Notice of Pre-AIA or AIA Status
The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA .
Continued Examination Under 37 CFR 1.114
A request for continued examination under 37 CFR 1.114, including the fee set forth in 37 CFR 1.17(e), was filed in this application after final rejection. Since this application is eligible for continued examination under 37 CFR 1.114, and the fee set forth in 37 CFR 1.17(e) has been timely paid, the finality of the previous Office action has been withdrawn pursuant to 37 CFR 1.114. Applicant's submission filed on 1/30/26 has been entered. Claims 4, 6, 7, 9, 15, 17 are cancelled. Claims 1-3, 5, 8,10-14, 16, 18-20 are presented for examination.
Claim Rejections - 35 USC § 101
35 U.S.C. 101 reads as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
Note: The following analysis is based on the Revised Guidance titled “2019 Revised Patent Subject Matter Eligibility Guidance (Vol. 84, No. 4).
STEP 1
Are the claims directed to a process, machine, manufacture or composition of matter?
Claims 1-3, 5, 8,10-14, 16, 18-20 are all directed to a statutory category (e.g., a process, machine, manufacture, or composition of matter). The answer is YES.
STEP 2A. Prong 1
The claims disclose the abstract idea of monitoring parts and placing an order when there is a difference in availability and requirement of parts.
Exemplary claim 1 recites the following abstract concepts that are found to include “abstract idea”:
“--receive existing inventory information from a supplier facility, the existing inventory information specifying an available quantity of one or more parts required to build a product at a manufacturing facility;
-- execute a series of modules forming a demand quantity prediction unit, the series of modules comprising:
- receive the existing inventory information and add the existing inventory information to an [AI ] database comprising previous inventory information such that the AI database includes time-series inventory data comprising a historically available quantity of the parts and further includes a historically available quantity of products built by the manufacturing facility;
- remove statistically abnormal inventory information from the time-series inventory data to create filtered time-series inventory data;
- receive and store a required quantity of the part for use at a scheduled date;
- compute a moving average of the filtered time-series inventory data to create average inventory data.
-wherein the time-series forecasting module is further configured to determine a forecast available quantity of parts for use at the scheduled date based upon the average inventory data, and
- predict a difference between the forecast available quantity of the parts and the required quantity of the parts for the scheduled date, and automatically place an order for one or more additional parts from the supplier facility based upon the difference,
-wherein the products are used at a wellsite to complete one or more wellsite procedures.
-assign a weight associated with a contemplated risk of not having enough parts to complete a wellsite procedure;
-notify the supplier facility and request additional parts when the quantity of received parts is less than the quantity of requested parts, and
-automatically place the order for the parts from the supplier facility by transmitting a purchase order to the supplier facility via a data connection, and determine, based on additional purchase orders, a change in price of the received parts between a last shipment of the received parts and a current shipment of the received parts. “
The remaining limitations are no more than computer elements (i.e., a processor, a transceiver,) to be used as a tool to perform this abstract idea.
The recited limitations cover a process that, under its broadest reasonable interpretation, covers subject matter viewed as a certain method of organizing human activity with the additional recitation of generic computer components. For example, but for the “by a processor” language, “receiving, removing, computing, predicting” in the context of this claim encompasses the user receiving the data, comparing the data, determining the difference and placing the order.
The practice of receiving, removing, computing, predicting data, as well as placing orders is a commercial or legal interaction long prevalent in our system of commerce. The claims recite the idea of performing various conceptual steps generically resulting in the management of inventory. As determined earlier, none of these steps recites specific technological implementation details, but instead get to this result by receiving, selecting and determining data. Thus, the claims are directed to a certain method of organizing human activity
STEP 2A, Prong 2
Are there additional elements or a combination of elements in the claim that apply, rely on, or use the judicial exception in a manner that imposes a meaningful limit on the judicial exception, such that it is more than a drafting effort designed to monopolize the exception?
The claim recites one additional element: that a processor is used to perform the steps, and a scanner is used to capture barcode identification of parts.
The processor in the steps is recited at a high level of generality, i.e., as a generic processor performing a generic computer function of processing data (receiving, by a processor, inventory data). This generic processor limitation is no more than mere instructions to apply the exception using a generic computer component.
Furthermore, the claim recites
--a scanner configured to capture one or more barcodes representative of a Stock Keeping Unit (SKU) of the one or more parts received from the supplier facility;
and wherein the scanner comprises a barcode scanner configured to emit a laser signal and determine a distance between lines forming the one or more barcodes to determine the SKU of the one or more parts.
The scanner is performing a generic scanner function of determining product identification, by using processes already built in the scanner. This generic scanner limitation is no more than mere instructions to apply the exception using a generic computer component.
Accordingly, the additional elements do not integrate the abstract idea into a practical application because it does not impose any meaningful limits on practicing the abstract idea.
The claim is directed to an abstract idea.
