Chandrawati Putri Wulandari, Priskila Yohana, Aisyah Dewi Muthi’ah, Aryo Pinandito, Aini Zuhra Abdul Kadir
An efficient procurement strategy planning is essential for companies, as it directly influences project outcomes, cost management, enhancing operational efficiency, and overall service delivery. A well-planned procurement process not only ensures value for money but also enhances operational efficiency and effectiveness across various sectors. These benefits collectively contribute to the overall success and growth of the company. Company A is a handheld radio distributor in Indonesia, which currently struggling with procurement strategy planning. Their current strategy results in procurement inefficiencies, causing an average 50% increase in excess stock by 2022. The Integer Linear Programming (ILP) optimization method was employed in this study to determine the optimal order quantity and timing, based on cost trade-off factors and inventory parameters, ultimately minimizing the total cost. The results indicated that the optimal procurement strategy proposed in this study suggests that the company could purchase 49.8% less than the initial order amount to meet the same demand, which leads to cost savings. Additionally, it demonstrated a reduction of 50.3% in total procurement costs while fulfilling all demands and maintaining safety stock throughout the planning horizon, compared to the current company’s procurement strategy. © 2025, International Association of Engineers. All rights reserved.
Industrial Engineering Study Program, Faculty of Advanced Technology and Multidiscipline, Universitas Airlangga, Indonesia; Faculty of Computer Science, Universitas Brawijaya, Indonesia; Faculty of Mechanical Engineering, Universiti Teknologi Malaysia, Johor Bahru, Skudai, 81310, Malaysia
