Patent ID: 8036957
Filing Date: 2011-10-11
Classification: G06Q

Abstract:
1. A computer-implemented method of managing inventory under price protection contract, comprising: obtaining an expected future demand distribution for one or more goods, future cost information associated with said one or more goods, and information associated with price protection agreement including at least length of price protection between at least two supply chain partners in a supply chain; and determining an inventory replenishment plan for said one or more goods over a plurality of time periods, said determining step performed using a stochastic program that considers at least the information associated with price protection agreement including at least length of price protection between at least two supply chain partners in a supply chain, the expected future demand distribution for one or more goods, and the future cost information associated with said one or more goods, said stochastic program formulated to have decentralized control, wherein said stochastic program is formulated as for determining a replenishment plan for a selected period, t, of said plurality of time periods using the buyer's total expected cost from period t, for determining a replenishment plan for a selected period, t, of said plurality of time periods using the seller's total expected cost from period t, wherein V V W W β=Discount factor; D T=Planning horizon length, t in 1 . . . T; y x a