STEP 2B
The next issue is whether the claims provide an inventive concept because the additional elements recited in the claims provide significantly more than the recited judicial exception. Taking the claim elements separately, the function performed by the computer system at each step of the process is purely conventional. The claim does not include additional elements that are sufficient to amount to significantly more than the judicial exception. As discussed above with respect to integration of the abstract idea into a practical application, the additional element of using a processor to perform the steps amounts to no more than mere instructions to apply the exception using a generic computer component. Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept. The claim is not patent eligible.
Considered as an ordered combination, the computer components of Applicants' claims add nothing that is not already present when the steps are considered separately. The claimed invention does not focus on an improvement in computers as tools, but rather certain independently abstract ideas that use computers as tools. {Elec. Power, 830 F.3d at 1354). (Step 2B: NO).
There is no indication that indication that the processor is anything other than a generic, off-the-shelf computer component, and the Symantec, TLI, and OIP Techs. Court decisions cited in MPEP 2106.05(d)(II) indicate that mere collection or receipt of data over a network is a well‐understood, routine, conventional function when it is claimed in a merely generic manner (as it is here).
Independent claim 12 recites similar limitations as claim 1 and is therefore rejected under the same rationale.
The dependent claims when analyzed as a whole are held to be patent ineligible under 35 U.S.C. 101 because the additional recited limitations fail to establish that the claims are not directed to an abstract idea. The claims provide minimal technical structure or components for further consideration either individually or as ordered combinations with the independent claims. As such, additional recited limitations in the dependent claims only refine the identified abstract idea further. Further refinement of an abstract idea does not convert an abstract idea into something concrete.
Accordingly, a conclusion that the collecting step is well-understood, routine, conventional activity is supported under Berkheimer Option 2.
See MPEP 2106.05(d)(II) The courts have recognized the following computer functions as well-understood, routine, and conventional functions when they are claimed in a merely generic manner (e.g., at a high level of generality) or as insignificant extra-solution activity.
i. Receiving or transmitting data over a network, e.g., using the Internet to gather data, Symantec, 838 F.3d at 1321, 120 USPQ2d at 1362 (utilizing an intermediary computer to forward information); TLI Communications LLC v. A VAuto. LLC, 823 F.3d 607, 610, 118 USPQ2d 1744, 1745 (Fed. Cir. 2016) (using a telephone for image transmission); OIP Techs., Inc., v. Amazon.com, Inc., 788 F.3d 1359, 1363, 115 USPQ2d 1090, 1093 (Fed. Cir. 2015) (sending messages over a network); buySAFE, Inc. v. Google, Inc., 765 F.3d 1350,1355,112 USPQ2d 1093,1096 (Fed. Cir. 2014) (computer receives and sends information over a network); but see DDR Holdings, LLC v. Hoteis.com, L.P., 773 F.3d 1245, 1258, 113 USPQ2d 1097, 1106 (Fed. Cir. 2014) ("Unlike the claims in Ultramercial,Vne claims at issue here specify how interactions with the Internet are manipulated to yield a desired result-a result that overrides the routine and conventional sequence of events ordinarily triggered by the click of a hyperlink." (emphasis added));
iv. Storing and retrieving information in memory, VersataDev. Group, Inc. v. SAP Am., Inc., 793 F.3d 1306,1334,115 USPQ2d 1681,1701 (Fed. Cir. 2015); OIP Techs., 788 F.3d at 1363,115 USPQ2d at 1092-93.
The claims are ineligible.
Claim Rejections - 35 USC § 103
The following is a quotation of 35 U.S.C. 103 which forms the basis for all obviousness rejections set forth in this Office action:
A patent for a claimed invention may not be obtained, notwithstanding that the claimed invention is not identically disclosed as set forth in section 102, if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains. Patentability shall not be negated by the manner in which the invention was made.
Claims 1-3, 5, 8,10-14, 16, 18-19 are rejected under 35 U.S.C. 103 as being unpatentable over Moore et al. (20160358120-A1), in view of Sleeman (US 11880804 B1), in view of Jin et al. ( 20230101023), in further view of Gray et al. (US 20060169775 A1).
Re-claims 1, 2, Moore et al. teach an inventory management device, the device comprising:
--a transceiver configured to receive existing inventory information from a supplier facility,
(see e.g. [0035] In alternative embodiments, incoming inventory may be processed by an automated system that may automatically unload inventory and scan the tags. Further, in embodiments where an active RFID is used on the pallet, aggregated information may be broadcast from the pallet, obviating the need for scanning individual tags. Regardless of how obtained, the information received concerning the type, quantity, etc. of incoming inventory may be used to update an inventory management database in real-time such that a wellsite operator may be able to determine accurate on-site inventory information. The tagging or inventory management database may optionally include information about the location of inventory items to facilitate later retrieval.)
