A Global Decision-making Model Used For Multiple Transactions In Real Estate Centralized Procurement

The domestic real estate enterprises are faced with the enormous cost pressure becauseof the increase in the highland prices, the general rise in prices of construction materials and laborcosts, investment return on investment expectations and consumer’s attitude toward prices causedby the policy control and real purchasing power constraints under people’s demand change. Thisstudy using the method of mathematical modeling to find further optimize space of theimplementation of centralized procurement in real estate. It found a way that can save costeffectively. Using this way has practical guiding significance to practice decision-making.For the feature that domestic representative real estate centralized purchase how muchmaterials when they need how much one on regular in a single decision-making, the articlediscussed status, characteristics and shortage and internal and external environment ofcentralized procurement in real estate and build a set of global optimized purchasing decisionsorganizational framework and process arrangements based on multiple transactions. The article alsodiscussed the quantitative management about suppliers and proposed that the company usequantitative rating level to screen bid evaluation of short-listed candidates from the perspective oftechnical standards and constructed an optimal decision-making model to consider the materialprocurement integrity from one time period.The model in the article has full scalability, it addressed the decision problems under the casethat the suppliers purchase materials under no quantity limit and the suppliers that are choused ornot choused purchase materials under quantity limit and the joint procurement and a varietyof materials procured at the same. The article used a case to verify that the traditional centralizedpurchasing is more better than decentralized procurement in cost savings and in the case resultssavings is7.69%，and the case also varied that the decision-making under the present model isstill a larger cost savings space than the traditional centralized procurement and in the case resultssavings is3.96%. Thus, to implement the new centralized procurement decision-making hasenormous potential in the real estate area. Due to time constraints, the article did not involve the riskof the new mode and procurement’s electronic, which are need to further explore later.