Research On Allocation Of Purchasing Quantity And Delivery Time In The Centralized Procurement Strategy

As logistics is central to the procurement management, it is of very important significance to study the effects of different logistics patterns to reduce procurement cost and to enhance the efficiency. This paper aims to focus on optimization of group purchasing patterns, allocation of purchase orders, delivery time and distribution methods in centralized purchasing strategy.The implementation plans about centralized procurement were discussed in the paper as follows: for a group enterprise with multiple plants distributed in different region, it is nature to purchase materials from different suppliers with their own prices, delivery times and so on. So, how to choose the best suppliers and optimize cost containment, transportation cost, and inventory costs ea al. becomes a thorny issue for this group when considering purchase, transportation, delivery and inventory factors. Given the differences of emphasis on every cost in the group, we set the weight by adding weight coefficient to consider the every cost wholly, resulting in different characteristics at the group overall cost which of each available for his own applications in the every sub-pants.There are two different ways of logistics and distribution patterns, one is that suppliers uniformly deliver goods to the group purchasing center warehouse before the goods are distributed within the group, the other pattern is that suppliers directly deliver goods to every plant according to his need in the group. For the former pattern, the solution is got by optimizing procurement center warehouse location and getting a unified delivery way with optimal distribution for logistics orders and delivery time. For the latter pattern, dispersing mode, the solution is also got by the same optimization method.It is concluded in this paper that cooperative relationship theory between buyers and supplier was confirmed that it is necessary for a group purchasing to develop a stable and friend relationship with suppliers in order to maintain effectively reliability of material quality, delivery time and continuous supplying, and reduce inventory cost, personalized design, getting the core competitiveness in the competitive market.