--a scanner configured to capture one or more barcodes […] of the one or more parts received from the supplier facility;
(see e.g. [0035] At step 520, the pallet may be received at the wellsite and unloaded onto a rig pad. During unloading, the electronic tags on the inventory and/or pallet may be read using a variety of different techniques. For example, if the inventory is manually received by employees, an electronic ID scanner may be provided at a threshold near the receiving area.
[0036]. At the time the inventory item is retrieved for use, the electronic tag may be scanned to track the type and quantity of item removed from on-site inventory. In situations where an employee manually retrieves the item, a scanning threshold may be provided at the point of use (e.g., in the case of a chemical sack, near the mixing hopper); the scanning threshold may be, for example, the PVC pipe embodiment described with respect to step 520
Abstract ---In certain embodiments, the inventory may be chemical sacks mixed into drilling fluids, and their use may be tracked with an RFID scanner near the threshold of a mixing hopper. The tracking information may be used to update an inventory management database.)
--a processor configured to execute a series of modules:
- a time-series forecasting module configured to receive the existing inventory information and add the existing inventory information to an AI database comprising previous inventory information
(see e.g. [0039] --- For example, one set of inventory may be arriving and added to the inventory management database (step 520) while other inventory items are being used (step 530).
[0038] Regardless of how obtained, the information received concerning the type, quantity, etc. of incoming inventory may be used to update an inventory management database in real-time such that a wellsite operator may be able to determine accurate on-site inventory information.
such that the AI database includes time-series inventory data comprising a historically available quantity of the parts and further includes a historically available quantity of products built by the manufacturing facility;
(see e.g. [0064] As discussed with respect to the embodiment of FIG. 7, historical wellsite inventory use information may be aggregated in a logistical model database. This information may be used for wellsite planning, including better informed pre-job planning for inventory needs and delivery timing. The improved pre-job plan may also allow for more accurate job bidding. Further, greater job profitability may be achieved due to the efficiencies gained from supply chain management, improved logistics planning, and inventory loss prevention.)
***The Examiner notes although Moore et al. does not label the database as AI, the function performed by both databases is the same.
-a scheduling module configured to receive and store a required quantity of the part for use at a scheduled date;
(see e.g. [0055] This may include placing orders for the inventory items needed and scheduling their deliveries. In certain embodiments, a “just-in-time” delivery schedule may be used so that inventory items are delivered shortly before they are anticipated to be needed. In this way, stockpiling of inventory may be avoided and the available rig pad may be used efficiently. Inventory management may be accomplished using tracking systems such as the embodiment of FIG. 5.
[0061] inventory may be scheduled for delivery to the wellsite shortly before the anticipated need.
[0053] In certain embodiments, the logistical model may contain historical inventory data indexed by basin or area so that the engineer can look up nearby wellsites and review inventory data, such as what inventory was needed, how much was needed, and when it was needed.
-an averaging module configured to compute a moving average of the filtered time-series inventory data to create average inventory data,
(see e.g. [0058] For example, by tracking inventory inflows and outflows (e.g., as described in the embodiment of FIG. 5), a wellsite administrator should have accurate knowledge of current on-site inventory. In the event an audit, such as a manual on-site count, reveals a discrepancy between actual inventory amounts and the amounts reported by the inventory management database, the inventory management database may be updated (or the audit may be repeated) to reconcile the differences. Similarly, any manually-generated reports, such as from wellsite engineers, may be checked against the real-time collected data.)
-wherein the products are used at a wellsite to complete one or more wellsite procedures.
(see e.g. 0059] The process of step 730 and step 740 may be repeated while wellsite operations continue. At step 750, the well may have completed operations and an end-of-well report may be generated.
Moore et al. do not teach the following limitations as claimed.
However, Sleeman et al. teach
-the existing inventory information specifying an available quantity of one or more parts required to build a product at a manufacturing facility;
(see e.g. col. 54--an automated dispatch, ticketing and inventory management system which can include an API link to the inventory tracking system at the material supplier in order to enhance the efficiency of the automation for BOL's;
col. 35--By determining a difference between the amount of proppant consumed so far and the total amount of proppant needed for a particular fracking stage, the total amount of proppant that is still needed to complete that particular fracking stage may be determined.
--a processor configured to execute a series of modules forming a demand quantity prediction unit, the series of modules comprising:
col. 11--- Generally speaking, the proppant management application 235 may include or be associated with any of a variety of software, hardware, firmware, or combinations thereof that are needed or considered desirable to have in the proper functioning of the proppant management application.
col. 31--- Further, as the operator confirms that a particular frac zone operation is completed, the proppant management application 235 may recalculate quantities of the proppant left within the first silo 210A and the second silo 210B to complete the remaining “frac zone” to enable a more accurate forecasting of the amount of proppant needed during each stage of a frac zone.)
