USOO6341271B1

(12) United States Patent (10) Patent No.: US 6,341,271 B1

(54) INVENTORY MANAGEMENT SYSTEMAND 6,012,041 A 1/2000 Brewer et al. ................ 705/28
METHOD 6,026,378 A 2/2000 Onozaki ...................... 705/28
6,078,900 A * 6/2000 Ettlet al. ..................... 705/28
(75) Inventors: Joseph James Salvo, Schenectady; FOREIGN PATENT DOCUMENTS
Patricia Denise Mackenzie, Clifton
Park; Janet Sue Bennett, Scotia; JP 10-249678 * 3/1997 ............. GO6F/1/21
Heather Ann Relyea, Niskayuna; wo 135, 40 or GO6F/17/60
thisAnthony WO WO-974.0459 * 10/1997 ........... GO6F/17/60
OTHER PUBLICATIONS
(73) Assignee: General Electric Company,
Schenectady, NY (US) Modern Material Handling Applicastion Case Histories.
AT&T Plant Gears For Just-In-Time Control-Communi
(*) Notice: Subject to any disclaimer, the term of this cations News v27 n11 p28 Nov.90.*
patent is extended or adjusted under 35 Computergram International Sep. 4, 1992 CGIO904.0015.*
U.S.C. 154(b) by 0 days. “Rethinking Inventory'-Electrical Wholesaling, Apr. 1994
(http://www.ew web.com/articles/ec16.htm).
(21) Appl. No.: 09/191,910 “VMI”-Electrical Wholesaling, Mar. 1995 (http:www.ew
web.com/articles/ec7.htm).
(22) Filed: Nov. 13, 1998
(List continued on next page.)
(51) Int. Cl................................................. G06F 17/60 Primary Examiner Vincent Millin
Assistant Examiner-Geoffrey Akers
(52) U.S. Cl. ......................................................... 705/28 (74) Attorney, Agent, or Firm Toan P. Vo; Noreen C.
(58) Field of Search ........................................ 705/28, 8 Johnson
(56) References Cited (57) ABSTRACT
U.S. PATENT DOCUMENTS An inventory management System automatically monitors
inventory amounts, provides information concerning
ES A to: yard inventory, and decides if an order for replacement inventory
554.314 A 10/1992 Van Wimer should be placed. The System includes a Storage for
5237.496 A 8/1993 Kagami et al. inventory, an indicator for monitoring and reporting the level
5,400.253 A 3/1995 O’Connor of current inventory, and a controller for receiving informa
5,537,313 A 7/1996 Pirelli tion from different inventory Suppliers and for integrating
5,596,493 A 1/1997 Tone et al. Such information with information on current inventory
5,608621 A 3/1997 Caveney et al. amounts and estimated future use to decide if an order for
5,638.519 A 6/1997 Hauska replacing inventory should be made. An order is placed
5,654,508 A : 8/1997 Gibbs .......................... 73/599 automatically to a Supplier and the progreSS for the delivery
23. A E. SR s al - - - - - - - - - - - - - - - 705/28 of replacement inventory is automatically monitored. A
5.777884. A 7A 1998 Beka et al. r 364/478.13 method using this System for managing inventory includes
5819,232 A * 10/1998 Shipman ........................ 705/8 the steps of automatic gathering information about the
5,930,771 A * 7/1999 Stapp ........ 705/28 current inventory and deciding whether and when replace
5,946,662 A * 8/1999 Ettlet al. .. ... 705/8 ment inventory should be ordered.
5,950,206 A 9/1999 Krause ....................... 707/104
6,002,344 A * 12/1999 Bandy et al. .......... 340/825.54 71 Claims, 3 Drawing Sheets

WNOR Service
TRANSPORATION CENTER
AWISORY
UNIT
25 17s
a
SHING
- INFORMATION CONTROL RODUCT
SOURCE N FINANCIAL
18 INFORMATON
SOURCE 155
NVENTORY
RC 112
SOURCE Site
CNTROLeR

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82
 US 6,341,271 B1
Page 2

OTHER PUBLICATIONS “Taming the Inventory Tiger'. The Idea Logical Company,
“VMI Update”-Electrical Wholesaling, Feb. 1996 (http:// Jan. 29, 1998 (http:www.idealog.com/vmispeak.htm).
www.ew web.com/articles/ec5.htm). “WEB VMI Online Brochure”-Oct. 6,1998 (http://scimon
itoring.com/services/webvmi/webvmi.htm).
“The Computers of Commerce’-Electrical Wholesaling, “Remote Monitoring of Tank and Process Conditions for
Feb. 1997 (http://www.ew web.com/articles/297sys.htm). Chemical Producct Users and Suppliers'-Oct. 15, 1998
“VMI: Not just another fad'-Industrial Distribution, Jun. http://(www.remotepossibilities.com/ap tank.htm).
1997 (http://www.manufacturing.net/magazine/id/archives/
1997/ind0601.97/06Vmi.htm). * cited by examiner
U.S. Patent Jan. 22, 2002 Sheet 3 of 3 US 6,341,271 B1

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 US 6,341,271 B1
1 2
INVENTORY MANAGEMENT SYSTEMAND duced from the inventory is needed to meet a customer's
METHOD order, this information must be expressly communicated
from manufacturing site plant management to the purchas
BACKGROUND OF THE INVENTION ing agent So that appropriate inventory amounts are avail
The invention is related to inventory management Systems able. The lack of an order placed by a purchasing agent may
and methods. In particular, the invention is related to cause manufacturing site operation to be reduced, and pos
vendor-managed inventory Systems and methods. sibly halted, which is highly undesirable and inefficient.
Prior inventory management Systems and methods Attempts to automate ordering processes have been
involved a large number of manually conducted tasks. These attempted, however these automated processes have draw
Systems were labor intensive. Also, the manual Steps often backs. For example, an automatic Standing inventory order
led to errors in the System's results. For example, amounts for a given day may be in place, without regard for the
of inventory of Storage containers were determined by Sight, actual, real-time inventory needs. If the manufacturing Site
dip Sticks, and “yo-yo” level Sensors. A “yo-yo” Sensor is has been in a slow-down, Such as for process overhauls, the
one in which a weight is lowered until it reached a top level Silo inventory may not need replenishing. The order arrives
15 and the Silo cannot accept the additional inventory. The
of material in the Silo, and the distance the Sensor is lowered
is measured to determine a storage container amount. The inventory is returned to the vendor, if they will accept a
determined amount is then evaluated to ascertain if more return, and the Vendor loses money on the Sale. In business,
inventory is needed and will fit in the silo. These methods a vendor will accept few, if any, returns of ordered inventory.
provided inaccurate measurements of the Storage containers Alternatively, the ordered inventory stays at the manufac
amounts. Throughout the processes, time delays are com turing site in a transport vehicle, and is unused for Some
mon and inevitable. Also, the material in the Silo is being period of time. The orderer then incurs costs of Storing the
used and the amount is not known. Using these methods an un-used inventory, rental of the transport vehicle for as long
accurate, real-time inventory level was not achieved. as the inventory cannot be unloaded, and un-Sold material
The determined amount, which in most instances is not Stored at the manufacturing Site, which is un-economical and
25 undesirable.
