Ex Parte Hoffman et al - Page 8

                Appeal 2006-2018                                                                              
                Application 09/815,731                                                                        

           1          error due to breakage or the like is more or less inevitable.  Therefore,               
           2          it is necessary to first correct all the inventory data at the beginning                
           3          processing.  For the production plan data, production plan                              
           4          modification transfer data and required quantity data, too, all the                     
           5          initial values are reset for starting from zero.  (col. 14, ll. 21-29).                 
           6                                                                                                  
           7          From our review of Salvo, we make the following findings of facts:                      
           8          20.  The invention is related to inventory management systems and                       
           9    methods.  (col. 1, ll. 1-2).                                                                  
          10                                                                                                  
          11          21.  [A] system and method for inventory management, in particular,                     
          12    vendor-managed inventory, are provided. (col. 2, ll. 57-59).                                  
          13                                                                                                  
          14          22.  The control unit analyzes the inventory amount signals and also                    
          15    analyzes the amounts and inventory price information, and uses this                           
          16    information to determine if an inventory order should be placed. (col. 3, ll.                 
          17    5-7).                                                                                         
          18                                                                                                  
          19          23.  The inventory management system and method, as embodied by                         
          20    the invention, permit monitoring and determining real-time inventory status                   
          21    of one or more storage receptacles, such as silos at a manufacturing site,                    
          22    automatic ordering of inventory to replenish the receptacles at a low price,                  
          23    and purchasing the inventory at a lowest possible price.  (col. 3, ll. 42-48).                
          24                                                                                                  
          25          24.  The inventory monitoring also permits prediction of estimated                      
          26    future inventory usage, lot identification, forecasting based on trends and                   
          27    economic indicators, automatic notification of inventory occurrences that                     
          28    require attention, and automation of inventory ordering.  (col. 3, ll. 52-56).                
          29                                                                                                 
          30          25.  The on-site storage areas and receptacles transmit their amount                    
          31    signals to the site controller 112. Thus, the site controller 112 receives                    
          32    inventory amount signals from each on-site storage device. The site                           
          33    controller 112 forwards these signals over time to the control unit 114, as the               
          34    processor 102 forms articles from the inventory 150 and the amounts within                    
          35    the receptacles 104 drop. Accordingly, the control unit 114 determines the                    


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