Purchase and Price Optimization of Vertical Mobile AC

Abstract

Heat has always been a problem in countries like India, Pakistan and Sri Lanka. As these countries are located near the equator region, the sun's light falls directly on them, thereby keeping their temperature high. And India, being a country having a tropical climate, experiences immense heat with little difference in temperatures between summer and winter due to its proximity to the equator. It is hot and humid all year round, with an average temperature of 27°C. A proper air conditioner would be a good appliance to have during these times. When doing work or event, the place could become massy and uncomfortable for technicians or engineers. This work finds itself worthy in recognizing the functionalities of the purchasing department. ABC analysis was employed in reducing the cost of the portable vertical AC. This paper includes a short description of procurement, supply chain management, just-in-time, bills of materials and vendor rating. In manufacturing the air-conditioning system by doing these, we can find the best possible supplier of individual components at minimum cost so that we can reduce the final cost of the assembling.