United States Patent

III US005712989A
United States Patent (19) 11 Patent Number: 5,712,989

Johnson et al. (45) Date of Patent: Jan. 27, 1998
5,163,000 11/1992 Rogers et al. .... . 364/.424.01
54 JUST-IN-TIME REQUISITION AND 5,168,444 12/1992 Cukor et al. ........... a 364/401
NVENTORY MANAGEMENT SYSTEM 5,168,445 12/1992 Kawashima et al. .. ... 3647403
5,172,313 12/1992 Schumacher ....... ... 364/401
(75) Inventors: James M. Johnson, Bridgeville; 5,177,680 1/1993 Tsukino et al. ... ... 364-401
Douglas A. Momyer, Upper St. Clair, 5,193,065 3/1993 Guerindon et al. ...
both of Pa. 5204.821 4/1993 Inui et al. ...
5,334,822 8/1994 Sanford ................................... 235/385
(73) Assignee: Fisher Scientific Company, Pittsburgh, OTHER PUBLICATIONS
Pa.
SNA Transation Programmer's Reference Manual For LU
21 Appl. No.: 42,168 Type 6.2, pp. 1-1 to 1-6 (1991).
22 Filed: Apr. 2, 1993 (List continued on next page.)
(51) int. Cl. G06F 17/30 Primary Examiner Thomas G. Black
(52) U.S.C. .......................... 395/228; 395/222; 395/229; Assistant Examiner-Hosain T. Alam
395/200.03: 395/601; 364/468.05: 364/468.14: Attorney; Agent, or Firm-Gene A. Tabachnick; Reed Smith
235/385
Shaw & McClay
58) Field of Search .................................. 395/600, 165,
395/155, 161, 228, 729: 364/468, 413.01, 57 ABSTRACT
401, 403, 478, 188-189,468.05, 468.14: In accordance with the present invention, a requisition and
235/375, 385, 383 inventory management system is provided which employs
References Cited both a host computer and a local computer which can be
56) linked to permit two-way data communications in a real time
U.S. PATENT DOCUMENTS environment. Each computer has an associated database
which can be accessed by that computer. By accessing its
4.336,589 6/1982 Smith et al. ....................... 364468.14 respective database, each computer can build and transmit to
4.509,123 4/1985 Wereen ......... ... 364/468.14 the other computer communications blocks of data relating
4,636,950 1/1987 Caswell et al... ... 364/468.16 to a particular requisition of an item in Just-in-Time (JIT)
4,656,591 4/1987 Goldberg ................................ 364,478 inventory or to the management of the JIT inventory. The
4,807, 177 2/1989 Ward ............ . 364/DIG 2
4,843,546 6/1989 Yosida et al. ..... ... 364/468.14 other computer can then use the received data to continue
4,887,208 12/1989 Schneider et al. ...................... 364,403 processing of the requisition or to update its JIT inventory
4,916,611 4/1990 Doyle, Jr. et al. ... ... 364/468.05 records. Thus requisition records are created from a real
4,920,488 4/1990 Filley ... ... 364/468.14 time interaction between the host and local computers, with
4,949,248 8/1990 Caro ...... ... 364/DIG. 1 each computer using data from its respective database in
4,958,280 9/1990 Pauly et al. ... ... 364/468.14 conjunction with information entered by a Customer Service
4,958,292 9/1990 Kaneko et al. .................... 364/468.01 Representative (CSR) operating the local computer.
4,972,318 11/1990 Brown et al. ... ... 364/468.14
4,972,504 11/1990 Daniel, Jr. et al. ... 364/468.14 The system of the present invention also utilizes means for
4,984,155 1/1981 Geier et al. ............................. 364/40 automatically determining which items in the JTT inventory
5,006,983 4/1991 Wayne et al. . ... 364/468.14 are likely to require replenishment. The system then pro
5,038,283 8/1991 Caveney ............................. 364/468.05
5,077,665 12/1991 Silverman et al. ... 364/468.14 poses a purchase or transfer order for an optimum quantity
5,101,352 3/1992 Rembert ........... ... 364/468.14 of the item, which the CSR may accept or modify.
5,103,079 4/1992 Barakai et al. ... 235,380
5,117,354 5/1992 Long et al. ... ... 364/468.05
5,117,355 5/1992 McCarthy .......................... 364468.05 38 Claims, 12 Drawing Sheets
5,712,989
Page 2
OTHER PUBLICATIONS "Fisher Scientific PurchasePro." Version 1.1 (Copyright

1994): Introduction, pp. 1-6; File Editors, pp. 1-12; Pur
Arlene J. Wipfler. Distributed Processing in The CICS chase Requisitions, pp. 1-12; Fastback Orders, pp. 1-8;
Environment, pp. vii-xvi, 69-87 and 223-232 (1989). Reports, p. 1; ReportPro, p. 1.
"STOCKCLERK Inventory Management System." IOBar, "LIGHTNINGTM Fisher's Electronic Order Entry System."
Inc. (Copyright 1993). Fisher Scientific (Copyright 1989).
"Fisher STOCKROTM Inventory Management System." "LIGHTNINGTM Order Entry and Information System."
Fisher Scientific (Copyright 1990). Fisher Scientific dated Dec. 1990 pp. 1-6, 19-54 and 91-96.
"Systems. By Fisher/Inventory Management System/ "Fisher RelianceTM System." Fisher Scientific (Copyright
STOCKPROTM-Single User Version" dated Feb. 28, 1989, 1989).
pp. 6-1 to 6-14 and 6-21 to 6-26, 7-1 to 7-18, 8-1 to 8-20. Fisher 88 Catalog, Fisher Scientific (Copyright 1987) pp.
9-1 to 9-6, and 10-1 to 10-8. 1536, 1549-1567.
U.S. Patent Jan. 27, 1998 Sheet 1 of 12 5,712,989
37
Vendor
Distributor 30
38
Warehouse
Customer's
T
Distributor's
JT
inventory
FIG. 1
U.S. Patent Jan. 27, 1998 Sheet 2 of 12
ORDER MENU CUSTOMER

HEADER VARABLE
HEADER
76
CROSS CROSS
REFERENCE REFERENCE
NUMBER LIST MANTENANCE
REQUISTION
MANAGEMENT
THIRD PARTY
Y NON-CATALOG
NFORMATION
O4
IF TEM
ERROR SOURCING
108 N 112
REQUISION BUILD
MANTENANCE PURCHASE
ORDER
DRMER PURCHASE
ORDER
CONFIRMATON
FG, 2A
CROSS
REFERENCE
84
PRICING
HOST
SOURCNG
CONTROL
SOURCNG
120
PURCHASE
ORDER
ORDER
CREATION
IF ORDER
CREATION
128
PURCHASE
ORDER
CONFIRMATON
FIG, 2B
CSR ENERS STOCK NUMBER 200
STOCK NUMBER IS ENERED INTO 201

REQUESTION TEM TABLE
LOCAL COMPUTER SEARCHES PAR

MASTER TABLE FOR ENTERED 202
STOCK NUMBER
STOCK
NUMBER
FOUND
UPDATE REQUISION TEM SET PRODUCT

TABLE WITH UM, PT, XREF YPE is 03 AND
AND DESC FROM PART MASTER UPDATE REQUISTON
TABLE ENTRY ASSOCATED TEM ABE
WHENTERED STOCK NUMBER
206
UPDATE REQUISION TEM
TABLE WITH QTY AWALL LOC
AND WHSE DATA FROM PLANT
LOCATION TABLE ENTRY
ASSOCATED WITH ENTEREO
STOCK NUMBER
PRODUCT
TYPE=06
UPDATE RECUSITION TEM

TABLE WITH UNIT PRICE
FROM PART MASTER
TABLE ENTRY ASSOCATED
WITH ENTERED STOCK NUMBER
DISPLAY UPDATED REQUISITION-212

IEM TABLE
213
PRODUCT
TYPE=03
Y 214
CSR MAY CHANGE PRODUCT
TYPE TO 04 OR 05
O FIG, 3
222
PRODUCT
TYPE=0.1
SEND REQUISTON DATA BLOCK

INCLUDING STOCK NBR, P, LOC,
QTY AND QTY AWAIL AND HEADER
DATA TO HOST
232
WAT FOR DATA FROM HOST
RECEME DATA FROM HOST AND 24
UPDATE REQUISTION TEM ABLE
258
256
UPDATE REQUISION TEM
ERRORS Y TABLE AND DISPLAY
FOUND REQUESTION MANAGEMENT
SCREEN WHERROR CODES
N
SET STATUS CODE AND DISPLAY 237
REQUISION WANTENANCE DATA SCREEN
242
240
OTY N CREATE PROPOSED
AVAL X= BACKORDER FOR
cy DFFERENCE
Y
SET STATUS CODE AND DISPLAY 244

REQUISTION MANTENANCE DAA SCREEN
CSR HITS F2 KEY 245
PRINT PICKING LIST 246

FG, 4A
RECEIVE STOCK NBR, PT, LOC,

QTY AND QTY AWAIL AND HEADER 250
DATA FROM LOCAL COMPUTER
ACCESS HOST DATABASE USENG 252

LOC AND STOCK NBR DATA
COMPAREHOSDATABASE QTY AVAIL

TO RECEIVED QTY AWA
254
256 258
N CREATE DATA BLOCK

WITH INVENTORY
MATCH ERROR
QTY
AVAIL NN BACKORDER
>=QTY DIFFERENCE
Y
PRICE ITEM
270
CREATE SOURCING DATA BLOCK
TRANSMIT DAA BLOCK TO 272

LOCAL COMPUTER
FIG, 4B
222
PRODUCT
TYPE=03
286
SEND REQUISION DATA SEND REQUISTION DATA

BLOCK INCLUDING STOCK NBR, BLOCK INCLUDING STOCK NBR,
PT, QTY AND HEADER DATA PT, QTY, NON-CATALOG DATA
TO HOST AND HEADER TO HOST
WA FOR DATA WAT FOR DATA 288

FROM HOST FROM HOS
RECEIVE DATA FROM HOST

AND UPDATE REQUISITION 290
TEM TABLE
DISPLAY REQUISTION
MANAGEMENT SCREEN
WITH ERROR CODES
UPDATE STATUS CODE AND DISPLAY 296

REQUISTION MANTENANCE SCREEN
FIG, 4C
RECEME DATA BLOCK

FROM LOCAL COMPUTER 300
CREATE DATA BLOCK WITH

PRODUCT UNRECOGNIZED VENDOR
TYPE ERROR CODE
=03?
WALID
PAR
NUMBER
CREATE DATA
BLOCK WITH CREATE DATA
UNRECOGNIZED BLOCK WITH
PRODUCT CODE UNRECOGNIZED
PRODUCT CODE
CREATE DATA BLOCK CREATE DAA BLOCK

WITH PRICENG AND WTH PRICING AND
SOURCNG DATA SOURCNG DATA
TRANSM DATA BLOCK 312
FG, 4D
CSR ACCEPTS REQUISTION 330
UPDATE STATUS CODE TO "P"

IN REQUISTION ITEM TABLE 3.31
AND DISPLAY
332
PRODUCT
TYPE=0.03
OR 04
3.54 338
-1
N /CUSTOMER
INTERNAL CREATE AND SEND PURCHASE
P.O. ORDER DATA BLOCK INCLUDING
REEVANT REQUISION DATA
FROM REQUISION HEADER
AND EM TABLES
CREATE AND PRINT
PURCHASE ORDER
INTERNAL TO CUSOMER J40
WAIT FOR DAA FROM HOST
RECEME CONFIRMATION DATA 544
BLOCK FROM HOS
348
76ers N Y
{ FOUND
? -
--> i
/ 550
N
PRINT PURCHASE ORDER y
ACKNOWLEDGEMENT
352
PRODUCT N
TYPEO
OR O6
UPDATE PLAN OCATION TABE

FIG, 5A USING DAA FROM REQUISION
ITEM ABLE
356
UPDATE REQUISTION TEM TABLE
AND DISPLAY WITH NEW STATUS CODE
RECETME PURCHASE ORDER

DATA BLOCK FROM LOCAL 360
COMPUTER
362
(GS N Y 366
364
CREATE DATA BLOCK WITH
APPROPRIATE ERROR CODE
EXECUTE PURCHASE ORDER
3.68
PRODUCT
TYPE=Of
t
Y 370
UPDATE HOST DATABASE REFLECTION

OF DISTRIBUTOR-OWNED EMS IN
CUSOMER'S JIT FACILITY
372
-
CREATE CONFIRMATION DATA BLOCK
WITH RELEVANT PURCHASE ORDER DATA
TRANSMT DATA BLOCK

TO LOCAL COMPUTER
FIG, 5B
CSR HTS ENER TO MAKE AN 380

ADJUSTMENT TO JIT INVENTORY
381
PRODUC
TYPE=0.1
382
CREATE ADJUSTMENT DATA BLOCK

INCLUDING JIT WAREHOUSE LOCATION
CODE, PART NUMBER, QUANTITY ON
HAND, UNIT OF MEASURE AND
ADJUSTMENT OUANTITY
TRANSMIT DAA BLOCK 384
WAT FOR DATA FROM HOST 585
RECEIVE ADJUSTMENT CONFIRMA ION 386

DATA BLOCK
DISPLAY ERROR MESSAGE

N 392
ADJUST QUANTITY ON HAND OF

REEWANT ENTRY TO PART MASTER
TABLE IN LOCAL DATABASE
FIG, 6A
RECEIVE ADJUSTMENT DATA BLOCK

FROM LOCAL COMPUER
CREATE DATA BLOCK WTTH

APPROPRIAE ERROR MESSAGE
MAKE ADJUSTMENT
ON HAND FOR THE TO QUANTITYJIT r
RELEVANT
FACILY AND PAR NUMBER
CREATE ADJUSTMENT 408

