completed instead of being able to fulfill the highest priority orders that can actually be completed. Thus, there are manual activities associated with typical CTB processes and the inherent difficulties in parts logistical management, especially in periods of extreme volatility and stress in a supply chain.
Embodiments of the present invention address deficiencies of the art in respect to order production management and provide a novel and non-obvious method, system and computer program product for multiple-location auto-cascading clear to build inventory management. In an embodiment of the invention, an order processing method can be provided. The order processing method can include determining a required allocation of parts necessary to build an order, recursively soft allocating parts in different locations until enough parts have been soft allocated to satisfy the required allocation of parts necessary to build the order, and hard allocating the soft allocated parts. In one aspect of the embodiment, it can be determined that not enough parts remain amongst the different locations to satisfy the required allocation of parts necessary to build the order. In that circumstance, the soft allocated parts can be cleared for allocation b to a different order. Alternatively, the order can be built short by hard allocating the soft allocated parts even though not enough parts are soft allocated to satisfy the required allocation of parts.
In another embodiment of the invention, an inventory management data processing system can be provided. The system can include a data store of parts and stocking locations storing the parts and a multiple location auto-cascading clear to build engine coupled to the data store. The engine can include program code enabled to determine a required allocation of parts necessary to build an order, to recursively soft allocate parts in different locations specified by the data store until enough parts have been soft allocated to satisfy the required allocation of parts necessary to build the order, and to hard allocate the soft allocated parts.
Additional aspects of the invention will be set forth in part in the description which follows, and in part will be obvious from the description, or may be learned by practice of the invention. The aspects of the invention will be realized and attained by means of the elements and combinations particularly pointed out in the appended claims. It is to be understood that both the foregoing general description and the following detailed description are exemplary and explanatory only and are not restrictive of the invention, as claimed.
The accompanying drawings, which are incorporated in and constitute part of this specification, illustrate embodiments of the invention and together with the description, serve to explain the principles of the invention. The embodiments illustrated herein are presently preferred, it being understood, however, that the invention is not limited to the precise arrangements and instrumentalities shown, wherein:
Embodiments of the present invention provide a method, system and computer program product for a multiple-location auto-cascading clear to build inventory management process. In one embodiment of the invention, the parts necessary to build a product is recursively located by a Multiple Location Auto-Cascading CTB engine incorporating inventory location priority information. The engine identifies specific stocking locations based on a prioritized list of possible locations for a part number and analyzes each stocking location to determine whether there is matching inventory in that current location. When the required amount for a part is found in a specific stocking location, the engine can permanently reserve those parts and move those parts to a proper location for assembly.
When the required amount can be partially satisfied at that location then the engine can temporarily reserve those parts and analyze the next stocking location listed by priority until all the parts necessary to fulfill a specific order has been satisfied. Subsequently, once all required parts have been located, the engine can be enabled to permanently reserve each part found in multiple locations. The required parts can be ready for inventory movement or kitting initiation and eventually built and shipped to a customer. By automating the manual processes required by conventional CTB analysis, the multiple-location auto-cascading CTB engine can allow inventory analysis recursively with new location priority rules and materials logistics management performed across a facility.
In further illustration,
In further illustration,
In further illustration,
By reference to the inventory location priority rules 320, if all the parts necessary to build ProductA cannot be located in PrimLocA then the multi-location auto-cascading CTB engine will soft-allocate each part found in that location and in each subsequent location that is recursively searched until all the demand is satisfied for the order to be built. If all required parts are not found once all locations are queried, then a decision can be made to release the order for build with short-parts depending on user preference or remove the soft allocations and return the order for ProductA back into the production queue. Finally,
For each part number, the quantity required is compared against the quantity on hand in the highest priority location to determine coverage for the order. In block 420, if parts are available for coverage against the required amount, the logistics system incorporating the Inventory Management Rules, 300, will soft allocate the available inventory for each specific part in the current stocking location so that no other order will compete with it.
In block 430, once the available amount of parts are soft allocated, the original required amounts can be decremented to reflected updated amounts needed to be searched. Next in decision block 440, if it is determined that there still exists amounts that need to be searched and if, in decision block 460 it is determined that there are additional stocking locations to search, then the engine can be recursively invoked to begin a new function call to find the next highest priority location for the remaining quantity needed. If in decision block 460, it is determined that there are no other stocking locations to search per the Inventory Management Rules 300, then decision block 470 can be implemented to determine whether the order shall be built short.
If, in block 440 it is determined that no additional searches are required as all part requirements have been found across the previously searched locations, then in block 450 all the previous soft allocations can be transformed to hard reservations, the recursive function is ended and block 220 of
The maximum offset time can be allotted for the order. For example referring back to
In decision block 500, if the stocking location being analyzed is a kitting location then block 530 is implemented by creating a new child kitting unit of work that can represent the components that make up a kit. It is possible for a product to require multiple kits and thus it is possible to merge multiple child kitting units of work into a main parent unit of work which can be defined as the overall product that is ordered to be built. In block 540 a list of required parts for each kit unit of work is logically created to determine which parts are needed for each child kitting unit of work.
Once the parts lists for each child kitting unit of work are logically determined then in block 550 the physical kit build for the child work units can be initiated. Next in block 560, the reserved parts are physically pulled from an inventory stocking location and consumed into the current child kitting units of work. In block 570, the reserved parts are logically put into each child kitting unit of work by fulfilling the initial required parts list in block 540. Finally, in block 580, every child kit unit of work is aggregated to merge into a parent product. In block 590 the process ends with building of order.
Embodiments of the invention can take the form of an entirely hardware embodiment, an entirely software embodiment or an embodiment containing both hardware and software elements. In a preferred embodiment, the invention is implemented in software, which includes but is not limited to firmware, resident software, microcode, and the like. Furthermore, the invention can take the form of a computer program product accessible from a computer-usable or computer-readable medium providing program code for use by or in connection with a computer or any instruction execution system.
For the purposes of this description, a computer-usable or computer readable medium can be any apparatus that can contain, store, communicate, propagate, or transport the program for use by or in connection with the instruction execution system, apparatus, or device. The medium can be an electronic, magnetic, optical, electromagnetic, infrared, or semiconductor system (or apparatus or device) or a propagation medium. Examples of a computer-readable medium include a semiconductor or solid state memory, magnetic tape, a removable computer diskette, a random access memory (RAM), a read-only memory (ROM), a rigid magnetic disk and an optical disk. Current examples of optical disks include compact disk-read only memory (CD-ROM), compact disk-read/write (CD-R/W) and DVD.
A data processing system suitable for storing and/or executing program code will include at least one processor coupled directly or indirectly to memory elements through a system bus. The memory elements can include local memory employed during actual execution of the program code, bulk storage, and cache memories which provide temporary storage of at least some program code in order to reduce the number of times code must be retrieved from bulk storage during execution. Input/output or I/O devices (including but not limited to keyboards, displays, pointing devices, etc.) can be coupled to the system either directly or through intervening I/O controllers. Network adapters may also be coupled to the system to enable the data processing system to become coupled to other data processing systems or remote printers or storage devices through intervening private or public networks. Modems, cable modem and Ethernet cards are just a few of the currently available types of network adapters.
