Raw materials procurement for “ARMENMOTOR” plant

Abstract

The presented research project is aimed to identify, develop and optimize the raw materials procurement channels for “ARMENMOTOR” plant. The current turbulent situation in Russia and other CIS countries as well as the permanent blockade of Armenia necessitates the thorough consideration of different risk factors tied to the transportation problem. The effort was made in the current research to address these factors. They are identified, assessed and quantified along with nominal costs involved. The objectives of the project are: - identification of existing and potential transportation channels and routs; - evaluation of storage facilities at the plant; - elaboration and segmentation of possible transportation schemes; - analysis of other significant factors, i.e. safety and speed of delivery; - integer programming and EOQ analysis applied to transportation problem; - recommendations of the optimal action to be taken, based on the above criteria.