CONFIRMATION DATA BLOCK
TRANSM DAA BLOCK 410
| TO LOCAL COMPUTER
FIG, 6B
5,712,989
1 2
JUST-IN-TIME REQUISITION AND requisitions for items of various types including items
NVENTORY MANAGEMENT SYSTEM available in JIT inventory.
BACKGROUND OF THE INVENTION
It is also an object of this invention to provide a system
for replenishing and managing a JTT inventory.
This invention generally relates to systems for requisition 5 In accordance with the present invention, a requisition
and inventory management. Requisitioning systems that and inventory management system employs both a host
manage and process purchase orders are well known in the computer and a local computer which can be linked to
art. One such system-the Fisher Scientific RelianceTM permit two-way data communications in a real time envi
system-has been used by the customers of Fisher ronment. Each computer has an associated database which
Scientific, the assignee of the present application, for some O can be accessed by that computer. By accessing its respec
time. Other such systems are described in U.S. Pat. Nos. tive database, each computer can build and transmit to the
4,887,208 and 4.972.318. Such systems generally process other computer communications blocks of data relating to a
purchase orders for items and track a local inventory. These particular requisition of an item in JIT inventory or to the
systems employ essentially one-way communications management of the JTT inventory. The other computer can
between a terminal or local computer and a host computer to 15 then use the received data to continue processing of the
initiate purchase orders; the systems may also manage a requisition or to update its JIT inventory records. Thus
local inventory. requisition records are created from a real-time interaction
Such prior art systems do not, however, provide the between the host and local computers, with each computer
capability for effectively managing a Just-In-Time (JIT) using data from its respective database in conjunction with
inventory site. Many businesses and organizations are seek information entered by a Customer Service Representative
ing to implement JIT inventory stockrooms to make the most (CSR) operating the local computer.
efficient use of available space and manpower, while at the The system of the present invention also utilizes means
same time avoiding costly delays caused by waiting for out for automatically determining which items in the JIT inven
of stock items. Supplier and customer organizations will tory are likely to require replenishment. The system then
sometimes agree that the supplier will retain ownership of 25
proposes a purchase or transfer order for an optimum
the inventory at the JTT site, which is reserved for subse quantity of the item, which the CSR may accept or modify.
quent sale to that customer. Other times, they will agree that
the customer will own the inventory at the JIT site, but that BRIEF DESCRIPTION OF THE DRAWTNGS
it will continue to be managed and replenished by the The above and other objects and advantages of the
supplier. Frequently, the supplier and customer will establish 30 invention will be apparent upon consideration of the fol
a JIT site containing some products owned by the customer lowing detailed description. taken in conjunction with the
and others owned by the supplier. accompanying drawings, in which like reference characters
The demands of JIT inventory management are not well refer to like parts throughout, and in which:
met by the requisition and inventory management systems of 35
the prior art. Where the JIT inventory is owned by the FIG. 1 is a diagram showing the overall system of the
supplier, the supplier will generally require access to a present invention and the environment in which it is used;
database reflecting the contents of the JIT inventory for FIGS. 2A and 2B are diagrams showing the flow of
billing and other purposes. Access to a database reflecting control and interaction between the various programs and
the contents of JTT inventory will also be needed at the data screens of the local computer and the programs of the
customer site to permiteffective inventory management. The host computer used for requisition management in an
systems of the prior art do not provide the flexibility embodiment of the system of the present invention;
necessary to allow both the supplier and a representative at FIG. 3 is a flowchart describing a program employed by
the customer site to access the necessary data. Nor do prior a local computer in an embodiment of the system of the
art systems employing essentially one-way communication 45 present invention to associate a product type with an item
between a local terminal or computer and a distributor host code which has been entered by the CSR;
computer readily provide the customer with up-to-the FIGS. 4A through 4D are flowcharts describing programs
minute information regarding the distributor's stock of vari employed by an embodiment of the system of the present
ous items or the status of pending purchase orders. Such invention to source requisitioned JTT inventory owned by
information is critical to effective management of JTT inven either the distributor or the customer, other inventory owned
tory. by the Distributor, and inventory owned by other vendors;
At least one prior requisitioning system-a predecessor FIGS. 5A and 5B are flowcharts describing programs
version of the Requisitioning and Inventory Management employed by an embodiment of the system of the present
System (RIMS) described in the present application-has invention to accept a sourced requisition; and
employed two-way communications between local and host 55 FIGS. 6A and 6B are flowcharts describing programs
computers for processing requisitions. This earlier system employed by an embodiment of the system of the present
has been in use by Fisher Scientific since 1991. Although invention to adjust the quantity on hand of an item in JIT
this earlier system employed a two-way communications inventory.
linksimilar to that employed in the preferred embodiment of
the present invention, it did not have any capability for 60
DETALED DESCRIPTION OF THE
managing a local JIT inventory. Indeed this earlier system NVENTION
was merely a system for requisitioning items from a Dis The requisition and inventory management system of the
tributor's usual inventory. Thus this earlier system did not present invention, which is shown in FIG. 1, employs at least
employ a database for tracking a JTT inventory. two computers-a host computer 10 located at a Distributor
SUMMARY OF THE INVENTION 65 site and a local computer 40 used by a Customer Service
It is an object of this invention to provide a requisition and Representative (CSR) at or near the customer site and the
inventory management system which can effectively process site of JTT inventory. As will be described below, host
5,712,989
3 4
computer 10 and local computer 40 are preferably linked in customers. Distributor may elect to stock in Distributor
a network employing the formats and protocols of IBM's warehouse 30 some or all of the items of a particular vendor
Systems Network Architecture (SNA). of either type 38 or of type 39.
Most computer 10 can be substantially any mainframe or Local computer 40, which can be any microcomputer or
minicomputer capable of running the desired programs and workstation having adequate memory and communications
conducting the required communications. Preferably, the capabilities, preferably includes 8 to 16 megabytes of RAM
host computer is a mainframe computer (such as an IBM and a hard disk drive of 300 to 600 megabytes. Local
model 3090) running the MVS operating system, the MVS computer 40 also preferably includes a Multi-Protocol
CICS application and a Virtual Telecommunication Access Adapter communications card, or a similar communications
Method (VTAM) communications network. Host computer O card, capable of supporting the LU.6.2 communications
10 controls all inventory, pricing and requisitioning opera protocol (available from IBM). Local computer 40 includes
tions of the Distributor's regularly stocked items using host a color monitor 41 and a conventional alphanumeric key
pricing and inventory database 20 (which is actually com board 42 including twelve function keys F1, F2. . . . F12.
prised of several databases, as will be described below) in a Printer 43 is also attached to local computer 43.
manner which is well known to those of ordinary skill in the 15 In addition to the OS/2 operating system, the hard disk
art. Host database 20 is preferably stored in an appropriate drive of local computer 40 also contains the OS/2 Database
storage device, such as a IBM 3390 disk drive which may Manager, the OS/2 Communications Manager and CICS
employ caching. Inventory portions of database 20 includes OS/2 (each of which is available from IBM). The hard disk
data describing the items and quantities thereof available at drive may also contain other conventional utilities useful in
a particular Distributor warehouse 30 and at other Distribu setting up and updating the software used on local computer
torwarehouses. Other portions of database 20 includes item 40. Also on the hard disk drive of local computer 40 is a
records for each Product regularly sold by the Distributor. local database which is diagrammatically represented by
blockS0 of FIG.1. Local database 50 is a relational database
Each item record preferably includes information such as containing records describing the items and their respective
Distributor's catalog or part number for the Product. Dis 25 quantities and prices of items currently stored in a Just-In
tributor's list price. Distributor's current cost, Distributor's Time (JIT) facility 51, which may be a separate warehouse.
supplier (vendor) for the Product and a code identifying the a designated portion of Distributor's warehouse or a stock
Product as part of a product grouping to be treated similarly room or other room located on a Customer's site. In this
for customer discounting purposes. Database 20 also pref embodiment, certain items in the JIT facility 51 are
erably includes discount records. by customer, that enable 30 Distributor-owned inventory 52, while others are Customer
the host computer 10 to calculate at any time a net price for owned inventory 54. While the present invention is appli
a particular Product to a particular customer in a manner cable to the management of inventory at the JIT facility 51
well known to those of ordinary skill in the art. As described which is all customer-owned inventory 54, in most cases the
below, database 2.0 may contain cross-references from Dis JIT facility 51 contains only Distributor-owned inventory 52
tributor's catalog number to its vendor's part number and to 35 or contains both types of inventory 52 and 54. Where both
similar catalog numbers of other suppliers or distributors for types of inventory are present, each Product is usually
the same Product, either as a part of the item record, in a located in a unique location or bin, but the bins containing
separate cross-reference file or both. Distributor-owned inventory 52 are not segregated from the
Database 20 may also include file records identifying the bins containing Customer-owned inventory 54. Flexibility is
items and quantities thereof of Distributor-owned inventory preferably provided to redesignate certain products from
in various JIT sites at or near the locations of various of Distributor-owned inventory 52 to Customer-owned inven
Distributor's customers. As described more fully below, tory 54, or vice versa, by mutual agreement and transfer of
such file records for Distributor-owned inventory held for a title, without necessarily any movement of the Products
particular customer (Customer) represent a reflection of from the existing bins.
similar records maintained by a local computer 40 which 45 The host computer 10 is linked to a telephone line 15 via
manages requisitions and inventory for that Customer. a communication front end processor 11 (such as IBM
Database 20 may also include file records for items which models 3705 or 3723) running conventional operating
Distributor does not routinely supply to all customers, but software, such as IBM's Network Control Program (NCP)
has agreed to purchase for supply to particular customers, on and a modem 12. The host computer 10 is running a VTAM
a special or third party procurement basis. Such file records 50 communications network. The local computer 40 is linked to
do not contain a Distributor list price, a discount code or a the telephone line via a DCU passthrough box (which may
Distributor catalog number or part number, but will contain be of the type supplied by Racal Milgo) and is programmed
other information as described above for regular item with the Communications Manager application. Data is
records including a vendor, a vendor part or catalog number preferably exchanged between host computer 10 and local
and a vendor list price. 55 computer 40 using the LU.6.2 communications protocol.
Local computer 40 is preferably a microcomputer capable Using the LU.6.2 communications protocol local computer
of operating the required programs and of transmitting and 40 can create a block of data conforming to a predetermined
receiving the required communications, such as an IBM format which can be transmitted to host computer 10. The
PS/2 Model 80, running the OS/2 operating system and also host computer 10 can then process the data and create its
running the CICS OS/2 application, both of which are own block of data containing some or all of the results of that
available from IBM. processing. This block of data, which may conform to
Host database 20 also includes data regarding Distribu another predetermined format. can then be transmitted back
tor's cost prices and vendors for items from third-party to local computer 40. Local computer 40 enters a wait state
suppliers 37 and 38 which are regularly distributed by after transmitting a block of data to host computer 10. In this
Distributor to its customers. Host database 20 also includes 65 and in other instances where local computer 40 enters a wait
data regarding items from third-party suppliers 39 whose state. the CSR can access and run other programs on local
products the Distributor does not routinely supply to its computer 40 while in the wait state. Local computer 40 stays
5,712,989
5 6
in its wait state until it receives a response from host
computer 10 in the form of a block of data as described TABLE 1-continued
above. This permits what has been called distributed trans PRODUCT
action processing whereby two separate programs or tasks TYPE DESCRIPTTON
on two separate computers engage in a synchronized
exchange to accomplish a job between them. Distributor-owned items in Distributor's
warehouse 30 which have been segregated
Distributed transaction processing enables host computer in some fashion for a particular
Customer.
10 and local computer 40 to easily and effectively manage O3 Distributor catalog item; stored in
databases having overlapping data content. In the preferred 10 Distributor's warehouse
embodiment of the present invention, data describing Dis 04 3rd party item that Distributor orders
tributor's JIT inventory 52 is maintained by host computer 05 3rd party item which CSR or Customer
orders
10 in host database 20 and by local computer 40 in local O6 Customer owned item located in Customer
database 50. Each time the local database 50 is modified as warehouse at or near Customer site
to an item in Distributor's JIT inventory 52, the same update 15
must be made to the relevant records on the host database 20.
Distributed transaction processing is employed both to make Requisitioning
the updates and to insure that the data in the respective
databases are in agreement prior to execution of any trans Requisitioning on the system of the present invention is
action in the system, such as a purchase order. described in FIGS. 2A and 2B. In FIGS. 2A and 2B, the
In a preferred embodiment of the invention, the system diamonds represent decisions. The rectangles represent data
provides requisitioning and inventory management for five screens as well as programs associated with those data
distinct product types. The first such product type-type screens. The rounded rectangles represent programs not
01-covers products owned by the distributor which are associated with data screens such that, while these programs
stored at a Just-In-Time (JIT) warehouse either at the 25
are running, the prior data screen may remain visible
customer location or nearby. The present system maintains without, necessarily, being operational for the input of data.
inventory records for product type 01 products in both local The programs associated with the data screens enable the
database 50 and host database 20. Another product type CSR to display and modify the contents of various tables
type 03-comprises the items regularly sold by the associated with particular data screens. These tables make
Distributor, some of which are stored at Distributor's ware 30 up local database 50, which can be any relational database.
house 30, some of which are regularly ordered by Distribu As the data (e.g., Account Number. Requisition Number
tor from vendors such as vendor 37 for direct shipment to and Stock Numbers) associated with a single requisition are
any of Distributor's customers. Such regular Distributor entered through the various data screens on local computer
products are identified by a Distributor list price and a 40, that computer creates a set of Requisition Tables (a
Distributor part or catalog number (which may be the same, 35 Requisition Header Table and a Requisition ItemTable) for
that particular requisition. The Requisition Tables are stored
a derivative of or different from the part number associated in local database 50, and can be accessed by local computer
with the product by vendor 37). Another product type-type
04-comprises items which Distributor does not regularly 40 using the Requisition Number to find the desired table.
purchase for resale, but which Distributor can and elects to The CSR will ordinarily receive a written or oral request
order from a vendor 38 ( who may be a supplier to from an employee of the Customer to requisition one or
Distributor of other products) for sale to particular custom more items. For example, a laboratory technician may
ers such as Customer. Products of product type 04 can be approach the CSR with a list of supplies to withdraw from
stocked by Distributor at Distributor Warehouse 30, but are an on-site JIT stockroom. In some forms of the invention,
often ordered by Distributor for direct shipment to Cus such a requisition request can be received by local computer
tomer. Products of product type 05 are those which Dis 45 40 in electronic form through the customer's host computer
tributor does not stock and is unable or unwilling to purchase (not shown on FIG. 1), through a telephone line or in
for the Customer, but which the Customer has arrangements electronic media such as a floppy disc. The first step in
to purchase from an outside vendor 39. The present system creating a requisition involves entry by the CSR of infor
has a limited role in Customer's purchase of price type 05 mation in the Order Header data screen 60 in FIG. 2A. A
products, primarily of a record-keeping nature. Finally, sample of an actual Order Header data screen is set forth
product type 06 comprises products owned by the Customer Table I. Generally, the CSR need only enter the Account
and maintained as Customer-owned inventory 54 in the JTT Number and a Requisition Number. Hitting the ENTER key
facility 51. Whether replenished by the Customer from after entering the Account Number (which is the Distribu
Distributor or from an outside supplier, the present system tor's designation for the customer department for which the
maintains inventory records on product type 06 products in 55 requisition is placed) will automatically cause the correct
the local database 50, but not in the host database 20. These Name and Address associated with that Account Number to
product types are summarized in Table 1: be entered into the appropriate fields of data screen 60. Local
computer 40 accomplishes this by comparing the entered
TABLE 1. Account Number to a table of account number records in
local database 50 which contains certain basic information
PRODUCT associated with each Account Number record stored therein.
TYPE DESCRIPTION This database table has been previously created by the CSR
O1 Distributor owned item in JT using the associated Customer Account Maintenance data
warehouse located at or near the
Customer's site
screen, a sample of which is shown in Table XIII.
O2 This price type is not currently 65 A Requisition Number is also required for each requisi
used, but has been reserved for tion. The CSR must also enter this information in the
appropriate field of the Order Header data screen. The
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7 8
requisition number can be the customer's own internal useful in preparing data sets such as Requisition summary
requisition number, or can be any unique number assigned reports, status reports, financial reports and the like which
to the requisition by the CSR. Various additional information can be loaded periodically on request into the Customer's
may also be inputted, such as the name of the person needing own host computer, either as a flat file or in a customized
the items ordered in the requisition, the name of the person form.
who called the CSR to place the requisition, etc. If the CSR hits the F2 key from the Order Header data
The ORDERTYPE field on Order Header data screen 60 screen (or the F4 key from the Customer Variable Header
can have one of three values: “R” for an ordinary Requisi data screen) the program jumps to Requisition Management
tion; "T" if the requisition was generated to replenish data screen 68 in FIG. 2A. A sample Requisition Manage
Customer-owned JTT inventory 54, as will be discussed O ment data screen is set forth at Table II. The CSR uses this
below; and "G" if the order is for returning JTT inventory to data screen to enter the catalog or stock numbers and
JIT facility 51, as will be discussed below. The ordinary quantities of the various items being ordered.
Requisition order type ("R") is the default. The Account Number and Requisition Number are auto
At the bottom of the screen are several fields which 15
matically passed to Requisition Management data screen 68
describe the function of various function keys (e.g., F1, F2 and displayed at the top of the Requisition Management data
etc.). In this data screen, the CSR can preferably obtain help screen 68 in the relevant fields. The CSR can now enter the
online by hitting the F1 key. The online help facility func items and quantities for the requisition. The item is identified
tions in a conventional manner that will readily be under by entering the Distributor catalog number of the desired
stood by those of ordinary skill in the art. Hitting the F3 key item in the field below the STOCK NBR label on the
20
would permit the CSR to quit the program; hitting F4 would appropriate line number in Requisition Management data
erase the contents of any of the fields into which data had screen 68. In the sample screen shown in Table III, the stock
been previously entered to permit a new requisition to be number A181 has been entered in the STOCKNBR field of
entered. Hitting F11 would permit the CSR to change the line 001.
requisition number to enter a new requisition. Hitting F12 25 The CSR may also enter an item by using a catalog or
permits the CSR to cancel an open requisition. reference number from a third-party supplier other than the
Function keys F2, F5 and F6 all cause the system to jump Distributor where the same item has both Distributor and
to a new program or data screen. F2 causes the program to third-party catalog numbers (which are necessarily
jump to Requisition Management data screen 68 as shown in different). In the preferred embodiment, most records in
FIG. 2A. Hitting F6 will cause the system to enter the 30 local database 50 identify products by a stock number or part
sourcing program 88 shown in FIG. 2A, provided that the number compatible with the Customer's record-keeping
CSR has already entered the necessary information on the system. Part Master records (see Table VI) also contain a
Order Header data scTeen 60 and one or more items on the manufacturer or supplier's catalog or part number, which
Requisition Management data screen 68, as will be dis will be the number used on purchase orders and, for product
cussed below. If the CSR has just begun the requisition (and 35 types 01 and 03, will be the Distributor's catalog or part
has not yet entered at least an Account Number, a Requisi number. The local database 50 contains a cross-reference file
tion Number and at least one item), then hitting F6 will have between such stock numbers and a particular supplier's
no effect. Because the CSR will not ordinarily initiate catalog or part number. The creation of this cross-reference
sourcing program 88 from Order Header data screen 60, no file by the CSR is described below.
arrow is shown in FIG. 2A linking these programs. When the CSR enters an item code in the STOCKNBR
It should be noted that function keys (F1, F2 etc.) are not field and hits the ENTER key, local computer 40 begins a
the only means for directing the flow of the program shown program described in the flowchart is shown in FIG. 3. The
in FIG. 2A. Each data screen and program also has a unique entered stock number appears on the data screen as it is
four character identification code. To go directly to a par being entered. In step 201, the entered stock number is added
ticular data screen or begin a subroutine, the CSR can enter 45 to the appropriate field of the Requisition Item Table in local
the associated code into the RESPONSE field shown on any database 50 along with the associated line number. In step
data screen along with any necessary parameters, which are 202, local computer 40 searches the Part Master Table in
entered in the KEY(S) field. For example, to Fast Path to local database 50 for the STOCKNBR that has just been
Cross Reference Maintenance data screen 76, the CSR can entered (which can be either the Customer's stock number or
enter the code CRNL into the RESPONSE field. 50 a valid cross-reference number such as a Distributor catalog
If the CSR hits the F5 key from Order Header data screen number). (A description of how the Part Master Table in
60, the system jumps to the Customer Variable Header data local database 50 is created by the CSR is set forth in detail
screen 64 and associated program as shown in FIG. 2A. An below.) If the stock number is not found the Part Master
example of a Customer Variable Header data screen 64 is set Table in local database 50, as indicated in steps 204 and 206,
forth at Table II. This data screen allows the CSR to enter 55 the product type field defaults to product type 03. The
and edit information that the particular customer desires to display on the Requisition Management data screen 68 is
be associated with the requisition due to requirements of the then updated to reflect this information (the PT field displays
customer's internal accounting system or other systems. "03") as shown in step 212. As described below, such
Examples of such customer variable information might be designation of product type 03 will be verified during the
the names (or identification codes) of various customer Sourcing steps using the product records and cross-reference
divisions or customer projects. The CSR can define any files contained in host database 20.
desired fields for the Customer Variable Header data screen If, on the other hand, the entered stock number is found
in the manner set forth below. Thus the Customer Variable in the Part MasterTable in local database 50, as indicated in
Header data screen may contain one or more data fields into steps 204 and 208, the Requisition Item Table in local
which the CSR may enter and edit data, such as a division 65 database 50 is updated with the following information from
name or identification code, of interest to the Customer but the entry in the Part Master Table associated with the
not, necessarily, to Distributor. This variable information is relevant stock number: the default unit of measure; the
5,712,989
9 10
product type; the cross-reference number, if any; and a text during sourcing when host computer 10 attempts to source
description of the item. In step 209. Requisition Item Table the item. This error will be handled as discussed below.
is updated with the following information from the entry in The CSR can then enter the quantity of the item being
the Plant Location Table in local database 50 associated with requisitioned in the field below the QTY label in Requisition
the relevant stock number: the quantity of the item available Management data screen 68. The entered quantity will be
in the Customer-owned inventory 54 in the JIT facility 51 displayed on data screen 68 and this data will be entered into
(for product type 06) or in the Distributor-owned inventory the appropriate field of the Requisition Item Table in local
52 in the JIT facility 51 (for product type 01); a description database 50. The unit of measure associated with this
of the location of the item in the relevant stockroom or quantity is defined by the value in the UM field. In the
warehouse (e.g., by aisle and shelf); and a code identifying example shown in Table III, this field is occupied by “EA."
the relevant stockroom or warehouse. In steps 210 and 211, meaning that the unit of measure is a single unit for A181 (a
the Unit Price is added to the Requisition. Item Table if the single one liter bot?e of acetone). This is the default unit of
product type is 06. (The Plant Location Table is created and measure for this item and is the unit in which all records and
updated using the Plant Location data screen, a sample of computations are performed. An alternate unit of measure is
which is set forth in Table VII.) 15 preferably also provided (as is the case for many of the
In the system of the present invention, a particular stock products in host database 20), which is a multiple of the
number will preferably be either Customer-owned (product standard unit (e.g., a "CS" or case of six such bottles of
type 06) or Distributor-owned (product type 01) in the local acetone). Within the Part Master Table, a unit price is
JIT, but not both. Thus a given stock number may or may not maintained, but only for product type 06 will a unit price be
have a corresponding entry in the Part Master (or Plant 20 displayed at this stage as indicated in steps 210 and 211
Location) Table in local database 50; but, if a record exists (during requisition management and before sourcing).
there, there will be at one time only one record associated The CSR may use as many lines of the Requisition
with the stock number. Thus, stock stored in the JIT facility Management data screen 68 as are necessary to complete the
51 of one product (whether in a single bin or in multiple requisition (up to a preset or default limit set by the system,
bins), will either be all customer-owned or all Distributor 25 e.g. 200 lines; or to a lower limit set by the CSR, e.g., 100
owned. Customer and Distributor may, however, decide at lines). Keys F7 and F8 allow the CSR to page forward and
any time to redesignate particular products from Customer backward on Requisition Management data screen 68; the
owned to Distributor-owned (with corresponding change of F9 key provides the next available line number at the top of
ownership and debit or credit to the applicable accounts). the list of items (giving the CSR a new screen to work with).
Such a change can be reflected in local database 50 using the 30 Hitting the F4 key creates a new requisition (to which the
Part Master. Plant Location and Inventory Adjustment data CSR must assign a new requisition number) with the same
screens (samples of which are set forth in Tables VI, VII and Customer Account Number and the associated address infor
VIII, respectively), without necessarily moving the inven mation. The F5 key causes a customer variable item data
tory physically within the JTT facility 51. screen to be displayed, which enables the CSR to enter
In the instance where the stock number is found in the 35 information that the customer desires to have associated
local database 50, the display of data screen 68 is then with a given item. With the exception of the F10 key, the
updated in step 212 by displaying: the default unit of functions of the remaining function keys will be clear from
measure (in the UM field); the product type (in the PT field); the previous discussion.
the cross-reference number, if any (in the XREF field); the Hitting the F10 key calls the Non-Catalog Information
list price of the item, if the product type is 06 (in the UNIT data screen 80 onto the screen of monitor 41. An example of
PRICE field); a text description of the item (in the DESC a Non-CatalogInformation data screen 80 is shown in Table
field); the quantity of the item available in the JIT facility 51 V. This data screen is used to enter additional information
as Customer-owned inventory 54, product type 06, or as about items not regularly sold by Distributor (for which host
Distributor-owned inventory 52. product type 01 (in the database 20 contains a Distributor catalog number and list
QTYAVAIL field); a description of the location of the item 45 price), but which are available as third-party purchases by
in the relevant stockroom or warehouse (in the LOC field); Distributor (product type 04) or as administrative purchases
and a code identifying the relevant warehouse (in the WHSE by Customer (product type 05): e.g., the identification of the
field). third party vendor (by number and name), the vendor's part
At this time, if the product type is shown to be type 03, number, the vendor's offered price and other information
the CSR may edit this field to change the product type to 04 50 shown in Table V. If the CSR has previously created a
or 05, as shown in steps 213 and 214 of FIG. 3 if the CSR cross-reference entry in the Cross Reference Table (using
knows that the item is not regularly available from Distribu Cross Reference Maintenance data screen 76) for the item,
tor as a routine item. This editing will change both the some or all of the information on Non-Catalog Information
displayed product type and the value of the product type data screen 80 will be automatically filled in using the data
field in the applicable field of the Requisition Item Table. 55 associated with that stock number (of the vendor) in the
Local database 50 includes as product type 01 items only a Cross-Reference Table in local database 50. Information
subset of the entire set of Distributor catalog items. Thus, in associated with products of type 04 will, to at least some
step 206, local computer 40 assigns a product type 03 by extent, be shared with the host computer 10. Information
default to any item number which is not determined to be a associated with type 05 products will, for the most part, not
product type 01 or 06-i.e., for which a Part Master record be shared with the host computer 10. Nevertheless, records
is not found in local database 50. As described below, host about both types of products are maintained in local data
computer 10 will verify the 03 status for such products base 50 and are available for flat file and other information
during sourcing and communicate information to local com transfers to the Customer's host computer.
puter 40 to establish an error code for such 03 status if not For items of product type 04, the Distributor will order the
found in host database 20. If the CSR fails to change the 65 item for the customer and have it sent to the customer.
product type for an item which host computer 10 is unable Consequently, the following information must be entered on
to identify as a Distributor catalog item, an error will result the Non-Catalog Information data screen 80 for items of
5,712,989
11 12
product type 04: vendor stock number and the vendor transaction and the data are stored in local database 50 in the
number (which corresponds to a particular vendor). These same manner as data relating to the other product types
data are forwarded to the host computer 10 to be checked described herein. The data may then be uploaded periodi
against or added to host database 20 (for products of price cally to the Customer's host computer.
type 04, but not for products of price type 05). An error will In the case where the item has product type 01 (an item
result in "sourcing" this order if this information is not owned by Distributor in JIT facility 51). local computer 40
provided by the CSR or does not correspond to information will prepare and send to host computer 10 a block of data
in host database 20 for a non-catalog item. including the stock number (STOCKNBR), product type
For items of product type 05, the CSR will create an order (PT), warehouse location code (LOC), the requisitioned
10 quantity (QTY), the quantity available at the JIT facility 51
record or document ordering the item on behalf of the and header data, as shown in step 230. The header data
customer or confirming an order placed on behalf of the includes at least the account number and requisition number.
customer (e.g., by telephone to the designated vendor). Local computer 40 then waits for host computer 10 to
For items of product type 05, the CSR may order the item transmit a block of data in response to the transmission of
for the Customer. These orders are not placed or filled using 15
local computer 40, as shown in step 232. Local computer
the system of the present invention, although data regarding sends the block of data via the communication linkage
these transactions may be entered on Non-Catalog Informa described in connection with FIG. 1.
tion data screen 80 to record these transactions. Instead, At host computer 10, the data sent by local computer 40
either the proposed purchase order record is uploaded into is received as shown in step 250 of FIG. 4B. Most computer
the customer's computer for processing or a document is 20 10 first uses the warehouse location code (LOC) and the
printed at local printer 43 for signature and action by the stock number (STOCKNBR) to access host database 20 to
customer's purchasing agent or the CSR confirms that the determine what the host's records show for the quantity
order has been placed with the designated vendor by some available at the relevant location for the item being
other means. requisitioned, as shown in step 252. The host's quantity
Sourcing 25 available is compared to the received quantity available
(QTYAVAIL) to determine if they match, as shown in step
After all of the items for a requisition have been entered, 256. If the quantities are not the same, host computer 10
the next step is that of sourcing the requisition. Sourcing the creates a data block including an inventory match error code,
requisition is the process of determining what inventory will as shown in step 258. This data block will then be trans
be used to fill the requisition. Pricing is also performed in 30 mitted back to local computer 40 via the communication
this step when it is called for (e.g., for all product types link, as shown in step 272. This insures that the host and
except for 05 and 06). local databases are in agreement as to the quantity of an item
Sourcing, which is represented by step 88 in FIG. 2, is in JIT facility 51 which is owned by the Distributor.
initiated by hitting the F6 key from the Requisition Man If, however, the host computer's 10 quantity available
agement data screen 68 (or from Order Header data screen 35 does match that in the received QTY AVAIL field, in step
60 or Non-Catalog Information data screen 80.) 256, host computer 10 then determines if the quantity
Sourcing is performed on both local computer 40 and host available (QTY AVAIL) is equal to or exceeds the requisi
computer 10. Sourcing in the preferred embodiment of the tioned quantity (QTY), as shown in step 260. If the quantity
system of the present invention can involve up to four available is equal to or exceeds the quantity requisitioned,
different product types: 01-local Distributor-owned JIT host computer 10 then prices the item, as shown in step 268
items; 03-Distributor catalog items: 04-third-party items (using the program represented by block 96 of FIG. 2B).
which are ordered by the Distributor; Type 06-Customer Any conventional algorithm or data structure may be
owned JIT items. (Product type 05 comprises third-party employed by host computer 10 for determining the net price
items which are not sourced by the system of the present per unit of a particular Distributor product sold to a particu
invention.) Any particular requisition may involve all of 45 lar Customer as shown in step 268. Such pricing may be
these product types, only a single product type, or any based, for example, on Distributor's list price and a percent
combination of product types. age discount off that list price negotiated between Distribu
The product type which was determined when the tor and Customer and recorded in host database 20 for that
STOCKNBR was entered on the Requisition Management product type. As is described below, the net price per unit is
data screen is now used to source the item. Items of product 50 sent from host database 20 through the communications link
type 06 are sourced from the Customer-owned Inventory 54; to the local computer 40 for entry into a previously blank
items of product type 01 are sourced from Distributor field in the Requisition Item Table.
owned inventory 52. If the quantity available is determined to be less than the
Sourcing for each item in the Requisition item Table will quantity requisitioned in step 260, host computer 10 then
be described in connection with FIGS. 4A through 4D. In 55 creates a warning message indicating a proposed backorder
step 220, the CSR hits the F6 (Source) key from Requisition for a quantity equal to the difference between the quantity
Management data screen 68. In steps 221 and 224, the requisitioned (QTY) and the quantity available (QTY
system checks the product type (in the PT field) of the item AVAIL). As will be discussed below, the CSR need not
and routes control of the program according to that product accept this backorder. Host computer then proceeds with
type. If the item is of product type 03 or 04, control passes pricing step 268.
through point A222 to the diagram shown in FIG. 4C. If the After pricing is complete, host computer 10 creates a data
item is of product type 01 or 06, control passes to block228. block including the information regarding any backordered
If the item is of product type 05, control passes to point B quantities of the item and the net price per unit of the item,
226. The processing of transactions of product type 05 by the as shown in step 270. This data block is then transmitted to
preferred embodiment of the system of the present invention 65 local computer 40, as shown in step 272.
is of a record keeping nature. In the steps represented by In block 234 of FIG. 4A, local computer 40 receives the
point B 226, the CSR enters the relevant data regarding the data block transmitted from host computer 10, Local com
5,712,989
13 14
puter 40 will preferably remain in wait state 232 for only a document and compared by the CSR to the quantities shown.
fraction of a second, so that the display on monitor 41 will If the quantities agree, the CSR can accept the order by
appear to be updated almost instantaneously to the CSR. The hitting the F2 key again, as will be discussed below.
data (relating to pricing and backorder quantity) received Thus sourcing for product types 01 and 06 is similar
from host computer 10 is then used to update the relevant except that, for product type 06, there is no verification with
line entries in the Requisition Item Table as shown in step the host computer 10 as there is with product type 01.
234. If an error code is found in the received data, local The steps performed in the sourcing of product types 03
computer 40 displays Requisition Management data screen and 04 are described in FIGS. 4C and 4D. If local computer
68 with the relevant error code. A list of the various error 40 determines that the items in a requisition line being
codes and warning codes which local computer 40 can cause sourced have product type 03 or 04, control passes from
to be displayed is attached at Table XXTV. Only some of the block 221 in FIG. 4A through point A222 to decision block
three digit codes are applicable to the Requisition Manage 280 shown in FIG. 4C. If the product type is 03, control then
ment data screen 68. The CSR may now take steps to passes through decision block 280 to block 282. In block
reconcile the values of stock on hand in JIT facility 51 for 282, local computer 40 creates and sends to host computer
the requested item of product type 01 before sourcing of the 15
10 a data block containing the stock number, product type
(which is 03 in this case). quantity requisitioned and header
line can proceed further. (For example, the CSR may attempt information as discussed in connection with the sourcing of
to adjust the inventory for this product, as will be described product type 01. Local computer 40 then waits for data to be
in detail below.) received from host computer 10 as shown in step 284.
If no error codes are found in the transmitted data, local If, on the other hand, the product type is 04, control then
20 passes through decision block 280 to block 286. In block
computer 40 will display Requisition Maintenance data
screen 108 on monitor 41 as shown in step 237. (A sample 286, local computer 40 creates and sends to host computer
Requisition Maintenance data screenis set forth in Table IV.) 10 a data block containing the stock number, product type
Requisition Maintenance data screen 108 will display the (which is 04 in this case), quantity requisitioned, non
price transmitted by host computer 10 (UNIT PRICE) and catalog item data (the vendor number and the vendor catalog
25 number of the item) and header information as discussed in
any quantity which host computer 10 has proposed to place
on backorder (QTYBCKORD). In addition to displaying the connection with the sourcing of product type 01. Local
relevant quantities in the Requisition Item Table, local computer 40 then waits for data to be received from host
computer 40 also assigns a status code to each line of a computer 10 as shown in step 288.
requisition and displays it in the STATUS field in Requisi The sourcing of product types 03 and 04 at host computer
30 10 is described in connection with FIG. 4D. In step 300, host
tion Maintenance data screen 108. The possible status codes computer 10 receives a data block from local computer 40.
and the algorithm for assigning them to a line of a requisition By accessing the product type (PT) field for a given line in
will be discussed in detail below.
a received block of requisition data, host computer 10 can
If the entire requisition has been sourced, control then readily determine the product type of that line. Assuming
passes to block 245, where the system will cause a picking 35 that the line is of product type 03, control passes through
list to be printed out (as shown in step 246) on printer 43 if block 301 to decision block 302. In block 302, host com
the CSR hits the F2 (Accept) key. This completes sourcing puter 10 determines if the received stock number (STOCK
for an item of product type 01. NBR) for the line of requisition data block being processed
For items of product type 06 (an item owned by the is a valid Distributor catalog number. Host computer 10
Customer in JTT facility 51), sourcing does not require performs this action by comparing the stock number
communication with host computer 10. Thus control in FIG. (STOCKNBR) to series of databases described below in
4A passes from block 228 to block 240, where local com connection with cross referencing containing all valid cata
puter 40 determines whether the quantity of the item requi log numbers which are stored in host database 20. If the
sitioned (QTY) is equal to or exceeds the quantity available stock number is not recognized, host computer creates a data
(QTYAVAIL). If the quantity available is determined to be 45 block with an unrecognized product error code in step 304.
less than the quantity requisitioned in step 240, local com This data block is transmitted to local computer 40 in step
puter 40 then creates a proposed backorder in step 242 for 312.
a quantity equal to the difference between the quantity If, however, the stock number is recognized as corre
requisitioned (QTY) and the quantity available (QTY sponding to a valid Distributor catalog number, host com
AVAIL). As will be discussed below, the CSR need not 50 puter 10 sources (using the transmitted QTY) and prices the
accept this backorder. Local computer 40 then proceeds with line of the requisitionin steps 306 and 308. Sourcing may be
step 244 (as it would if the quantity available is equal to or performed in a conventional manner. Host computer 10 has
greater than the quantity requisitioned.) access to host database 20 which includes information
In step 244, local computer 40 display Requisition Main regarding the price and quantity available in the Distributor
tenance data screen 108 on monitor 41, which will display 55 Warehouse 30 and each other Distributor Warehouse of each
any quantity which local computer 10 has proposed to place particular itemstocked by the Distributor. Host database 20
on backorder in addition to the relevant data in the Requi also includes coding for items to be direct-shipped from a
sition Item Table. Local computer 40 also assigns a status regular vendor 37. For pricing, the Distributor may employ
code to each line of a requisition and displays it in the a separate discount table for each customer account, to
STATUS field in Requisition Maintenance data screen 108. automatically provide net prices of items that have been
Control then passes to block 245, where the system will negotiated with each particular customer, Thus any suitable
cause a picking document to be printed out (as shown in step conventional algorithms may be employed by the host
246) on printer 43 if the CSR hits the F2 (Accept) key. This computer 10 for sourcing and pricing items of product type
completes sourcing for an item of product type 06. 03. The pricing algorithm employed for those items of
The picking list can be used by suitable personnel to pick 65 product type 03 can also be the same algorithm employed for
the required items of product type 01 or 06 from JIT facility items of product type 01 which are regular Distributor
51. The quantities picked are then entered onto the picking products.
5,712,989
15 16
In step 310, host computer 10 creates a data block non-catalog special in host database 20 which can then be
containing at least the net price per item, a code identifying obtained as a type 04 product.
the location of the inventory used in sourcing. and the If, however, no error codes are received, local computer
quantity of the item available at that location. This data 40 displays Requisition Maintenance data screen 108 with
block is transmitted to local computer 40 in step 312. the pricing data (and inventory data, for products of type 03)
As noted above, items of product type 04 are also sourced transmitted by host computer 10.
by the preferred embodiment of the system of the present As noted above, items of product type 05 are not sourced
invention. As to these items, the Distributor is providing the using the preferred embodiment of the system of the present
invention.
service of ordering the item(s) for the customer to simplify O It will be noted that the above discussion of sourcing in
requisitioning and other administrative flow such as FIGS. 4A through 4D has been in the context of requisition
accounts payable management for the customer. The Dis for a quantity of a single product (stock number). In the
tributor may not provide this service as to all third-party preferred embodiment of the present invention, requisitions
vendors, however, as will be discussed below. having several lines, each of which is for a different item
If the product type of the line of the requisition being 15 (having a different stock number) can be sourced at one time
processed is 04, control passes through decision block 301 (i.e., by hitting the F6 key once). As will be clear to those of
to decision block 316. In block 316, host computer 10 ordinary skill in the art, where more than one item is
determines if the received vender number (VENDORNBR) requisitioned in a single requisition, data block transmission
for the line of requisition data block being processed is a and the printing of picking documents will preferably occur
valid vendor from which Distributor will order items for 20
only after all items in the requisition have been processed.
shipment to the Customer. Host computer 10 performs this Thus, for example, if a requisition contains several items of
action by comparing the vendor number to a database product type 01, only one data block need be transmitted
containing all valid vendor numbers which is stored in host from local computer 40 to host computer 10, host computer
database 20. If the vendor number is not valid, host com 10 need transmit only one data block in reply to local
puter 10 creates a data block with an unauthorized vendor 25 computer 40, and only one picking document need be
error code in step 318. This data block is transmitted to local printed out. The data blocks will preferably contain the
computer 40 in step 312. requisition line number of each requisitioned stock number,
If the vendor number is determined to be valid in step 316, in addition to the data discussed above for each stock
control passes to decision block 320. In block 320, host number.
computer 10 determines if the received vendor catalog 30 The status codes which appear in the STATUS field of
number (VENDOR CAT NBR) for the line of requisition each line on Requisition Maintenance data screen 108 will
data block being processed is a valid vendor catalog number now be discussed. The status of a line begins as "R"
which Distributor will order (from the relevant vendor) for (Requisitioned) when the line item is first created on Req
shipment to the Customer. Host computer 10 performs this uisition Management data screen 68. After sourcing, the
action by comparing the vendor catalog number to a data 35 status of a line becomes "S" (Sourced). After acceptance of
base containing all valid vendor catalog numbers which is a sourced requisition, the status can change to "F" (Filled),
stored in host database 20. If the vendor catalog number is "B" (Backordered), "P" (In Process) or "C" (Canceled). If
not valid, host computer creates a data block with an invalid there is sufficient inventory at the relevant location (which
product warning code (see code 500 in Table XXIV) in step depends on the product type of the requisitioned item) to
322. This data block is transmitted to local computer 40 in supply the requisitioned line item, the line will have the
step 312. status of Filled. If there is not sufficient inventory at the
The host computer 10 then prices the item in step 324 relevant location to supply the requisitioned line item, the
using any conventional algorithm or method. A data block is line will have the status of Backordered. If the CSR deter
then created containing the price information in step 328, mines that such a backorder is unacceptable to the
and this data block is transmitted to local computer 40 in 45 requisitioner, he can source the item elsewhere: e.g., an item
step 312. carried at the JIT as type 01 can be changed for this order to
When local computer 40 receives a data block from host an 03 and ordered from warehouse 30 for direct shipment to
computer 10 in response to its previous transmission of a the requisitioner. Similarly, the CSR can look for the inven
data block to the host, local computer 40 updates the tory at other Distributor warehouses if it is not currently
Requisition Item Table for the relevant line (or lines) as 50 available at the JIT facility 51 or at warehouse 30.
shown in block 290 of FIG. 4C. As in the sourcing of items A line having the status of In Process is one that has been
of product type 01, if an error code is received, local sourced, but communications between the host computer 10
computer 40 displays Requisition Management data screen and local computer 40 were somehow interrupted while
68 with the relevant error code on monitor 41, as shown in local computer 40 was awaiting a response from the host
step 294. At this point the CSR can evaluate the error for 55 computer 10 during the acceptance process described below.
possible mistaken entry of the stock number, vendor code or Generally this will occur, when it does happen, for all of the
vendor catalog number depending on the error code line items in a single requisition. Lines having a status of In
received; the CSR can then manually correct the error and Process will eventually become either Filled or
resource the item. In the case of an invalid vendor error Backordered, as described below.
code, the CSR can contact the Distributor's central purchas A line will have the status of Canceled if the CSR cancels
ing department for evaluation of adding a new vendor. If the the line item prior to acceptance, by hitting the F12 key from
CSR determines that the Distributor will not purchase from Requisition Maintenance data screen 108. Thus only a line
this vendor, he can change the product type to 05. having a status of Requisitioned or Sourced may be can
In the case where the vendor code is found in host celed.
database 20, but the vendor catalog number is not (i.e., 65 Line items having the status of Filled or Backordered will
where warning code 500 is received), the CSR may attempt have the status of Delivered ("D") when the items have been
to contact the Distributor so as to establish the product as a received and the receival is entered (as described below).
5,712,989
17 18
Local computer 40 updates the status of each line in by line by the respective computers before transmitting data
Requisition Item table consistent with the manner described to the other computer. Similarly, only one purchase order is
herein. generated for the requisition.
Orders having the header status (shown in the ORDER If the line item has a product type of 06, control is passed
STATUS field of Order Header data screen 60) of Requisi to block 334. As shown in steps 334 and 336, a Purchase
tioned or Sourced may be cancelled by hitting the F12 key Order record internal to the Customer may (at the option of
from Order Header data screen 60. (An order has a header the Customer) be created and printed out on printer 43 at this
status of Requisitioned or Sourced if all of the line items in stage, recording a sale from the Customer's purchasing
that order have the status of Requisitioned or Sourced.) A department to the requisitioning department or account. This
canceled order will have a "C" code in the ORDER STATUS O internal purchase order can be used by the Customer's host
field. computer in making accounting adjustments. Since the
Prior to acceptance, the CSR can also decrease the quan implementation of such an internal sale will vary depending
tity requisitioned QTY of any line on Requisition Mainte on the Customer's own accounting software in a manner
nance data screen 108. easily understood by one skilled in the art, these steps will
15 not be further described here.
Acceptance Regardless of whether or not such an internal purchase
The CSR can accept all lines of the requisition if all lines order is created for the Customer, control then passes
have a status of Sourced by hitting the F2 key to ACCEPT. through decision block 352 (as the product type is 06 in this
However, as discussed above, if the requisition includes 20
case) to block 354. In block354, the quantity on hand (QTY
items sourced from JIT facility 51 (i.e., items of product ON HAND) field of the Plant LocationTable for the relevant
types 01 or 06), hitting the F2 key the first time causes local part number (PART NUMBER) in local database 50 is
computer to print a picking document out as described in reduced by the requisitioned quantity (QTY) for the relevant
step 246 of FIG. 4A. This permits suitable personnel to pick line in the Requisition Item Table (which is also in local
the required items of product type 01 and 06 from the JTT 25
database 50). At this point, control passes to block 356,
facility 51. The quantities picked are then entered onto the where the local computer updates the status (STATUS) field
picking document and compared by the CSR to the quanti of the relevant line of the Requisition Item Table to "F" for
ties shown. If the quantities agree, the CSR can hit the F2 Filled. The display on Purchase Order Maintenance data
key again to accept the requisition. If the quantities do not screen 108 is also updated at this time.
agree (e.g., due to breakage of one or more of the items in 30 If, on the other hand, the line item has a product type of
JIT facility 51), the CSR can go to the Inventory Adjustment 01, 03 or 04, control is passed from block 332 in FIG.5A to
data screen and adjust the inventory as described in detail block 338. In step 338, local computer 40 creates and
below. If, on the other hand, there are no type 01 or type 06 transmits to host computer 10 a purchase order data block
lines on the particular requisition, then hitting the F2 key for containing at least the customer account number (ACCT
the first time will accept the requisition. 35 NBR) and Requisition Number (REQ NBR) from the Req
In either event, accepting the requisition (by hitting the F2 uisition Header Table and 10 the line number (LINE), item
key once or twice) causes control to be passed to the stock number (STOCK NBR), quantity to be purchased
Purchase Order Build program 112 (shown in FIG. 2A). As (QTY), unit of measure (UM), product type (PT), net unit
described in the diagram FIGS. 5A and 5B, for items of price (UNIT PRICE) and net total price (EXT PRICE) from
product types 01, 03 and 04, local computer 40 uses Pur the Requisition Item Table. If the product type is 01, the
chase Order Build Program 112 to create a purchase order purchase order data block will also include an identification
between the Customer and the Distributor from the data in code for the JIT facility 51 (WHSE) and the quantity of the
the Requisition Header and Item Tables. item available at that facility (QTYAVAIL). If the product
For items of product type 06, a Purchase Order record type is 04, the purchase order data block will also include the
internal to the Customer may be created at this stage, 45 vendor number (VENDORNBR) and vendor catalog num
recording a sale from the Customer's purchasing department ber (VENDORCATNBR) entered into the Requisition Item
to the requisitioning department or account, for later use by Table from Non-Catalog Information data screen 80. As
the Customer's host computer in making accounting adjust noted above, the purchase order data block created in step
ments. 338 may have multiple lines with the associated data
In the case of items sourced from JIT facility 51 (items of described above for each such line.
product type 01 or 06), the inventory records will be After the purchase order data block described in step 338
adjusted accordingly as described below. is transmitted to host computer 10 over the data link
As shown in FIG. 5A, after the CSR accepts the requisi described above, local computer 40 waits for a response
tion in step 330, local computer 40 updates the STATUS from the host, as shown in block 340.
field of the Requisition ItemTable for the relevant lines with 55 The acceptance of a purchase order on host computer 10
the status code of "P" or In Process in step 331. This code is described in connection with FIG.S.B. in block 360, host
will preferably remain visible on Requisition Maintenance computer 10 receives the purchase order data block trans
data screen 108 for only a fraction of a second, before it is mitted from local computer 40. Receipt of a purchase order
replaced with another status code as discussed below. data block by host computer 10 causes the host to initiate
