Patent ID: 8781868

Claim:
A method of optimizing a supply chain parameter of a node of a supply chain, comprising: calculating, by a computer, an inventory target for a node of a supply chain; by: calculating a demand stock that satisfies a demand over supply lead time at a node of the supply chain; calculating a demand variability stock that satisfies a demand variability of the demand over supply lead time at the node; establishing the demand bias of the demand at the node; and determining the inventory target of the node based on the demand stock and the demand variability stock in accordance with the demand bias; changing, by the computer, a supply parameter associated with the node, the change in the supply parameter associated with a supply parameter cost or a supply parameter benefit; adjusting, by the computer, the supply parameter associated with the node, when the benefit of the supply parameter exceeds the cost of the supply parameter; and adjusting, by the computer, the inventory target of the node based on the adjusted supply parameter.