A MATHEMATICAL MODEL : OPTIMIZING ORDERING OF IMPORT BUSINESS IN TRADING PATTERN
Keywords:Purchasing Order of Customer, Purchasing Order of Supplier, Mathematical model
This research aims to develop the mathematical model for improving the purchasing process for any importer Business in Trading Pattern of a company in Bangkok. Typically, the importer once receives the purchasing order of its customers (POC) then it usually needs to convert the POC to the purchasing order to its supplier (POS). The proposed mathematical model can help the importer decide how many POS are required to issue that minimize the total cost which includes purchasing cost and holding cost. The model is non-linear but can be solved by a computer program Solver which is available in Microsoft Excel 2010. It is expected that this mathematical model can help improve the operation of purchasing process for any import business in trading pattern of a company in Bangkok. The result of the mathematic model has effectively improved and reduced Purchasing order of Supplier (POS) in consequence of dramatically subsiding the existing carrying cost.