the real-time exact amount due to time delays, is reported to
a purchasing agent. The purchasing agent determines if an Automated computer managed inventory Systems have
order should be placed and when it should be placed. The been proposed to overcome Some of the above-noted short
purchasing agent then contacts a vendor to determine if the comings. In one proposed System, an inventory System
vendor has inventory available. If some inventory is avail determines amounts and past usage in tanks to Schedule,
able from that vendor, the purchasing agent then places an orders replenishing material, and directs a fleet of tank
order that will be filled in due course. The order is placed truckS. The System does not provide any comparative pricing
probably without regard to current market costs, transpor and purchasing abilities to minimize inventory management
tation costs, and other peripheral costs, since the inventory COStS.
is needed to maintain the manufacturing Site operation. If the 35 Another System relies upon web-based technology to
vendor does not have that inventory, the purchasing agent assist in providing Status of liquid material in tanks. This
must find a vendor who has that inventory in Stock, and may System does not provide comparative pricing and purchasing
buy from the first vendor with available inventory, again ability for minimizing costs. Also, the System is not believed
regardless of cost. to provide for historical and anticipated future trend analy
The order is filled and then transported to the silo, for 40 Sis. Accordingly, this System may not provide a low cost
example by truck or rail. Often the location of the order price for the material and does not assist in anticipating
during transport, its route, potential delays, and other trans inventory needs.
portation factors are unknown to the purchasing agent and Therefore, a System, which provides real-time inventory
vendor. Accordingly, an exact inventory arrival time is not management of Supply at a Site, including comparative
known and delays cannot be prevented. Further, throughout 45 pricing and purchasing abilities, would be desirable. Further,
this entire process, the inventory in the Silo is being used and a System that provides an ability to interact and Send
the order may not be enough to replenish the Silo. Therefore, information to a vendor's manufacturing Schedule, forecast
the order may not meet the needs of the manufacturing site, possible manufacturing based on historical, estimated
and operation of the Site may be reduced while waiting for future, or market data and indicators, and provide a display
the order. 50 of data in a useful format to a vendor, customer,
Another deficiency, with the above-stated inventory manufacturer, and others that desire the information, would
Systems, is that the inventory management process does not be useful. An automated vendor managed inventory System
account for historical, trend operational variations, or pro of this nature would permit lowest total cost purchasing,
vide available information on future changes at the manu ordering, and delivery of inventory.
facturing site. For example, a Site may increase its operation 55
SUMMARY OF THE INVENTION
in the middle of the week, using a quarter of a Silo daily on
Tuesday, Wednesday and Thursday, and only an eighth of a Accordingly, a System and method for inventory
silo on Monday and Friday. Without knowledge of this management, in particular, Vendor-managed inventory, are
historic trend, an amount of three-quarters full on Monday provided. The System and method provide information con
morning may not cause a purchasing agent to place an 60 cerning inventory amounts and inventory ordering to a
inventory order, even for the middle of the week. The manufacturing Site and an inventory vendor. The System
purchasing agent may look at Monday's one-eighth Silo use, comprises at least one Storage receptacle that Stores inven
and determine that no order is needed since one-eighth Silo tory; at least one amount indicator that determines an
use over five days will still leave inventory in the silo, and inventory amount in each receptacle, each amount indicator
keep total costs low. Thus, a Silo reading on Monday is 65 generating inventory amount Signals representative of
inadequate for determining inventory and use needs for the inventory amounts in the receptacle, at least one inventory
remainder of a week. Also, if an increase in product pro price Source that provides inventory price information; and
 US 6,341,271 B1
3 4
a control unit that receives the inventory amount Signals tracking device, Such as, but not limited to, a global posi
from the amount indicator and inventory price information tioning system (GPS).
from the inventory price Source. The control unit analyzes The inventory management system 100, as embodied by
the inventory amount Signals to determine amounts in the the invention, is schematically illustrated in FIG. 1. The
receptacle. The control unit also analyzes the amounts and inventory management System 100 comprises a monitoring
inventory price information, and uses this information to arrangement 101 at a manufacturing site 103. The manufac
determine if an inventory order should be placed. turing Site 103 comprises at least one inventory processor
The inventory management method information concern 102 that forms a product from the inventory 150. The
ing inventory amounts and inventory ordering to a manu inventory processor 102 includes, but is not limited to, an
facturing site, an inventory vendor, or both. The method extruder, an injection molder, a die cast device, and other
comprises the Steps of determining an inventory amount in inventory consuming device.
each receptacle, generating Signals representative of inven Inventory 150 is stored in a plurality of receptacles 104 at
tory amounts, providing inventory price information from at the manufacturing site 103. The receptacles comprise any
least one inventory price Source; receiving inventory amount appropriate Storage device, Such as, but not limited to, a Silo,
Signals, receiving inventory price information from the 15
Storage bin, hopper, and bag, and combinations thereof. The
inventory price Source; analyzing inventory amount Signals shape and material of each receptacle may differ and do not
and inventory price information; determining if an inventory affect the operation of the inventory management System
order should be placed based on the analyzed inventory 100. The description of the invention refers to a receptacle,
amounts and inventory price information; and providing however this is not meant to limit the invention in any way,
information concerning an inventory order in an accessible and the description covers other inventory Storage devices as
form to at least one of a manufacturing Site and an inventory well.
vendor. Each receptacle 104 is connected to the processor 102 by
These and other aspects, advantages and Salient features inventory supply lines 106. The inventory Supply lines 106
of the invention will become apparent from the following 25 deliver the inventory 150 to the processor 102 so the
detailed description, which, when taken in conjunction with inventory 150 may be processed and formed into an appro
the annexed drawings, where like parts are designated by priate article. The inventory Supply lines 106 comprise any
like reference characters throughout the drawings, disclose means for transporting inventory 150. Therefore, the inven
embodiments of the invention. tory supply lines 106 may include, but are not limited to,
pneumatic lines, Screw conveyors, belt conveyors, bucket
BRIEF DESCRIPTION OF THE DRAWINGS conveyors, and vibratory lines.
