5665-393 IBM Inventory Forecasting and Replenishment Modules III (INFOREM)

IBM United States Sales Manual
Revised:  January 04, 2007.

Table of contents  Document options 
TOC Link Product Life Cycle Dates TOC Link Description
TOC Link Program Number TOC Link Technical Description
TOC Link Abstract TOC Link Planning Information
TOC Link Product Positioning TOC Link Publications
TOC Link Highlights TOC Link Security, Auditability, and Control
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Product Life Cycle Dates
Program NumberVRM Announced Available Marketing Withdrawn Service Discontinued
5665-3931.01.81997/09/261997/09/26 2000/06/272001/01/31
5665-3931.01.71996/09/061996/09/06 2000/06/272001/01/31
5665-3941.01.81997/09/261997/09/26 2000/06/272001/01/31

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Program Number
  • 5665-393 INFOREM III Base
  • 5665-394 INFOREM III Allocation

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IBM Inventory Forecasting and Replenishment Modules III (INFOREM) is an inventory management application that tracks the rate of sale for inventory items, forecasts future demand for those items, and develops recommended order quantities. Its goal is to help users meet their customers' demand for goods while controlling the cost of inventory. Two product offerings are available. INFOREM Base develops order quantities for items that are ordered independently. INFOREM Allocation provides additional logic to develop order quantities for items that are ordered jointly and are subject to vendor constraints. The Base product is a prerequisite for Allocation.
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Product Positioning

INFOREM is primarily designed for retail and wholesale distributors. It is, however, being used successfully in manufacturing and other businesses. It operates across all processors capable of supporting the VSE/ESA*, MVS/XA*, or MVS/ESA* environment.
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  • Five buying strategies

  • Bracket buying (discount based on item quantity)

  • Push distribution

  • Promotional sales

  • Seasonal items

  • Online order review and rerun

  • Multiple INFOREM systems per installation

  • Password security

  • Year 2000 capability

Additional for INFOREM Allocation:

  • Three vendor constraints per order
  • Fifty-truck order capability
  • Vendor pooling
  • Bracket buying based on total order quantity, item quantity per truck, and size of joint order

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INFOREM provides solutions to a wide range of inventory management problems, including the following:

  • Balances two basic (and conflicting) inventory goals -- to provide the maximum service level with the minimum inventory investment.

  • Provides an array of tuning controls and parameters that allow users to customize it to solve their unique inventory management problems. Wholesale distribution, grocery, retail, drug, utilities, manufacturing, and other industries all have large investments in merchandise, spare parts, maintenance materials, and other types of inventories which INFOREM can assist in managing.

  • Operates in conjunction with an existing inventory control or stock status system, which maintains on-hand and on-order balances, and historical sales data.

INFOREM System Highlights:

  • Calculates optimum purchase orders. It considers demand and lead- time forecasts, safety stock, order frequency, order strategies, item brackets, and (for Allocation) vendor constraints.

  • Uses proven forecasting techniques and user inputs to produce forecasts of future demand, with adjustments made for both season and trend.

  • Produces weekly or monthly seasonal profiles from actual sales history, or provides a "startup" model if sales history is not available.

  • Calculates a current measurement of item or vendor lead time.

  • Calculates item safety stock by considering the item's service level objective and demand and lead time variability.

  • Provides five buying strategies, each containing a unique set of reorder decision rules that are applied to order calculations.

  • Handles scheduling of multiple promotions in any 52-week period and allows restriction of item order quantities to help prevent overstocking at the end of a promotion period.

  • Offers bracket buying to assist the buyer in taking advantage of cost savings when available.

  • Provides an Online Facility that:
    • Is CICS-based
    • Provides help screens
    • Enables the buyer to review a suggested order, accept it, cancel it, or change and rerun it
    • Enables an administrator to set up production runs, add new users, and manage the system

  • Provides a simulator that enables the user to evaluate INFOREM's performance and to experiment with different policies and strategies before implementation.

  • Allows multiple systems per installation, providing separate systems for retail and wholesale divisions, for testing and production.

  • Provides exception reports for feedback and monitoring of systems performance and allows review of previously defined inventory management policies for user adjustments and fine tuning. These reports include the Inventory Analysis Report, Production Analysis Report, and exception reports to monitor dying items, sales demand, and forecasting problems.

Additional for INFOREM Allocation:

  • Offers a comprehensive solution to joint orders, where the total vendor order must be managed to meet certain preset limits, such as total weight or cubic feet. INFOREM provides the ability to order the proper quantities for up to 1400 to 1700 items depending on setup, while operating within as many as three constraints, such as cost, volume, and weight.

  • Helps users analyze joint orders to determine which ones should be expedited and which ones can be delayed in order to meet user-defined service objectives.

  • Assists in determining optimum shipping quantities when ordering and allows up to a 50-truckload shipment from a single order.

  • Provides the ability to pool orders to multiple vendors within a single shipment.

