Importance Procurement management has an increasing impact on the ultimate outcomes of economic activity of enterprises. This subsystem's precise functioning contributes to enhancing the balance of production. Therefore, it should target at logistical management, which creates close interrelation of manufacture, warehouse facilities, transport, and sales. Objectives The objective of the study is to choose the best option of procurement. Methods The article presents a mathematical model to assess the reasonability of discounts in case of refusal of economically justified order period. Results Enterprises should focus on total cost minimization (value of purchases, ordering expenditures, inventory control costs).The offered technique enables to objectively determine the expediency of discounts granted by suppliers in the event of refusal of economically justified order period, and to avoid labor-intensive calculations, if certain information is available. The mathematical model may be useful for developing the procurement options at enterprises under different terms of delivery. Conclusions When developing solutions to the problems related to logistical management of procurement, the focus should be on minimization of general cost rather than costs of individual subdivisions of the enterprise. To cut costs, it is necessary to develop a targeted policy for procurement management and methods to streamline purchases subject to reliability and efficiency of the enterprise system.
Keywords: procurement, order quantity, discount, mathematical model
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