System and program product for selecting a lower cost supplier based on total cost and forecasted demand

US8055520B2 · kind B2 · utility

Assignee

• International Business Machines Corporation · US

Inventors

• Gerald W. Baumann · Boulder, US
• David H. Goldstein · Boulder, US
• Richard A. Leavitt · Longmont, US
• John M. Salvadore · Boulder, US
• David B. Schroeder · Dover, US
• Paul A. Smith · San Diego, US
• Kirk A. Tatusko · Boulder, US

Key dates

• Filing date: May 9, 2008
• Grant date: Nov 8, 2011
• Expiry date: Sep 8, 2030

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q30/0283
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Under the present invention, componentized costs for providing/producing an item are collected from a plurality of suppliers. The componentized costs include the fixed and variable costs associated with raw materials and production for providing the item according to various specifications and order quantities. When a buyer wishes to obtain the item, a particular order specification and a demand forecast for the item will be provided. Based on the particular specification, the demand forecast and the componentized costs, an optimal order quantity for the item will be calculated. Then, a total (lifetime) cost for providing the item will be calculated for each supplier. The supplier having the lowest total cost for the projected lifetime of the item will be identified to the buyer.