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Browse Prior Art Database

Landed Cost Visualization for Strategic Supply Chain Planning

IP.com Disclosure Number: IPCOM000199685D
Publication Date: 2010-Sep-14
Document File: 2 page(s) / 61K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a method by which the user of a strategic supply chain application can identify the root cause of an expensive demand point. The approach includes the construction of a display of the sourcing tree for each individual demand point which provides the user with a visual representation of cost accrual as an asset passes through points in the supply chain.

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Landed Cost Visualization for Strategic Supply Chain Planning

Users of strategic supply chain planning applications are often called to analyze distribution systems in which some demand points are much more expensive to service than others. Frequently, the root cause of this expense might lie with a production source or shipping lane that is not directly connected to the demand point.

Currently, there is no strategic supply chain application that allows the user to identify the root cause of an expensive demand point.

The disclosed invention involves creating a display of the sourcing tree for each individual demand point. The sourcing tree demonstrates how production, shipping, and handling costs accrue as the goods move through the supply chain to the demand point. The user is able to see not only the total cost required to fulfill the demand point, but also each individual link in the supply chain that contributes to this total. The use of relative cost gauges allows the user to easily identify the most expensive component of the sourcing tree.

The Figure below is a screen shot of a sample landed cost visualization graph.

This graph demonstrates the sourcing tree for the demand point in yellow at the right hand side of the graph.

The system constructs the sourcing tree by performing a two-pass analysis of the supply chain network:

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1. Pass one starts with the demand point and works from right...