FIG. 1 is a Schematic primarily block diagram of an Each receptacle comprises an amount indicator 108 that
inventory management System; provides signals indicative of an inventory amount 151. The
FIG. 2 is an illustration of a web page containing real-time amount indicator 108 is illustrated as disposed at the top of
analyzed Silo information; and 35 the receptacles, however this arrangement is merely for
FIG. 3 is an illustration of a web page containing histori illustration. The position of the indicator 108 may be any
cal trend analyzed information for a receptacle at a manu where in communication with the inventory amount 151.
facturing site. The scope of the invention further includes an indicator 108
that comprises a level Sensor, a weight indicator, a Volume
DESCRIPTION OF THE INVENTION 40 analyzer, and other devices that permit determination of the
amount 151 of inventory 150 in a receptacle 104. Further,
The inventory management System and method, as the indicator 108 may also measure amount influencing
embodied by the invention, permit monitoring and deter variables, Such as, humidity and temperature. These indica
mining real-time inventory Status of one or more Storage tors are merely exemplary, and are not meant to limit the
receptacles, Such as SiloS at a manufacturing site, automatic 45 Scope of the invention in any way.
ordering of inventory to replenish the receptacles at a low Exemplary indicators include ultrasonic and ultrasound
price, and purchasing the inventory at a lowest possible level detectors, optical Sensors, laser amount Sensing
price. The inventory monitoring permits historical analysis detectors, nuclear amount Sensing detectors, load (weight)
of inventory use, evaluation of inventory usage, automation cells, and other devices capable of detecting amounts. Ultra
and Suggestions for a vendor's (also known as a Supplier) 50 Sound detectors enable accurate receptacle inventory
manufacturing Schedule to meet the needs of a manufactur amount determination, even if there are voids in the
ing site's Schedule. The inventory monitoring also permits receptacle, Such as those Voids that result from clumping and
prediction of estimated future inventory usage, lot coagulating of the inventory 150. If a weight Sensor is used
identification, forecasting based on trends and economic to determine the amount in a receptacle, a tare weight of the
indicators, automatic notification of inventory occurrences 55 receptacle is Subtracted from a groSS weight of the receptacle
that require attention, and automation of inventory ordering. to determine the net weight. The volume of the inventory
The inventory ordering, as embodied by the invention, 150 can be determined by dividing the gross weight by the
considers many factors, including, but not limited to, his inventory's density.
torical inventory usage trends, real-time needs, economic The indicators 108 send signals indicative of the inven
models, pricing models, information concerning estimated 60 tory amount 151 to a site controller 112. The site controller
future needs and changes, inventory Supply time, and com 112 is connected to receive signals from inventory Storage
parative pricing and purchasing ability. receptacles and on-site inventory areas. These on-site Stor
The inventory management System comprises a monitor age areas, which contain inventory 150 and include a Sensor
ing arrangement at a manufacturing Site and a control that 108 as needed, may include, a warehouse 113 and on-site
interacts with the monitoring arrangement. The control also 65 transport vehicles, for example a rail car 111, vessel 117, and
interacts with inventory price Sources, Shipping information a truck 110, that have delivered inventory 150 to the
Sources, vendor manufacturing Schedules, and an inventory manufacturing site 103.
 US 6,341,271 B1
S 6
The on-site Storage areas and receptacles transmit their 114. AS shown, a distributed processing architecture pro
amount Signals to the Site controller 112. Thus, the Site vides enhanced data/signal processing capability and Speed
controller 112 receives inventory amount Signals from each for the control unit 114. The control unit 114 may also
on-site storage device. The site controller 112 forwards these incorporate a “JAVA' virtual machine that links a server
signals over time to the control unit 114, as the processor 102 through the Internet for communication purposes (described
forms articles from the inventory 150 and the amounts hereinafter).
within the receptacles 104 drop. Accordingly, the control The control unit 114 is connected to an inventory price
unit 114 determines the amount of inventory used over time, Source 126, which is able to determine the lowest available
can estimate future use, and determine if an inventory order price for the inventory 150. The connection is made by any
is needed. appropriate means, Such as, but not limited to, wireleSS and
The Signals transmitted in the inventory management hardwired connections, as discussed above. An Internet
system 100 are typically sent over hardwired connections, based connection permits real-time, instantaneous price
for example cables, connectors, dedicated phone lines, fiber information to be obtained by the control unit 114. The
optic lines, and Similar hardwired connections. inventory price Source comprises at least one of economic
Alternatively, the Signals may be sent by wireless 15 indicators, economic models, commodity pricing indexes,
connections, including but not limited to, wired and wireleSS Spot market pricing, Dow Jones' information, other market
Ethernet Signals, radio signals, short-wave Signals, wired information, and other inventory price Sources. The control
and wireleSS Internet and web signals, and other wireleSS unit 114 Stores and analyzes historical trends of inventory
connections. Signals are Sent from and received by the prices to determine analyzed inventory price trends.
control unit 114. Accordingly, the control unit 114 analyzes information and
The Site controller 112 typically comprises a Solid State determines when an inventory price is close to historical
Signal processor and is connected to a control unit 114 to high, low, or average prices. The control unit 114 provides
receive signals from the site controller 112. The Signals information concerning opportune times to purchase inven
received by the site controller 112 are indicative of the tory based on price. Accordingly, the system 100 does not
inventory amount 151 in each receptacle and Storage area, 25 rely upon a previously used inventory vendor, but can buy
for example, the warehouse 113 and on-site transport inventory from a low priced inventory vendor based on
vehicles. The signals from the site controller 112 to the real-time inventory prices.
control unit 114 comprise Signals Sent by at least one of The control unit 114 is also connected to Shipping infor
hardwired connections and wireleSS connections, as dis mation Sources 116. The connection to shipping information
cussed above. Sources 116 is achieved by at least one of hardwired and
The control unit 114 is programmed to operate, and wireleSS communications, including Internet communica
alternatively comprises Software, for data acquisition, data tion and others as discussed above. The Shipping informa
mining, and analysis Software, that enable inventory man tion sources 116 provide the control unit 114 with informa
agement analysis and decisions to be made. The control unit tion for analyzing inventory avail ability, and the types and
114 comprises any appropriate high-powered Solid-State 35 costs of transporting the inventory 150 from a vendor to the
Switching device. As illustrated, the control unit 114 is manufacturing site 103. The shipping information includes,
represented as a computer, however, this is merely exem but is not limited to, tariffs, taxes, types and sizes of
plary of an appropriate high-powered control, within the available shipping from the vendor 200 and outside
Scope of the invention. For example, but not limiting of the Shippers, and other costs associated with Shipping the inven
invention, the control unit 114 comprises at least one of a 40 tory 150 from the vendor 200 to the manufacturing site 103.
silicon controlled rectifier (SCR), a thyristor, MOS The Shipping information Sources 116 also provide the
controlled thyristor (MCT) and an insulated gate bipolar control unit 114 with transport data for analyzing, including
transistor. In the illustrated exemplary embodiment, the time needed for delivery from the vendor to the manufac
control is implemented as a Single special purpose integrated turing site 103, Size and type of Shipping vehicles available,
circuit, Such as Application Specific Integrated Circuit 45 and restrictions on Shipping, especially if the inventory may
(ASIC), having a main or central processor Section for be considered hazardous or perishable.
overall, System-level control, and Separate Sections dedi Therefore, the control unit 114 is provided with informa
cated to performing various different Specific combinations, tion for analyzing inventory purchase prices from different
functions and other processes under control of the central vendors and transportation-associated costs from a vendor.
