The following graph shows the impact on monthly profit from forward buying operations at a major supermarket company after the introduction of forward buying optimization software. This software was created by Robert Rose, founder of Optimal Decisions LLC.

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Optimal Decisions LLC is now developing software which will make it possible for all companies to achieve large increases in the profitability of their forward buying operations.

A mathematical model is needed to accurately represent the complex cost structure of any potential forward buy and find the point with the highest profit.

The following graph shows the profitability of an actual potential forward buy. As can be clearly seen, the choice of number of weeks of supply to purchase will dramatically affect profitability.

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Weeks of Supply

Months