Subject The article considers the development of an integrated system of centralized procurement management of a State corporation as one of the main areas of State administration in the gradual transition to sustainable development of the country. Objectives The study's objective is to describe an optimization model of procurement by subsidiaries of a State corporation with centralized management. Methods Using modern methods of economic modeling, we analyze the process of arranging the operation of the procurement system of subsidiaries of a State corporations, and offer a mechanism for its optimization. Results If implemented, the unified automated system of procurement will enable to reduce expenses and cost of purchased materials, eliminate surplus stock and unmarketable products, improve service, and enhance the soundness and transparency of the decisions taken. The offered procedure for procurement management optimization using the computer technology may be used by State corporations for cost cutting in procurement by subsidiaries with centralized management. Conclusions and Relevance The paper presents a practical mechanism for optimal centralized procurement management of subsidiaries of the State corporation. Its implementation will ensure the efficient management of logistics, treasury and human resource, and improve financial and tax accounting.
Keywords: corporation, management, subsidiary, reference data
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