processor Section. It will be appreciated by those skilled in 50 With such information, the control unit 114 analyzes and
the art that the control can also be implemented using a determines a lowest total inventory purchase price vendor
variety of Separate dedicated or programmable integrated or (low price vendor) for the inventory, where the total inven
other electronic circuits or devices. These devices include tory purchase price determination includes actual vendor
hardwired electronic or logic circuits including discrete inventory prices and transportation-associated costs. With
element circuits or programmable logic devices. The logic 55 out factoring in both inventory prices and transportation
devices comprise Programmable Logic Devices (PLDs), asSociated costs, an inventory with a low inventory price
Programmable Analytical Devices (PALS), Programmable may be purchased, however it may have high transportation
Logic Applications (PLAs), or the like. The control unit 114 costs. Therefore, its total inventory purchase price is higher
can also be implemented using a Suitably programmed than an inventory with a higher price, but with lower
general-purpose computer, Such as a microprocessor or 60 transportation-associated costs. Thus, a lower total inven
microcontrol, or other processor device, Such as a Central tory purchase price may be realized with a higher priced
Processing Unit (CPU) or Main Processing Unit (MPU), inventory.
either alone or in conjunction with one or more peripheral A global positioning System (GPS) 123 is also connect
data and Signal processing devices. able to the control unit 114. The GPS enables real-time,
In general, any device on which a finite State machine 65 instantaneous determination of an inventory order location
resides that is capable of implementing the flow charts, as while enroute to the manufacturing site 103. The GPS 123
illustrated in the application, can be used as the control unit transmits information concerning an inventory order
 US 6,341,271 B1
7 8
location, for example the GPS relies on a satellite system information. The analyzed information provides plant man
122 that receives signals from a transport vehicle 118, for agement and Vendors with reliable, Statistically based rec
example from transponders. Accordingly, the control unit ommendations for inventory decisions, manufacturing
114 with information from the GPS determines an exact Schedules, and other manufacturing related needs.
location of the inventory order and transport vehicle 118. The control unit 114 is also able to provide financial
The control unit 114 is also connectable to a transporta information concerning a product produced by the processor
tion advisory unit 125. The transportation advisory unit 125 102, thus providing another inventory management System
provides advisory information concerning road conditions, 100 benefit. This information is obtained over appropriate
rail conditions, water conditions, existing and possible communication lines from product financial information
delays, construction along possible routes, weather informa Sources 155, and is accessible by plant management from the
tion that may affect the Shipment, and other transportation inventory management System 100. For example, and not
affecting factors. The information from the transportation meant to limit the invention in any way, if the processor 102
advisory unit 125 to the control unit 114 comprise signals produces plastic pellets, the control unit 114 can acceSS
Sent by at least one of hardwired connections and wireleSS commodity markets to provide pricing information concern
connections, as discussed above. With this transportation 15 ing plastic pellets. An alert can be generated by the control
advisory information and the instant location of the transport unit 114 if a pellet price is within a price range designated
vehicle available from the GPS 123, the control unit 114 by plant management, and alternatively by an economic
analyzes information and advises the transport vehicle 118, model, as a desirable (premium) price to sell the pellets.
for example through appropriate communications links Therefore, the inventory management system 100, as
including but not limited to, radio communications, of the embodied by the invention, determines a real-time premium
quickest, most delay free route to follow to the manufac price for the Vendor's product, and alerts plant management
turing site 103. So Sales can be made. The ability of the inventory manage
The information from the above Sources is sent to the
control unit 114, in which it is analyzed to provide analyzed ment system 100 to provide real-time pricing information
information of inventory prices, Vendor prices, transporta for both inventory and its resultant product, provides means
25 for optimizing profits from a manufacturing Site 103.
tion costs, Shipping information, and total inventory pur Another inventory management system 100 benefit arises
chase prices (hereinafter "analyzed information'). The ana from analyzed information from the control unit 114 that can
lyzed information is accessible by a manufacturing site's
plant management and purchasing agent (hereinafter "plant be monitored by a service center 175. The service center 175
management’) to provide them with useful information provides customer Service, and monitors analyzed informa
concerning inventory costs. The plant management obtains tion and can perform further evaluation of the analyzed
the analyzed information in an end form, without Seeing the information, as needed. For example, the analyzed informa
raw data that has been analyzed. Plant management can alter tion can be further evaluated for quantifying inventory
trends.
Schedules based on the analyzed information, including
usage rates and forecast information. Accordingly, plant 35 A further inventory management system 100 benefit arises
management does not See, or is concerned with, the pro from the control unit 114, and alternatively the service center
cesses used by the control unit 114 to analyze the 175, applying analytical tools to the analyzed information,
information, and merely obtains the analyzed information. Such as, but not limited to, tools for evaluating inventory
The analyzed information sent by the control unit 114 is variations through Statistical analysis, design of experiment
typically provided to a vendor 200 who makes inventory. 40 methodology and quality control tools. The Statistical analy
The vendor 200 is able to schedule manufacture of inventory sis determines process capability, possible errors, and effec
150 in order to meet the demands of the manufacturing site tiveness of an individual feature's performance. The Statis
103. For example, if a manufacturing site 103 will increase tical analysis also determines Sources of delays in the
production in ten days, the vendor 200 will be able to inventory ordering, Such as delays due to a vendor,
determine this increased production from the inventory 45 transportation, and ordering. The Statistical analysis of infor
management System 100, and will provide increased mation relies upon known information measurement and
amounts of inventory 150 to meet the requirements of the analysis procedures, Such as, but not limited to, those
manufacturing site 103. The vendor 200 may be unable to described in Six Sigma Productivity Analysis and Process
meet the increased production demands of the manufactur Characterization, Mikel J. Harry and J. Ronald Lawson.
ing site 103 if not for possessing analyzed information from 50 Addison-Wesley Publishing Co., 1992.
the inventory management system 100. The analyzed infor The control unit 114 and the service center 175 can send
mation between the vendor 200 and the control unit 114 alerts to plant management at the manufacturing Site and
comprises signals Sent by at least one of hardwired connec vendors (if desired), if a “critical” event, such as but not
tions and wireleSS connections, as discussed above. limited to, extreme shortages in inventory, very low or high
The analyzed information from the control unit 114 is 55 inventory prices, and changes in economic indicators occur.
typically accessible anywhere and any time, for example by The alerts are sent automatically by the control unit 114, and
phone, Voice mail, fax, overnight and regular mail, courier, may also be sent manually by the service center 175. The
and over the Internet. If the information is sent over the alerts are Sent by any appropriate communication mode,
Internet, the analyzed information is available by Simply Such as regular mail, e-mail, telephone call, pagers,
connecting to an appropriate web site, where the analyzed 60 facsimile, Internet messages, and Similar communications.
information is presented and updated instantaneously, or as The control unit 114 applies predictive engineering tools
appropriate. The web site can be password protected, So that to the analyzed inventory information that will assist plant
access to the analyzed information remains to those who management in developing transfer functions concerning
have a need to know. Thus real-time information, analyzed inventory management for another inventory management
information, historical trend information, records of prices, 65 system 100 benefit. The transfer functions are used to
inventory usage, Shipment location, and other inventory enhance Set-up of the inventory management System 100,
related information is available to those who need the and to further monitor and modify, if needed, its perfor
 US 6,341,271 B1
9 10
mance. The transfer functions are developed through analy needs an order. Returns of inventory orders will be reduced
sis of inventory usage, Vendor information, Shipping as inventory will be shipped only when a manufacturing Site
information, critical to quality (CTO) variables, and other 103 actually needs inventory 150. This ordering method
variables in the inventory management System. For example, reduces Standing inventory and increases inventory turn
the transfer functions for the inventory management System around for both the manufacturing site 103 and the vendor
100, as embodied by the invention, can be developed 200. The method is desirable to maintain associated inven
through design-of-experiments (DOEs). tory costs, Such as, but not limited to, Storage, Shipping, and
The real-time inventory status is available without the billing costs, at a minimum.