-wherein the time-series forecasting module is further configured to determine a forecast available quantity of parts for use at the scheduled date based upon the average inventory data, and
(see e.g. col. 33--- In some embodiments, the proppant management application 235 may be configured to predict that the sum of the total amount of proppant that is available and is expected to become available is going to become equal to or less than the predetermined threshold in the near future even though that sum may be currently greater than the predetermined threshold. For example, in some embodiments, the past rate of proppant consumption may be indicative of future rate of consumption of the proppant. The proppant management application 235 may determine the actual consumption rate/consumption amount of the proppant in the past to predict how much proppant may be needed in the future. In some embodiments, the proppant management application 235 may determine the actual past consumption rate/amount for each fracking stage separately. In other embodiments, the proppant management application 235 may combine (e.g., average) the actual past consumption rate/amount for each fracking stage to obtain the actual consumption rate/amount for the entire fracking operation. Thus, in some embodiments, the proppant management application 235 may predict the amount of proppant needed in the future based upon historical consumption rate/amount of the proppant. In some embodiments, the proppant management application 235 may be configured to look at historical data of a particular fracking stage and/or historical data from a predetermined period of time (e.g., last 24 hours, last few days, etc.) to predict the anticipated consumption rate/amount.
-an inventory management module configured to predict a difference between the forecast available quantity of the parts and the required quantity of the parts for the scheduled date, and automatically place an order for one or more additional parts from the supplier facility based upon the difference,
(see e.g. col. 1-- The proppant management system includes a memory to store sensor data received from the sensor of each of the plurality of silos and a user preference parameter and historical data from a previous operation, and a processor configured to determine, based on the sensor data, the proppant level within at least one of the plurality of silos, determine an amount of proppant that is expected to become available, automatically create an order and send the order to a proppant carrier to request additional proppant upon determining that the combination of the proppant level within the at least one of the plurality of silos and the amount of proppant that is expected to become available is less than a predetermined threshold or expected to fall below the predetermined threshold) .
--automatically place the order for the parts from the supplier facility by transmitting a purchase order to the supplier facility via a data connection
(see e.g. col.4 -- Thus, effective management of proppant inventory and supply, including accurate predictions of proppant consumption volumes is necessary to the smooth operation at the wellsite.
(see e.g. col. 2 -- automatically create an order and send the order to a proppant carrier to request additional proppant upon determining that the combination of the proppant level within the at least one of the plurality of silos and the amount of proppant that is expected to become available is less than a predetermined threshold or expected to fall below the predetermined threshold,
Abstract -A system for managing proppant inventory includes a plurality of silos, each silo having a sensor to sense a proppant level of proppant stored therein. The system also determines an amount of proppant that is expected to become available, and automatically creates and sends an order to request additional proppant upon determining that the combination of the proppant level within the at least one of the plurality of silos and the amount of proppant that is expected to become available is less than a predetermined threshold or expected to fall below the predetermined threshold.)
Sleeman et al. also teach:
-an averaging module configured to compute a moving average of the filtered time-series inventory data to create average inventory data,
(see e.g. col. 34--- For example, in some embodiments, the past rate of proppant consumption may be indicative of future rate of consumption of the proppant. The proppant management application 235 may determine the actual consumption rate/consumption amount of the proppant in the past to predict how much proppant may be needed in the future. In some embodiments, the proppant management application 235 may determine the actual past consumption rate/amount for each fracking stage separately. In other embodiments, the proppant management application 235 may combine (e.g., average) the actual past consumption rate/amount for each fracking stage to obtain the actual consumption rate/amount for the entire fracking operation. Thus, in some embodiments, the proppant management application 235 may predict the amount of proppant needed in the future based upon historical consumption rate/amount of the proppant. In some embodiments, the proppant management application 235 may be configured to look at historical data of a particular fracking stage and/or historical data from a predetermined period of time (e.g., last 24 hours, last few days, etc.) to predict the anticipated consumption rate/amount.)
-wherein the products are used at a wellsite to complete one or more wellsite procedures.
col. 31-- Thus, the proppant management system 200 may be set up for performing the fracking operation at the operation 1305. --- Upon completing the setup for performing the fracking operation 1305, the proppant management application 235 starts receiving sensor data from the sensors 215A and 215B (and any other sensor at the wellsite 205) at operation 1310.)
2. The inventory management device of claim 1, further comprising: a memory comprising a non-transient storage medium configured to store the series of modules.
(see e.g. col. 63).
Therefore, it would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to modify Moore et al., and include the steps cited above, as taught by Sleeman et al., in order to predict the anticipated consumption rate/amount. (see e.g. 126).
Moore et al., in view of Sleeman et al. do not teach the limitations as claimed.
However, Jin et al. teach -an outlier module configured to remove statistically abnormal inventory information from the time-series inventory data to create filtered time-series inventory data;
(see e.g. [0243] With respect to the pre-processing of demand forecast data, a pre-provided demand forecast usually comes with outliers in the data. Those outliers may be due to various factors, such as input errors or inaccurate forecasts. The outliers often have values that are orders of magnitude larger than the regular data points, which can have large impact on the optimization results. To mitigate the impact of those outliers, a clipping step may be applied on the demand forecast data as a pre-processing operation.
