Research On Effects Of Supplier Evaluation And Supplier Relationships On Supply Chain Optimization

At the beginning of a supply chain, suppliers act as a key component because costs will be reduced, profit margins will be increased, component quality will be improved and timely delivery could be ensured due to the right choice of suppliers. In petrochemical engineering projects, the procurement cost is considerably higher, the items are usually embedded with complex or specialized technology, and different sourcing strategies are available. Study on the influence of supplier evaluation and the relationship between suppliers on supply chain optimization is of important significance. The main contents and results are as follows:1) An ethylene cracking project in a developed country is picked as a typical petrochemical engineering project. A mixed integer nonlinear programming (MINLP) model is established to optimize supply chain of petrochemical engineering projects. Supplier evaluation and the relationship between suppliers are described in the mathematical model.2) The optimized suppliers might be changed due to different supplier evaluation. The influence of supplier evaluation is tested by the mathematical model.3) Relationships between suppliers, such as partnership, are possible due to item inter-dependences in engineering projects. Influence of supplier relationships on supply chain optimization is discussed by the established MINLP model. The structure of supply chain can be changed due to different supplier selections and the combination of suppliers.A mixed integer nonlinear programming model is built to optimize the supply chain of petrochemical engineering projects. Influence of supplier evaluation and relationships between suppliers are discussed by the optimization model.