Optimization ofwarehouse and transport activity of a machine-building enterprise with regard to individual supply functions of providers

The paper presents an economic-mathematical model of supply and procurement activities of an industrial enterprise. The model includes four elements –purchasing costs, transportation costs, storing costs and bank lending costs. It takes into account the discrete nature of production, storage and transportation of raw materials, which makes it possible to optimize the supply and procurement activities by selecting the volume and timing of purchasing from suppliers as well as reassigning the volumes among the kinds of raw materials in stock.