👉 Procurement math is a mathematical approach used to optimize the purchasing process in supply chain management, focusing on minimizing costs while ensuring quality and timely delivery. It involves calculating the total cost of ownership (TCO), which includes not just the purchase price but also transportation, storage, inventory holding, and potential risks. By applying mathematical models like linear programming or optimization algorithms, procurement teams can determine the most cost-effective suppliers, quantities, and delivery schedules. This method helps in making data-driven decisions, balancing trade-offs between cost, quality, and service levels, and ultimately improving overall procurement efficiency and profitability.
