Raw Material Procurement Optimization

Focus

Procurement optimization

Tools

Excel, Gurobi, LINGO

Impact

+172% profit, −40% cycle time

Year

2024

Built a linear programming model to decide optimal order quantities from multiple suppliers while considering unit cost, MOQ, capacity, and lead-time constraints. Implemented the model in Excel Solver and then replicated it in Gurobi/LINGO for larger scenarios. The optimized sourcing plan increased procurement profitability by 172% and reduced total cycle time by 40% in the case study while still meeting all demand and service-level requirements.

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