Methods and systems for prioritizing stock-keeping units in cost-based inventory allocation

Abstract

Various examples of methods and systems for prioritizing identifier in cost-based inventory allocation are described. In one implementation, a method may determine a shipping cost sensitivity of each identifier of a plurality of identifiers of a plurality of items in an inventory, the shipping cost sensitivity of each identifier related to sales volume, billable weight and shipping zone associated with the respective identifier. The method may also rank the plurality of identifiers based at least in part on the shipping cost sensitivity of each identifier. The method may further determine an order of allocation of the inventory of the plurality of items based at least in part on the ranking of the plurality of identifiers.

What is claimed is: 
     
         1 . A system comprising:
 one or more databases;   one or more non-transitory computer-readable media storing computing instructions configured to run on the one or more processors and perform:
 receiving one or more identifiers of one or more items for an inventory of the one or more items to be allocated across a network of distribution centers; 
 determining, using a sequential network optimization algorithm, a shipping cost sensitivity for each identifier of the one or more identifiers for the one or more items in the inventory based on a respective sales volume, a respective billable weight and a respective shipping zone for each of the one or more items; 
 increasing the shipping cost sensitivity for the each identifier when at least one of the respective sales volume, the respective billable weight, or the respective shipping zone for each of the one or more items increases while one or more others of the respective sales volume, the respective billable weight, the respective shipping zone for each of the one or more items remain constant; 
 determining a back-haul percentage of the each identifier to transport the inventory from the network of distribution centers; 
 discounting the back-haul percentage from the shipping cost sensitivity of the each identifier; 
 increasing a ranking of the each identifier as the shipping cost sensitivity of the each identifier increases; and 
 stocking first ones of the one or more items having higher-ranking ones of the one or more identifiers first in a distribution center of the network of distribution centers, and stocking second ones of the one or more items having lower-ranking ones of the one or more identifiers in a remaining space within the distribution center of the network of distribution centers. 
   
     
     
         2 . The system of  claim 1 , wherein the one or more processors determine the shipping cost sensitivity using the sequential network optimization algorithm according to an expression:
     s=vF ( w,z ),   wherein s denotes the shipping cost sensitivity of a respective identifier, v denotes sales volume in units of a respective item associated with the respective identifier, w denotes billable weight of the respective item associated with the respective identifier, z denotes shipping zone of the respective item associated with the respective identifier, and F(w, z) denotes a function of w and z.   
     
     
         3 . The system of  claim 1 , wherein the one or more processors determine the shipping cost sensitivity from which the back-haul percentage discounted according to an expression:
     s =(1− h ) vF ( w ), and
   wherein s denotes the shipping cost sensitivity of a respective identifier, h denotes the back-haul percentage of the respective identifier, v denotes sales volume in units of a respective item associated with the respective identifier, w denotes billable weight of the respective item associated with the respective identifier, and F(w) denotes a function of w and vF(w) comprises the shipping cost sensitivity before being adjusted by the back-haul percentage.   
     
     
         4 . The system of  claim 3 , wherein while determining the back-haul percentage of the each identifier, the one or more processors estimate the back-haul percentage based on a weight of an item associated with a respective identifier according to an expression:
     h=a+bw,      wherein the one or more processors determine the shipping cost sensitivity according to an expression:
     s =(1−( a+bw )) vF ( w ), and
 
   wherein a denotes an intercept of a linear model of h, and b denotes a gradient of the linear model.   
     
     
         5 . The system of  claim 1 , further comprising a site-to-store shipping system comprising a shipping method and a delivery method specific to a vendor, wherein an order from a customer is shipped from the distribution center of the network of distribution centers of the vendor to a brick and mortar retail store of the vendor for pick up by the customer. 
     
     
         6 . The system of  claim 5 , wherein the shipping method and the delivery method are free of charge to the customer. 
     
     
         7 . A method being implemented via execution of computing instructions configured to run at one or more processors and stored at one or more non-transitory computer-readable media, the method comprising:
 receiving, with a computing device using one or more processors, one or more identifiers of one or more items for an inventory of the one or more items to be allocated across a network of distribution centers;   determining, with the computing device, using a sequential network optimization algorithm, a shipping cost sensitivity for each identifier of the one or more identifiers for the one or more items in the inventory based on a respective sales volume, a respective billable weight and a respective shipping zone for each of the one or more items;   increasing, with the computing device, the shipping cost sensitivity for the each identifier when at least one of the respective sales volume, the respective billable weight, the respective shipping zone for each of the one or more items increases while one or more others of the respective sales volume, the respective billable weight, the respective shipping zone for each of the one or more items remain constant;   determining, with the computing device, a back-haul percentage of the each identifier to transport the inventory from the network of distribution centers;   discounting, with the computing device, the back-haul percentage from the shipping cost sensitivity of the each identifier;   increasing, with the computing device, a ranking of the each identifier as the shipping cost sensitivity of the each identifier increases; and   stocking, with the computing device, first ones of the one or more items having higher-ranking ones of the one or more identifiers first in a distribution center of the network of distribution centers, and stocking second ones of the one or more items having lower-ranking ones of the one or more identifiers in a remaining space within the distribution center of the network of distribution centers.   
     
     
         8 . The method of  claim 7 , wherein the determining the shipping cost sensitivity of the each identifier comprises determining the shipping cost sensitivity using the sequential network optimization algorithm according to an expression:
     s=vF ( w,z ),   wherein s denotes the shipping cost sensitivity of a respective identifier, v denotes sales volume in units of a respective item associated with the respective identifier, w denotes billable weight of the respective item associated with the respective identifier, z denotes shipping zone of the respective item associated with the respective identifier, and F(w, z) denotes a function of w and z.   
     
