Abstract
Buying raw materials at low cost is important for the economic success of manufacturing companies. In this extended abstract, we summarize some of the cost-driving constraints and cost-saving opportunities available to a global manufacturer when purchasing raw materials. We outline how to model the procurement problem as a mixed-integer linear program, and describe the use of Sankey diagrams to compare alternative order volume plans.
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Ackermann, H., Diessel, E., Helmling, M., Hertrich, C., Jami, N., Schneider, J. (2020). Decision Support for Material Procurement. In: Neufeld, J.S., Buscher, U., Lasch, R., Möst, D., Schönberger, J. (eds) Operations Research Proceedings 2019. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-030-48439-2_84
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DOI: https://doi.org/10.1007/978-3-030-48439-2_84
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