L Company's Supply Source Selection And Order Quantity Allocation

Currently, SCM (supply chain management) is becoming very important in improving competitive power to cope with the faster changing of environment outside of company. In the process of high volume raw material purchasing, one problem which get more and more pay attention to it is how to ensure material safety and avoid material shortage. The stratagem of multiple supplier selection is the method to deal with material shortage which is being taken by lots of company. They often choose two or three suppliers to supply one component or part to meet company purchasing request, and reduce the cost of purchasing, get high quality products and faster response from suppliers to improve company ability of competitive. This thesis it bases on the background of multiple supplier selection strategy executed, study company how to consider the main factors of suppliers selection and evaluation to decide the volume split scientifically and reasonably among the suppliers.This thesis it is aim to study company L how to execute multiple supplier selection method through the theory and practice to evaluate suppliers for demand allocation, in order to ensure normally material gotten and improve company competitive power. For the structure of thesis, it briefs the background of supplier chain and introduces the relationship management among suppliers, suppliers evaluation and selection etc. basic knowledge. Next chapter which analyze the actual status of company L who manage multiple supplies, study it how to evaluate suppliers and split demand among suppliers, and find out the problem which affect suppliers evaluation and demand allocation for improvement. Next chapter which base on the theory study of orders allocation and related model creation, and create a new model applied for company L orders allocation in the multiple supplier selection. Last partial is aim to provide some suggestion to company L for multiple supplier selection and orders allocation.Per the study of multiple supplier strategy, it makes us know the factors of orders allocation that is not only related the product cost, quality, delivery time, but also we should consider the rate of supply delayed, technical support ability, service and support performance etc. factors in the usual process of purchasing to ensure material supply and improve the competitive power of supply chain.