In step 332, local computer 40 then checks the product host Purchase Order program 120 shown in FIG.2B. In step
type of the requisition line item by accessing the product 362 shown in FIG. 5B, host Purchase Order program 120
type (PT) field of the Requisition Item Table for that line. validates the data received in the purchase order data block.
(As with the discussion of sourcing, FIGS. 5A and 5B In the validation step, host computer 10 checks the customer
describe the acceptance of a single line item for the sake of account number, item stock number (using the product type
clarity.) In the preferred embodiment of the present 65 information to determine what database in host databases 20
invention, a typical requisition will often have several line to search) and the price against the relevant information in
items. In that event, the entire requisition is processed line host database 20 to validate the data in the received purchase
5,712,989
19 20
order data block. If the item is of product type 01, host Control then passes (either directly from block 368 or
computer 10 also validates the identification code for the JTT from block 370) to block 372, where host computer 10
facility 51 and the quantity of the item available at that creates a confirmation data block to transmit to local com
facility (by comparing this data to the relevant entry in the puter 40. As shown in FIG.2B, confirmation is performed by
table in host database 20 which indicates the quantity of each the host Purchase Order Confirmation program 128 (control
Distributor-owned item in JIT facility 51) in step 362. having passed from Order Creation program 126 through
If any of the validation checks performed in step 362 decision block 124). Host computer 10 adds information
failed, control passes to block 364 where host computer 10 including the Distributor order number, line item status
creates a data block with the appropriate error code or codes codes and any error or warning codes (see Table XXIV) to
(e.g., invalid stock number or vendor). This data block is O the confirmation data block. In step 374, the confirmation
then transmitted to local computer 40 in step 374. data block is transmitted to local computer 40.
If none of the validation checks performed in step 362 In step 344, local computer 40 receives the confirmation
fail, host computer 10 executes the purchase order as shown data block from host computer 10. If any error codes are
in step 366 of FIG.SB using the Order Creation program 126 found in the received data block, control then passes through
shown in FIG.2B. Note that control passes through decision 15 block 348 to block 356. In step 356, local computer 40
block 124 in FIG. 2B to the Order Creation program 126 updates the Requisition ItemTable and the display shown on
because this is a new purchase order. Host computer 10 Requisition Maintenance data screen 108 with (in this case)
recognizes that local computer 40 is requesting that a the information, including error codes, found in the received
purchase order be created because the purchase order data data block. Any line items generating error codes will have
block received by the host computer 10 includes a code the status of canceled. The CSR will have to create a new
instructing the host computer 10 to process the data block as requisition with corrected entries corresponding to the can
a purchase order, as opposed to as a confirmation inquiry. celed lines to requisition these items.
As to items of product type 03 or 04, the execution of the If no error codes are found in the data block received from
purchase order by the host computer 10 in step 366 may be 25
host computer 10, control passes through block 348 to block
performed by any conventional means for arranging ship 350, in which local computer 40 directs printer 43 to print
ment of the item(s) from the Distributor Warehouse 30 or out a purchase order acknowledgment (unless no acknowl
from the facility of a vendor (37 or 38), depending upon edgment of the requisition was requested on Order Header
whether the type 03 or 04 product is routinely stocked by the data screen 60). The printed purchase order acknowledge
Distributor. For type 03 and type 04 products, the host 30
ment may employ any conventional form using data found
computer 10 will also cause an invoice to be created in step in the Requisition Header and Item Tables.
366, billing the customer by EDI. in paper form or In steps 352 and 354, local computer 40 updates the
otherwise, but not necessarily involving the local computer relevant data in local database 50 to reflect the removal of
40 or the communications link provided to it. When the purchased products of product type 01 from JIT facility 51.
Customer's host computer receives that invoice (directly via 35 This step is performed in the same manner as discussed
EDI or indirectly otherwise), it can compare the invoice with above in connection with items of product type 06. The on
the purchase order data that has, by then been uploaded from hand quantity in the relevant Plant Location Table entry is
the local computer 40 (e.g., as a flat file). reduced by the amount of the item purchased, as discussed
If the product type is 04, host computer 10 verifies the above. For items of product type 01. step 354 insures that
vendor part number. If the part number is found, host host database 20 and local database 50 will indicate the same
computer 10 executes the order in step 366 by generating a on hand quantity of this item.
proposed purchase order to the vendor and creates a data Control then passes to step 356, where (in this case) local
block including a status code of "B" (Backordered) for computer 40 will update the STATUS field in the Requisition
transmission to local computer 40. The Distributor's pur Item Table and the display shown on Requisition Mainte
chasing department will then verify that order (e.g., verifies 45 nance data screen 108 to reflect receipt of the confirmation
that the pricing is correct) and generate a purchase order to data block. The Distributor order number is also added to the
that vendor. If, during verification, host computer 10 does Requisition Item Table and is displayed on Requisition
not find the vendor part number, host computer 10 also Maintenance data screen 108 in the ORDER NBR field. If
creates a part record in the host database 20 when it creates a line item (of product type 01 or 06) has any quantity on
the proposed purchase order to the vendor. The Distributor's 50 backorder, the status of that line will be a "B" for Backorder
purchasing department then verifies the information in the until the stock at JIT facility 51 is replenished. For line items
part record and issues the purchase order to the vendor as of product type 01 or 06 where there is no backordered
described above. quantity, the status will now be "F" for Filled. For line items
For items of product type 01 (local JTT inventory), the of product type 03 or 04, the status will now be "F" for
customer is billed for the items in step 366 as with any item 55 Filled, "B" for Backordered or “C” for Canceled (e.g., if the
ordered from the Distributor. product was discontinued) depending on the status code
Host computer 10 next checks to determine whether the received in the data block
purchased item is of product type 01 in step 368. If the item If the communication link between local computer 40 and
is of product type 01, control passes to block370, where host host computer 10 is interrupted shortly after the CSR accepts
computer 10 updates the relevant entry (which is determined an order, the status of a line item may remain at "P" for In
by the stock number of the purchased item) in the relevant Process. If this is the case, the CSR may (after the commu
table (which is determined by the location code for the JTT nication link is reestablished), hit the F10 key while at
facility 51) in host database 20. Host computer 10 updates Requisition Maintenance data screen 108. This causes a
the relevant entry with a new quantity on hand, which is confirmation inquiry data block (containing the Purchase
obtained by subtracting the quantity purchased from the old 65 order number, Account number, line numbers, the date and
quantity on hand found which host computer 10 finds at that time) to be created by local computer 40 using the Purchase
table entry. Order Confirmation program 116 (shown in FIG. 2A) and
5,712,989
21 22
transmitted to host computer 10. When host computer 10 Inventory Maintenance
receives this confirmation inquiry data block, it is passed by Inventory records for items in JIT facility 51 are created
host Purchase Order program 120 (shown in FIG. 2B), using the Part Master data screen, an exemplary screen being
through decision block 124 to Purchase Order Confirmation set forth in Table VI. To add an item to local inventory, the
program 128. Most computer 10 recognizes this data block 5 CSR
as a request for confirmation of a previously submitted CODEenters field,
an "A" (for Adding a record) in the ACTION
a Part Number. ProductType and Product Used
requisition because of a code in the data block which
instructs host computer 10 to process the data block using indication. Fields are also provided for a Description, stan
Purchase Order Confirmation program 128. Purchase Order dard and alternate units of measure, list price, standard cost
Confirmation program 128 directs host computer 10 to send 10 and current cost and information relevant to shipping the
a confirmation data block to local computer 40 just as product (e.g., Hazardous Material code, Safety Data code,
described above. The receipt of this confirmation block is as Bill Of Lading code, etc.). Distributor's current cost is what
described above, and will alter the status code of the it would cost Distributor to purchase the item today, Dis
Requisition Item Table. tributor's standard cost is the cost upon which Distributor's
The function of the F11 key from Requisition Mainte 15 gross margin is calculated and may differ (e.g. because of
nance data screen 108 is very similar to that of the F10 key, inventory on-hand that was purchased previously at a lower
except that the F11 key relates to purchase orders for items cost). This cost information, which is periodically down
of product type 01 or 06 that have been filled through loaded from the host database 20, is for use by the CSR.
backorder allocation. By hitting the F11 key (where the Other Action Codes the CSR may enter include "D"
status of the line is Backorderd), host computer 10 transmits (Deleting a part record), "M" (Modifying a part record) and
a backorder inquiry data block including the Customer "I" (Inquiring to permit the CSR to view information on the
Account Number, Requisition Number, line numbers. date host database 20 without adding or changing the information
and time to host computer 10. As described above in in local database 50.)
connection with a confirmation inquiry, when host computer If the item being entered is of product type 06 (Customer
10 receives the backorder inquiry data block, it checks host 25 owned JIT inventory), the CSR will also enter a code in the
database 20 to determine whether or not the backordered CUST OWNED PROD TYPE field to indicate how the item
order has been filled and sends a backorder confirmation will be restocked. There will preferably be a different code
data block to local computer 40 similar to that described for each of the possible manners of restocking the product,
above. The receipt of this confirmation block will update the i.e. as a requisition of an item of product type 03.04 or 05.
status code of the Requisition Item Table from “B” to “F” if The manufacturer part number can then be added in the
the status has changed. adjacent field, if appropriate (i.e., if the underlying item is
As discussed above, Requisition Maintenance data screen not purchased from the Distributor). If the item has product
108 indicates, for each line, the quantity of an item that has type 03 for restocking purposes, the CSR can enter a code
been delivered or received (QTY REC) as well as the to identify the Distributor warehouse that will normally used
quantity of the item on Backorder (QTYBCKORD). When 35 to replenish the JIT inventory in the T/O SOURCE WHSE
items are received from either the Distributor or a third-party field.
supplier into the JIT facility 51, the CSR can use Requisition If the Distributor normally has the an item of product type
Maintenance data screen 108 to enter the receivals. By 04 direct shipped to its Customers from a vendor 37. that can
hitting the F5 key while the cursor in on the appropriate line, be so indicated in the STOCK POLICY FELD. Other
the CSR can change the value of the quantity received (QTY possible entries in that field include codes to indicate, if the
REC) to reflect shipments that have been received. Once all item is of product type 03, which of the Distributor ware
of the items in that line have been received, the status code houses should be searched in sourcing the item. One such
will change to "D" for Delivered. Similarly, a backordered code might indicate that the item should be shipped from
quantity (QTY BCKORD) will be reduced by the amount only a particular warehouse, and backordered if it is not
received once the various purchase or transfer orders for the 45 found at that location. Another such code might indicate that
items that were on backordered status are filled. the item should be shipped from only one of two particular
If all Backordered items for a line of a requisition of warehouses, and backordered if it is not found at either of
ORDER TYPE "T" (which is generated to restock those locations. If no code is entered, the general sourcing
Customer-owned JIT inventory 54, as discussed below) are rules of the Distributor (which may employ searching sev
received, the status of that line will automatically be eral warehouses in a predetermined order) will be used. The
changed to Delivered by local computer 40. specific algorithms employed in connection with these
Hitting the F9 key from Requisition Maintenance data STOCKPOLICYskill in the art and
codes are well known to those of ordinary
thus are not described in detail here.
screen 108 allows the CSR to go to Print Driver data screen
118, a sample of which is shown in Table XV. Print Driver The ABC CLASS field, on the other hand, which includes
Screen 118 enables the CSR to print extra copies of order 55 information downloaded from host database 20 when the
acknowledgments (F2), Bills Of Lading (F4). Picking Lists Part Master record is added to local database 50, indicates
(F5) and Packing Lists (F6), to the extent that these docu the Distributor's stocking policy for the item. Thus different
ments are relevant to the requisition at issue. codes in this field may indicate that the item is stocked in all
As discussed above, the Requisition Header and Item few Distributor warehouses, some Distributor warehouses, or
Tables for a given requisition are stored in local database 50, or no Distributor warehouses. This information is
where they remain after until they are deleted by the CSR. intended to aid the CSR in assessing alternatives for obtain
The data relating to a particular requisition can thus be ing backordered items.
subsequently retrieved for further review or updating. The To enter any changes into the Part Master Table on local
data in the Requisition Header Table, Requisition ItemTable database 50, the CSR must first hit the Enter key, so that
and customer variable tables (associated with the customer 65 local computer can validate the entered information by
variable data screens) may also be periodically uploaded to determining if sufficient information has been entered. (That
the Customer's host computer, e.g., as a flat file. is, if the CSR has entered at least a valid ACTION CODE,
5,712,989
23 24
a PARTNBR, a PROD TYPE and a USED IND.) If the CSR
has entered the required information, local computer 40 TABLE 2-continued
displays a message prompting the CSR to confirm the update FIELD NAME DESCRIPTION
by hitting the F11 key. The action that follows the CSR's
hitting the F11 key (Confirm Update) depend on the infor 5 ALLOCATED QTY The allocated quantity is the
mation the CSR has entered. If the product type of the item quantity reserved in the local
is 01, it may be restocked from Distributor's regular catalog database for a particular
requisitioner. The quantity on
items. Thus when the CSR hits the F11 key local computer hand less any allocated quantity is
creates a data block including the Account Number, location the quantity available to other
requisitioners.
code, action code, part number and product type indication 10
for transmission to host computer 10. The host computer 10
compares the received part number to its master database of The remaining data in Table 2 (BACK ORDER QTY, QTY
Distributor catalog items, and if it finds a match, creates a ON HAND, QTY ON ORDER and ALLOCATED QTY)
data block using the data in the master database (which is in will be tracked and updated by local computer 40 as
host database 20) to send back to local computer 40. 15
described herein.
The data block transmitted by host computer 10 to local If the product type is 01, after initial validation by local
computer 40 includes data to fill in many of the fields shown computer 40 when the CSR hits the Enter key, hitting the
on the Part Master data screen which the CSR has not F11 key from the Plant Location data screen causes local
himself filled in, such as the DESCRIPTION, price data, 20
computer 40 to create a data block using the part number,
STD UNIT, ABC CLASS etc. Local computer 40 then uses location identification code and information entered on the
the information in the received data block to add a new entry Plant Location data screen. This data block is then trans
in the Part Master Table stored on local database 50 for the mitted to host computer 10, which confirms the data and
item. creates a new entry in its plant location table for the relevant
If the item being updated on the Part Master data screen 25
JIT facility location with the transmitted data. Host com
is of product type 06, the confirmation of the update depends puter 10 then transmits a confirmation data block to local
on how the product is to be restocked (which corresponds to computer 40 (if there were no errors), which adds an entry
the indicator in the CUST OWNED PROD TYPE field). If to the Plant Location Table in local database 50 using the
the item is to be restocked as an item of product type 03, the information displayed on the Plant Location data screen.
confirmation of the update proceeds essentially as described 30 If the product type is 06, no data block is created and
above for items of product type 01, except that host com transmitted to host computer 10. Rather, local computer 40
puter 10 does not create a new entry in a part master table just adds an entry to the Plant Location Table in local
for the relevant JIT facility 51 in host database 20 (as host database 50 using the information displayed on the Plant
computer 10 will only be tracking Distributor-owned inven Location data screen.
tory 52 in JIT facility 51.) 35 Using the Part Master and Plant Location data screens, the
CSR
If the item being updated on the Part Master data screen whether builds item records for all items in local inventory,
is of product type 06, and the item is to be restocked as an Maintenance of product type 01 or 06. The Customer Account
item of product type 04 or 05, there is no data block by the CSR data to
screen (set forth in Table XIII) is also used
provide local database 50 with customer
transmitted to host computer 10. Rather, local computer 40 account data which is utilized in the order header of a
simply adds an entry to the Part Master Table in local requisition. For items of product type 01, the data on local
database 50 for the item. The CSR must, however, have
added a manufacturer part number, else an error message file database 50 are also sent to host computer 10, where a data
will be generated. reflecting the contents of JIT inventory (product type 01)
is created.
After entering the information in the Part Master Data From time to time, the CSR may need to adjust the value
screen, the CSR can hit the F5 (PLANT) key to go to the 45 of the quantity on hand of a particular item in JIT facility 51.
Plant Location data screen, a sample of which is set forth in This can done using the Inventory Adjustment data screen,
Table VII. This data screen provides access to the Plant a sample of which is set forth in Table VIII. Using the
Location Table in local database 50. In creating a new entry Inventory Adjustment data screen, the CSR may adjust the
in the Plant Location Table, the CSR enters the MAX quantity of an item of product type 01 or 06 up or down by
ORDER QTY, MIN ORDER QTY and the REORDER 50 entering PART NUMBER, PLANT CODE (which identifies
POINT, which are described in Table 2: the JIT facility), TOTAL BEN QTY (the quantity in the
relevant bin in JIT facility 51) and the amount of the
TABLE 2 adjustment in the PLUS or MINUS fields under the
FELD NAME DESCRIPTION 55 ADJUSTMENT QTY heading. The CSR must also enter a
REASON CODE indicating the reason for the adjustment in
MAX ORDER QIY Maximum quantity to be ordered in
replenishment
the appropriate field. Exemplary reason codes are set forth
in Table 3:
MIN ORDER QTY Minimum quantity to be ordered in
replenishment
BACK ORDER QTY Quantity of item presently on TABLE 3
backorder
REORDER POINT When the quantity on hand less any Reason
allocated quantity falls below the Code Description
reorder point, the system will
recommend a restocking order during O1 Product Writedown
replenishment. - New Part To Used Part
QTY ON HAND Quantity in local warehouse 65 02 Product Writedown
QTY ON ORDER Ouantity on order - Soon To Expire Product
5,712,989
25 26
quantity on hand in the corresponding reflection records
TABLE 3-continued stored in host database 20 for the relevant JIT facility to
match the received TOTAL BEN QTY. Host computer 10
Reason also validates the REASON CODE, if this code was
Code Description received in the transmitted data block. The validation of the
10 Expired Material REASON CODE may employ any conventional algorithm.
20 Warehouse Breakage If any of the validation checks fails, an error data block is
- Customer Shipment created with an appropriate error message, as shown in step
21 Warehouse Breakage
- Claims 404. This data block is then transmitted to local computer
22 Warehouse Breakage O 40, as shown in step 410.
- Wendor Refurbishing If no error is detected in validation step 402, control
23 Warehouse Breakage
- ISD Refurbishing
passes to step 406. In step 406, host computer 10 adjusts the
24 Warehouse Breakage entry for the quantity on hand in the corresponding JIT
- Sundry inventory reflection records stored in host database 20 for
25 Loss And Damage 15 the relevant JIT facility. An adjustment confirmation data
- Warehouse Breakage block is then prepared in step 408. This data block includes
52 RMS Stock Return. To Host Warehouse
90 Physical Inventory Adjustment an indication of the result of the adjustment, or an error code
91 Transfer Order Misshipments if the adjustment was not made. This data block is trans
92 Scrap Of Dead Or Excess Inventory mitted to local computer 40 in step 410.
Local computer 40 receives the data block transmitted by
Once the CSR has entered the required information and host computer 10 in step 386, shown in FIG. 6A. In step 388,
hit the Enter (Return) key, local computer 40 validates the local computer 40 checks to see if there are any error codes
entered PART NUMBER and TOTAL BIN QTY by using in the received data block. If an error code is detected,
the PLANT CODE to reference the relevant entries in the control passes to block 390, where the appropriate error
Part Master and Plant Location Tables in local database 50, 25 message is displayed on the Inventory Adjustment data
Local computer 40 also checks to see if a negative ADJUST. screen. If, on the other hand, no errors are detected, control
MENT QTY exceeds the quantity on hand (which should be passes from block 388 to block 392, where local computer
the same as the TOTAL BINQTY). If validation fails, local 40 adjusts the quantity on hand of the relevant entry of the
computer 40 prompts the CSR with an appropriate error Plant Location Table in local database 50.
message, and the CSR may again try to make the adjustment. 30 Periodically, requisitioned goods distributed from JIT
For example, in the screen shown in Table VIII, the error facility 51 may have to be returned to JIT facility 51. The
message "Part Master Record Not Found" is displayed one CSR can return goods to the JIT facility 51 by proceeding to
line from the bottom of the data screen. Order Header data screen 60 and entering an Account
If there are no errors in validation, local computer 40 Number and a Requisition Number. The CSR must then
prompts the CSR to update the JIT inventory records (which 35 enter a 'G' into the ORDERTYPE field on Order Header
will be done by altering the QTY ON HAND for the relevant data screen 60 so that order type field of the Requisition
entry in Plant Location Table local database 50) by hitting Header Table for this transaction will be recognized by local
Enter. When the CSR hits enter, local computer 40 executes computer 40 as a returned goods transaction.
the program shown in FIG. 6A. After the CSR hits Enter As with an ordinary requisition, the CSR may then enter
(which is shown in step 380) local computer 40 checks the customer variable data using Customer Variable Header data
product type of the item (which is in the Part Master Table) screen 64. By hitting the F2 key from Order Header data
to determine whether it is 01 or 06, as shown in step 381. If screen 60, local computer 40 will then display the Return
the product type of the item is 06, local computer proceeds Goods data screen, an example of which is set forth in Table
to step 392 where the QTY ON HAND in the Plant Location XTV. This data screen is very similar to Requisition Man
Table for the adjusted item is modified to add or subtract the 45 agement data screen 68, and the CSR enters data onto the
Adjustment Quantity as appropriate (depending upon Return Goods data screen this screen as described in con
whether the CSR entered the Adjustment Quantity in the nection with the use of Requisition Management data screen
PLUS or MNUS field, 68. The CSR must enter a valid STOCKNBR, a RET QTY
If, however, the product type of the item is 01, control (return quantity), a UM (unit of measure) and a PT (product
passes to block382, where the local computer creates a data 50 type). Once the CSR has entered the required information, if
block including the JIT location code (PLANTJTT SITE in the CSR hits the Enter key, local computer 40 will validate
the Plant Location Table), the PART NUMBER, the TOTAL the entered data (much as local computer 40 validated the
BIN QTY, the Unit of Measure and the ADJUSTMENT data entered onto the Inventory Adjustment data screen). If
QTY (all entered onto the Inventory Adjustment data no errors are detected, local computer 40 runs a program
screen). The REASON CODE may also be added to this data 55 which is essentially the same as that described in FIG. 6A in
block if this information is desired by the Distributor. This connection with adjustments to inventory. As in FIG. 6A, if
data block is transmitted to host computer 10 in step 384. the returned item (for the line being processed) is of product
Local computer 40 then waits for a response, as shown in type 06, local computer 40 immediately adjusts the relevant
block 385. quantity on hand entry in the Part Master Table in local
The processing of the JIT inventory adjustment by host database 50 (this time by adding the quantity in the RET
computer 10 is shown in FIG. 6B. In step 400, host computer QTY field to the prior quantity on hand).
10 receives the adjustment data block from local computer If the item or items being returned are of product type 01.
40. In step 402, host computer validates the data received in local computer builds a data block to transmit the appropri
step 400. In this step, host computer 10 checks host database ate data to host computer 10, just as is shown in FIG. 6A.
20 to determine if the PART NUMBER and PLANT CODE 65 The host's processing of the return of goods is essentially
are valid (i.e., if host database 20 includes corresponding the same as that shown in FIG. 6B in connection with
records.) Host computer 10 then changes its entry for the adjustment of JTT inventory. The host validates the infor
5,712,989
27 28
mation received and creates an error block as described in In the preferred embodiment of the present invention, each
connection with FIG. 6B if necessary. Otherwise, host transfer order will have at most fifteen line items (each of
computer 10 accesses the quantity on hand field for the which is directed to a particular quantity of a selected item).
relevant part number and JIT facility in host database 20 and Local computer 40 uses this limitation and the product type
adds the returned quantity to this amount to get a new 5 classification discussed above to break the entries (starting
quantity on hand. Host computer 10 then transmits a con with the first 15, if they are all of the same product type) of
firmation data block to local computer 40. Upon receiving the Replenishment Results Table into individual transfer
this confirmation data block, local computer 40 then orders. Any conventional algorithm may be employed to
(assuming no error code is received) similarly updates the fulfill this function,
relevant quantity on hand entry in the Part Master Table in 10 Local computer 40 assigns each transfer order a unique
local database 50 (by adding the quantity in the RET QTY identifying Replenishment Number. For each transfer order,
field to the prior quantity on hand), just as is shown in FIG. local computer 40 creates and stores a Transfer Order
6A. Header Table in local database 50 using the Replenishment
Number in local database 50. Local computer 40 then uses
Inventory Replenishment 15 the data in the Replenishment Results Table to create and
Replenishment of local inventory is initiated when the store in local database 50 a Transfer Order Item Table using
CSR enters the code REPLinto the RESPONSE field on any the procedure described above. The Transfer Order Item
Table includes the same information for each item in the
data screen. A replenishment algorithm (which may be one Replenishment Results Table that was in the latter table with
of many which are well known to those of ordinary skill in 20 the addition of the Replenishment Number. Local computer
the art) is then executed using the data from the fields 40 then displays a message on the message line of the
described in Table 2.
An exemplary replenishment algorithm may employ two currently active data screen to indicate that the replenish
ment program has been completed.
steps, as follows. First, a determination is made as to The CSR may then go to the Transfer Order List data
whether or not to restock the inventory for each item having 25 screen (an exemplary Transfer Order List data screen is set
a Plant Location Table entry. If the quantity available (the forth in Table XIX) by entering the code TOLP into the
quantity on hand (QTY ON HAND)) is less than or equal to RESPONSE field of any data screen to review the transfer
the REORDER POINT, then the inventory for the item will orders generated as a result of replenishment. As shown in
be restocked. the exemplary Transfer Order List data screen in Table XIX,
Local computer 40 then creates a Replenishment Results 30 the transfer orders are preferably displayed in a chronologi
Table in the random access memory of local computer 40. cal order with the most recently generated transfer order
There will be one transfer order entry in the Replenishment displayed first. Thus if the CSR goes immediately to the
Results Table for each part to be restocked. Each transfer transfer order data screen after replenishment is complete.
order entry contains the following information: the relevant the first transfer orders listed will be those generated from
part number, product type, the plant location, the restocking 35 replenishment (unless no transfer orders were generated in
source location, maximum order quantity, minimum order replenishment).
quantity, back order quantity, reorder point, quantity on hand For each transfer order, the Transfer Order List data
and quantity on order from the relevant tables in local screen preferably displays its associated Replenishment
database 50. Number, a status code and the creation date of the transfer
Next, local computer 40 runs the second step of the order, as shown in Table XIX. The status code may have the
replenishment process to determine the quantity to be following values: "W" for Working transfer order; "O" for
ordered to restock each item being restocked. For each Open transfer order; "R" for Received into receiving and
transfer order entry in the Replenishment Results Table. "C" for Closed. A transfer order has the status of Working
local computer 40 performs an algorithm such as the fol until it is accepted by host computer 10, after which it has
lowing using data in the relevant fields of the Plant Location 45 the status of Open, and a Transfer Order Number assigned
Table: by host computer 10 is added. If the items requested in a
Proposed Order Qnty=((MAX ORDER QTY-QTY ON HAND)+
transfer order have been received at the receiving area of JTT
(BACK ORDER QTY-QTY ON ORDER) facility 51, but have not yet been put into stock, that order
will have the status of Received. Once the items are put into
Local computer 40 then enters the calculated Proposed 50 stock in JIT facility 51, the transfer order will have the status
Order Quantity into a Quantity field in each transfer order of Closed.
entry in the Replenishment Results Table. When this has Six options are shown on the Transfer Order List data
been done for all of the transfer order entries, local computer screen which the CSR may exercise by entering the appro
40 then sorts the entries in the Replenishment Results Table priate number. The first option, Replenishment Order
by product type (01 or 06). Some of the entries having 55 Deletion, permits the CSR to delete the replenishment order,
product type 01 are preferably further sorted by a SOURCE provided that it has the status of Working.
LOCATION code in the Plant Location Table (see the Selecting the second option, Transfer Order Maintenance.
exemplary Plant Location data screen, which is used to causes local computer 40 to display a Transfer Order Main
create the Plant Location Table). The SOURCE LOCATION tenance data screen. (An exemplary Transfer Order Main
code identifies the particular Distributor warehouse that item tenance data screen is set forth in Table DX.) This data screen
is sourced from; by grouping such items together in the resembles the Requisition Maintenance data screen 108 in
Replenishment Results Table, individual transfer orders gen both appearance and function to some degree, although it
erated from replenishment will thus be more likely to be applies to transfer orders. Thus the Transfer Order Mainte
sourced by a single warehouse, which will simplify tracking nance data screen includes the following fields for each line
of the transfer (and requisition) orders as items are received. 65 item (which are derived from the corresponding Transfer
When sorting is complete, local computer 40 creates Order Item Table entry): a line number (T/O LINE), PART
transfer orders from the sorted Replenishment Results Table. NUMBER, unit of measure (UOM) which indicates the
5,712,989
29 30
standard units to be transferred, conversion factor Upon receiving the transmitted data block, host computer
(CONVERT FACTOR) which indicates the number of stan 10 validates the data in the same manner as with a requisi
dard units per unit used, ORDER QTY.BCKORD QTY and tion and builds a transfer order in host database 20 indicating
CANCEL QTY. At this time (prior to acceptance) all of the the quantity of items ordered, the quantity to be put on
fields except for the BCKORD QTY and the CANCELQTY 5 backorder, and the quantity to be cancelled. (The cancelled
will be filled in, quantity refers to ordered items which the Distributor will
The ORDER QTY field will display the Proposed Order not be shipping, e.g., discontinued items.) As with a requi
Quantity calculated by local computer 40 as discussed sition of an item of product type 03, a picking list will later
above. The CSR may use this proposed quantity or change be generated in Distributor warehouse 30 or the relevant
the value in the ORDER QTY field as desired. This permits 10 Distributor warehouse for the items that host database 20
the CSR to tailor restocking orders using knowledge which indicates are on hand so that the items can be shipped to JTT
then may be available to him (e.g., that the Customer will facility 51.
soon be needing a very large supply of an item which is not Host computer 10 then assigns a Transfer Order Number
normally stocked in large volume in JIT facility 51.) to the order and builds and transmits a confirmation data
The CSR may also add items to the displayed transfer 15 block (or an error block if an error was detected in the
order using the F10 (Add. Items) key, which will allow the validation step) to local computer 40. Local computer 40
CSR to add the relevant information for an additional item uses this received data block (which includes the Transfer
on a new line number. The CSR may also create a new Order Number) to update its Transfer Order Item Table and
transfer order (e.g., if the current transfer order already has the display on the Transfer Order Maintenance data screen.
15 line items) from Transfer Order Maintenance data screen This data block includes a status code and any backordered
by hitting the F9 (New T/O) key. or cancelled quantities of the item. The status of the line will
The CSR can then accept the transfer order displayed on then be Shipped ("S") if the ordered quantity of the item was
the Transfer Order Maintenance data screen by hitting the F5 found in the a Distributor warehouse or Backordered if all of
(Accept T/O) key. The events caused by acceptance of a the ordered quantity of the item was not found in the a
transfer order differ depending on the product type of the 25 Distributor warehouse (with the backordered quantity being
items in that transfer order. A single transfer order will displayed).
preferably contain only items of product type 01, or only Returning to the Transfer Order List data screen in Table
items of product type 06. Thus a transfer order will prefer XIX, the CSR has four remaining options in managing
ably not include both items of product type 01 and 06. transfer orders, in addition to the two that were previously
If the transfer order is of product type 06, the system of 30 discussed. One of these options is number 4, Single Line
the present invention treats it as a type of requisition. Upon Receival. If the CSR hits "4" from this data screen, local
accepting a transfer order of product type 06, local computer computer 40 will display the T/O Receivals data screen, an
40 will display Order Header data screen 60 to permit the example of which is set forth in Table XVI. This data screen
CSR to enter an Account Number and a Requisition Number. permits the CSR to update local database 40 to reflect the
(The ORDERTYPE field will now display a “T” to indicate 35 receipt of a shipment including an ordered line item of
that the requisition was generated to replenish Customer product type 01 at JIT facility 51.
owned JIT inventory 54.) The CSR may then hit the F6 key The CSR enters the appropriate quantities into the QTY
to source the requisition. The transaction then proceeds as RECEIVED and QTY DAMAGED fields onto T/O
described above, with all subsequent maintenance of the Receivals data screen to reflect the state of the received
order being performed from Requisition Maintenance data shipment. The CSR can also decide whether to receive the
screen 108, as described above. The processing of transac shipment into stock (i.e., into the appropriate bins in JIT
tions replenishing Customer-owned JIT inventory 54 is facility 51) or into receiving (to reflect that the items have
processed as a requisition because, as with a requisition, the arrived at JIT facility 51 before they are received into stock)
Customer must purchase these items from the Distributor or by entering an "X" into the appropriate field on the T/O
from another supplier so that they will be owned by the 45 Receivals data screen. When the CSR has entered this
Customer. information (using the Enter key) and local computer 40 has
If a transfer order comprises items of product type 01, validated it, the CSR can hit the F10 (Receive T/O) key. This
however, these items are used to restock the Distributor directs local computer 40 to build a data block containing the
owned inventory 52 in JIT facility 51. Thus these items will Transfer Order Number, the line number of that transfer
not be purchased by the Customer at this time, but merely 50 order, the Receipt Number (which is taken from the receipt
transferred to JIT facility 51. Aside from this difference, the sent with the shipment and entered into the RECV field), the
processing of transfer order for items of product type 01 is quantity received and any other information entered by the
similar to the processing of a requisition, but there is no CSR into the T/O Receivals data screen, and transmit it to
pricing or invoice generation. Additionally, because all host computer 10. Host computer 10 then validates the
transfer orders are for products of product type 01, the 55 received information and updates its inventory records for
processing of a transfer order includes the updating of the the particular JIT facility and Part Number. Host computer
records on host database 20 regarding Distributor-owned 10 then sends a confirmation data block to local computer
inventory in JIT facility 51 whenever the corresponding 40, which then updates the quantity on hand field of the
records in local database 50 are updated. relevant entry in the Plant Location Table (if the item has
When the CSR accepts a transfer order of product type 01. been received into stock) and the relevant fields in the
local computer 40 uses the data in the Transfer Order Header Transfer Order ItemTable. Once all of the items in a transfer
and Transfer Order Item tables to build a data block to be order are received, the status of that transfer order will
sent to host computer 10. This data block includes the automatically be changed to Closed.
location code, source location code, the date and time, and By hitting the F5 key from the T/O Receivals data screen
for each line number, the part number and quantity to be 65 (or by selecting the fifth option from the Transfer Order List
transferred. This data block is then transmitted to host data screen), the CSR can direct local computer 40 to display
computer 10. the Modify Receipt Process data screen. (A sample Modify
5,712,989
31 32
Receipt Process data screen is set forth in Table XX.) This other distributors and the Customer will frequently use
data screen enables the CSR to change the status of some or different identifying part numbers for items which are essen
all of items received into receiving status to be received into tially equivalent, e.g., a 250 ml PYREX Griffin beaker,
stock status (and vice versa). If the CSR has arrived at this manufactured by Corning (who designates it as part number
data screen from the T/O Receival data screen, the Modify 1000 250) could have a Distributor's catalog number 02
Receipt Process data screen will already display at least the 540K and competitor's part numbers B2650250. 13912207,
Transfer Order Number (ORD NBR). Receipt Number and 029827. Distributor and competitors may also have
(RECV), line number (LINE), Part Number (PART NBR), similar products from other vendors (e.g., a 250 ml KIMAX
QUANTITY STOCKED, QUANTITY IN RECEIVING and Griffin beaker from Kimble).
associated information. Otherwise, the CSR can call up this 10 To address this situation, the preferred embodiment of the
information by entering the relevant Transfer Order Number, system of the present invention includes a Host Cross
Line Number and Receipt Number into the Modify Receipt Reference Table in host database 20 as well as a Local
Process data screen and hitting Enter, which will call up the Cross-Reference Table in local database 50.
associated data (such as the QUANTITY STOCKED). The Host Cross-Reference Table includes, for each item
The CSR can then transfer items from stock to receiving. 15 regularly stocked or supplied by the Distributor (i.e. items
or vice versa, by entering quantity to be transferred into the of product type 01 or 03) a list of the corresponding part
quantity field and entering an "S" or a "R" to identify the numbers of Distributor's vendor and other distributors
direction of the transfer. When this data has been entered, (which are identified by a competitor number) for items
local computer 40 validates the entered data to determine if which have been determined to be equivalent. This relational
the transfer is possible (i.e., if there is a sufficient quantity of 20 database is created by the Distributor by, for example,
the item in the location from which the quantity is being reviewing the catalogs of other distributors and determining
transferred). which items are equivalent to items in the Distributor
After this validation, the CSR may confirm the update by catalog.
hitting the F10 key, which will cause local computer 40 to Additionally, as discussed above, host database 20 also
create and transmit an appropriate data block to host com 25
includes a database of valid vendor codes and vendor part
puter 10, and host computer 10 will repeat the updating and numbers for items which are not regularly supplied by the
confirmation transmittal process discussed above in connec Distributor, but which the Distributor will order for ship
tion with the T/O Receivals data screen. When local com ment to the Customer (i.e. items of product type 04).
puter 40 has received confirmation, it will update the status The CSR at local computer 40 creates the Local Cross
of the relevant fields of the Transfer Order Item Table and 30
the Plant Location Table as needed. Reference Table in local database 50 using the Cross Ref
Another option that may be selected from the Transfer erence Maintenance data screen 76 (shown in FIG. 2A), a
Order List data screen is the Multiple Line Stock Receival sample of which is set forth in Table XVIII. The Cross
data screen. (A sample Multiple Line Stock Receival data Reference Maintenance data screen 76 can be reached by
screen is set forth in Table XXL). This data screen performs 35 hitting the F5 (XREF MAINT) key from the Cross Refer
the same function as the T/O Receival data screen, except ence Number List data screen 72, a sample of which is
that multiple lines of a transfer order may be received. In the shown in Table XVII. The latter data screen permits the CSR
exemplary data screen shown in Table XXI, the CSR cannot to view portions of a list of cross reference numbers stored
in the Local Cross Reference Table, as will be clear to one
receive items into receiving from the Multiple Line Receival of ordinary skill in the art from Table XVII.
data screen. The Multiple Line Receival data screen could The CSR can then enter the Customer's part number in the
easily by modified to permit reception into receiving by
adding fields shown in the T/O Receival data screen. CROSS REF NUMBER field, and the corresponding Dis
The final option available from the Transfer Order List tributor's catalog number in the CATALOG NUMBER field.
data screen is Transfer Order Close. This option is not Alternatively, the CSR may enter a catalog number of the
normally needed as transfer orders are usually closed auto 45 vendor or another distributor in the CATALOG NUMBER
matically when all of the items requested therein are field, and a corresponding vendor or competitor number in
the VENDOR NUMBER field. The CSR must also enter a
received. This data screen is available to permit the CSR to product type in the PROD TYPE field. Finally, the CSR
open or close a transfer order in unusual circumstance. For must enter a unit of measure in the VEND UM field if the
example, a shipment might be received in response to a
transfer order, and the order closed. But it may later be 50 CATALOG NUMBER is that of a competitor.
realized that the received items were a misshipment, and Once the CSR has entered this information, he can hit the
were not the ordered items. The CSR could then use this data F6 (Add) key to add the entered data to the Local Cross
screen to reopen the transfer order. As with the other data Reference Table. Local computer 40 then creates a data
screens affecting the status of transfer orders, local computer block including the Customer's cross reference number, the
40 must first inform host computer 10 that it wishes to close 55 associated catalog number (and a vendor number, if
or reopen a transfer order and wait for confirmation before appropriate) and the product type. This data block is then
the relevant records in local database 50 are updated. transmitted to host computer 10 for validation.
Cross-Referencing If the product type is 01 or 03, host computer 10 validates
the data in the received data block by accessing the Dis
As described above, the preferred embodiment of the tributor product data on host database 20. If host computer
present invention may identify items to be requisitioned 10 does not find the item in the Distributor product data, it
using several different part numbering systems. In addition then searches one or more Most Cross Reference Tables for
to the Distributor's own catalog numbers, the vendors from the item. This process is similar whether it occurs in
which the Distributor will stock or order items may also response to a data block received from the local computer 40
have their own vendor part numbers. Moreover, the Cus 65 when operating under the cross-referencing program (as
tomer may employ its own catalog of part numbers using a described here) or in response to a data block received from
numbering system unique to that Customer. The Distributor, the local computer 40 during the sourcing process described
5,712,989
33 34
earlier (see block 302 of FIG. 4D and the related discussion If the local database 50 contains the Customer's equivalent
of verifying a line of a requisition containing an 03 code). (e.g. BEAKER250 as a stock number), it will add to the
That use during sourcing will be described first, with the Cross-Reference Table lines such as:
above PYREX Griffin beaker used as an example.
If, during sourcing, the host is validating a catalog number BEAKER250 WNOOOO2047 1000 250
for a purportedly 03 item, it will search a series of files in BEAKER250 CP0000003 B2650250
host database 20. One such file may be unique to the
Customer, containing the Customer's stock numbers cross
referenced to a Distributor catalog system. In the present 10
which also contain a description, unit and product type as
system, the ordered item is likely not to be found in that file shown in Table XVI.
because (as described below) the local computer 40 will If the host computer 10 validates the part number in the
normally convert Customer stock numbers to Distributor received data block as a customer-specific stock number, a
catalog numbers using the Local Cross Reference Table Distributor catalog number, a vendor part number or a
before the data block is sent (see block 282 in FIG. 4C). competitor catalog number found in host database 20, a
15 confirmation data block is sent back to local computer 40
The next table host computer 10 searches contains the containing information such as the above lines; and local
Distributor catalog numbers. Thus, if the data block contains computer 40 then updates the Local Cross Reference Table
a line representing a requisition for 02 540K, it will be and the display of Cross Maintenance data screen 76. If a
recognized and host computer 10 will proceed to sourcing line of the received data block contains a part number not
306 and pricing 308. If, however, the data block contains a recognized, an error data block with an appropriate error
line representing a requisition for 1000 250 (Corning's part code is transmitted to local computer 40, and the display of
number for the beaker), a match will be found in the vendor the Cross Reference Maintenance data screen 76 is updated
cross reference file in host database 20 and that item accordingly.
converted to 02 540K for sourcing 306 and pricing 308. If the product type is 04, host computer 10 uses its
When a data block is transmitted in step 312 back to local 25 database of valid vendors and vendor part numbers to
computer 40 to update the Requisition Item Table, it will validate the data in the received data block. If the vendor
contain 02 540K for the relevant line number and that
change will be reflected in the Requisition Management data number and vendor part number are found in host database
20, a confirmation data block is transmitted. The host
screen 68 displayed at step 294 or the Requisition Mainte computer 10 also reviews, at this time, various cross refer
nance data screen 108 displayed at step 296. 30 ence files in host database 20 to determine if the part number
If a requisition contains a line for B2650250, no match identified as an 04 item has become a regular Distributor
will be found in any of the first three tables of host database product. If so, that information is added to the confirmation
20 searched (i.e., the customer-specific. Distributor or ven data block and a warning code (503 meaning PRODUCT
dor tables). The host computer 10 will then search the TYPE CHANGED FROM (04) TO (03)) is included in the
competitor cross-reference file and identify B2650250 as a 35 confirmation data block. If validation fails, a data block
competitor's designation for the same PYREX beaker, con including an appropriate error code or warning code (see,
vert the line to 02 540K and then proceed to sourcing 306 e.g., code 500 in Table XXIV) is transmitted to local
and pricing 308. It is contemplated, but not required, that a computer 40.
warning message be included in the data block transmitted If local computer 40 receives a confirmation, it then
in step 312 for this line to alert the CSR that a conversion creates a new entry in the Local Cross Reference Table in
from the competitor's catalog number has been made. The local database 50 with the data the CSR has entered.
CSR will, in any event, review the product description The CSR may also edit the information for a particular
(PYREX Griffin beaker 250 ml) in the Requisition Manage cross reference number using the F4 (Update) key. Upon
ment data screen 68 displayed at step 294 or the Requisition hitting the F5 key, the same data block transmission and
Maintenance data screen 108 displayed at step 296 to ensure, 45 validation of the updated information by host computer 10
for example, that the requisition was not a different suppli will occur as did in Adding a new cross reference number.
er's B2650250 or 1000 250, representing an entirely differ Once a cross-reference number has been added to Local
ent product. In such case, the CSR can revise the requisition Cross Reference Table, the CSR may enter the Customer's
to modify or delete the affected line (and send the modified cross-reference number in the STOCKNBR field of Req
requisition back to the host computer 10 for sourcing) before 50 uisition Management data screen 68 to requisition a given
acceptance. item. The entered cross-reference number will then be
When the Cross Reference Maintenance data screen 76 is displayed on Requisition Management data screen 68, Req
displayed and a data block is sent to host computer 10 uisition Maintenance data screen 108 and in any other data
containing a vendor number such as 1000 250 or a com screen or printout which includes the information in the
petitor's number such as B2650250, the host computer 10 55 STOCKNBR field. When data blocks for transmission to
will search various files in host database 20 (as during host computer 10 are created, however, local computer 40
sourcing, described above) and recognize each as a number will access the Local Cross Reference Table (which is
corresponding to Distributor catalog number 02 540K. The maintained in a relational database) to substitute the asso
data block returned to the local computer 40 will then ciated Distributor catalog number (or the vendor catalog
contain a set such as: number with the associated vendor number) for the Cus
tomer cross-reference number.
Thus the CSR may create requisitions using the Custom
WNO0002047 000 250 VNOOOOOOO1 O2 540K er's own catalog numbers (which will likely be referenced in
where the two vendor numbers (VN) represent Corning and requisition requests received by the CSR) and the Local
65 Cross Reference Table will translate these numbers into
the Distributor, respectively, or a set such as: Distributor catalog numbers or catalog numbers of other
CP00000013 B2650250 WN00000001 O2 540K. vendors which are recognized by host computer 10.
5,712,989
35 36
Backorder Allocation database 50 as discussed above immediately after the CSR
When backOrdered items have been received into stock, hits the F2 (Accept) key. Thus there is no communication
the CSR may allocate the received items among outstanding with the host computer 10 upon allocation of backordered
requisitions having a quantity on backorder for the received items of product type 06.
item or items. The system of the present invention may also provide for
By entering "BOA” into the RESPONSE field of any deletion of requisition records from local database 40 when
data screen, the CSR causes local computer 40 to display the they have been filled. Preferably, deletion will not occur
Backorder Inquiry data screen, a sample of which is shown until data from the requisition records is transferred to the
in Table XXII. This data screen uses data in the Requisition 10 Customer's host computer, in whatever form the Customer
Item Table in local database 50 to display the requisition desires.
numbers of requisitions having backordered items. This data
screen also lists the part number, unit of measure, order The system of the present invention is capable of gener
quantity, backordered quantity and the available quantity ating a number of types of flat file data sets or reports to be
(from the Plant Location Table) for each backordered item. 15 printed out or to be transmitted to the Customer's host
The CSR can allocate received backordered items to a computer. These include: detailed records of purchase orders
particular requisition by typing and entering an "S" in the issued from the Customer to the Distributor; records of
SEL (Select) field adjacent the requisition number of the purchase orders issued from the Customer to third parties
backordered item. This causes local computer 40 to display (e.g. for items of product type 05 or for restocking items of
the Backorder Allocation data screen, a sample of which is product type 06 which are not sourced through the
set forth in Table XXII. Distributor); usage reports; and performance reports (e.g.,
The CSR can use the Backorder Allocation data screen to showing times to process requisitions into purchase orders
allocate some or all of the received quantity of the backo or the time from entry of a requisition until a Delivered code
rdered item (which will be reflected in the available quantity was entered to indicate that the requisitioners received the
(AVAIL QTY) field of the relevant line item of the selected 25 products filling a purchase order.)
requisition.) The CSR enters the amount to be allocated in
the allocated quantity (ALLOC QTY) field and hits the F2 Local computer 40 can also direct printer 43 to print a
(Accept) key. Local computer 40 then checks to see if the number of documents, including picking lists, packing lists
allocated quantity exceeds either the available quantity or and shipping papers. These documents can, where
the ordered quantity for that line item. If this is the case (or applicable, be customized to fit the needs of the Customer.
if the allocated quantity is less than 1) an appropriate error Additionally, some of the printed information (e.g., the
message is displayed on the Backorder Allocation data Requisition Number) may be printed in bar code format to
screen. If no error message is generated local computer 40 facilitate receiving by the Customer. Thus, using a bar code
causes printer 43 to generate a picking document as reader linked to local computer 40, the CSR could auto
described above unless the CSR has indicated that he does 35
matically access data relating to a particular requisition
not wish to generate a picking list, which is indicated in the when items are received by using the bar code scanner to
appropriate field of the Plant Location Table. After someone input the Requisition Number from any document (e.g., a
has picked the required items from the JIT facility and the packing list) sent with the shipment.
quantities picked have been compared by the CSR to the Moreover, persons of ordinary skill in the art will readily
quantities shown on the picking list, the CSR may again hit understand that slight variations can be made to the embodi
the F2 (Accept) key to accept the backorder allocation if the ment described hereinto add functionality. For example, one
quantities agree. If the quantities do not agree the CSR can JIT facility 51 could serve multiple customers, in which case
go to the Inventory Adjustment data screen and adjust the the Customer Account Number can be used to differentiate
inventory as described in detail above. between the requisitions of the various customers.
If the product type is 01, after the CSR accepts the 45
backorder allocation local computer 40 builds a data block Alternatively, one Customer may have multiple stock
including the account number, location code, requisition rooms within a JIT facility 51. Tracking, picking, adjusting
number, the part number, the quantity available, the allo and receiving items on local computer 40 will then be
cated quantity and the unit of measure and sends this data performed in a way that enables local database 50 to track
block to the host computer 10. Host computer 10 then 50 the stock in each stockroom, whereas host database 20 may
validates the received data, and if valid, updates its database track only the overall stock of the JIT facility 51.
records to reflect the reduction in the quantity on hand of that Another alternative would enable the Customer to track
item at that location. A confirmation is then sent to local demand for items in local database 50. Conventional soft
computer 49. If validation fails. a data block with an ware may be employed to enable local computer 40 to track
appropriate error code is transmitted to local computer 40. If 55 orders for all types of products ordered and prepare reports
local computer 40 receives an error code, it displays the of those orders for the Customer or Distributor.
appropriate error message on the Backorder Allocation data
St. Requisitions and other data entered by the CSR on local
If a confirmation is received, local computer 40 then computer 40 may also be entered electronically using an
updates the quantity on hand field of the Plant Location ERI/EDI interface. Thus a requisitioner may electronically
Table in local database 50. The status of the line item for the transmit requisition data to local computer 40, so that the
relevant requisition in the Requisition item Table is changed CSR does not have to enter it manually.
to "F" for Filled if all of the backordered quantity for that One skilled in the art will appreciate that the present
line item has been allocated. invention can be practiced by other than the described
If the product type of the line item is 06, after the CSR 65 embodiments, which are presented for the purposes of
accepts the backorder allocation, local computer 40 updates illustration and not of limitation, and the present invention
the Plant Location Table and Requisition ItemTable in local is limited only by the claims which follow.
5,712,989
37 38
TABLE 1. TABLE V
ORDER HEADER INFORMATION: * NON-CATALOG INFORMATION
ACCTNBR NAME: CUST AC: 363690-006 XYZ, DNC. CALLER PHONE:

ATTN: ADDRESS: REQ NBR: PJJ TEST LNE NBR: 001
CALLER: QTY UN PCVENDORCAT UN PRC UN COSTEXTD PRC GP
BILL TO: HOLD/REL: ORDERTYPE: R NBR SIZE
PRT ACK N NBR OF RUSH CODE:9 FREIGHT 1 EA 0.00 000
COPES: O OWERRDE: N DESCRIPTION: TEST TUB DR SHP: N SRW. CHG: OOO
REQ NBR: ORDER STATUS: 10 COMMENT
RELEASE: LINES
WENDORNBR: WENDORNAME:
RESPONSE: KEY(S): FROM DATE: ADDR:
PLEASE ENTER AWALD ACCOUNT NUMBER
F1 HELP; F2: IIEM; F3: QUIT; F4: NEW REQ; F5: VAR DATA; REQ: PJJ75
F6: SOURCE: F11: CHG PO; F12: CANCEL PROD TYPE: PHONE: - - EXT
05 STOCKNBR: T110209
RESPONSE; KEY(S):
F2: ITEM; F3: QUIT; F4: NEW REQ; F6:SOURCE; F7: PAGE BACK;
F8: PAGE FORWARD F12: CANCEL
TABLE II
... CUSTOMER WARIABLE HEADER
20
TABLE VI
Eld CUSTOMERENTERED DADA
at PARTMASTER
RESPONSE: KEY(S): ACTION CODE: PARTNBR: PROD TYPE. USED IND:
ALL, DATADISPLAYED
F2: HDR DATA; F3: QUIT; F4: ITM DATA; F7: PAGE BACK; DESCRIPTION:
F8: PAGE FORWARD; F10: DEL LN; F 12: CANCEL STD UNIT LIST PRICE:
ALT UNT: STD COST:
TABLE I
** REQUISITION MANAGEMENT ***
ACCTNBR: 363690 006 REQ-NBR: PJ TEST010
O LINE STOCKNBR QTY UM PT XREF UNIT PRICE EXT PRICE
001 A181 1. EA Ol 16.00 1600
DESC; ACETONEACS 1L, QTY AVAIL: 901 LOC: WHSE: XYZ
002
DESC: QTYAVAIL: LOC: WHSE:
003
004
005
DESC QTY AWAL: LOC: WHSE:
RESPONSE: KEY(S):
F2: REQ HEADER; F3: QUIT; F4: NEW REQ; F5; WARIABLE PROC; F6:SOURCE;
F7: PAGE BACKWARD; F8: PAGE FORWARD;
F9; NEW ITEMS; F10: NON CATALOG ITEMS; F12: CANCEL REQ
TABLE TV
are REQUISTTION MAINTENANCE ser
ACCTNBR: 363690 006 REQ-NBR: PJJ TEST 010
ORDER NBR: U3OO65391 PCKLIST REVIEWED:
O LINE STOCKNBR QTY UOM. PRD UNTT PRICE EXT PRICE LOC STATUS
001 A181 1. EA 01 1600 16.00 XYZ. F
ACETONEACS 1L QTYBCKORD: O QTY REC: 0
RESPONSE: KEY(S):
F2: ACCEPTF3: QUIT; F5: RECW; F7: UP; F8: DOWN; F9: PRT F10: CONFIRM; F11: CONF
BO; F12: CANCEL
5,712,989
TABLE WI-continued TABLE X

