Optimization Models For Vendor Selection And Allocation Of Purchasing Quantity In Supply Chain

With the increasing significance of the purchasing function, purchasing decisions become more important. Enterprises often lower costs to increase the competitiveness of products in the market while they face the fierce market competition. To manufacturing industry, because the purchase cost has probably accounted for more than 50% of its cost of goods, the control on purchase cost of enterprises seems essential. With the development of supply chain management, the purchases which can not add value now have value-added ability. The competition in 21 century is no more located among enterprises, but in all the supply chains. The purchase question under the supply chain environment is one of the important contents of supplying management, and because of the change of enterprise's organization and management model, it has a lot of new characteristics and demands compared with traditional purchase management. Supply chain management offer the wide space for reducing purchase cost or increasing the benefit, but bringing the new challenge to enterprises' purchase system management at the same time. One of the important areas in purchasing research that has significant practical implications is vendor selection problem. Selecting the right vendor significantly reduces the purchasing cost and improves corporate competitiveness. Therefore, the vendor selection is the most important activity of purchasing decisions.Vendors play an important role in achieving the objectives of supply management, vendors can enhance customer satisfaction in a value chain. On the basis of summarizing the researches on criteria and methods of vendor selection and relying on uncertain programming theory, the problem of vendor selection and allocation of purchasing quantity is considered under uncertain demand and price discount from the quantitative point of view in this paper.The main content of this paper can be described as follow:(1) Introducing the background of this paper, making a review the literatures on vendor selection and allocation of purchasing quantity and introducing the methods and recent research advance in this field. Briefing the paper's innovation point and main work.(2) We elaborate the concept and basic theory of the supply chain management, purchasing and vendor selection. It is emphasized that the purchasing is in the position of the supply chain and vendor selection is the important in the purchasing decisions. Analyzing the criteria of vendor selection and models and approaches of vendor selection.