US20020091594A1 - Inventory management system and method - Google Patents

Abstract

A method and system of dispensing items in a controlled manner from cabinets or similar enclosures, re-ordering the dispensed articles or items, and providing inventory and other information about the items and users in the system. The invention utilizes a distributed network and permits users to browse and search for any item across multiple enclosures from any location. The method and system can track inventory, generate administrative reports, and independently initiate orders based on aggregate inventory levels of multiple enclosures to gain the benefit of volume discounts, minimize deliveries, maximize availability of items, or generate individual orders based on specific enclosures to maintain just-in-time inventory levels. The method and system also track the removal and stocking of items through unique identification strings, so that individual access, use, and theft of items can be monitored.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS
• This application is a continuation of U.S. Ser. No. 09/476,536, which claims priority under 35 U.S.C. § 119 to provisional Patent Application No. 60/127,567.[0001]
BACKGROUND OF THE INVENTION
• 1. Field of the Invention[0002]
• The present invention relates to methods and systems for dispensing supplies and similar items in a controlled manner. More particularly, the present invention relates to a method and a system that provides distributed access to product and inventory information for supplies and that generates orders when supplies need to be re-ordered.[0003]
• 2. Background of the Invention[0004]
• Distributed networks are characterized by a structure where processing, storing, and other functions are carried out by separate nodes rather than on a single main or centralized computer. The Internet is one example of a distributed network and, as is well known, it provides access to a wide array of information. The World Wide Web portion of the Internet provides a graphical, interactive medium that permits businesses to advertise and take orders for goods and services.[0005]
• The variety of products and services available for sale through the Internet is tremendous. Some sites offer a full range of business supplies ranging from office furniture and computers to envelopes and pencils. However, these sites are often no more than electronic catalogs and some require separate computers, navigation software, and online addresses to shop online. Further, the typical electronic store does not assist users in selecting the right business supply inventory mix, track business supply use, or focus on users' needs to maximize efficiency and economic return. Further still, distributed networks such as the Internet have not, in general, been fully exploited as tools to facilitate the controlled dispensing, inventorying, and re-ordering of supplies. Yet, controlled stocking and dispensing of business supplies can prevent the occurrence of inventory shortages, overstocking (which can result in business inefficiency, increased storage costs, and waste), and pilferage.[0006]
SUMMARY OF THE INVENTION
• The invention provides a method and a system for distributing articles, such as business supplies. The invention may be implemented in a system that includes at least one locked enclosure, an input device, a controller, and at least one portal site. A distributed network such as a public landline or a public wireless network interconnects the controller to the portal site and provides public network access between the controller, the portal site, homes, and remote offices.[0007]
• In operation, a user accesses the system for distributing articles through an input device. The user enters an identification string that uniquely identifies the user and his or her access rights. The controller verifies the user's identification string and allows access to the enclosure when the user is authorized. The controller also obtains data through either the input device or other devices to track articles removed or added to the enclosure. Preferably, the data relates to the quantity of articles in the enclosure. After receiving the data, a connection via the distributed network or a direct modem connection is established between the portal site and the controller. The connection, which may occur on a periodic basis, allows for data and/or message exchanges.[0008]
• In one preferred aspect, the system includes an identifying device, which preferably may be an audio or visual indicator. When a user selects an article, the audio or visual indicator is activated and identifies an article location.[0009]
• In another preferred aspect, a connection is established between the portal site and at least one supplier. When the quantity of articles in the enclosure reaches a user-defined threshold or par value, the portal site automatically sends a message to one or more suppliers relating to the quantity of articles in the enclosure. The message may include one or more orders directing one or more suppliers to ship the desired articles to the user and may also instruct the suppliers to stock the enclosure.[0010]
• In yet another preferred aspect, open access to the controller and the portal site may be provided to any authorized user from any location. Because the controller and the portal site may each have a unique address, the user can inquire as to the availability of a desired article from a remote location using a network browser. Moreover, a portal site can direct the user to one or more enclosures that have the desired article and authorize his or her access to that enclosure or that article when the method and system employ multiple enclosures. An alternative aspect envisions that the controller may also direct the user to one or more enclosures having a desired article and authorize his or her access and/or establish a direct or distributed network link with at least one supplier.[0011]
• The disclosed method and system provide access to information and dispensing of articles in ways that are similar in ease-of-use to accessing the World Wide Web. The method and system allow users to browse and search for any article across multiple enclosures from any location. The method and system can track inventory, generate administrative reports, and independently initiate orders based on aggregate inventory levels of multiple enclosures to gain the benefit of volume discounts or generate individual orders based on specific enclosures to maintain just-in-time inventory levels. Moreover, because the method and system track the removal and stocking of articles through unique identification strings, individual access, use, and theft can also be monitored.[0012]