:: PARTMASTER at PLANT LOCATION TABLE
CURRENT COST: LoCATION ID:
ABC CLASS: ORDER SEQUENCE:
BUYER: HAZMATL: SAFETY DATA: PCKLIST:
COMMOOT: BOL CODE: BLL OFLADING:
UNT WT: RESPONSE: KEY(S):
CUST OWNED PRODTE: MFG PARTNBR:
UNT OF USEKREF PARTNBR: CONWFACTOR: to ETERAYPSOPE
STOCKPOLICY TO SOURCE WHSE: PF3: QUIT; PF5:ADD; PF6: DEL; PF7: PAGE FORWARD;
LAST MANT DATE: CREATION DATE: PF8: PAGE BACK; PF12: CONFIRM DEL
RESPONSE: KEY(S):
PLEASE ENTERACTION CODE, PART NBR, PROD TYPE
AND PROD USED IND
F3: QUITE; F4: CANCEL; F5: PLANT, F11: CONFIRM UPDATE 15 TABLE X
MTCH. TYPE TYPES
DEPT AN 05 O N WTO N
TABLE VI RESPONSE: KEY(S):
NO MORE DATA TOWEW.
at PLANT LOCATION 2O F1: HELP, F2: DEL; F3: QUIT; F4: ADD; F 7: PAGE BACK;
F8: PAGE FORWARD
ACTION CODE MOD PLANT JT STE XYZ, SOURCE LOCATION
PART NUMBER SERALLOT NBR
PRODUCT TYPE
MAX ORDER QTY O CREATE DATE TABLE X
MIN ORDER QTY O LAST UPDATE 25
BACK ORDER QTY O LAST RECEPT CUSTOMER REFERENCE DEFINITIONS as
REORDERPOINT O LAST PHY INV
QTY ON HAND O NEXT PHY INW ORDER HEADER DEFINIONS
QTY ON ORDER O LASTAD O
ALLOCATED QTY O 1 - PONUMBER 2-ACCOUNT NUMBER
HOLDCODE R STOCK ROOMOCATION 3 - FISHER NUMBER 4 - ORDER DATE
HOLD CODE AUTHORTY STOCKROOMD 30 5 - ORDER TIME 6 - ORDER TOTAL
HOLD CODE DATE WENDOR NFO: 7- BLL TO 8 - ATNLNE
CODE WHSE SECTION O NAME 9 - CALLER O - SHP NAME
MPACCTINWLOCATION MFG - SHP STR 12. SHiPSTR 2
RESPONSE: KEY(S): 13 - SHP CTY 14 - SHPSAE
PARTMASTER RECORD NOT FOUND. 15 - SHPZP
PF3: QUIT; PF5: PART; PF6: HST RECV; PF9: CLEAR; PF10: 35 EMDETAL DEFINITIONS
RESET; PF11: UPDATE; PF 12: CANCEL aaaaas
1 - LNE NUMBER 2. CATALOG NUMBER
3 - QTY ORDERED 4 - QTY SHIPPED
5- UNIT SHPPEO 6. UNTPRCE
T - TEM DESCRIPTION
TABLE VI to RESPONSE: KEY(s):
st INVENTO STMENT its RECORD NOFOUND IN THE TABLE.
RYADU F 1: HELP; F2: DELETE.; F3: QUIT
PART NUMBER A181 USED PLANT CODEO
DESCRIPTION ACETONE CERTFED UNT OF MEASURE CS
ACSL
BNLOCATION SERALLOT NBR 45 TABLE XII
ADJUSTMENT QTY TOTAL BINQTY 0
PLUS ADJUSTABLE QTY O CUSTOMER ACCOUNT MANTENANCE:-
MNUS ALT UOM PK
CONWFACTOR 6 ACCOUNT NUMBER
REASON CODE WAREHOUSE
RESPONSE: KEY(S): 50 NAME
PF3: QUIT; PF12: CANCEL ADDRESS
PART LOCATION RECORD NOT FOUND. ADDRESS
CITY
TABLE X
at TRANSFER ORDER MANTENANCE at
REPL. 9300T152426 ORDER NBR STOCKDAE
SOURCE PLANT CODE RECEIVTNG PLANT CODE XYZ, STATUSWTPE O1
BUYER PIJ75 REQUESTOR PJJ75
SHP TO
TO PART CONVERT ORDER BCKORD CANCEL
LINE NUMBER USED UOM FACTOR QTY QTY QTY
RESPONSE: KEY(S):
F3: QUIT; F5: ACCEPT TO; F6: CONFIRM; F7: UP; F8; DOWN; F9: NEW TO;
F10; ADD EMS
5,712,989
41 42
TABLE XIII-continued
at CUSTOMER ACCOUNT MAINTENANCE
SATE 5
ZIPCODE
STOCKROOMNBR DOCUMENTACK
TERMINAL PACKLIST
PLANT
RESPONSE: KEY(S):
ENTER IN CUSTOMER ACCOUNT INFORMATION. O
TABLE XTV
kit is RETURN GOODS
ACCT. NBR: 363690 006 REQ-NBR: PJ TEST RGA
O LINE STOCKNBR RET QTY UM PTXREF UNT PRCE EXT PRICE
Esc. OLD BIN QTY: NEwBIN QTY:
Esc. OLD BIN QTY: NEWBEN QTY:
Esc. OLD BIN QTY: NEW BIN QTY:
isc. OLD BEN QTY: NEWBIN QTY:
Esc. OLD BIN QTY: NEW BIN QTY:
RESPONSE: KEY(S):
F2: REQ HEAD; F3: QUIT; F4: NEW REQ; F7: PAGE BACKWARD;
F8: PAGE FORWARD; F9; NEW TEM; F12: CANCEL REQ
TABLE XV 35
the DOCUMENT PRINT PROCSS is st
CUSIOMER FSORD 40
PT PDNUMBER NBR NER SHIP
PJ 2-2001
ATN: BLD 401 U23435355
45
JMJOHNSON
PJ 12-8002
ATTN:
PJ 12-08 002 U23435357
50
ATN:
PJ 12-08 001 U23435356
ATTN:
P 12-08003 U23435358
55
ATTN:
P 12-08 004 U23435359
ATTN:
PJ 12-08 005
AIN:
RESPONSE: KEY(S):
MORE ORDERS
PF2:ACK; PF3: QUIT; PF4: BOL; PF5: PICK; PF6: PACK; PF7;
PAGE FORWARD; PF8:PAGE BACKWARD 65
5,712,989
43
TABLE XVI
asks TiO RECEVALS 4&
ORDER NBR LINE: RECW: PLANT CODE: STATUS-HDRLINE
PART NBR: DESC: PRO)-YPE:
ISSUE: PURCH: ACCEPT INTO RECEIVING STCK?
BIN SERLALLOT BIN QTY
ORDER QTY
TOT QTY RECVD
PKG SLIP QTY
QTY RECEIVED
QTY DAMAGED
PKGSLP NBR
TEMPORARY LOCATION DAMAGE DSP
WENDORD RECEIVALAUTHORTTY RECWBY
RESPONSE: KEY(S):
MUSTENTER AWALD TO ORDER NBR
F3: QUIT; F5: MOD RECEIPTF10: RECEIVE TO
TABLE XVI
** CROSS REFERENCE NUMBERLIST tax
SEL. CRN PT VENDOR NBR WENDOR CATALOG NBR UNIT
PJ XREF 001 O6 WNOOOOOOO A18-06 EA
=> TEST TUBE age CS
PJ XREF 002 OWNOOOOOO73 T555
> TSSUEPREP. 2 4X5LBCS CE
PJ XREF 003 O1 WNOOOOOO73 T555 CS
Ex TSSUEPREP 2, 4X5LB/CS ge
T555R O1 WNOOOOOO73 T555 CS
EY TSSUEPREP 2 4X5LB/CS <-
> :
b C
RESPONSE KEY(S)
TABLE XVI
CROSS REFERENCE MANTENANCE it
CROSS REF NUMBER CATALOG NUMBER WENDOR NUMBER
PJ XREFOO1 A181-06 WNOOOOOOO1
REQUESTOR. SERVICE CHARGE. oooooooooo