     
         9 . The method of  claim 7 , wherein the adjusting the shipping cost sensitivity of the each identifier comprises determining the shipping cost sensitivity from which the back-haul percentage discounted according to an expression:
     s =(1− h ) vF ( w ), and
   wherein s denotes the shipping cost sensitivity of a respective identifier, h denotes the back-haul percentage of the respective identifier, v denotes sales volume in units of a respective item associated with the respective identifier, w denotes billable weight of the respective item associated with the respective identifier, F(w) denotes a function of w, and vF(w) comprises the shipping cost sensitivity before being adjusted by the back-haul percentage.   
     
     
         10 . The method of  claim 7 , wherein while determining the back-haul percentage of the each identifier estimating the back-haul percentage based on a weight of an item associated with a respective identifier according to an expression:
     h=a+bw,      wherein determining the shipping cost sensitivity of the each identifier comprises determining the shipping cost sensitivity according to an expression:
     s =(1−( a+bw )) vF ( w ), and
 
   wherein a denotes an intercept of a linear model of h, and b denotes a gradient of the linear model.   
     
     
         11 . The method of  claim 7 , wherein the inventory of the network of distribution centers and one or more brick and mortar stores for an e-commerce vendor is owned and operated by (a) same vendors or (b) different vendors. 
     
     
         12 . The method of  claim 7 , further comprising a site-to-store shipping system comprising a shipping method and a delivery method specific to a vendor, wherein an order from a customer is shipped from the distribution center of the network of distribution centers of the vendor to a brick and mortar retail store of the vendor for pick up by the customer. 
     
     
         13 . The method of  claim 12 , wherein the shipping method and the delivery method are free of charge to the customer. 
     
     
         14 . One or more computer-readable media storing computer-executable instructions that, when executed on one or more processors, causes the one or more processors to perform operations comprising:
 receiving one or more identifiers of one or more items for an inventory of the one or more items to be allocated across a network of distribution centers;   determining, using a sequential network optimization algorithm, a shipping cost sensitivity for each identifier of the one or more identifiers for the one or more items in the inventory based on a respective sales volume, a respective billable weight and a respective shipping zone for each of the one or more items;   increasing the shipping cost sensitivity for the each identifier when at least one of the respective sales volume, the respective billable weight, the respective shipping zone for the each of the one or more items increases while one or more others of the respective sales volume, the respective billable weight, the respective shipping zone for each of the one or more items remain constant;   determining a back-haul percentage of the each identifier to transport the inventory from the network of distribution centers;   discounting the back-haul percentage of from the shipping cost sensitivity of the each identifier;   increasing a ranking of the each identifier as the shipping cost sensitivity of the each identifier increases; and   stocking first ones of the one or more items having higher-ranking ones of the one or more identifiers first in a distribution center of the network of distribution centers, and stocking second ones of the one or more items having lower-ranking ones of the one or more identifiers in a remaining space within the distribution center of the network of distribution centers.   
     
     
         15 . The one or more computer-readable media of  claim 14 , wherein the determining, using the sequential network optimization algorithm, the shipping cost sensitivity of the each identifier comprises determining the shipping cost sensitivity using the sequential network optimization algorithm according to an expression:
     s=vF ( w,z ),   wherein s denotes the shipping cost sensitivity of a respective identifier, v denotes sales volume in units of a respective item associated with the respective identifier, w denotes billable weight of the respective item associated with the respective identifier, z denotes shipping zone of the respective item associated with the respective identifier, and F(w, z) denotes a function of w and z.   
     
     
         16 . The one or more computer-readable media of  claim 14 , wherein the determining, using the sequential network optimization algorithm, the shipping cost sensitivity of the each identifier comprises determining the shipping cost sensitivity from which the back-haul percentage discounted according to an expression:
     s =(1− h ) vF ( w ), and
   wherein s denotes the shipping cost sensitivity of a respective identifier, h denotes the back-haul percentage of the respective identifier, v denotes sales volume in units of a respective item associated with the respective identifier, w denotes billable weight of the respective item associated with the respective identifier, F(w) denotes a function of w, and vF(w) comprises the shipping cost sensitivity before being adjusted by the back-haul percentage.   
     
     
         17 . The one or more computer-readable media of  claim 16 , wherein while determining the back-haul percentage of the each identifier comprises estimating the back-haul percentage based on a weight of an item associated with a respective identifier according to an expression:
     h=a+bw,      wherein determining the shipping cost sensitivity of the each identifier comprises determining the shipping cost sensitivity according to an expression:
     s =(1−( a+bw )) vF ( w ), and
 
   wherein a denotes an intercept of a linear model of h, and b denotes a gradient of the linear model.   
     
     
         18 . The one or more computer-readable media of  claim 14 , wherein the inventory of the network of distribution centers and one or more brick and mortar stores for an e-commerce vendor is owned and operated by (a) same vendors or (b) different vendors. 
     
     
         19 . The one or more computer-readable media of  claim 14 , further comprising a site-to-store shipping system comprising a shipping method and a delivery method specific to a vendor, wherein an order from a customer is shipped from the distribution center of the vendor to a brick and mortar retail store of the vendor for pick up by the customer. 
     
     
         20 . The one or more computer-readable media of  claim 19 , wherein the shipping method and the delivery method are free of charge to the customer.