errors and delays associated with manual level readings, The inventory management system 100 further can also
determination of Volume, calculation of inventory trends rely on appropriately developed inventory policy models to
including price and usage, and determination of inventory determine when is the most appropriate time to order
order appropriateness. Also, the control unit 114, including inventory 150, for the benefit of another inventory manage
its pricing Software, is able to determine a lowest total ment system 100. The models are incorporated into at least
inventory purchase price for inventory and times for inven one of the control unit 114 and service center 175. The
tory to be delivered to the manufacturing site 103, in order 15 inventory policy model considers many factors, including
to maintain operations at the manufacturing site 103. but not limited to, further production plans, amount of
Therefore, efficiency of the purchasing proceSS is enhanced, inventory historically used, proceSS capability of the pro
and cost Savings will be evident. ceSSor 102, Storage capability of the manufacturing site 103,
The inventory monitoring system 100, as embodied by the and other Such factors. For example, and in no way limiting
invention, comprises a modular design So expansion of the of the invention, inventory orders would be increased if the
System's Services and operation are readily achieved for inventory is used to produce polyvinylchloride piping for
another inventory management system 100 benefit. For new housing construction and a manufacturing site 103
example, plant management may only desire inventory anticipates or has just obtained a large order due to the new
pricing information. At a later date, the control unit 114 may housing Starts. Conversely, inventory orders would be cur
be readily modified to provide at least one of Shipping 25 tailed if new housing construction Slowdowns were fore
information, GPS capability, and transportation advisory SCC.
information, thus enabling plant management to obtain more Also another benefit of the inventory management System
analyzed inventory information. Further, advances made in 100 arises from its capacity of connecting to economic
manufacturing Sites, vendors, transportation, Software, forecasting models, which provide information concerning
Sensors, and other features of the inventory management the economy and predictions of further events. The eco
System 100 are easily integrated into the inventory manage nomic forecasting models provide information that will be
ment system 100. useful in estimating future manufacturing trends. The eco
The inventory management system 100 is useable by nomic forecasting models will assist in the ordering of
plant management, as described above. The inventory man inventory to enable a manufacturing site 103 to follow
agement system 100, as embodied by the invention, is also 35 estimations. For example, an economic forecasting model
controllable by a vendor 200 to provide further service to may predict that inventory prices will rise or fall due to
end users of its inventory. A vendor controlled inventory various economic factors and external factors, Such as
management System (hereinafter "vendor-managed inven weather that may affect housing Starts and demands for the
tory System'), as embodied by the invention, provides processed article (see the above example). This price infor
increased interaction between the manufacturing site 103 40 mation is useful to both the manufacturing site 103 and the
and vendors. A vendor 200, if allowed by a manufacturer, vendor 200 for future plans. A vendor 200 with this analyzed
will be able to watch and predict inventory use at the information provided by the inventory management System
manufacturing site 103, and deliver inventory 150 to the 100 can pass on important information to its customers, and
manufacturing site 103 without requiring a paper order from make itself a valuable partner in their business. This coop
a purchasing agent through vendor managed inventory Sys 45 eration is desirable for many vendor-manufacturing site
tems. For example, the order is placed, Sometimes busineSS relations, as both parties benefit from pricing and
automatically, Such as electronically. This process eliminates inventory analysis.
a middleman, frees up resources at the manufacturing Site The inventory management system 100 enables location
103, and reduces delays and costs of ordering, Since elec and identification of individual inventory orders at the
tronic communication is virtually instantaneous and inex 50 manufacturing site 103, for example identification of a
pensive compared to paper communications. Also, this pro vendor's inventory at the manufacturing site 103. This
ceSS increases inventory turn around by enabling a vendor inventory identification can use identifying codes, Such as,
200 to ship inventory in desired amounts to maintain a but not limited to, bar codes. A transport vehicle 118 can
Steady manufacture rate to a manufacturing site when appro have an identifying code associated with it when it leaves a
priate to replenish inventory. The inventory will be imme 55 vendor 200, and the same code is used throughout inventory
diately useable by the manufacturing site 103, and will not lifetime to locate the inventory while enroute to the manu
be Stored un-used for extended periods of time. facturing site 103, in Storage at the manufacturing site 103,
Another inventory management system 100 benefit arises in receptacles 104 at the manufacturing site 103, and being
from an interaction of a vendor 200 with the inventory processed. Therefore, location and identification of inven
management system 100 that permits the vendor 200 to 60 tory is readily accessible using the inventory management
check and confirm that an order, for example a paper order system 100.
placed by a purchasing agent, is needed at the manufacturing Yet another benefit from the inventory management Sys
site 103. The inventory management system 100 automates tem 100 arises from its capability of permitting evaluation of
the inventory management proceSS and reduces occurrences products produced by the processor 102 dependent on the
of incorrect orders. Also, “rush” orders (known in the 65 inventory shipment, also known as an inventory “lot'. In Silo
industry as “hotsheets”) will be avoided, as a vendor 200 1104 of FIG. 1, the inventory 150 comprises two different
will be able to discern when a manufacturing site actually lots. For example, lot 105 is from a different vendor than lot
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107. Alternatively, the lots 105 and 107 may be from the on the link and is transferred to a web page that illustrates
Same vendor, but different shipments. Since the amounts of historical trends, generated by the control unit 114 of the
lots 105 and 107 are known, as they were ordered through inventory management system 100, as embodied by the
the inventory management system 100, the products inven invention. FIG. 3 illustrates an exemplary design for a
tory and its Source are known. historical trend web page 250. The historical trend web page
These lots may also be identified, as discussed above. If 250 includes various silo readings over periods of time. For
a product possesses a fault and the fault is determined to example, and in no way limiting of the invention, the
arise from the inventory, plant management can trace the displays include historical Silo feet, weight and percent
inventory to a particular vendor. Therefore, corrective action trends over 48 hours, at 251, over 14 days, at 252, and over
can be taken. If the inventory management system 100 two month periods, at 253 and 254. The web page can also
indicates that a particular vendor's inventory is historically provide a “dashboard” that illustrates current realized sav
ings as a result of using the inventory management System
faulty, Such as, but not limited to, poor inventory quality or 100, as embodied by the invention versus prior historical
late deliveries, or the Vendor is otherwise unsatisfactory, trends and purchases.
plant management can terminate the vendor 200. This ven The analyzed information generated by the inventory
dor termination will increase productivity and quality of the 15
management System 100, as embodied by the invention, may
manufacturing site 103, Since high quality inventory will be be encrypted and Stored for reference and library purposes.
properly controlled. The information can be Stored geographically Separate form
The inventory management system 100 provides real each other to avoid a loSS of information.
