The purpose of Forecasting is to set purchase decision values such as order point, critical point, minimum and maximum inventory levels, economic order quantity, etc. These, in turn, are based both on user-determined parameters such as carrying cost, order cost, and on system generated parameters such as projected usage and usage trends. All parameters can be set up on a product class basis, at a company wide or individual warehouse basis.

Because of the comprehensive history maintained by the Inventory application, Rubicon's Forecasting module is open to a variety of forecasting techniques. The basic system includes standard statistical methods (e.g., exponential smoothing). Other approaches can also be used.

Specific features of the Forecasting module are:

• Automatic ABC classification
  • Based on quantity, gross dollars, or net profit
  • Up to 12 levels with user definable percents
• Forecasting Parameters
  • Can be set
    • Company wide and / or warehouse basis
    • Classes of products or specific items
  • Include
    • Smoothing parameters (alpha and beta)
    • Desired order fill rates by ABC code
    • Deviation filters
    • Order frequency and lead-time
    • Seasonality
    • Carrying and order costs
• Can use statistical or other techniques
• On line inquiry of usage by
  • Quantity
  • Dollar volume
  • Profit
• Automatic setting of purchase parameters
  • Reorder point (minimum level)
  • Critical point (safety stock)
  • Maximum level
  • Economic order quantity
  • etc.