• These features as well as other advantages of the invention will become apparent upon consideration of the following detailed description and accompanying drawings of the embodiments of the invention described below.[0013]
BRIEF DESCRIPTION OF THE DRAWINGS
• In the drawings:[0014]
• FIG. 1 is a block diagram of a first embodiment of the invention;[0015]
• FIG. 2 is a block diagram of a dynamic inventory protocol of FIG. 1;[0016]
• FIG. 3 is a schematic diagram of the system of the invention;[0017]
• FIG. 4 is a functional block diagram of part of a portal site of FIG. 1;[0018]
• FIG. 5 is a flow chart showing the methodology used to review the content of a cabinet as implemented in a system made in accordance with the teachings of the present invention;[0019]
• FIG. 6 is a flow chart showing the methodology used to search the contents of a cabinet as implemented in a system made in accordance with the teachings of the present invention;[0020]
• FIG. 7 is a flow chart showing the methodology used to add authorized users to the system implemented in accordance with the teachings of the present invention;[0021]
• FIG. 8 is a flow chart showing the methodology used to edit user information in a system implemented in accordance with the teachings of the present invention;[0022]
• FIG. 9 is a flowchart showing the methodology used to delete user information in a system implemented in accordance with the teachings of the present invention;[0023]
• FIG. 10 is a flowchart of the methodology used to enter new product information in a system implemented in accordance with the teachings of the present invention;[0024]
• FIG. 11 is a flow chart of the methodology used to edit product information in a system implemented in accordance with the teachings of the present invention;[0025]
• FIG. 12 is a flow chart of the methodology used to delete product information in a system implemented in accordance with the teachings of the present invention;[0026]
• FIG. 13 is a flow chart of the methodology used to prepare and view user reports in a system implemented in accordance with the teachings of the present invention;[0027]
• FIG. 14 is a flow chart of the methodology used to create and review a consumption report in a system made in accordance with the teachings of the present invention;[0028]
• FIG. 15 is a flow chart of the methodology used to create and review a discrepancy report in a system made in accordance with the teachings of the present invention;[0029]
• FIG. 15A is a flow chart of the methodology used in automatically generating reports in a system in accordance with the teachings of the present invention;[0030]
• FIG. 16 is a flow chart of the methodology used to poll cabinets in a system made in accordance with the teachings of the present invention;[0031]
• FIG. 17 is a flow chart of the methodology used to set the minimum and maximum inventory levels for components in a system made in accordance with the teachings of the present invention;[0032]
• FIG. 18A is a flow chart of a part of the process used to generate an order in a system made in accordance with the teachings of the present invention;[0033]
• FIG. 18B is a flow chart of another part of the process used to generate an order in a system made in accordance with the teachings of the present invention; and[0034]
• FIG. 18C is a flow chart of yet another part of the process used to generate an order in a system made in accordance with the teachings of the present invention.[0035]
DETAILED DESCRIPTION OF THE PRESENTLY PREFERRED EMBODIMENTS
• In the drawings the same reference numbers through several views designate alike and similar elements.[0036]
• 1. Top-level Structure and Architecture[0037]
• A[0038]system100 embodying the invention is shown in FIG. 1. The system includes acustomer site105 having 3cabinets110, each with a number of pockets orcompartments115 that enclose and secure articles, such as business supplies or any other items that are preferably dispensed in a controlled manner. Thecompartments115 may be slidably interconnected with thecabinet110 in a drawer-like manner, if desired. Although it is preferred that thecompartments115 have clear acrylic doors to display articles, other types of doors may also be used. Thecompartments115 are dimensioned to a variety of heights and widths to enclose and secure a variety of articles.
• Electronically actuated locks (not shown) facilitate access to the articles enclosed within the[0039]cabinet110. When in a locked state, the locks prevent the doors from being opened and prevent access to the articles. When actuated, the locks release the doors so that the articles are freely accessible. Preferably, the locks are actuated simultaneously to allow unrestricted access to thewhole cabinet110. Thesystem100, however, may also actuate locks independently and limit access to certain articles based on user access rights.
• Input mechanisms, such as pressure sensitive switches (not shown), disposed near each drawer and[0040]compartment115 of thecabinet110 collect inventory information as articles are removed from or stocked within thecabinet110. Preferably, the switches are “take” and “return” switches that are actuated each time an article is removed from or stocked within thecabinet110. Thecabinet110 may also include aninput device120 such as a touch screen or a keyboard to track articles removed or added to thecabinet110. Theinput device120 may supplement or replace the switches.
• Each[0041]cabinet110 may also include devices that identify the location of a desired article. The devices preferably comprise visual (such as light emitting devices) or audio indicators that are actuated by the user. Such devices may be unitary with one or more of the switches, interconnected with the doors, or may be integrated with or enclosed by thecompartments115 of thecabinet110.
• With further reference to FIG. 1, a controller[0042]125 (three are shown) is used to manage access to thecabinet110, collect inventory and administrative data, and interface with other nodes that are accessible through itsinput device120 or modem (not shown). The modem, which converts data from one form to another, interconnects thecontroller125 to other nodes. The interconnections shown in FIG. 1 encompass both direct and indirect connections via a communication link. For example, with reference to FIG. 1, the modem may connect thecontroller125 directly to acommunications server130 through landlines orwireless links135 or may connect thecontroller125 to aserver140 through peripheral networks and devices (not shown) that are linked to a distributednetwork145 like the Internet. The term “distributed network,” as used herein is intended to broadly encompass any network including public landline or a public wireless networks, in which processing, storage, and other functions are handled by separate nodes rather than a single controller or computer. As is known, one of the advantages of a distributed system is that functions are decentralized. Therefore, for example, high network traffic does not disrupt the function of thecabinet110 or data collection that is carried out by thecontroller125.