time, analyzed information concerning inventory in easily While various embodiments are described herein, it will
readable formats, including, but not limited to, formats be appreciated from the Specification that various combina
accessible over the Internet, thereby providing a further tions of elements, variations or improvements therein may
inventory management system 100 benefit. Alternatively, be made by those skilled in the art, and are within the Scope
the information can be accessible by voice mail, e-mail, of the invention.
telephone call, facsimile, Internet messages, pagers, and 25
What is claimed is:
other appropriate communication modes. FIGS. 2 and 3 are 1. A network-based inventory management System that
illustrations of web pages containing analyzed information automatically provides information concerning inventory
for a receptacle at a manufacturing site. In FIG. 2, an amounts and decides replacement inventory ordering, the
inventory web page ShowS real-time analyzed information System comprising a network-based machine-initiated and
for a receptacle. The receptacle is illustrated as a Silo, executed System comprising:
however this is merely exemplary, and the receptacle can at least one Storage receptacle that Stores inventory;
take any form and be illustrated in any way. In FIG. 2, the at least one indicator that automatically determines an
silo 204 is illustrated with its inventory amount schemati inventory amount in each receptacle, each indicator
cally shown thereon by a bar 205. FIG. 2 also contains scales generating inventory amount Signals representative of
for indicating the quantity in the Silo, for example a Scale 35 the inventory amount in the receptacle;
207 that indicates real-time silo amounts in feet and a scale at least one inventory price Source that provides inventory
209 that indicates real-time silo amounts in pounds. price information from at least one inventory vendor;
FIG. 2 also indicates the date and time of the last reading and
at 217, where readings can be constantly updated to provide a control unit that receives the inventory amount Signals
real-time information, at time periods and intervals deter 40 from the indicator and inventory price information
mined by plant management. For example, and in no way from the inventory price Source,
limiting of the invention, readings can be taken every wherein the control unit automatically analyzes the inven
minute, 6 minutes (10 times an hour), every 10 minutes (6 tory amount Signals to determine inventory amounts in
times an hour), every 15 minutes (4 times an hour), every the receptacle, the control unit is capable of automati
hour, and any other Suitable and appropriate interval. The 45 cally integrating the inventory amounts and inventory
time interval can be automatically changed by the control price information to decide if an inventory order Should
unit 114 or the service center 175 in response to increases be placed; and
and decreases in usage. For example, the time interval can wherein the indicator, the inventory price Source, and the
be changed based on a first derivative of a usage plot's slope. control unit communicate with each other within a
Other instantaneous real-time data displays include, but 50 network.
are not limited to, a display for a reading interval or number 2. A System according to claim 1, wherein the control unit
of readings taken to this point at 213; a display for the comprises a computer.
real-time inventory use in lb/hr at 215; a current time display 3. A System according to claim 2, wherein the computer
at 211; a display for the lot number or numbers in the silo at is capable of performing automatic data acquisition, data
219; a display for a realtime silo amount in feet at 221; a 55 mining, and data analysis and the network is a computer
display for a real-time percent that the Silo is full at 223; a based network.
display for a real-time Silo amount by weight at 225; a 4. A System according to claim 1, wherein the at least one
display for an indication of a latest low-amount notification inventory price Source provides inventory price information
date at 227; and a display for a material shipped date at 229. from a plurality of Vendors, and the control unit is capable
These displays are merely exemplary, and the exact displayS 60 of determining a lowest total inventory purchase price from
are determined to provide plant management and vendors inventory prices of each inventory vendor and is capable of
with the highest degree of information needed and desired deciding if an inventory order Should be placed based on the
by them. lowest total purchase price information.
The web page in FIG. 2 also illustrates a button 230, such 5. A System according to claim 4, wherein total inventory
as, but not limited to, one of a hypertext link, image, hot link, 65 purchase price comprises inventory price, and at least one of
and other such link (hereinafter “link”), for obtaining his tariffs, taxes, and costs of transporting inventory from each
torical trend information. An inventory web page user clickS respective vendor to a manufacturing site.
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6. A System according to claim 1, wherein the control unit tory purchase price based on inventory prices of each
is capable of determining historical inventory price inventory vendor and estimated future inventory use and is
information, is capable of determining real-time inventory capable of determining if an inventory order should be
price information, is capable of estimating future inventory placed based on the estimated future inventory use and the
price information from the inventory price Source, and is determination of lowest total purchase price information for
capable of analyzing at least one of the historical inventory each inventory vendor.
price information, real-time inventory price information, 18. A System according to claim 1, further comprising at
and estimated future inventory price information to deter least one product information Source that is capable of
mine if an inventory order should be placed. providing product pricing information concerning processed
7. A System according to claim 1, wherein the inventory articles formed from the inventory, wherein the control unit
management System provides analyzed inventory informa is capable of determining estimated future production based
tion in a format accessible by at least one of a manufacturing on product pricing information, and is capable of determin
Site and inventory vendor to determine a Schedule for ing if an inventory order should be placed based on the
replacement inventory. estimated future inventory use and estimated future inven
8. A System according to claim 7, where the inventory 15 tory needs based on estimated future production.
information format comprises analyzed information that 19. A System according to claim 1, further comprising a
includes at least one of inventory quantity; inventory weight Shipping information Source that comprises at least one of
amounts, inventory readings as a function of time, inventory available transportation type information from an inventory
use; last reading information; inventory lot number infor vendor to a manufacturing site and transportation cost
mation; receptacle Volume information; receptacle Volume information, the shipping information Source accessible by
percent information; low-amount notification information; the control unit to provide the control unit with transporta
and inventory shipment information. tion type information for determining if an inventory order
9. A System according to claim 7, wherein the analyzed should be placed based on the estimated future inventory use
inventory information comprises real-time inventory and information from the Shipping information Source.
information, estimated future inventory information, and 25 20. A System according to claim 1, further comprising
historical inventory information. transportation advisory Source that provides transportation
10. A System according to claim 7, wherein the analyzed information, the transportation information comprises at
inventory information is accessible over the Internet, and the least one of road condition information, rail condition
analyzed inventory information is capable of being commu information, water condition information, existing and pos
nicated to an inventory vendor and manufacturing Site by at Sible delay information, construction along possible inven
least one of facsimile, Internet messages, pagers, regular tory order information, and weather information, the control
mail, e-mail, Voice mail, and telephone call. unit is capable of determining the transportation information
11. A System according to claim 1, wherein the indicator from the transportation advisory Source, is capable of ana
comprises at least one of an ultraSonic amount detector, an lyzing the transportation type information, and is capable of
ultrasound amount detector, an optical Sensor amount 35 determining potential delays and an inventory shipment
indicator, a laser amount detector, a nuclear amount detector, route that provides an expedited inventory order.
and a load cell detector amount indicator, and combinations 21. A System according to claim 20, the System further
thereof. comprising a global positioning System that is capable of
12. A System according to claim 1, wherein the Storage determining a location of inventory orders, and a commu
receptacle comprises at least one of a Silo, Storage bin, bag, 40 nication link from the control unit to the inventory order,
warehouse, on-site transport vehicle, and hopper, and com wherein the control unit is capable of accessing the global
binations thereof. positioning System to determine a real-time location of the
13. A System according to claim 1, further comprising a inventory order and where the control unit is capable of
Site controller, wherein the Site controller is capable of communicating with the inventory order to inform the
receiving Signals from each indicator and the Site controller 45 inventory order of potential delayS.
is capable of communicating the Signals to the control unit. 22. A System according to claim 1, further comprising a
14. A System according to claim 13, wherein the Site global positioning System that is capable of providing the
controller comprises a Solid State Signal processor. control unit a location of inventory orders.
