Patent ID: 7210624

Claim:
A computer-implemented system comprising one or more processing units operable to execute one or more software components to: define a plurality of locations for redistributing a plurality of parts; establish an actual inventory of the plurality of parts among the plurality of locations; establish a desired distribution of the plurality of parts among the plurality of locations; determine a demand for each of the plurality of parts at each of the plurality of locations using the actual inventory and the desired distribution; add one or more dummy locations, each of the one or more dummy locations comprising a positive demand for attracting a plurality of excess parts; determine a plurality of paths, each path being operable to transfer at least one of the plurality of parts from one location to another location, wherein the plurality of paths include at least one path to the one or more dummy locations that is associated with an infinite transfer cost; generate a transfer function describing a cost of transferring the plurality of excess parts along the plurality of paths; and optimize the transfer function to achieve the desired distribution of the plurality of parts at minimum cost.