Research On The Purchasing Quantity Allocation Optimization Based On Fuzzy Multi-objective Programming Method

With the increasing importance of the procurement function, the decision-making of procurement is becoming more and more important as well. In responding to the fierce competition, corporations often try to strengthen their products'competitiveness by continuously reducing costs. Usually, the procurement costs of manufacturing enterprises account for more than 50 percent of the overall cost. Thus, the procurement cost control is crucial. With the development of supply chain management, the original non-value-added activity, the procurement process, has become a value-added activity. As we can see, competition in the 21st century is no longer between corporations, but different supply chains. The procurement management under supply chain environment has also become a very important part of supply chain management. Compared with the traditional procurement, it holds more new features and requirements, because of its different corporate organization and management patterns. The management of supply chain can not only reduce procurement costs, but also provide a broader space for efficiency improvement. Meanwhile, vendor selection and management is of great significance in procurement management. Choosing the right vendors and then conducting correct management can significantly reduce the procurement costs and enhance the competitiveness of enterprises. Therefore, vendor selection and management is the most important work of the procurement decision-making.This paper takes the vendor selection and purchasing quantity allocation as the research objects. The study starts by a review of all the related literatures, which are shown as follows:(1) The background of research paper is introduced, and then a review is conducted on the related literatures of vendor selection and purchasing quantity allocation problem. After that, the purpose of this paper is pointed out, combining with a concrete research frame.(2) Basic concepts and related theories of supply chain and purchasing are introduced, and then the role of purchasing in supply chain emphasized. The importance of vendor selection in procurement is emphasized first, continued with the main methods of vendors' classification. The strategies, standards and methods in selecting vendors are also introduced.(3) The general form of multi-objective optimization and basic theories of fuzzy optimization are introduced. Then, the symmetric fuzzy multi-objective programming and fuzzy weighted multi-objective optimization model are given. After that, the theory of AHP and Fuzzy AHP, which in this paper are used to determine the different weights of objectives, are introduced.(4) A fuzzy weighted multi-objective optimization model with discount conditions is constructed, and then the corresponding solution provided. By applying to an example, the feasibility and effectiveness of the model in vendor selection and procurement distribution are proved.(5) Finally, a conclusion is drawn, generalizing the main contribution of this paper, as well as its shortages.