15. A System according to claim 1, further comprising at 23. A System according to claim 1, further comprising a
least one processor connected to a storage receptacle, the 50 Service center in communication with the control unit, the
processor capable of forming a processed article from the Service center analyzing inventory amount Signals and ana
inventory, and the control unit is capable of determining an lyzed information, and the Service center capable of per
inventory amount used by the processor. forming Statistical analysis of the inventory amount Signals
16. A System according to claim 15, wherein the indicator and analyzed information.
is capable of providing inventory amounts in the receptacle 55 24. A System according to claim 23, the Service center
over time, the control unit is capable of determining an generates alerts in response to predetermined conditions, the
inventory amount used in the processor by determining a predetermined conditions comprising Shortages in
difference in inventory amounts in the receptacle at two inventory, inventory prices, and changes in economic
different times, is capable of determining estimated future indicators, wherein the alerts are Sent to at least one of the
inventory used based on the amount of inventory used by the 60 manufacturing site and inventory vendor.
processor, and is capable of determining if an inventory 25. A System according to claim 1, the control unit
order Should be placed based on estimated future inventory generates alerts in response to at least one of predetermined
Sc. conditions and analyzed information, the predetermined
17. A System according to claim 16, wherein the at least conditions comprise shortages in inventory, inventory
one inventory price Source is capable of providing inventory 65 prices, and changes in economic indicators, wherein the
price information from a plurality of inventory Vendors, the alerts are automatically Sent by the control unit to at least
control unit is capable of determining a lowest total inven one of the manufacturing Site and inventory vendor.
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26. A System according to claim 1, wherein the control and communicating the information to a vendor and
unit identifies inventory by vendor. manufacturing site by at least one of facsimile, Internet
27. A network-based inventory management method for messages, pagers, regular mail, e-mail, Voice mail, and
providing information concerning inventory amounts and telephone call.
inventory ordering to at least one of a manufacturing site and 5 36. A method according to claim 27, wherein the method
an inventory Vendor, the method comprising automatic Steps further comprises determining inventory amount using at
that are machine-initiated and executed, the automatic Steps least one of an ultraSonic amount indicator, an ultrasound
comprising: amount indicator, an optical Sensor amount indicator, a laser
determining an inventory amount in each receptacle, amount indicator, a nuclear amount indicator, and a load cell
generating Signals representative of inventory amounts, detector amount indicator, and combinations thereof.
providing inventory price information from at least one 37. A method according to claim 27, further comprising
inventory Source; employing a site controller that receives Signals from each
amount indicator, wherein the Site controller communicates
receiving inventory amount Signals, with other apparatuses within the network.
receiving inventory price information from the inventory 15 38. A method according to claim 27, wherein the method
price Source; further comprises:
analyzing inventory amount Signals to determine inven withdrawing inventory from the receptacle,
tory amounts in the receptacle and inventory price forming an article from the withdrawn inventory;
information; determining a difference in inventory amounts in the
integrating the inventory amounts and the inventory price receptacle before and after Said withdrawing, thereby
information to decide if an inventory order should be determining an amount of inventory used by the pro
placed; and CeSSOr,
providing information concerning an inventory order in determining an estimated future inventory use based on
accessible form to at least one of a manufacturing site 25 the amount of inventory used by the processor; and
and an inventory vendor; determining if an inventory order should be placed based
wherein the automatic Steps of determining, generating, on the estimated future inventory use.
providing, receiving, and integrating are performed by 39. A method according to claim 27, wherein the method
apparatuses that communicate with each other within a further comprises:
network. determining a lowest total inventory purchase price from
28. A method according to claim 27, wherein the steps of inventory prices of each vendor and estimated future
receiving, analyzing, determining inventory amounts, and inventory use; and
determining inventory orders is controlled by a computer. determining if an inventory order should be placed based
29. A method according to claim 28, wherein the com on the estimated future inventory use and the lowest
puter is capable of automatic data acquisition, data mining, 35 total purchase price information for each vendor.
and data analysis and wherein the network is a computer 40. A method according to claim 27, wherein the method
based network. further comprises:
30. A method according to claim 27, the method further providing product pricing information concerning prod
comprises Steps of automatically providing inventory price ucts formed from the inventory;
information for plurality of Vendors, determining a lowest 40
determining estimated future production based on product
total inventory purchase price from inventory prices of each
vendor, and deciding if an inventory order should be placed pricing information; and
based on the determination of lowest total purchase price determining if an inventory order should be placed based
information. on the estimated future inventory use and estimated
31. A method according to claim 30, wherein the step of 45 future inventory needs based on estimated future pro
determining total inventory purchase price comprises deter duction.
mining a price of inventory and determining at least one of 41. A method according to claim 27, wherein the method
tariffs, taxes, and costs of transporting inventory from the further comprises:
vendor to the manufacturing site. providing information concerning available types of
32. A method according to claim 27, the method further 50 transportation from a vendor to a manufacturing site
comprising Steps of determining at least one of historical and information concerning costs of transportation; and
inventory price information, determining real-time inven determining if an inventory order should be placed based
tory price information, and estimating future inventory price on the estimated future inventory use and total inven
information, the method further comprises analyzing at least tory purchase price considering information from the
one of the historical inventory price information, real-time 55 Shipping information Source.
inventory price information, and estimated future inventory 42. A method according to claim 27, wherein the method
price information to determine if an inventory order should further comprises:
be placed. providing at least one of road condition information, rail
33. A method according to claim 27, further comprising condition information, water condition information,
identifying inventory by Vendor. 60 existing and possible delay information, construction
34. A method system according to claim 27, where the along possible inventory order information, and
inventory information comprises at least one of real-time weather information; and
inventory information, estimated future inventory determining an inventory Shipment route that provides
information, and inventory historical information. expedited inventory order.
