A method for evaluating a forward-buy opportunity relating to a product
set is provided. At the outset, an incremental forward buy quantity for
each product in the product set is initialized to a user defined
quantity. Financial and product parameters relating to the products in
the product set are input, and a return on investment (ROI) for each
product is calculated. In response to the calculated ROI being equal to
or greater than a defined value, the product having the highest ROI is
identified and the recommended buy quantity is recorded. The recommended
buy quantity for the identified product is incremented and the ROI for
each product is recalculated. The iterative ROI calculation method
continues until the ROI for each product is no longer equal to or greater
than the defined value.