Patent ID: 7904276
Filing Date: 2011-03-08
Classification: G06Q

Abstract:
1. A computer implemented method: estimating an expected component surplus, wherein said estimating comprises identifying a plurality of components required to produce a product; defining a vector of connect rates for the components; defining an uncancelable level for each of the components, each of the uncancelable levels defining a quantity of the each of the components below which the quantity of the each of the components cannot be liquidated without incurring a charge; assuming that a selected one of the components is available at least at an uncancelable level of the uncancelable levels corresponding to the selected one of the components; and computing the expected component surplus for the selected component using a mean production for the product, the uncancelable level and the vector of connect rates; and calculating erosion cost for the component based on the calculated expected component surplus factoring in cancellation costs and expediting costs, wherein the computing is performed by a computer.