[0245] The outliers in the raw demand forecast data can also result in over-estimation of the demand forecast uncertainty. As a result, the demand forecast uncertainty derived from the clipped demand forecast can go through another step of clipping to further reduce those impacts.
[0274] For example, if an outlier in the supplier quantity uncertainty (a large shortage) is present
--wherein the inventory management device is further configured to: assign a weight associated with a contemplated risk of not having enough parts to complete a wellsite procedure;
-(see e.g. [0122] The systems and methods for inventory management and optimization may further involve the generation of one or more recommended inventory management decisions based on the optimized inventory dataset. For example, a difference may be determined between the optimized inventory dataset and a reference inventory dataset, and the recommended inventory management decisions may be generated based on the determined difference between the optimized inventory dataset and the reference inventory dataset. In some cases, after the inventory dataset has been optimized, one or more alerts of disruption risks and/or delay risks may be generated based at least in part on the optimized inventory dataset.
[0134] Further, in some embodiments, a hyperparameter uncertainty model may account for a majority of possible risk outcomes for a given acceptable risk level or risk profile. Recalculation of the hyperparameter uncertainty model may only be required when the risk profile or acceptable risk level changes. Accounting for a majority of risk outcomes may allow a machine learning system to apply realized inventory levels to the hyperparameter uncertainty model in order to determine inventory re-order parameters during a production phase without needing to recalculate the uncertainty model.
[0218] STP, on the other hand, describes the percentile in the supplier time uncertainty distribution. One strategy used in the safety stock MRP system to de-risk the supplier delay may be to place a purchase order earlier. The safety time is the variable that determines how early the order should be placed compared to the default order placement date in the MRP output. Therefore, the choice of the most suitable safety time depends on the supplier time uncertainty profile, which can vary over the simulation period. A fixed choice of STP can map to different safety times while the supplier time uncertainty profile changes over time.
[0101] The simulation module may additionally quantify the uncertainties associated with placed orders with suppliers (such as orders that have not reached their due dates) and uncertainties associated with customer orders received by a facility.
--notify the supplier facility and request additional parts when the quantity of received parts is less than the quantity of requested parts,
(see e.g. [0258] The plot 1218 in FIG. 12 represents the arrival information for both simulated inventory and actual inventory. Actual arrivals are represented by the curve 1222, which corresponds to the increases of the curve 1204 in the plot 1202. Comparing the curves 1220 and 1222 in the plot 1218, a sense of supplier time uncertainty (how much the actual arrivals are late compared to the planned arrivals) and supplier quantity uncertainty (how many quantities the actual arrivals are less than the planned arrivals) can be gained for the actual inventory. Similarly, the curve 1226 in the plot 1218 corresponds to simulated arrivals, which corresponds to the increases of the curve 1206 in the plot 1202. Comparing the curves 1224 and 1226 indicates the supplier time and quantity uncertainties for the simulated inventory.
Jin et al. also teach
---automatically place the order for the parts from the supplier facility by transmitting a purchase order to the supplier facility via a data connection,
(see e.g. [0303] . The one or more selected simulated future order placements are stored, output, or used in some manner at step 2514. This may include, for example, the processor 2305 initiating the display of the one or more selected simulated future order placements to a user, causing an MRP system to actually place orders, or performing any other suitable actions.
[0310] The multiple simulations may include identifying one or more re-order parameters for optimizing the inventory and placing orders based on the one or more re-order parameters.) Therefore, it would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to modify Moore et al., in view of Sleeman et al., and include the steps cited above, as taught by Jin et al., in order to prevent delay and enable operators to manage their inventory in a more proactive rather than reactive fashion. (see e.g. [0219], [0101]).
Although Moore et al. teach scanning on or more barcodes of the parts received from the supplier facility, Moore et al., in view of Sleeman et al., in view of Jin et al., do not explicitly teach the following limitations as claimed.
However, Gray et al. teach --a scanner configured to capture one or more barcodes representative of a Stock Keeping Unit (SKU) of the one or more parts received from the supplier facility;
and wherein the scanner comprises a barcode scanner configured to emit a laser signal and determine a distance between lines forming the one or more barcodes to determine the SKU of the one or more parts.
(see e. g. [0005] A method for tracking the location or identity of items in inventory is through use of Universal Product Code technology, or barcode technology, which uses a linear array of elements that are either printed directly on an object or on labels that are affixed to the object. These bar code elements typically comprise bars and spaces, with bars of varying widths representing strings of binary ones and spaces of varying widths representing strings of binary zeros. Bar codes can be detectable optically using devices such as scanning laser beams or handheld wands, or they can be implemented in magnetic media. The readers and scanning systems electro-optically decode the symbol to multiple alpha-numerical characters that are intended to be descriptive of the article or some characteristic thereof. Such characters are typically represented in digital form as an input to a data processing system for applications in point-of-sale processing and inventory control.
