Modeling Equipment Procurement Strategic Decisions Competing for Limited Available Budget under Redundant Accessory Cost

Abstract

<p>The challenges that used to come up as a result of project failure have to do with improper planning. This is looking into future what can occur based on present event. In financing equipment or machinery, the capital in hand is a critical factor that determines equipment procurement strategies. There is need for an optimum model to control the available budget to be put in place in order to optimally allot the available budget to the machines, spare parts and miscellaneous costs under the redundant of accessory cost. This study identified the financial strategic decisions for machines, spare parts and miscellaneous costs, developed mathematical models for the identified strategic decisions, test and evaluate the performance of the developed models. In this study, three strategic decisions were considered (i.e., machines, spare parts and miscellaneous costs) and the optimum model to control the budget for machines, spare parts and miscellaneous costs are dealt with under the redundant accessory cost. This is because an existing manufacturing company or industry has high inventory of accessories which always aid the performance of machine in the industry. Therefore, it is necessary to optimally allot the available budget on the machine(s) to be procured, spare part to be stocked and miscellaneous cost. The amount allotted to machines, spare parts and miscellaneous while budgeting for year 2015 are in this ratio: Machines, ($5,263.83); Spare parts, ($27,723.09); Miscellaneous, ($4,366.03), this based on available small budget of N 6,350.000 of dollar value of US$1,079,500.00. This model is a strong decision tool for allocating available budget in the period of financial scarcity where equipment procurement for production needs must be carried out. This model is highly recommended to any manufacturing company, small, medium and large scale that equipment procurement affects their production in developed and developing countries.</p>

Determination of supply conditions, scenarios and pay-off for industrial machinery supplier selection post economic and engineering considerations

“…While [30][31][32][33] focused on: Sustainable supplier selection in healthcare industries using a new MCDM method; Measurement of alternatives and ranking according to compromise solution (MARCOS); New integrated quality function deployment approach based on interval neutrosophic set for green supplier evaluation and selection; and New integrated quality function deployment approach based on interval neutrosophic set for green supplier evaluation and selection [34]. A risk-based integrated decisionmaking model for green supplier selection: Using case study of a construction company in Spain; A multicriteria decision-making framework for agriculture supply chain risk management under a circular economy context; An integrated decision-making model for supplier evaluation in public healthcare system: The case study of a Spanish hospital; and A multi-tier sustainable food supplier selection model under uncertainty were researched by [35][36][37][38].…”

“…Modeling equipment procurement strategic decision competing for limited available budget under redundant accessory course; Modeling machinery procurement with emphasis on engineering features; and Data mining and statistical analysis for available budget allocation pre-procurement of manufacturing equipment were the works of [36][37][38].…”

Optimization of Inventory Inflation Budget Based on Spare-parts and Miscellaneous Costs of a Typical Automobile Industry

“…The economic stability of an industry depends solely on a well-managed spare parts inventory. To ensure the availability of spare parts in the stock, forecasting plays an important role, leading to budgeting as one of the most powerful tools for planning and controlling limited available resources (Osueke et al, 2015). While Chakrabarti gave his opinion that a project engineer coordinating a project should be familiar with the financial aspects of a project to avoid loss (Chakrabarti, 2022).…”