35. A method according to claim 33, wherein the method 65 43. A method according to claim 42, wherein the method
further comprises: further comprises:
accessing the analyzed information over the Internet, providing location of inventory orders, and
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determining a real-time location of the inventory order, price information, and the means for receiving the inventory
and communicating possible potential delays to the amount Signals considers at least one of historical inventory
inventory order. price information, real-time inventory price information,
44. A method according to claim 27, wherein the method and estimated future inventory price information to deter
further comprises analyzing inventory amount Signals and mine if an inventory order should be placed.
information and performing Statistical analysis of the inven 52. A System according to claim 46, wherein the inventory
tory amount Signals and information. management System provides analyzed inventory informa
45. A method according to claim 27, wherein the method tion format accessible by at least one of a manufacturing site
further comprises: and inventory vendor to determine a Schedule for replacing
generating alerts in response to predetermined conditions, the inventory.
the predetermined conditions comprising shortages in 53. A system according to claim 52, where the inventory
inventory, low inventory prices, and changes in eco information format comprises analyzed information com
nomic indicators, and prising at least one of inventory quantity; inventory weight
Sending the alerts to at least one of the manufacturing site amounts, inventory readings as a function of time, inventory
and vendor. 15 use; last reading information; inventory lot number infor
46. A network-based inventory management System for mation; means for Storing inventory Volume information;
automatically providing information concerning inventory means for Storing inventory Volume percent information:
amounts and inventory ordering to at least one of manufac low-amount notification information; and inventory ship
turing Site and an inventory vendor, the System comprising ment information.
a network-based machine-initiated and executed System 54. A System according to claim 52, where the analyzed
comprising: inventory information comprises at least one of real-time
means for Storing inventory; inventory information, estimated future inventory
means for determining an inventory amount in each information, and historical inventory information.
means for Storing inventory, the means for determining 55. A system according to claim 52, wherein the analyzed
an inventory amount generating inventory amount Sig
25 inventory information is accessible over the Internet, and is
nals representative of inventory amounts in the means communicated to a Vendor and manufacturing site by at least
for Storing inventory; one of facsimile, Internet messages, pagers, regular mail,
e-mail, Voice mail, and telephone call.
means for providing inventory price information; and 56. A System according to claim 46, wherein the means for
means for receiving the inventory amount Signals from determining an inventory amount in each receptacle means
the means for determining an inventory amount and comprises at least one of an ultraSonic amount detector, an
inventory price information from the means for pro ultrasound amount detector, an optical Sensor amount
viding inventory price information, indicator, a laser amount detector, a nuclear amount detector,
wherein the means for receiving the inventory amount and a load cell detector amount indicator, and combinations
Signals analyzes the inventory amount Signals to deter 35 thereof.
mine inventory amounts in the means for Storing 57. A system according to claim 46, wherein the means for
inventory, the means for receiving the inventory Storing inventory comprises at least one of a Silo, Storage
amount Signals analyzes the inventory amounts and bin, bag, warehouse, on-site transport vehicle, and hopper,
inventory price information and the means for receiv and combinations thereof.
ing the inventory amount Signals determines if an 40 58. A System according to claim 46, further comprising
inventory order should be placed, and Site controller means for receiving Signals from each amount
wherein means for Storing, means for determining, means indicator, the Site controller means communicating the Sig
for providing, and means for receiving communicate nals to the means for receiving the inventory amount Signals.
with each other within a network. 59. A system according to claim 58, wherein the site
47. A System according to claim 46, wherein the means for 45 controller means comprises Solid State Signal processing
receiving the inventory amount Signals comprises a com CS.
puter. 60. A System according to claim 46, further comprising
48. A System according to claim 47, wherein the computer means for forming a processed article from inventory con
comprises at least one of data acquisition means, data nected to the means for Storing inventory.
mining means, and data analysis means. 50 61. A system according to claim 60, wherein the means for
49. A system according to claim 46, wherein the means for determining an inventory amount provides inventory
providing inventory price information provides inventory amounts in the means for Storing inventory over time, the
price information from a plurality of Vendors, the wherein means for receiving the inventory amount Signals deter
the means for receiving the inventory amount Signals deter mines an inventory amount used by the means for forming
mines a lowest total inventory purchase price from inventory 55 a processed article by determining a difference in inventory
prices of each vendor and the means for receiving the amounts in the means for Storing inventory over time, the
inventory amount Signals determines if an inventory order means for receiving the inventory amount Signals deter
should be placed based on the determination of lowest total mines estimated future inventory use based on the amount of
purchase price information. inventory used by the means for forming a processed article,
50. A system according to claim 49, wherein total inven 60 and the means for receiving the inventory amount Signals
tory purchase price comprises a price of inventory, and at determines if an inventory order should be placed based on
least one of tariffs, taxes, and costs of transporting inventory the estimated future inventory use.
from a vendor to the manufacturing Site. 62. A System according to claim 61, wherein the means for
51. A System according to claim 46, wherein the means for providing inventory price information provides inventory
receiving the inventory amount Signals determines at least 65 price information from a plurality of Vendors, the means for
one of historical inventory price information, real-time receiving the inventory amount Signals determines a lowest
inventory price information, and estimated future inventory total inventory purchase price based on inventory prices of
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each vendor and estimated future inventory use, and the orders, and communication link means from the means for
means for receiving the inventory amount Signals deter receiving the inventory amount Signals to the inventory
mines if an inventory order should be placed based on the order, and the means for receiving the inventory amount
estimated future inventory use and the determination of Signals accessing the global positioning means to determine
lowest total purchase price information for each vendor. a real-time location of the inventory order, and the means for
63. A System according to claim 46, further comprising receiving the inventory amount Signals communicating with
product information Source means for providing product the inventory order to inform the inventory order of possible
pricing information concerning processed articles formed delayS.
from the inventory, wherein the means for receiving the 67. A System according to claim 46, further comprising
inventory amount Signals determines estimated future pro global positioning means capable of providing the means for
duction based on product pricing information, and the means receiving the inventory amount Signals to a location of
for receiving the inventory amount Signals determines if an inventory orders.
inventory order should be placed based on the estimated 68. A System according to claim 46, further comprising a
future inventory use and future inventory needs based on Service center in communication with the means for receiv
estimated future production. 15
64. A System according to claim 46, further comprising ing the inventory amount Signals, the Service center analyZ
Shipping information Source means for providing at least one ing inventory amount Signals and analyzed information and
of available transportation type information from a vendor to the Service center performing Statistical analysis of the
a manufacturing Site and transportation cost information, the inventory amount Signals and information.
Shipping information Source accessible by the means for 69. A system according to claim 68, wherein the service
receiving the inventory amount Signals to provide the means center generates alerts in response to predetermined
for receiving the inventory amount Signals with transporta conditions, the predetermined conditions comprise short
tion type information for determining if an inventory order ages in inventory, low inventory prices, and changes in
should be placed based on the estimated future inventory use economic indicators, the alerts are Sent to at least one of the
and information from the Shipping information Source. 25 manufacturing site and Vendor.
65. A System according to claim 46, further comprising 70. A system according to claim 46, wherein the means for
transportation advisory Source means for providing at least receiving the inventory amount Signals generates alerts in
one of road condition information, rail condition response to at least one of predetermined conditions and
information, water condition information, existing and poS analyzed information, the predetermined conditions com
Sible delay information, construction along possible inven prise shortages in inventory, low inventory prices, and
tory order information, and weather information, the means changes in economic indicators, the alerts are automatically
for receiving the inventory amount Signals accessing infor Sent by the means for receiving the inventory amount Signals
mation from the transportation advisory Source means, ana to at least one of the manufacturing site and vendor.
lyzing the transportation type information and determining 71. A System according to claim 46, wherein the means for
an inventory shipment route that provides expedited inven 35 receiving the inventory amount Signals identifies inventory
tory order. by vendor.
66. A System according to claim 65, further comprising
global positioning means for providing location of inventory