CODE COMMENTS CODE COMMENTS
RESPONSE: KEYS):
TABLE XIX
the TRANSFER ORDER LIST its
OPN REPLENSHMENT NBR TRANSFER ORD NBR STATUS TO CREATE DATE
930.1061.40312 TROOOO156 O Ol-O6-93
921.211074641 TR0000144 O 12-1-92
921.2072950 TROOOO43 O 12-1-92
921.211072115 TR0000142 O 12-1-92
92.1207161006 TR0000134 O 12-07-92
OPTIONS: 1 - REPLENSHMENT ORDER DELETION 4 = SINGLE LINE RECEIVAL
2 - TRANSFER ORDER MAINTENANCE 5 = SINGLEMODIFICATION RECEPT
3 = TRANSFER ORDER CLOSE 6 = MULTI-LINE RECEPT
RESPONSE: KEY(S):
ALL RETREVED RECORDS ARE DISPLAYE).
F3: QUIT; F7: PAGE BACKWARD; F8: PAGE FORWARD; F9: SCR 1
5,712,989
45
TABLE XX
* - MODIFY RECEPTPROCESS like
ORD NBR LNE RECW STATUS: HDR LINE PLANT CODE
PART NBR DESCRPION
VENDORNBR
UNIT OF MEASURE
QUANTITY STOCKED QUANTITY IN RECEIVING
QUANTITY BIN LOCATION SERIALLOT NBR RECEIPTIFUNCTION
(S = RECTO STOCK)
(R = STOCK TO REC)
RESPONSE: KEY(S):
AWALID TRANSFER ORDER ORDER NBR IS NEEDED.
F3: QUIT; F5: MOD RECW QTR; F10: MOD RECEIPTF12: CANCEL
TABLE XX
* MULTIPLE LINE STOCK RECEIVAL tak
ORDERNBR: SOURCE PLANT RECEIVE PLANT STATUS:
LINE PART NBR UPM QTY ORD TOTA REC RECEIVE SATUS MESSAGE
RESPONSE: KEY(S):
PLEASE ENTERAN ORDER NUMBER
F3: QUIT; F10: RECEIVE ALL;F11: RECEIVE SELECTED
25
TALBLE XXI
** BACKORDER INQUIRY 4t
REQUISITION PART order Bkord Avail
SEL NBR NBR UM QTY QTY QTY
PJJ 2-10 002 A181 CS 15 15 11
T555 CS 20 3 47
PJ 12-15 002 A181-06 EA 2 2 2
RESPONSE: KEY(S):
END OF BACKORDER DATA 35
F3: EXITF7: PAGE BACKWARD;F8: PAGE FORWARD
TABLE XXI
BACKORDER ALLOCATION it
REQ NBR: PJJ 12-12 002
LINE NBR PARTNBR UM ORDER QTY BKORD QTY AVAIL QTY ALLOC QTY
001 A181-06 EA 2 2 2
RESPONSE: KEY(s)
ALL TEMS DISPLAYED
TABLE XXV TABLE XXIV-continued

