Model for procurement planning and organization of material supply for project (program) implementation

Abstract

The article develops approaches to procurement planning and supply chain management for the implementation of a project (program). The main objective of the study is to address the "make or buy" dilemma, which is a key issue in project execution. Therefore, the research considers both theoretical concepts and practical models that combine optimization methods, multi-criteria supplier analysis, and algorithmic approaches to decision-making.

A comprehensive set of methodological approaches is applied in the article to analyze and optimize procurement and supply management processes within a project (program): ABC/XYZ analysis using the Pareto principle, multi-criteria optimization, and linear programming for building the optimization model. ABC/XYZ analysis allows for the classification of material resources by their importance (ABC) and demand predictability (XYZ). This enables the grouping of resources and the identification of a subgroup with a decisive impact on project implementation in terms of risk.

The multi-criteria optimization in the project (program) aims to maximize the reliability of supply (f₁) and the quality of material resources (f₂). To solve the optimization problem, the study proposes the use of compromise programming methods, such as the uniform optimization method, penalty function method, and the iterative method of admissible concessions. These methods allow for the development of a compromise procurement and supply plan that meets defined constraints and maximizes the overall effect across all considered criteria.

As a result of the study, an integrated approach to procurement planning and the organization of material resource supply was formulated. In particular, a mathematical model was substantiated to optimize the procurement plan for a project (program). The model considers all key components—from the distribution of needs by resource type to constraints related to supplier production capacity and budget indicators. The study demonstrates that the use of scalarization methods to rank suppliers is an effective tool for selecting the best supply partners. Taking into account characteristics such as supplier reputation, geographic accessibility, competitive pricing, delivery conditions, and flexibility of commercial offers helps to form an objective assessment of supply quality.

General conclusion: The developed compromise procurement and supply plan represents a set of optimal decisions that consider all established constraints and criteria. This enables the formation of project (program) supply in such a way as to maximize the overall evaluation in terms of reliability and quality indicators.

The study confirms that modern volatile market conditions require the application of integrated approaches to procurement planning and supply chain management of project (program) resources.