Purchasing policy model based on components／parts unification

摘要

This paper presents a mathematical model for components/parts unification (CPU) policy. This model considers two components/parts that are functionally interchangeable but purchased from suppliers with different prices and quality characteristics. Because of the buyer's quality preference and suppliers' discount rates for bulky purchases, the model assists the procurement manager to determine how best to purchase the components/parts to meet its demand while minimizing the total acquisition costs.