MSG MSG DISPLAYED MSG MSG DSPLAYED
CODE INDICATOR MESSAGE 55 CODE INDICATOR MESSAGE
ERROR (E) AND WARNING (W) CODES 107 E LOCATION NOT FOUND FOR SOURCING
108 WENDORNBR NOT FOUND FOR
O12 E CUSTOMER BACKORDER NOT NON-CATNBR
ALLOWED 109 E JT SITE NOT FOUND ON BLOCATION
013 E EMWAS DISCONTINUED 60 FILE
101 E FISHER CATALOG NBR NOT FOUND 110 E IT PARTMASTER RECORD NOT FOUND
102 E SOURCNGERROR 111 E JT PART LOCATION RECORD NOT
103 E UNT OF MEASURE ERROR FOUND
104. E TEMWAS DISCONNUED 112 E SUB IEMNOT FOUND - ORDER
105 E TEM WAS CANCELED THROUGH CREATION
SOURCNG 65 113 BUSINESS VENDOR NOT FOUND -
106 E PRCNGFAILURE ORDER CREATION
5.712,989
47 48
TABLE XXTV-continued TABLE XXIV-continued
MSG MSG DISPLAYED MSG MSG DISPLAYED
CODE INDICATOR MESSAGE CODE INDICATOR MESSAGE
114 E TEM CANCELED OR DISCONTINUED - T74 W PARTHOLD REC
ORDER CREATION Ti5 E PHAMTOMPARTSRC
115 PART MASTER NOT FOUND - T6 E PHAMTOMPART REC
ORDER CREATION T79 E BNLOCNWALD
116 INVENTORY BIN NOT FOUND - T80 E ORD MASTERTIEMNF
ORDER CREATION T81 E SPECIALINWALD
117 PRODUCT RECORD NOT FOUND. T82 E PARTMASTERNF
ORDER CREATION T83 W PART ONHOLD
118 DMS DEADLOCK OR TIME OUT T84 E NWALD MPS
19 RMS NW DOES NOT MATCH HOST NW. T85 E. PHANTOMPART
120 ORDER NBR NOT FOUND - ORDER T86 E ITEMNOT N TRANSIT
CREATION 15 T87 W SATUS NWALD/REC
1.21 SALES ORDER NOT FOUND - ORDER T88 E REGULATED PART
CREATION T89 E PRODUCT RECNF
122 PLANT LOCATION RECORD NOT T90 W BACKORDER PARTS
FOUND - ORDER CREATION T91 W PARTIAL REVECT
123 BLOCATION RECORD NOT T92 W REECTED ALL
FOUND - ORDER CREATION T99 E DMS DATABASE ERROR
20
124 ASLPLANTLOCATION NOT
FOUND - ORDER CREATION
125 ENTERNGOVERRDE LOCATION We claim:
FOUND - ORDER CREATION 1. A Just-In-Time requisition and inventory management
26 CUSTOMER ASSIGNED WHSE NOT
system comprising:
127 ENTERNG LOCATION NOT 25 a local computer maintaining a local database including a
FOUND - ORDER CREATION local inventory record indicating quantities of items on
128 CUSTOMER ACCOUNT NOT hand at a local warehouse;
129
SHP TO RECORD NOT FOUND.
a host computer maintaining a host database, said host
ORDER CREATION database including a host inventory record that includes
130 WALID SALES REP NOT multiple inventory portions, wherein:
FOUND - ORDER CREATTON one inventory portion of said host inventory record
131 TEMIS NACTIVE indicates quantities of items on hand at a central
132 NEW TEM CANNOT BE ORDEREDYET location; and
133 CUSTOMER ACCOUNTS INACTWE another inventory portion of said host inventory record
134 CUSTOMER ACCOUNTS OUT
OF BUSINESS 35 indicates quantities of items on hand at said local
135 CUSTOMER ACCOUNT HAS NOT warehouse;
BEEAPPROVEDYET means for bi-directionally communicating between said
36 CUSTOMER ACCOUNT HAS
BEEN ASSIGNED TO
local computer and said host computer to permit the
ANNWALD WHSE bi-directional exchange of data between said host data
37 NWALD STATE ENTERED base and said local database;
FOR ZP CODE means for sourcing requested quantities of items at
38 FURNTURE EMS CAN NOT BE
ORDERED THROUGHRMS
desired times, including:
139 OEATEMS CAN NOT BE ORDERED
means, provided at said local computer, for generating
THROUGHRMS a requisition order for a requisitioned item;
140 EMD TEMS CAN NOT BE ORDERED means for searching said local database for a local
THROUGHRMS 45 inventory record corresponding to said requisitioned
141 NWAD STATE ENTERED FOR ZP CODE item to determine if a requested quantity of said
246 UNT OF MEASURE CHANGED requisitioned item is available at said local ware
(PRICING FILES NOT INSYNC) house;
250 PRICE OR EXTENDED
PRICE > 9999999 means for performing the following steps (A), (B) and
500 NON-CANBR NOT FOUND ON 50 (C) from said local computer if said requested quan
501
PRODUCT DATABASE
UNT OF MEASURE DEFAULTTO
tity of said requisitioned item is available at said
local warehouse:
STANDARD
502 JTTBACKORDER WILL OCCUR (A) sourcing said requisitioned item from said local
SO3 PRODUCTYPE CHANGEd FROM warehouse;
624 E
(04) TO (O3)
NO EACHPRICE
55 (B) updating said local inventory record to indicate
TRANSFER ORDERERROR (E) AND WARNING (W) CODES
the sourcing of said requisitioned item from said
local warehouse; and
EARLY SHPMENT (C) using said bi-directional communication means
LATESHPMENT
BO NO INCREASE
to similarly update that portion of said host inven
QTY > RECEIVED
tory record, present at said host computer, that
QTY > ISSUED indicates quantities of items on hand at said local
QTY > SHIPPED warehouse;
QTY> IN-TRANSIT QTY said searching means further comprising means for
QTY REC INVALID searching said host database for a host inventory
SOURCE/PLANTNF
REC/PARTIPLTNF 65 record corresponding to said requisitioned item if
PARTHOLDSOURCE said requested quantity of said requisitioned item is
not available at said local warehouse;
5,712,989
49 50
means for performing the following steps (D), (E), and 6. The requisition and inventory management system of
(F) from said host computer if said requested quan claim 4 wherein said local warehouse includes inventory for
tity of said requisitioned item is not available at said at least a first customer and a second customer.
local warehouse but is available at said central 7. The requisition and inventory management system of
location: claim 1 wherein said local warehouse includes a plurality of
(D) using said bi-directional communicating means stock rooms.
to transmit data from said host computer to said 8. The requisition and inventory management system of
local computer indicating that said requested claim 1 wherein said local warehouse includes inventory for
quantity of said requisitioned item is available at at least a first customer and a second customer.
said central location; 10 9. The Just-In-Time requisition and inventory manage
(E) directing the transfer of said requested quantity ment system of claim 1 wherein some of the items located
of said requisitioned item from said central loca at said local warehouse are owned by a customer and some
tion to said local warehouse; and of said items are owned by a distributor, wherein said local
(F) updating said host database to indicate the trans inventory
fer of said requested quantity of said requisitioned 15 indicatingrecord
the
further includes at least one ownershipfield
items owned by the customer and the items
item from said central location to said local ware
house by subtracting said requested quantity of owned by said distributor, a field indicating the requested
said requisitioned items from that portion of said quantity of said item, and a field indicating a reorder point
host inventory record. present at said host for said item, wherein said system further comprises:
computer, that indicates quantities of items on means for automatically generating a transfer order to
hand at said central location; and 20 replenish the inventory of said item in said local
(G) using said bi-directional communication means warehouse if said ownership field indicates that said
to update said local database, from said host item is owned by said distributor and if the quantity on
computer, by adding said requested quantity of hand minus the requested quantity of said item is less
said requisitioned items to said local inventory than the reorder point for said item.
record. 25 10. The requisition and inventory management system of
2. The Just-In-Time requisition and inventory manage claim 9 wherein said local warehouse includes a plurality of
ment system according to claim 1, wherein some of the stock rooms.
items located at said local warehouse are owned by a 11. The requisition and inventory management system of
customer and some of said items are owned by a distributor, claim 9 wherein said local warehouse includes inventory for
wherein said local inventory record further includes at least 30 at least a first customer and a second customer,
one ownership field indicating the items owned by the 12. The requisition and inventory management system of
customer and the items owned by said distributor, a field claim 1 further comprising means at said local computer for
indicating the requested quantity of said item, and a field obtaining from said host computer and displaying an indi
indicating a reorder point for said item, wherein said system cation of the quantity on hand at said central location of said
further comprises:
means for automatically generating a purchase order to 35 requisitioned item.
13. The requisition and inventory management system of
replenish the inventory of said item in said local
warehouse if said ownership field indicates that said claim 1 further comprising means at said local computer for
item is owned by said customer and if the quantity on obtaining and displaying information updating the status of
hand minus the requested quantity of said item is less an outstanding requisition order.
than the reorder point for said item; and 14. The requisition and inventory management system of
means for automatically generating a transfer order to claim 1 further comprising means at said local computer for
replenish the inventory of said item in said local automatically creating proposed replenishment orders to
warehouse if said ownership field indicates that said replenish inventory in said local warehouse.
item is owned by said distributor and if the quantity on 15. The requisition and inventory management system of
hand minus the requested quantity of said item is less 45 claim 14 wherein said proposed replenishment orders may
than the reorder point for said item. selectively be converted to purchase orders.
3. The requisition and inventory management system of 16. A method of managing a Just-In-Time inventory, said
claim 1 wherein the data for said requisition order is method comprising the steps of:
electronically entered into said local computer. maintaining a local database with a local computer, the
4. The Just-In-Time requisition and inventory manage local database including a local inventory record indi
ment system of claim 1 wherein some of the items located cating quantities of items on hand at a local warehouse;
at said local warehouse are owned by a customer and some maintaining a host database with a host computer, the host
of said items are owned by a distributor, wherein said local database including a host inventory record that includes
inventory record further includes at least one ownershipfield multiple inventory portions, wherein:
indicating the items owned by the customer and the items 55
one inventory portion of said host inventory record
owned by said distributor, a field indicating the requested indicates quantities of items on hand at a central
quantity of said item, and a field indicating a reorder point location; and
for said item, wherein said system further comprises: another inventory portion of said host inventory record
means for automatically generating a purchase order to indicates quantities of items on hand at said local
replenish the inventory of said item in said local warehouse;
warehouse if said ownership field indicates that said providing means for bi-directionally communicating
item is owned by said customer and if the quantity on between said local computer and said host computer, to
hand minus the requested quantity of said item is less permit the bi-directional exchange of data between said
than the reorder point for said item. host database and said local database;
5. The requisition and inventory management system of 65
claim 4 wherein said local warehouse includes a plurality of sourcing requested quantities of items at desired times, by
stock rooms. way of at least the following steps:
5,712,989
51 52
generating a requisition order for a requisitioned item; 20. The method of managing a just in time inventory of
searching said local database for a local inventory claim 19 wherein said local warehouse includes a plurality
record corresponding to said requisitioned item to of stock rooms.
determine if a requested quantity of said requisi 21. The method of managing a just in time inventory of
tioned item is available at said local warehouse; 5 claim 19 wherein said local warehouse includes inventory
performing the following steps (A), (B) and (C) from for at least a first customer and a second customer.
said local computer if said requested quantity of said 22. The method of managing an inventory of claim 16
requisitioned item is available at said local ware further comprising the step of automatically creating pro
house: posed orders to replenish inventory in said local warehouse.
(A) sourcing said requisitioned item from said local 10 23. The method of managing an inventory of claim 22
warehouse; wherein said proposed orders may selectively be converted
(B) updating said local inventory record to indicate to purchase orders.
the sourcing of said requisitioned item from said 24. The method according to claim 16, wherein some of
local warehouse; and the items located at said local warehouse are owned by a
customer and some of said items are owned by a distributor,
(C) using said bi-directional communication means 15 wherein said local inventory record further includes at least
to similarly update portion of said host inventory one ownership field indicating the items owned by the
record, present at said host computer, that indi customer and the items owned by said distributor, a field
cates quantities of items on hand at said local indicating the requested quantity of said item, and a field
warehouse; indicating a reorder point for said item, wherein said method
searching said host database for a host inventory record 20 further comprises the steps of:
corresponding to said requisitioned item if said automatically generating a purchase order to replenish the
requested quantity of said requisitioned item is not inventory of said item in said local warehouse if said
available at said local warehouse; ownership field indicates that said item is owned by
performing the following steps (D). (E) and (F) from said customer and if the quantity on hand minus the
said host computer if said requested quantity of said 25 requested quantity of said item is less than the reorder
requisitioned item is not available at said local point for said item; and
warehouse but is available at said central location: automatically generating a transfer order to replenish the
(D) using said bi-directional communicating means inventory of said item in said local warehouse if said
to transmit data from said host computer to said ownership field indicates that said item is owned by
local computer indicating that said requested 30 said distributor and if the quantity on hand minus the
quantity of said requisitioned item is available at requested quantity of said item is less than the reorder
said central location; point for said item.
(E) directing the transfer of said requested quantity 25. The method of managing the Just-In-Time inventory
of claim 16 wherein some of the items located at said local
of said requisitioned item from said central loca warehouse are owned by a customer and some of said items
tion to said local warehouse; 35
are owned by a distributor, wherein said local inventory
(F) updating said host database to indicate the trans record further includes at least one ownership field indicat
fer of said requested quantity of said requisitioned ing the items owned by the customer and the items owned
items from said central location to said local by said distributor, a field indicating the requested quantity
warehouse by subtracting said requested quantity of said item, and a field indicating a reorder point for said
of said requisitioned items from that portion of item, wherein said method further comprises:
said host inventory record, present at said host automatically generating a transfer order to replenish the
computer, that indicates quantities of items on inventory of said item in said local warehouse if said
hand at said central location. ownership field indicates that said item is owned by
17. The method of managing an inventory of claim 16 said distributor and if the quantity on hand minus the
further comprising the steps of obtaining from said host 45 requested quantity of said item is less than the reorder
computer and displaying at said local computer an indication point for said item.
of the quantity on hand at said central location of said 26. The method of managing the Just-In-Time inventory
requisitioned item. of claim 25 wherein said local warehouse includes a plu
18. The method of managing an inventory of claim 16 rality of stock rooms.
further comprising the steps of obtaining and displaying at 27. The method of managing the Just-In-Time inventory
said local computer information updating the status of an of claim 25 wherein said local warehouse includes inventory
outstanding requisition order. for at least a first customer and a second customer.
19. The method of managing the Just-In-Time inventory 28. The method of managing an inventory of claim 16
of claim 16 wherein some of the items located at said local wherein the data for said requisition order is electronically
warehouse are owned by a customer and some of said items 55 entered into said local computer.
are owned by a distributor, wherein said local inventory 29. The method of managing an inventory of claim 16
record further includes at least one ownership field indicat wherein said local warehouse includes a plurality of stock
ing the items owned by the customer and the items owned OOS.
by said distributor, a field indicating the requested quantity 30. The method of managing an inventory of claim 16
of said item, and a field indicating a reorder point for said wherein said local warehouse includes inventory for at least
item, wherein said method further comprises: a first customer and a second customer.
automatically generating a purchase order to replenish the 31. AJust-In-Time requisition and inventory management
inventory of said item in said local warehouse if said system comprising:
ownership field indicates that said item is owned by a plurality of local computers maintainingrespective local
said customer and if the quantity on hand minus the 65 databases including a local inventory records indicating
requested quantity of said item is less than the reorder quantities of items on hand at respective local ware
point for said item. houses;
5,712,989
53 54
a host computer maintaining a host database, said host by a customer and some of said items are owned by a
database including a host inventory record that includes distributor, wherein said local inventory record further
multiple inventory portions, wherein: includes at least one ownership field indicating the items
one inventory portion of said host inventory record owned by the customer and the items owned by said
indicates quantities of items on hand at a central distributor, a field indicating the requested quantity of said
location; and item, and a field indicating a reorder point for said item,
other inventory portions of said host inventory record wherein said system further comprises:
respectively indicate quantities of items on hand at means for automatically generating a purchase order to
said local warehouses; replenish the inventory of said item in said at least one
means for bi-directionally communicating between said O local warehouse if said ownership field indicates that
host computer and said local computers to permit the said item is owned by said customer and if the quantity
bi-directional exchange of data between said host data on hand minus the requested quantity of said item is
base and said local databases; less than the reorder point for said item; and
means, provided at each of said local computers, for means for automatically generating a transfer order to
sourcing requested quantities of items at desired times, 15 replenish the inventory of said item in said at least one
including: local warehouse if said ownership field indicates that
means for generating a requisition order for a requisi said item is owned by said distributor and if the
tioned item; quantity on hand minus the requested quantity of said
means for searching the local database corresponding item is less than the reorder point for said item.
to said local computer for a local inventory record 20 33. The Just-In-Time requisition and inventory manage
corresponding to said requisitioned item to deter ment system according to claim 31, wherein some of the
mine if a requested quantity of said requisitioned items located at least one of said local warehouses are owned
item is available at the corresponding local ware by a customer and some of said items are owned by a
house; distributor, wherein said local inventory record further
means for performing the following steps (A). (B) and 25 includes at least one ownership field indicating the items
(C) if said requested quantity of said requisitioned owned by the customer and the items owned by said
item is available at said corresponding local ware distributor, a field indicating the requested quantity of said
house: item, and a field indicating a reorder point for said item,
(A) sourcing said requisitioned item from said cor wherein said system further comprises:
responding local warehouse; 30
means for automatically generating a purchase order to
(B) updating the corresponding local inventory replenish the inventory of said item in said at least one
record to indicate the sourcing of said requisi local warehouse if said ownership field indicates that
tioned item from said local warehouse; and said item is owned by said customer and if the quantity
(C) using said bi-directional communication means on hand minus the requested quantity of said item is
to similarly update that portion of said host inven 35
less than the reorder point for said item.
tory record, present at said host computer, that 34. The Just-In-Time requisition and inventory manage
indicates quantities of items on hand at said cor ment system according to claim 31, wherein some of the
responding local warehouse; items located at at least one of said local warehouses are
said searching means further comprising means for owned by a customer and some of said items are owned by
searching said host database for a host inventory a distributor, wherein said local inventory record further
record corresponding to said requisitioned item if includes at least one ownership field indicating the items
said requested quantity of said requisitioned item is owned by the customer and the items owned by said
not available at said corresponding local warehouse; distributor, a field indicating the requested quantity of said
means for performing the following steps (D), (E) and item, and a field indicating a reorder point for said item,
(F) from said host computer if said requested quan 45 wherein said system further comprises:
tity of said requisitioned item is not available at said means for automatically generating a transfer order to
corresponding local warehouse but is available at replenish the inventory of said item in said at least one
said central location: local warehouse if said ownership field indicates that
(D) using said bi-directional communicating means said item is owned by said distributor and if the
to transmit data from said host computer to said quantity on hand minus the requested quantity of said
local computer indicating that said requested item is less than the reorder point for said item.
quantity of said requisitioned item is available at 35. A method of managing a Just-In-Time inventory, said
said central location; method comprising the steps of:
(E) directing the transfer of said requested quantity maintaining a plurality of local databases with a plurality
of said requisitioned item from said central loca 55
of respective local computers, the local databases each
tion to said corresponding local warehouse; and including local inventory records indicating quantities
(F) updating said host database to indicate the trans of items on hand at respective local warehouses;
fer of said requested quantity of said requisitioned
item from said central location to said local ware maintaining a host database with a host computer, the host
house by subtracting said requested quantity of 60 database including a host inventory record that includes
said requisitioned items from that portion of said multiple inventory portions, wherein:
host inventory record, present at said host one inventory portion of said host inventory record
computer, that indicates quantities of items on indicates quantities of items on hand at a central
hand at said central location. location; and
32. The Just-In-Time requisition and inventory manage 65 other inventory portions of said host inventory record
ment system according to claim 31, wherein some of the respectively indicate quantities of items on hand at
items located at at least one said local warehouses are owned said local warehouses;
5,712,989
55 56
providing means for bi-directionally communicating 36. The method according to claim 35, wherein some of
between said local computers, to permit the the items located at at least one of said local warehouses are
bi-directional exchange of data between said host data owned by a customer and some of said items are owned by
base and said local databases; a distributor, wherein said local inventory record further
at any one of said local computers, selectively sourcing includes at least one ownership field indicating the items
requested quantities of items at desired times by way of owned by the customer and the items owned by said
at least the following steps: distributor, a field indicating the requested quantity of said
generating a requisition order for a requisitioned item; item, and a field indicating a reorder point for said item,
searching the local database corresponding to said local wherein said method further comprises the steps of:
automatically generating a purchase order to replenish the
computer for a local inventory record corresponding 10
inventory of said item in said at least one local ware
to said requisitioned item to determine if a requested house if said ownership field indicates that said item is
quantity of said requisitioned item is available at the owned by said customer and if the quantity on hand
corresponding local warehouse; minus the requested quantity of said item is less than
performing the following steps (A), (B) and (C) if said the reorder point for said item; and
requested quantity of said requisitioned item is avail 15
automatically generating a transfer order to replenish the
able at said corresponding local warehouse: inventory of said item in said at least one local ware
(A) sourcing said requisitioned item from said cor house if said ownership field indicates that said item is
responding local warehouse; owned by said distributor and if the quantity on hand
(B) updating the corresponding local inventory minus the requested quantity of said item is less than
record to indicate the sourcing of said requisi 20 the reorder point for said item.
tioned item from said corresponding local ware 37. The method according to claim 35, wherein some of
house; and the items located at at least one of said local warehouses are
(C) using said bi-directional communication means owned by a customer and some of said items are owned by
to similarly update that portion of said host inven a distributor, wherein said local inventory record further
tory record, present at said host computer, that 25 includes at least one ownership field indicating the items
indicates quantities of items on hand at said cor owned by the customer and the items owned by said
responding local warehouse; distributor, a field indicating the requested quantity of said
searching said host database for a host inventory record item, and a field indicating a reorder point for said item,
corresponding to said requisitioned item if said wherein said method further comprises the step of:
requested quantity of said requisitioned item is not 30 automatically generating a purchase order to replenish the
available at said corresponding local warehouse; inventory of said item in said at least one local ware
performing the following steps (D), (E) and (F) and house if said ownership field indicates that said item is
from said host computer if said requested quantity of owned by said customer and if the quantity on hand
said requisitioned item is not available at said cor minus the requested quantity of said item is less than
responding local warehouse but is available at said 35 the reorder point for said item.
central location: 38. The method according to claim 35, wherein some of
(D) using said bi-directional communicating means the items located at at least one of said local warehouses are
to transmit data from said host computer to said owned by a customer and some of said items are owned by
local computer indicating that said requested a distributor, wherein said local inventory record further
quantity of said requisitioned item is available at includes at least one ownership field indicating the items
said central location; owned by the customer and the items owned by said
(E) directing the transfer of said requested quantity distributor, a field indicating the requested quantity of said
of said requisitioned item from said central loca item, and a field indicating a reorder point for said item,
tion to said corresponding local warehouse; and wherein said method further comprises the step of:
(F) updating said host database to indicate the trans 45 automatically generating a transfer order to replenish the
fer of said requested quantity of said requisitioned inventory of said item in said at least one of local
item from said central location to said local ware warehouses if said ownership field indicates that said
house by subtracting said requested quantity of item is owned by said distributor and if the quantity on
said requisitioned items from that portion of said hand minus the requested quantity of said item is less
host inventory record, present at said host 50 than the reorder point for said item.
computer, that indicates quantities of items on
hand at said central location. sk x s is k

