Study On Order Allocation Under The Risk Of Supply Disruption

The development of the information age has significantly driven the manufacturing industry,so does the competition in this industry.Manufacturing enterprises have faced a number of challenges cause of various increased cost.The data shows that the procurement cost of manufacturing enterprises accounts for 40% to 60% of the total cost,which means that it restricts the development of enterprises.Meanwhile,the diversification of economy puts more risks on them.The manufacturing enterprises may encounter various kinds of risks during the procurement process,including internal and external risks that both influence the allocation of orders in the procurement process.The risk of supply disruption is an influential factor that may lead to the delay in the production schedule,the interruption of production,or even enterprise’s failure.Therefore,allocating the relevant orders under the risk of supply disruption scientifically and reasonably can reduce the risk,loss,and purchasing cost effectively.Based on the research review about the risk of supply disruption and the allocation of orders,this research summarizes the types of the order distribution problems;Furthermore,combined with the actual problems encountered in the enterprise practice,we analyse the possibility of the risk of supply disruption in three different situations of procurement,quantify the costs caused by supply disruption,and develop a random-nonlinear multi-objective programming model of orders allocation,to reduce the procurement cost,the number of defective raw materials and delayed delivery quantity,and to enhance the service satisfaction.We solve the model by using Lingo and conclude that:(1)The order allocation of different productions in three situations,which was compared with actual order distribution,released that general objective was optimized and the result of model is better than the actual operation.(2)Through data and theoretical analysis,we make full use of the existing data index,the possibility of different market demand and the general performance of the supplier to ensure the expression of the possibility of supply disruption.(3)There are different optimal degree in different situations.The result of model released that companies face the greater risk of supply disruptions and a more effective order allocation when the market demand that manufacturing enterprises faced is less than the market supply.Compared with the results of the model,the validity and feasibility of the model are verified by analyzing the status of the order allocation in enterprises,which can provide targeted Suggestions and help for the allocation of orders in the procurement process of enterprises.