• The[0043]controller125 also includes aprocessor150 and may include peripheral devices such as a display and/or a badge reader. Theprocessor150 controls access to thecabinet110 and its articles and responds to user commands received through the modem or theinput device120. Preferably, the processor comprises a microprocessor-based system such as a PENTIUM™ based INTEL™ computer, for example, having static and dynamic memory that runs a known operating system such as WINDOWS™, LINUX™, or SOLARIS™, for example. Theinput device120 is preferably a keyboard or a touch screen that allows users to make selections and enter information through a graphical display interface. The display may be a cathode-ray tube or a flat panel.
• Although the[0044]system100 is shown as having twoservers130 and140, the functionality of the servers may be combined or distributed in a variety of ways. As shown in FIG. 1, aportal site152 may be constructed to perform the functionality of theservers130 and140. Although not shown, theportal site152 might include more than two servers.
• Within the[0045]portal site152 is at least onedatabase155 that stores information from thecommunications server130 and theweb server140. Thecommunications server130 preferably can support concurrent communication through a direct modem connection or through the distributednetwork145 with one or more of thecontrollers125 and/or one or more supplier interfaces165 (two are shown). Thecommunications server130 provides users with a variety of services, including trackingcabinet110 activity, analyzingcabinet110 inventory levels, updating thedatabases155, transmitting reports to one or more nodes, modifying or updating operating and/or application software within the controllers125 (adding new users, new products, or modifying access rights, for example), and automatically transmitting purchase orders through fax, electronic mail, or electronic data exchangelinks170, or through the distributednetwork145, for example. Although the purchase orders are preferably based on target inventory goals and user-defined thresholds or par values, purchase orders may also be transmitted tosupplier interfaces165 on a periodic basis regardless of monitored inventory levels. As user preferences change, it is also envisioned that theportal site152 will provide additional services.
• The one or[0046]more databases155 are used to archive account information in relational tables. The information preferably includes user identification strings, user access rights, inventory records, controller and supplier addresses (Uniform Resource Locators, Domain Name Systems, or Internet Protocols, for example), telephone numbers, controller configuration data, application and operating software, and/or article catalogs. Workers of ordinary skill in the art will appreciate that additional administrative and inventory data can also be stored in thedatabases155.
• The[0047]web server140 hosts aninteractive web site157 where users can interact with theservers130 and140 and thecontrollers125 authorized by their user access rights. Theweb server140 allows authorized users to browse cabinet inventory, search for articles, review authorized user lists, review inventory and supplier data, review article catalogs, modify article orders and par values, generate inventory reports, generate administrative reports, and generate other standard and customized reports. Because the web andcommunications servers130 and140 share some common databases, changes in these shared databases are accessible to authorized web users160 (two are shown) and to the controller(s)125. For example, if anauthorized web user160 connects to theweb server140 through a web browser, the authorizedweb user160 may modify a par value that is then transmitted to one ormore controllers125. An authorizedweb user160 from any location, thus, can configure and modify many parameters such as target inventory levels of one ormore cabinets110 using a web browser. Thesystem100 does not require application specific software or hardware.
• Although user connections to the[0048]web server140 are shown as direct links via the distributednetwork145, connection may be made through commercial networks that provide telephone, satellite, radio, or microwave links, for example, to the distributednetwork145.
• The supplier interface[0049]165 (two are shown) facilitates communication with vendors or suppliers for re-ordering of products. Preferably, thesupplier interface165 is a fax, an electronic controller, or a computer such as a server (which may support a separate portal site). Thesupplier interface165 may allow authorized users to view information relating to the articles it distributes, conduct article searches, issue purchase orders, track purchase orders, track order history, and receive account information and invoices, for example.
• Automatic stocking and re-ordering are facilitated by implementing the protocol shown in FIG. 2. By way of example, the[0050]web server140 may implement aninventory analysis engine200 that receivesuser preference data202,consumption data204, andcabinet configuration data206. In many instances, theuser preference data202 andcabinet configuration data206 will be relatively static whileconsumption data204 is likely to be dynamic, but any of the three could change. As will be discussed in greater detail below, theengine200 generates anoptimal inventory level208, based on theconsumption data204,preference data202, andcabinet configuration data206. The optimal inventory level can be repeatedly calculated or adjusted to respond to changes in the user preference data, the consumption data, or cabinet configuration. Of course, if the inventory falls below a certain level, thecommunications server130 issues or transmits an order to a supply vendor through thesupplier interface165 so that the products or articles in thecabinets110 are timely replenished.
• The overall process, expanded to include a number of[0051]customers105, is shown in FIG. 3. A number ofvendors220 receive orders from theportal site152 and supply customers with the necessary replenishment of the supplies required. Further details of the method and system are provided below.
• 2. Functional Description[0052]
