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Abstract

In a computer based inventory control method and system, feasible profit maximizing sets of requisitions are created. System processing starts with the creation of detailed, multi-dimensional forecasts of sales and cash receipts using stored algorithms and data preferentially extracted from a basic financial system and the adjustment of the forecasts to match the controlling forecast specified by the user. The adjustment of the forecasts is facilitated by the use of a calculated variable that defines the magnitude of the relative adjustment for each forecast element. All forecasts are adjusted to exactly match a controlling forecast which is either a multivalent combination of the previously generated forecasts or the user specified controlling forecast. The adjusted forecast of sales by item is then used in calculating a requisition set that satisfies expected demand while meeting user specified service level targets. A profit maximized requisition set is then created that utilizes vendor and unit of measure substitution under a variety of discount schedules to the extent possible within the user specified constraints. The processing completed by the system to determine the profit maximizing requisition set utilizes multi-objective, mixed-integer, linear programming techniques. A financial forecast is then calculated and displayed to determine if purchasing the profit maximizing requisition set will be feasible under the forecast financial conditions. Once the constraints and/or forecasts are adjusted as required to produce a feasible solution, processing advances to the profit enhancement stage where overall financial constraints are established and user specified constraints on commitment percentages, global unit of measure substitution and global vendor substitution are optionally relaxed and profit enhancing changes are calculated, stored and displayed. The user optionally accepts displayed enhancements and the financial forecast is recalculated to demonstrate the impact of the accepted changes before the requisitions are modified to reflect the accepted enhancements.

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