0027] In one embodiment, the system tracks the number, type and cost of cases delivered to each store. Each case type may be assigned a unique case code such as a Universal Product Code (case UPC). Each type of item is also assigned a unique item code, such as a consumer or retail UPC.)
---determine, based on additional purchase orders, a change in price of the received parts between a last shipment of the received parts and a current shipment of the received parts.
(see e.g. [0028] Consequently, a warehouse may receive a first shipment of cases at one price and a second shipment of the same type of cases at a second, lower price----- For example, in a first shipment the warehouse may receive 100 cases of instant stuffing mix at a cost of fifty dollars for each case. At a later time, the warehouse may receive a discount and order an additional 50 cases of instant stuffing mix at a cost of forty dollars for each case.)
Therefore, it would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to modify Moore et al., in view of Sleeman et al., in view of Jin et al., and include the steps cited above, including substitution of SKU for UPC, as taught by Gray et al., in order to evaluate inventory of retail outlets or stores).
Re-claim 3, Moore et al. teach the inventory management device of claim 1, wherein the time-series forecasting module is configured to periodically update the time-series inventory data with new inventory information received from the supplier facility.
(see e.g. [0057] Similarly, wellsite measurement data may reveal different operating conditions than originally anticipated, resulting in a revision to the expected types or amounts of inventory items needed for wellsite operations. Further, monitoring updated efficacy information may suggest alternative inventory items that may be better suited to known wellsite conditions. In this way, the logistical plan initially developed at step 710 may be updated and revised during wellsite operations to ensure timely delivery of inventory and efficient use of available rig pad space.
[0061] Automated tracking of inventory arrival and use may enable a more accurate inventory management database. This may assist in logistical planning by keeping updated records about what inventory is available at the wellsite and which products may need to be ordered for future delivery.)
[0038] Regardless of how obtained, the information received concerning the type, quantity, etc. of incoming inventory may be used to update an inventory management database in real-time such that a wellsite operator may be able to determine accurate on-site inventory information.)
Re-claim 5, Moore et al. do not teach the following limitations as claimed.
However, Sleeman teaches --The inventory management device of claim 1, wherein the inventory management device is further configured to automatically place the order for additional parts when the available quantity of parts is forecast to fall below a predetermined minimum inventory of parts.
(see e.g. col. 4) Thus, effective management of proppant inventory and supply, including accurate predictions of proppant consumption volumes is necessary to the smooth operation at the wellsite.
(see e.g. col. 2) automatically create an order and send the order to a proppant carrier to request additional proppant upon determining that the combination of the proppant level within the at least one of the plurality of silos and the amount of proppant that is expected to become available is less than a predetermined threshold or expected to fall below the predetermined threshold,
Abstract -A system for managing proppant inventory includes a plurality of silos, each silo having a sensor to sense a proppant level of proppant stored therein. The system also determines an amount of proppant that is expected to become available, and automatically creates and sends an order to request additional proppant upon determining that the combination of the proppant level within the at least one of the plurality of silos and the amount of proppant that is expected to become available is less than a predetermined threshold or expected to fall below the predetermined threshold.
col. 3, FIG. 13 is an example flowchart outlining operations of a process for ordering additional proppant based upon proppant levels within a silo at a wellsite).
Therefore, it would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to modify Moore et al., and include the steps cited above, as taught by Sleeman et al., in order to properly manage inventory (see e.g. col. 3).
Re-claims 8, 11, Moore et al., in view of Sleeman et al. do not teach the limitations as claimed.
However Jin et al. teach the inventory management device of claim 1, wherein the inventory management device is further configured to compare a number of barcodes captured by the scanner to a purchase order corresponding to the one or more parts, and determine if a quantity of received parts is less than a quantity of requested parts.
(see e.g. [0255] n this example, it is assumed that there are no miscellaneous movements, although that need not be the case. A plot 1218 compares planned arrivals (represented by a curve 1220) and actual arrivals (represented by a curve 1222) in reality and planned arrivals (represented by a curve 1224) and actual arrivals (represented by a curve 1226) determined during simulation.
0256] Looking at the plot 1202 in FIG. 12, it is obvious that the simulated inventory represented by the curve 1206 is at a lower level overall in comparison with the actual inventory represented by the curve 1204.
[0258] . Comparing the curves 1220 and 1222 in the plot 1218, a sense of supplier time uncertainty (how much the actual arrivals are late compared to the planned arrivals) and supplier quantity uncertainty (how many quantities the actual arrivals are less than the planned arrivals) can be gained for the actual inventory.)
11. The inventory management device of claim 1, wherein the statistically abnormal inventory information comprises inventory information specifying that the available quantity of the one or more parts is less than a first predetermined quantity of the one or more parts or greater than a second predetermined quantity of the one or more parts.
(see e.g. [0310] The simulations may be performed using uncertainty realizations of multiple uncertainties associated with the multiple variables generated by perturbing at least one of: a demand forecast, a delay, a quantity shortage of arriving orders, and a miscellaneous order movement.