• FIG. 4 illustrates the functional hierarchy of the[0053]web site157. A user may access the site using a browser installed on thecontroller125 of thecabinet110 or any other computer device connected to the distributednetwork145. To access the web site157 a user must first logon at230 with a viable user ID and password. Once in the site, a user may select from several options: abrowse cabinets option235, asearch option240, a special order option245, and anadministration option250.
• As may be seen by reference to FIGS. 4 and 5, if the[0054]browse cabinets option235 is selected, thesite157 permits the user to select at260 one desired cabinet from those coupled to theportal site152 and review at262 the content and inventory of the cabinet. As best seen by reference to FIG. 6, if thesearch option240 is selected, the user may enter a query in the form of a partial item name or description at264 and then view items that match the query at266, including current cabinet location and inventory. The user may then view detailed item descriptions of items in the cabinet or view cabinet inventory at268.
• The special order option[0055]245 permits a user to connect at270 with a supply vendor's e-commerce site. Theadministration option250 permits modification of theusers275,products277,areas280, and billing codes (or departments)282 maintained by the system and the generation ofreports284. The functionality supported by thesite157 to add new users is illustrated in detail in FIG. 7. Aselection285 to enter a new user is made, and new user information is entered at286. Once all the desired information is entered, it is saved and a “user created”transaction287 is automatically generated and queued for transfer by thecommunications server130 to eachcabinet110. The user is then queried at288 whether additional new users are to be added, and if so, steps290,286, and287 are repeated.
• User information may be searched by selecting a[0056]search engine option285. An edit option295 (FIGS. 4 and 8) may be used to edit user information. User information is displayed and edited at297 and saved at299. Similar to the addition of a new user, a “user edit”transaction301 is created and queued for transfer by thecommunications server130 to eachcabinet110. The user is then queried at303 whether additional edits are to be made. If so, the process is repeated.
• User information may be deleted, by selecting a delete option[0057]305 (FIGS. 4 and 9). A selection is made to delete a user and that selection is confirmed at310. A “user delete”transaction312 is created and queued for transfer by the communications server to eachcabinet110. The user is queried at315 whether additional users are to be deleted. If so, the process is repeated.
• The[0058]web site157 provides functionality for searching, adding, editing, and deleting product information, area information, and billing code information that is similar to that provided with respect to manipulating user information. The functionality for manipulating product information is illustrated in the flow charts in FIGS.10-12, but because of the similarity to other processes will not be discussed in detail herein. The functionality, for manipulatingarea280 andbilling code282 information should be readily apparent to those of ordinary skill in the art from the drawings and description provided herein. Area information relates to a geographical, functional, or other grouping of cabinets. As its name implies, billing code information relates to the billing system used in a particular application of the invention.
• To support the distribution of information collected and recorded by the[0059]system100,numerous reports284 may be generated through theweb site157. A report menu284 (FIG. 4) supports report generation functionality. As best seen in FIG. 13, a user report may be generated by selecting auser report option330, entering a department name or identification at332, and selecting a desired user from the department at334. The report is then output for viewing at336.
• As shown in FIG. 14, a consumption report may be generated by selecting a[0060]consumption report option340, entering a department or user identification at342, and selecting a date range and sort option at344. The report is then output for viewing at346. As shown in FIGS. 4 and 15, discrepancy, inventory, and consumption-snapshot reports may also be generated throughoptions350,355, and360 respectively. The details of generating each report are similar to those already discussed and, therefore, will not be discussed in detail.
• An additional feature of the report generation described above provided by the invention relates to automating the creation and delivery of reports. An automated reporter[0061]370 (FIGS. 1 and 15A) may be provided in thecommunications server130 and accessed by the user through a browser. Theautomated reporter370 queries a user for certain report-related data or report attributes372. The attributes include title, page layout, SQL (Structured Query Language) query, column attributes such as data or amounts to be totaled, and data or amounts to be grouped, e-mail address, start date and time for generating a report, the frequency of the report, and the period during which the report should be generated. The user provided data is saved as a “report request record” in a report query table373. Apolling agent374 polls the table373 on an ongoing basis. If a record is found that specifies an elapsed report date and time, theautomated reporter370 executes the SQL query, streams the results of the query into a spreadsheet file, and e-mails the file to the designated e-mail address.
• As can be seen from the above, the[0062]web server140 andweb site157 enable decentralized users to configure and maintain data in acabinet110. This eliminates the requirement, common in prior systems, that the user be physically proximate to a desired cabinet or the main computer and memory that processes and stores information for the subject dispensing system.
• As noted above, the[0063]communications server130 works in conjunction with theweb server140, providing a variety of tracking, ordering, and communication services. One job of thecommunications server130 is to gather information from eachcabinet110. Thecommunications server130 also maintains up-to-date information for eachcabinet110. In order to accomplish this, areorder agent375 of thecommunications server130 periodically polls eachcabinet110. The frequency of the polling will depend on the configured polling time or polling frequency of eachcabinet110. For example, acabinet110 can be configured to be contacted daily, for example, every day at 3 pm. Alternately, the cabinet can be configured to be contacted more often, for example, every 60 minutes. The data polling process is outlined below in Table 1, and shown in FIG. 16.

