System and method for setting inventory thresholds for offering and fulfillment across retail supply networks

• Main Authors: Deshpande, Ajay A, Liu, Xuan, Koc, Ali, Hampapur, Arun, Li, Yingjie, Xing, Dahai, Quanz, Brian L
• Format: Patent
• Language: English
• Published: 10.11.2020
• Subjects: CALCULATING; COMPUTER SYSTEMS BASED ON SPECIFIC COMPUTATIONAL MODELS; COMPUTING; COUNTING; DATA PROCESSING SYSTEMS OR METHODS, SPECIALLY ADAPTED FORADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORYOR FORECASTING PURPOSES; PHYSICS; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE,COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTINGPURPOSES, NOT OTHERWISE PROVIDED FOR

A method and system determining an inventory threshold for offering for online sale or an inventory threshold for sourcing in node order assignment. The method includes receiving by a computer processor of a probabilistic cancellation module an electronic record of a current order or item. The program instructions executed by the processor of the probabilistic cancellation module allows the module to retrieve historical and current data of each node from a plurality of nodes. The method then includes automatically converting the retrieved historical data into a probability of cancellation of an item comprising the one or more items from the plurality of items. Further, the method includes identifying an inventory threshold for offering of an item or an inventory threshold for sourcing of one or more items of the current order, where the probability of item cancellation is lower than a predetermined order cancelation rate of the one or more items from the plurality of items.