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Technical Description
TOC Link Operating Environment TOC Link Hardware Requirements TOC Link Software Requirements

Operating Environment

Hardware Requirements

You can install and run INFOREM on any processor that supports the VSE/ESA, MVS/XA, and MVS/ESA environments. Additional hardware requirements for installation, execution, and maintenance of INFOREM include, Direct Access Storage, a 327X Display Terminal, a printer (with PN arrangement or equivalent), and a tape drive (for installation). There is no change in 24-Bit Real Storage use from the previous INFOREM II product for the Base application.

INFOREM uses approximately 6MB of private-area virtual storage below the 16MB line.

Software Requirements

The following are the software prerequisites for INFOREM:

  • In a VSE/ESA environment:
    • VSE/ESA Release 1.4/2.1/2.2 (5745-ACD/5690-VSE/5690-VSE)
    • CICS/VSE Release 2.2 or later (5686-026)
    • VS COBOL II Compiler and Library Release 1.4 (5688-023)
    • DOS/PLI Res Library 1.6.0; DOS/PLI Trans Liarary 1.6.0 (5736-LM5)
    • VSE/VSAM Release 2.2 or later (5686-037)
    • DFSORT 3.1 or higher (5646-SM3) or a sort package that supports VSAM (KSDS-ESDS)
    • Standard Assembler Language

  • For VSE 1.4 or 2.1:
    • COBOL for VSE 1.1 or higher (5686-068)
    • PL/I for VSE 1.1 or higher (5686-069)
    • LE for VSE/ESA 1.1 or higher (5686-067) OR LE for VSE/ESA 1.1 or higher (5686-094)

  • For VSE 2.2:
    • LE for VSE/ESA 1.4 or higher (5686-094)

  • For VSE/ESA with LE required components:
    • LE Base 568609401
    • LE Cobol 568609403

  • In a MVS/ESA non-Language Environment:
    • MVS/ESA Release 3.3 or higher (5695-047)
    • CICS/ESA Release 3.1 or higher (5685-083)
    • SMP/E System Modification Program/Extended Release 8.1 or higher (5668-949)
    • VS COBOL II Release 4 or higher (5688-023) PL/1 Release 2.3 or higher (5668-911)
    • Assembler Language Release 2.1 (5668-963) OR High Level Assembler Release 2 or higher (5696-234)
    • MVS/DFP Release 3.1 (5665-XA3) OR DFSMS/MVS Release 1 or higher (5695-DF1)

  • In a MVS/ESA Language Environment:
    • MVS/ESA Release 3.3 or higher (5695-047)
    • CICS/ESA Release 3.1 or higher (5685-083)
    • SMP/E System Modification Program/Extended Release 8.1 or higher (5668-949)
    • IBM Language Environment Release 1.5 or higher (5688-198)
    • IBM COBOL for MVS Release 2 or higher (5668-197)
    • Assembler Language Release 2.1 (5668-963) OR High Level Assembler Release 2 or higher (5696-234)
    • MVS/DFP Release 3.1 (5665-XA3) OR DFSMS/MVS Release 1 or higher (5695-DF1)

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Planning Information

Customer Responsibilities

The customer is responsible for modifying the programs and procedures as outlined in the "Getting Started" publication.

Technical dependencies exist between INFOREM Base and Allocation. These dependencies may include, but are not limited to, data interchange and program prerequisites. As a result, a program modification could require changes in related programs. The customer should maintain current, compatible modification levels for all related installed programs. Failure of the customer to maintain compatible program levels could cause unpredictable results.

Year 2000 Capability:

This product, when used in accordance with its associated documentation, is capable of correctly processing, providing and/or receiving date data within and between the twentieth and twenty-first centuries, provided that all products (for example, hardware, software, and firmware) used with the product properly exchange data with it.


Due to new product features and enhancements, INFOREM III is not upwardly compatible from INFOREM II. However, the add/delete systems program supplied with INFOREM III can convert an INFOREM II control file to the new INFOREM III control and policy files.


A conversion program is supplied with INFOREM III to convert the control file from INFOREM II to the INFOREM III environment.
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A memo or program directory, and one copy of the following publications are supplied with the basic machine-readable material.


  • SH21-0834 Batch Operations Guide
  • GB35-0122 Licensed Program Specification
  • SB35-4230 Getting Started
  • SB35-4287 Online Facility Reference
  • SB35-0139 Transfer Record Reference and File Descriptions
  • SB35-4288 Quick Reference and Field Dictionary
  • SB35-0147 Administrator's Guide

INFOREM Allocation:

  • GB35-0123 Licensed Program Specification

Additional copies of unlicensed publications are available for a fee. Order from your IBM marketing representative through the system library subscription service (SLSS) or by direct order.
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Security, Auditability, and Control

These programs use the security and auditability features of the host software. The Online Facility provides data security through the use of user IDs and passwords.

User management is responsible for evaluation, selection, and implementation of security features, administrative procedures, and appropriate controls in application systems and communication facilities.


(R), (TM), * Trademark or registered trademark of International Business Machines Corporation.

** Company, product, or service name may be a trademark or service mark of others.
 © IBM Corporation 2007.
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