  TABLE 1
  Communications Server 130Polling Process

  1.	Server checks the communications queue to determine the next
  	available cabinet to contact.
  2.	Server contacts cabinet via Internet (TCP/IP) or dial-up modem.
  3.	Server sends transaction information to the cabinet for all activities
  	that occurred on the server since the last contact.
  4.	Server receives transaction information from the cabinet for all
  	activities that occurred at the cabinet since the last contact.
  5.	If communications are successful and error-free, the cabinet is
  	removed from the communications queue. Otherwise, the cabinet is
  	“demoted” to the bottom of the queue to allow for re-transmission
  	after other cabinets have transmitted.
  6.	The cabinet updates internal databases with new transaction
  	information. Data includes new and modified users, products, billing
  	codes, and cabinet system configuration.
  7.	Server updates thedatabase 155 with new transaction information.
  	Data includes item withdrawals, returns, inventory restocks, and
  	manual cabinet reconfiguration.
  8.	Server evaluates cabinet polling times and adds cabinets to the queue
  	as necessary based on the current time of day.
  9.	Process is repeated by returning to step 1.

• Another feature of the present invention is dynamic par leveling. This aspect of the present invention is illustrated in FIG. 17. In order to maximize efficiency in the[0064]system100, a minimum inventory level MIN and a maximum inventory level MAX for eachcompartment115 in eachcabinet110 is set in a par-leveler400 of theportal site152. In this way, supplies are timely reordered to avoid running out of articles. Overstocking is also prevented.
• The par-[0065]leveler400 receives input data at402. The data includes a delivery interval t, a lead time I, and a safety coefficient S. The maximum consumption for articles in eachcompartment115 of a cabinet during the last four time intervals is determined at404. That is, the consumption during the time periods t days ago, 2t to t days ago, 3t to 2t days ago, and 4t to 3t days ago is monitored and the largest or maximum consumption M of the time periods is determined. This process is conducted daily to maintain an up-to-date maximum M. Once M is calculated for the particular day at hand, the maximum order amount MAX is determined at406. MAX is equal to M times a safety multiplier or coefficient S. In this way, the system determines an order amount, based on consumption, that should never be exceeded.
• The minimum order amount, MIN, is calculated from the MAX value at[0066]408. MIN is equal to MAX times the lead time I divided by the delivery interval. The MIN for any compartment is the re-order point because letting the article level fall below the MIN amount will result in an out-of-stock situation. Once MAX and MIN have been established for one compartment, the process is continued until all MAX and MIN values for all the compartments have been determined, as shown at410. As an alternative to the algorithm implemented by the par-leveler400, the MAX and MIN may be set by a user to a user determined level.
• Once the MIN and MAX values have been determined (whether by the user or through the par leveler[0067]400) for eachcompartment115 in eachcabinet110, a set of business rules may be applied to automatically generate appropriate orders and deliver those orders to vendors. The process is shown in FIGS.18A-18C. The process starts in FIG. 18A, at450, where for each vendor, a list of companies served by that vendor is retrieved. Then at452, for each company served by that vendor, a list of areas for the company is retrieved. An area may be a geographical grouping of one or more cabinets or it may be a grouping of cabinets based on functional or other characteristics. At454, a list of cabinets for each area in a company is retrieved. Then, the business rules shown in Table 2 are applied at456.