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III US005712989A

United States Patent (19) 11 Patent Number: 5,712,989

OTHER PUBLICATIONS "Fisher Scientific PurchasePro." Version 1.1 (Copyright

ORDER MENU CUSTOMER

STOCK NUMBER IS ENERED INTO 201

LOCAL COMPUTER SEARCHES PAR

UPDATE REQUISION TEM SET PRODUCT

UPDATE RECUSITION TEM

DISPLAY UPDATED REQUISITION-212

SEND REQUISTON DATA BLOCK

SET STATUS CODE AND DISPLAY 244

CSR HITS F2 KEY 245

PRINT PICKING LIST 246

RECEIVE STOCK NBR, PT, LOC,

ACCESS HOST DATABASE USENG 252

COMPAREHOSDATABASE QTY AVAIL

N CREATE DATA BLOCK

CREATE SOURCING DATA BLOCK

TRANSMIT DAA BLOCK TO 272

SEND REQUISION DATA SEND REQUISTION DATA

WA FOR DATA WAT FOR DATA 288

RECEIVE DATA FROM HOST

UPDATE STATUS CODE AND DISPLAY 296

RECEME DATA BLOCK

CREATE DATA BLOCK WITH

CREATE DATA BLOCK CREATE DAA BLOCK

TRANSM DATA BLOCK 312

UPDATE STATUS CODE TO "P"

UPDATE PLAN OCATION TABE

RECETME PURCHASE ORDER

UPDATE HOST DATABASE REFLECTION

TRANSMT DATA BLOCK

CSR HTS ENER TO MAKE AN 380

CREATE ADJUSTMENT DATA BLOCK

TRANSMIT DAA BLOCK 384

WAT FOR DATA FROM HOST 585

RECEIVE ADJUSTMENT CONFIRMA ION 386

DISPLAY ERROR MESSAGE

ADJUST QUANTITY ON HAND OF

RECEIVE ADJUSTMENT DATA BLOCK

CREATE DATA BLOCK WTTH

CREATE ADJUSTMENT 408

ACCTNBR NAME: CUST AC: 363690-006 XYZ, DNC. CALLER PHONE:

TABLE WI-continued TABLE X

the DOCUMENT PRINT PROCSS is st

REQUESTOR. SERVICE CHARGE. oooooooooo

TABLE XXV TABLE XXIV-continued

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