Patent ID: 8027863
Filing Date: 2011-09-27
Classification: G06Q

Abstract:
1. A computer-implemented method for forecasting a future inventory demand comprising: receiving, by a processor associated with a computer, historical demand data associated with a part number; identifying, by the processor, each part number as one of a seasonal part number, a quasi-seasonal part number, a high variability part number, or a non-seasonal part number; estimating, by the processor, a first inventory requirement for a first predetermined portion of a future demand period if the part number is identified as a seasonal part number; estimating, by the processor, a second inventory requirement for a second predetermined portion of a future demand period if the part number is identified as a quasi-seasonal part number, wherein the second predetermined portion of the future demand period is a multiple of the first predetermined portion; and determining, by the processor, a coefficient of variation for historical data corresponding to part numbers not identified as either seasonal or quasi-seasonal; identifying, by the processor, one or more of the part numbers as high variability part numbers if the coefficient of variation associated with a respective part number is greater than 1; and establishing, by the processor, a high variability fixed requirement associated with the one or more high variability part numbers, wherein establishing a high variability fixed requirement includes setting an inventory level associated with a respective part number substantially equal to one month of estimated demand for a respective part number if a cost associated with the respective part number is less than a predetermined cost threshold or the cost associated with the respective part number is greater than a predetermined cost threshold and the estimated demand of the part number is greater than a predetermined demand threshold.