Logility, Inc., provider of collaborative supply chain optimisation and advanced retail planning solutions, has announced it was issued Patent No. US 8,768,790 B2 entitled "Product-Family Inventory Replenishment System Using A Composite Product Mix Framework" by the United States Patent and Trademark Office.
Supply chain solutions traditionally build demand curves based on two factors: demand forecast and customer orders which generate adequate curves for demand planning and may result in higher inventory for sourced goods. With this patent, Logility Voyager Solutions is able to develop composite curves that integrate demand, customer orders and inventory. These curves disaggregate a high level replenishment quantity to deliver a more accurate total plan.
When a minimum is required by a supplier, companies will proportionally increase a replenishment order to meet the minimum. For many companies, this approach can and has led to inflated inventory. With Logility Voyager Solutions, companies are able to take advantage of composite curves that look at history and multiple attributes to satisfy the supplier minimum requirement to balance inventory with future demand. Supply orders can now be planned at the aggregate level while they are scheduled at the detail level. The composite curve technology can also be applied to other replenishment areas where a planning process involves a hierarchical network relationship.
"This patent further emphasises the unique advanced capabilities to optimize complex sourcing and production decisions that companies will only find in Logility Voyager Solutions," said Mike Edenfield, president and CEO, Logility. "The use of composite curves allows companies to plan at higher levels of aggregation such as style and style/color and execute at more granular levels such as SKU. This drives increased productivity and precision while reducing working capital and improving service levels."