  TABLE 2
  Cabinet Level Rules (can be grouped with boolean AND, OR)

  	1	At least x high priority items in cabinet are belowMIN
  	2	At least x high priority items in cabinet are out of stock
  	3	At least x normal priority items in cabinet are below MIN
  	4	At least x normal priority items in cabinet are out ofstock
  	5	At least x low priority items in cabinet are belowMIN
  	6	At least x low priority items in cabinet are out of stock
  	7	Dollar value of items ordered (if cabinet was to be restocked)
  		exceeds x
  	8	Current day of the week is x (Sunday, Monday, etc.)
  	9	Current day of the month is x (1-31)

• As shown at[0068]458, the rules are reviewed to determine if any of them evaluate to true. If so, the particular cabinet is flagged at460 as being eligible for re-ordering. The process is repeated as shown at462, until all the cabinets in the area have been reviewed. Depending on the particular application at hand, the cabinet level rules can be grouped together by boolean operators to create compound rules. This is also true of the other rules discussed below. Once all the cabinets have been processed, a determination at464 is made as to whether any cabinet in the area has been flagged for re-order. If so, then the area business rules of Table 3 are applied, as shown at466.

  TABLE 3
  Area Level Rules (can be grouped with boolean AND, OR)

  	1	At least x high priority items in area are belowMIN
  	2	At least x high priority items in cabinet are out of stock
  	3	At least x normal priority items in area are below MIN
  	4	At least x normal priority items in area are out ofstock
  	5	At least x low priority items in area are belowMIN
  	6	At least x low priority items in area are out of stock
  	7	Dollar value of items ordered (if area was to be restocked)
  		exceeds x
  	8	Current day of the week is x (Sunday, Monday, etc.)
  	9	Current day of the month is x (1-31)

• If any of the area business rules evaluate as true (as shown at[0069]468), then the area is flagged for re-order at470. As shown at472, the process is repeated until all areas of the company have been analyzed.
• Once all the areas in the company have been reviewed, a determination at[0070]500 (FIG. 18B) is made as to whether any area in one company has been flagged for re-order. If an area has been flagged, the company business rules of Table 4 are applied for the company being processed at502.

  TABLE 4
  Company Level Rules (can be grouped with boolean AND, OR)

  1	At least x high priority items in company are belowMIN
  2	At least x high priority items in company are out of stock
  3	At least x normal priority items in company are below MIN
  4	At least x normal priority items in company are out ofstock
  5	At least x low priority items in company are belowMIN
  6	At least x low priority items in company are out of stock
  7	Dollar value of items ordered (if company was to be restocked)
  	exceeds x
  8	Current day of the week is x (Sunday, Monday, etc.)
  9	Current day of the month is x (1-31)

• If any of the company business rules evaluate as true at[0071]504, then the company is flagged for reorder at506. The process continues until all companies for the vendor have been processed as shown at508. At510, a determination is made as to whether any company vendor has been flagged for reorder. If so, the vendor business rules of Table 5 are applied at512.

  TABLE 5
  Vendor Level Rules (can be grouped with boolean AND, OR)

  	1	At least x high priority items in vendor are belowMIN
  	2	At least x high priority items in vendor are out of stock
  	3	At least x normal priority items in vendor are below MIN
  	4	At least x normal priority items in vendor are out ofstock
  	5	At least x low priority items in vendor are belowMIN
  	6	At least x low priority items in vendor are out of stock
  	7	Dollar value of items ordered (if vendor was to be restocked)
  		exceeds x
  	8	Current day of the week is x (Sunday, Monday, etc.)
  	9	Current day of the month is x (1-31)

• If any of the vendor business rules evaluate as true at[0072]514, then the vendor is flagged for re-order at516. The process is repeated, as shown at518, until all vendors have been processed. Once all the vendors are processed, orders are generated. As shown at520, for each vendor flagged for re-order, a list of companies flagged for reorder is retrieved. Then, at522, the list of areas flagged for reorder for each company is retrieved. At524, a list of cabinets flagged for re-order is retrieved for each area flagged for reorder.
• Each compartment for each cabinet is examined at[0073]550 (FIG. 18C). A determination is made at552 as to whether an order for a compartment is pending. If so, the current date is checked at554 against the lead-time needed to deliver an order. If the date is past the lead-time needed, a late notice is sent to the company expecting the order, as shown at556. Whether or not a late notice is required, the examination of compartments continues as shown at558 until all compartments in all cabinets have been reviewed. If there is no order pending for a compartment, the system (web server) then checks to see whether an order sufficient to fill or top-off the compartment should be issued. At560, the system checks to see whether the top-off function is enabled. If it is, then a current inventory, CUR, is compared to the MAX value and a convenience order value CO is checked at562. If the current value CUR is at the MAX value or the CO value is not greater that zero, then the next compartment is examined. If the CUR value is less that the MAX value and the CO value is greater than zero, an order for the CO value is generated at564. If the top off function is not enabled, the CUR value is checked against the MIN value at566. If the CUR value is less than or equal to the MIN value and the CO value is greater than zero, an order for the CO amount is generated at564. If not, the next compartment is checked. If an order is generated, the compartment is flagged as having an order pending and time-stamped at568. Once all the compartments are examined, orders are generated and transmitted to vendors at570.
• In the process described above, the convenience order concept was introduced. The system of the present invention optimizes ordering of supplies by ensuring that re-orders are made in quantities that not only prevent overstock or out-of-stock situations, but also optimize delivery of items in standard quantities and package sizes that correspond to the quantities and sizes that manufacturers normally produce. This may be more clearly seen by reference to Table 6.[0074]

