Abstract:
The purpose of this study was to propose the optimal purchasing strategic for tapioca
chips and increase the purchasing efficiency and to get the most suitable cost of raw materials.
Because of price of tapioca chips is an agricultural product the price is always changing and the
quantity of product in the market is not unstable because of the weather changes and the demand
of global market are increasing. As a result, prices have risen steadily.
This study revealed the variety of purchasing strategy of tapioca chips in order to
provide options for tapioca chips purchasing decision. By providing integrated purchasing
strategy between, the purchasing order by prompt delivery strategy (Spot Markets) and the
purchasing order by forward contracts strategy, including the quantity of suitable purchasing
order. Its depended on price factor, time delivery and quantity of production in the market. From
each comparative strategy, it was find out if combine two purchasing strategy in the right order
quantity, the companies are able to reduce the cost of raw materials.