Research On Multiple-period Combination Purchase Strategic Of Bulk Material Distributor

As the front-end products of national economy in the industrial chain, the bulk of raw materials is an indispensable strategic resource in the economic development of our country. With the growth of emerging economies, economic development gradually slowed down and demand for commodities turns to reduce. But the global commodity supply is still very adequate, which also let industry chain continue rising. In the current economic context, China is facing the pressure of the adjustment of industrial, and excess capacity has become the main problem in the current economy. In the iron ore industry as an example, in recent years, iron ore prices continue to fall, and the operation of enterprises has brought enormous challenges to the iron ore distribution. More and more enterprises in the iron ore procurement consider a variety of procurement methods to avoid price risk, to achieve the purpose of optimizing the operation. Therefore, this paper will focus on how to optimize multi cycle combination purchasing strategy in the enterprise of bulk commodity.In this paper,the comprehensive arrangement of bulk material characteristics, purchasing portfolio model and multi period inventory strategy have been introduced. And bulk raw materials distribution enterprises operating mode are introduced in detail. And the bulk distribution of the source of the enterprise’s business, purchasing mode and mode of fund, and the research based on to dealers are described. The dealers will be the center in the procurement decision analysis and optimization. The research use the bulk of raw materials industry as the background, combine with economic actual operation. In consideration of a large number of actual economic factors, the paper build requisition purchase model, demand information sharing model, no demand information sharing model, coexistence of requisition and demand information sharing model. In this basis, the paper uses heuristic power approximation algorithm to solve the model. In the iron ore industry as an example, this paper use C language programming and simulation experiments. The procurement model with a single spot purchasing mode have been introduced as a compare. And both the study price decline channels and price rising channel are analyzed. Through analysis, it is known that, under the different market environment combined procurement and single purchase mode has advantages and disadvantages. In the price fell channels, single procurement mode is better than the combined purchase mode, and in the price rise channel, combinatorial procurement mode is better than the single spot purchase mode. Enterprise managers should make flexible use of procurement methods according to the different market environment.