Patent ID: 7966211

Claim:
A computer-implemented method of determining an inventory target of a node of a supply chain, comprising: calculating by a computer, a demand stock that satisfies a demand over supply lead time at a node of a supply chain, the supply lead time represents a period of time to provide a supply to the node from another node of the supply chain; calculating by the computer, a demand variability stock that satisfies a demand variability of the demand over supply lead time at the node; establishing by the computer, a demand bias of the demand at the node; and determining by the computer, an inventory target of the node based on the demand stock and the demand variability stock in accordance with the demand bias by: changing a first supply parameter associated with the node; changing a first demand parameter associated with the node; changing a second demand parameter associated with the node, the change in the second demand parameter associated with a second demand cost; comparing the second demand cost and a second supply benefit; changing a third supply parameter associated with the node, the change in the third supply parameter associated with a third supply cost; comparing the third supply cost and a third demand benefit; and determining the inventory target of the node according to the change in the first supply parameter, the change in the first demand parameter, the comparison of the second demand cost and the second supply benefit, and the comparison of the third supply cost and the third demand benefit.