  TABLE 6
  Re-order Methodology

  Term	Definition	Example
  Unit of Issue (UI)	Description of packaging	“Disk”, “1 Folder”,
  	for each unit dispensed	“3-pack”, “Box”, etc.
  	from cabinet
  Unit of Purchase	Description of packaging	“Disk”, “Dozen”,
  (UP)	for each unit purchased	“Box”, “3-pack”, etc.
  	from supplier/manufacturer
  Quantity Issued Per	Number of units dispensed	If file folders are
  Unit of Purchase	from cabinet for each UP	dispensed individually,
  (QIPUP)		but purchased by the
  		box (100/box), then
  		the QIPUP = 100
  Convenience	UP multiple preferred by	If supplier sell pens
  Multiple (CM)	the supplier	individually
  		(UP = “Each”)
  		but pens come
  		packaged in boxes of
  		12, then the CM = 12,
  		since the vendor
  		prefers not to break
  		packages.
  CUR	The current quantity of	If there are 12 pens in
  	an item, (based on UI)	the cabinet, CUR = 12
  MAX	Maximum quantity	If the cabinet pocket
  	(based on UI)	holds 60 pens, and
  		pens are dispensed
  		individually, then
  		MAX = 60
  MIN	The minimum quantity	If MIN = 12, then an
  	(based on UI) of a given	order will be generated
  	item that may be	when CUR < 12
  	maintained in the cabinet
  	without generating a
  	restock order for the item
  	(i.e., the reorder point)
  Optimal Order (OO)	The maximum reorder	Using the pen
  	quantity possible (based on	example, if MAX =
  	UP) without exceeding	60, MIN = 12, and
  	MAX.	CUR = 10, AND
  	OO = INT {MAX-CUR}	QIPUP = 1, then
  	QIPUP	OO = 50. Note that
  		OO disregards the
  		convenience multiple.
  Convenience Order	Same as OO, but includes	If the CM = 12 in the
  (CO)	CM. This results in more	above example (i.e.,
  	“supplier friendly” orders,	pens sold individually,
  	since packages need not be	but packaged in boxes
  	broken down by the	of 12), then CO = 48.
  	supplier prior to delivery.	Using CO for a restock
  	CO = INT {OO}* CM	order ensures that the
  	CM	supplier will not have
  		to break packages.

• In the example shown in Table 6, the convenience order value CO is defined based on the vending activity that occurs from a[0075]compartment115 in acabinet110. However, it also considers the quantity of articles or items present in standard packages and results in orders that generally do not require vendors to provide partial purchase amounts.
• As can be seen from the above, the present invention provides a method and system for controlling the dispensing of items from enclosures. The method and system provide enhanced information about the inventory and users who access the system. Further, the method and system provide automatic re-orders or replenishment of dispensed items when inventory reaches a certain predetermined level.[0076]
• The foregoing detailed description describes only a few of the many forms that the present invention can take, and should therefore be taken as illustrative rather than limiting. It is only the following claims, including all equivalents, that are intended to define the scope of the invention.[0077]

Claims (31)

1. A method of doing business, wherein a third-party company facilitates the supply of articles from a vendor company to a consumer company, the method comprising the steps of:

the third-party company supplying a cabinet to the consumer company, the consumer company storing articles within the cabinet;

establishing a third-party server located at the third-party company;

receiving inventory information on the third-party server regarding the articles contained within the cabinet;

analyzing the inventory information at the third-party server;

sending order information back to the consumer company; and

the consumer company sending an order to the vendor company for replacement articles based on the analyzed inventory information, the replacement articles to be supplied directly to the cabinet at the consumer company by the vendor.

2. The method ofclaim 1, further comprising the step of providing an enterprise resource planning software systems at the consumer company, the enterprise resource planning software system receiving the order information and placing the order with the vendor company.

3. The method ofclaim 1, wherein access to the articles stored within the cabinets is governed by a controller computer.

4. The method ofclaim 3, wherein the inventory information is compiled by the controller computer.

5. The method ofclaim 4, wherein the controller computer periodically polls the third-party server.

6. The method ofclaim 4, wherein the inventory information is received by the third-party server from the controller computer via one of a network or modem.

7. The method ofclaim 6, wherein access to the third-party server can be gained via a network.

8. The method ofclaim 5, wherein the inventory information received on the third-party server can be accessed by any computer connected to the Internet.