[0223] generating multiple uncertainty realizations of the simulated inventory by perturbing the demand forecast, the delay, and the quantity shortage of the arriving orders.)
Therefore, it would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to modify Moore et al., in view of Sleeman et al., and include the steps cited above, as taught by Jin et al., in order to prevent delay and enable operators to manage their inventory in a more proactive rather than reactive fashion. (see e.g. [0219], [0101]).
Re-claim 10, Moore et al. teach the inventory management device of claim 1, wherein the wellsite procedures comprise one or more operations that: initiate one or more new wellbores, maintain an existing wellbore or series of wellbores, remediate damaged or aging wells, determine a geometry, a composition, or an orientation of a wellbore, and acquire tangible goods from the wellbore.
(see e.g. [0019] Embodiments of the present disclosure may be applicable to horizontal, vertical, deviated, multilateral, u-tube connection, intersection, bypass (drill around a mid-depth stuck fish and back into the well below), or otherwise nonlinear wellbores in any type of subterranean formation.
Claim 12 recites similar limitations as claim 1 and is therefore rejected under the same arts and rationale.
Claim 13 recites similar limitations as claim 2 and is therefore rejected under the same arts and rationale.
Claim 14 recites similar limitations as claim 3 and is therefore rejected under the same arts and rationale.
Claim 16 recites similar limitations as claim 5 and is therefore rejected under the same arts and rationale.
Re-claim 18, Moore et al. teach the method of claim 18, further comprising: increasing and decreasing the existing inventory information with the inventory management module in an amount corresponding to a number of barcodes captured by the scanner.
(see e.g.[0057] This may include tracking the use of inventory (e.g., using the embodiments described above in steps 530 through 550), reviewing real-time wellsite measurement data, and aggregating reports on the efficacy of consumables (e.g., using the embodiments described above in steps 630 through 660). Based on this analysis, a wellsite operator may make adjustments to the logistical plan for inventory items. For example, if certain inventory items are being used at a faster or slower rate than anticipated, the wellsite operator may accordingly increase or decrease future orders.)
Claim 19 recites similar limitations as claim 8 and is therefore rejected under the same arts and rationale.
Claim 20 is rejected under 35 U.S.C. 103 as being unpatentable over Moore et al. (20160358120-A1), in view of Sleeman (US 11880804 B1), in view of Jin et al. ( 20230101023), in further view of Gray et al. (US 20060169775 A1), in further view of (KR 101660779 B1).
Re-claim 20, Moore et al., in view of Sleeman et al., in view of Jin et al., in further view of Gray et al., do not teach the limitations as claimed.
However (KR 101660779 B1) teach --The method of claim 12, further comprising: notifying the supplier facility with the inventory management module and requesting additional parts when the quantity of received parts is less than the quantity of requested parts.
(see e.g. page 7-- If the number of arrivals received by the purchaser is smaller than the number of orders contained in the order information, the request receiving unit 200 receives the request for additional shipment or partial refund from the purchaser device 200 and transmits the request to the supplier device 300, Receives the response corresponding to the request and transmits the response to the order device 200).
(page 5 ---More specifically, the negotiation module 160 receives a request for additional shipment or partial refund from the purchaser device 200 and transmits the additional shipment or partial refund request to the supplier device 300 when the order quantity received by the purchaser is smaller than the order quantity contained in the order information. And may transmit a response corresponding to the request from the supplier device 300 to the purchaser device 200.
Therefore, it would have been obvious to a person of ordinary skill in the art, before the effective filing date of the claimed invention, to modify Moore et al., in view of Sleeman et al., in view of Jin et al., in further view of Gray et al., and include the steps cited above, as taught by Moore et al., in view of Sleeman et al., in view of Jin et al., in further view of Gray et al., in order to improve the reliability of the purchaser and the satisfaction of the purchaser (see e.g. page 1).
Response to Arguments
Applicant’s arguments with respect to the Non-Final office action dated 1/30/26 have been considered but are moot.
35 USC § 103
Applicant argues that amended independent claim 1 is patentable over Moore, Sleeman, Jin and Smith.
The Examiner maintains that the combination of Moore, Sleeman, Jin, and now Gray teaches the limitations as claimed. Please see above.
35 USC § 101
Applicant’s remark:
Applicant notes that M.P.E.P. § 2106.07(a)(III) is substantially similar to the Berkheimer memo, which is referenced in the Office Action. See Office Action, page 6. Since the Examiner notes that "a conclusion that the collecting step is well-understood, routine, conventional activity is supported under Berkheimer Option 2," it is unclear why the remainder of the rejection ignores the substance of the Berkheimer memo in asserting that the scanner is a generic computing component. Id. In the event that the Examiner desires to maintain the rejection of limitations (i) and
(ii) without making one of the required citations, Applicant notes that the Examiner must take official notice of the well-understood nature of limitations (i) and (ii). See M.P.E.P. § 2106.07(a)(III). Alternatively, the Examiner is encouraged to make an appropriate citation in accordance with M.P.E.P. § 2106.07(a)(III) and the Berkheimer memo, or explain why such is not applicable to the rejection under AIA 35 U.S.C. § 101.
