Patent ID: 6816839
Filing Date: 2004-11-09
Classification: G06Q

Abstract:
A computer implemented method for demand planning of products, the method comprising the steps of:digitally constructing a configure-to-order operation/multiple building block environment; digitally forecasting the demand of building blocks within the constructed building block environment using a top-down approach, which considers sales volume of a product family, and feature ratios of the building blocks; digitally capturing dependencies among building blocks by combining methodologies of statistical forecast, categorical data analysis, and information theory; digitally forecasting demand quantity of each product family using dependencies among building block families comprising a pairwise correlation between any two building block families; digitally propagating an adjustment by tracing a spanning tree nodes of which correspond to building block families, by starting from a most dominant building block family as a root node of the spanning tree; using mutual information as an index for the pairwise correlation; fitting a joint distribution for the building blocks to be consistent with the pairwise correlation; and establishing an efficient supply chain management.