9. A method of doing business, wherein a third-party company facilitates the supply of articles from vendor companies to consumer companies, the method comprising the steps of:

the third-party company receiving inventory information from cabinets located in at least one of the consumer companies regarding articles contained within the cabinets;

compiling the inventory information for all cabinets in a third-party server;

using the third-party server to analyze the inventory information to assess inventory levels in each of the cabinets;

sending the analyzed inventory information back to the consumer companies; and

the consumer companies placing orders with at least one of the vendor companies to supply replacement articles to the cabinets located in the consumer companies based on the analyzed inventory information.

10. The method ofclaim 9, wherein each cabinet is secured and has a controller computer associated with it, the controller computer governing access to the cabinet.

11. The method ofclaim 10, wherein the inventory information is communicated from the controller computer to the third-party server.

12. The method ofclaim 11, wherein the inventory information is communicated via the Internet.

13. A method of doing business, wherein a third-party company facilitates the supply of articles from a vendor company to a consumer company, the method comprising the steps of:

the third-party company supplying a cabinet to a consumer company, the consumer company being remote from a third-party server at the third-party company and storing articles within the cabinet, the consumer company including a consumer server, which compiles up-to-date inventory information regarding the articles contained within the cabinet, the third-party server periodically polling the consumer server to retrieve inventory information from the consumer server;

analyzing the inventory information at the third-party server;

sending the analyzed inventory information back to the consumer company; and

the consumer company placing an order with a vendor company to supply replacement articles to the cabinet located in the consumer company based on the analyzed inventory information.

14. The method ofclaim 13, wherein the inventory information communicated from the cabinets to the third-party server includes information regarding the number and type of articles within the cabinet.

15. The method ofclaim 13, wherein the inventory information is communicated from the consumer server to the third-party server via a public network.

16. The method ofclaim 15, wherein the public network includes the Internet.

17. The method ofclaim 13, wherein the orders are placed via a public network and the vendors can access the inventory information via the third-party server.

18. The method ofclaim 17, wherein the vendor accesses the third-party server via the Internet.

19. A method of doing business, wherein a third-party company facilitates the supply of articles from a vendor company to a consumer company, the method comprising the steps of:

the third-party company supplying a cabinet to a consumer company, the consumer company storing articles within the cabinet;

receiving inventory information on a third-party server at the third-party company via a public network regarding the articles contained within the cabinet;

analyzing the inventory information at the third-party server;

sending the analyzed inventory information back to the consumer company; and

the consumer company placing an order with the vendor company via a public network for replacement articles based on the analyzed inventory information, the replacement articles to be supplied directly to the cabinet at the consumer company by the vendor.

20. The method ofclaim 19, wherein the public network includes the Internet.

21. The method ofclaim 20, wherein the inventory information is stored on the third-party server at the third-party company and the inventory information can be accessed by logging onto the third-party server through the Internet.

22. The method ofclaim 21, wherein a link is established via the Internet between a remote computer and the third-party server, the remote computer sending to the third-party server via the link a specific inquiry regarding the availability of a particular article in the cabinet.

23. The method ofclaim 21, wherein a link is established via the Internet between a remote computer and the third-party server, the third-party server governing access to the inventory information by a user of the remote computer and directing the user to the location of a particular article identified by the user.

24. The method ofclaim 19, wherein order information recording the orders placed with the vendor company is tracked on the third-party server at the third-party company and is accessed by the vendor company via the Internet.

25. The method ofclaim 19, wherein multiple cabinets are supplied to multiple consumer companies, the third-party server at the third-party company receives and analyzes inventory information regarding the articles contained within each of the cabinets, and the third-party server places orders with multiple vendor companies based on the analysis of the inventory information received from each of the cabinets at the multiple consumer companies.

26. The method ofclaim 19, wherein the cabinet includes at least one lockable compartment.

27. A method of doing business, wherein a third-party company facilitates the supply of articles from a vendor company to a consumer company, the method comprising the steps of:

establishing a third-party server at the third-party company;

storing on the third-party server packaging information regarding the number of a particular article packed by the vendor company within a package of the particular article;

supplying a cabinet to a consumer company, the consumer company storing the particular article within the cabinet;

receiving inventory information at the third-party server via a public network regarding the number of the particular article contained within the cabinet;

analyzing the inventory information at the third-party server;

sending the analyzed inventory information back to the consumer company; and

the consumer company placing orders with a vendor company via a public network for packages of the particular article based on the analyzed inventory information and the packaging information, the packages of the particular article to be supplied directly to the cabinet at the consumer company by the vendor.

28. The method ofclaim 27, wherein the analysis of the inventory information at the third-party server includes tracking the consumption of the particular article over a period of time.

29. The method ofclaim 28, further comprising determining the maximum amount of the article to be ordered based on the consumption of the particular article over a period of time.

30. The method ofclaim 29, wherein the consumption of the article over a period of time is measured according to a delivery interval and the maximum amount of the article ordered is determined using a safety multiplier.

31. The method of claim30, further comprising determining the minimum amount of the article to be ordered based on the maximum amount of the article to be ordered, a lead time, and the delivery interval.

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