Examiner’s answer:
In the instant application, the scanner is used to collect and store part identification. The scanned data is later used for comparison with received purchase order data.
“(see e.g. claim 1--a scanner configured to capture one or more barcodes representative of a Stock Keeping Unit (SKU) of the one or more parts received from the supplier facility;
claim 8 _ wherein the inventory management device is further configured to compare a number of barcodes captured by the scanner to a purchase order corresponding to the one or more parts, and determine if a quantity of received parts is less than a quantity of requested parts.”
Clearly stated in the office action under Berkheimer is the following:
iv. Storing and retrieving information in memory, VersataDev. Group, Inc. v. SAP Am., Inc., 793 F.3d 1306,1334,115 USPQ2d 1681,1701 (Fed. Cir. 2015); OIP Techs., 788 F.3d at 1363,115 USPQ2d at 1092-93.
Applicant’s remark:
The Office Action states that limitation (iii) covers a certain method of organizing human activity because "[t]he practice of receiving, removing, computing, predicting data, as well as placing orders is a commercial or legal interaction long prevalent in our system of commerce. The claims recite the idea of performing various conceptual steps generically resulting in the management of inventory." (Emphasis added). See Office Action, pages 3 and 4.
However, using products at a wellsite does not equate to computational steps involving data manipulation, and the Office Action provides no further explanations of how products being used would be a conceptual step related to inventory management or a method of organizing human activity. Id., page 4. The step of using products is not performed with a processor or claimed as being performed thereby. Furthermore, products being used at a wellsite to complete one or more wellsite procedures as required by limitation (iii) is not an agreement "in the form of contracts, advertising, marketing or sales activities or behaviors, and business relations" in order to be a method for organizing human activity, as using products is not a commercial agreement between parties. See M.P.E.P. § 2106.04(a)(2)(II). The process of using products at a wellsite is not a mental process at least because the human mind is not capable of using a product or interacting with a product in the real world. See M.P.E.P. § 2106.04(a)(2)(III).
Examiner’s answer:
The claims are directed to method for managing inventory of a product, by scanning received parts into inventory, forecast available quantity of parts needed, predict demand quantity, automatically place orders with a supplier, evaluate received parts for accuracy and detect change in price for additional parts ordered.
As described here, the method involves a commercial agreement between a supplier and a receiving party. There is no improvement to a wellsite process such as drilling or fracking.
Applicant’s remark:
Separately, Applicant notes that planning the use of a product at a wellsite has been deemed to be a patent eligible technical field by the Patent Trial and Appeal Board (PTAB). See Ex Parte Yeager, PTAB decision in Serial No. 13/552,464, Appeal No. 2018-003935, May 8, 2019. In Ex Parte Yeager, the PTAB concluded that claims describing path planning and scheduling software for critical path method planning and scheduling of a horizontal well drilling and hydraulic fracturing project are patent eligible because the claims described improvements to the technology of "planning of horizontal well drilling and hydraulic fracturing." Id., pages 10 and 11. Thus, because the PTAB recognizes that "planning of horizontal well drilling and fracturing" is a valid technical field, it necessarily follows that wellsite procedure planning and inventory management of parts therefor is a valid technical field as well. Id. Accordingly, the claims reflect an improvement to a patent eligible field of technology, namely the field of oil and gas technology and the sub-field of wellsite procedure planning and inventory management therefor.
Examiner’s answer:
In the case cited by Applicant, the Board relied on a combination of steps that highlight why the claims recite significantly more than the abstract idea and integrate the abstract idea into a practical application, as they improve the technology of planning of horizontal well drilling and hydraulic fracturing. For example, the Board cited “ the claims recite calculating distances between each well drilling and hydraulic fracturing operations; and identifying conflicts and filtering out the conflicts,” and concluded that “the claims improve the process by determining conflicts, simultaneous constraint dates, and a frac constraint date (or project constraint date).”
Application (13/552464) claims a “ horizontal well drilling and hydraulic fracturing project assets able to perform a plurality of horizontal well drilling and hydraulic fracturing operational activities at defined horizontal well drilling and hydraulic fracturing coordinates in a horizontal well drilling and hydraulic fracturing scheduling database”.
The instant application claims an inventory management device that manages purchase orders of products (for use at a wellsite) between a supplier and a receiving party.
Therefore, the Board’s decision on application 13/552464 has no applicability.
Conclusion
The prior art made of record and not relied upon is considered pertinent to applicant's disclosure.
Rostosky (US 20060144936 A1)
Beals (US 20120151293 A1)
Punis (US 4020357 A)
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/LUNA CHAMPAGNE/Primary Examiner, Art Unit 3627 May 18, 2026
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