The Material Forecasting Program (MFP) is a complete decision support sub-system used for raw material requirements planning. Purchasing personnel, who are often unfamiliar with metallurgical practices, must make complicated, time-consuming long and short term buying decisions that accurately reflect their requirements based on vendor specifications. MFP uses linear programming techniques to determine the most economical materials to purchase in order to satisfy your anticipated melting schedule or campaign.
The MFP program is integrated with the existing ABS Software™ modules to take full advantage of current inventory information. It will enable you to project your raw material requirements more accurately while using least cost techniques, thereby creating a "least cost shopping list." Also, MFP fully considers the metallurgical practices, melting restrictions, and elemental recoveries that will be applied at melting time to further qualify the material's worth.
MFP can be used to calculate short term requirements (usually two weeks or less) or longer term requirements. Provisions exist within the MFP program to compensate for expected shop returns that will occur during the campaign period.
The MFP program derives its raw material requirements from three sources:
The "market" file, in essence, is a list of approved suppliers and material stocks available for use and consideration. The "quoted" file is an optional second source of materials. Usually, the quoted materials are short runs, one-time buys, or materials that have a highly fluctuating availability or cost.
The MFP program produces a series of material requirement reports. These reports include:
MFP can easily adapt to changes in your melting schedule and recalculate the new material requirements. MFP is extremely easy to use and it greatly reduces the clerical effort required with most manual forecasting methods used today.
The MFP program helps you reduce your overall inventory investment by diminishing or eliminating the purchasing of unfavorable or slow moving items.