Research On Multi-period Order Allocation Under Stochastic Demand

The purchase activity is one of the most important functional activities in enterprise. Material purchasing is an inevitable task to every enterprise in supply chain, no matter it is raw resources or parts purchasing of a manufactory, or commodity purchasing of distributor on the next level in the same supply chain. The purchase activity has already become the core of enterprise management, and it is also an important source to obtain profits. As we know, it plays an important role in product development, quality guarantee, supply chain management and the operation management of an enterprise.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 purchasing 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 concept and related theories of uncertain programming including multi-objective programming, stochastic chances constrain programming and fuzzy theory are introduced. Introduction of the AHP algorithm improved by rough sets theory.(3)Multi-period optimization model for order allocation based on stochastic demand is formulated. The solving method is also proposed.The research is done on the model of supplier selection and purchasing quantity allocation problem.According to the nature of objective, two models are formulated:multi-objective mixed integer programming model based on chance-constraints and fuzzy multi-objective mixed integer programming model And goal programming and fuzzy goal programming are proposed to solve the model.(4)The example analysis is conducted on the purchasing quantity allocation problem. The model and approach is proved easy and applicable to resolve supplier selection and its purchasing quantity allocation problem by a numerical example.