Research On Highway Engineering Bulk Material Order Decisionmaking Based On Dual Sourcing Procurement Strategies Under The Risk Of Supply Disruptions

Engineering construction is considered to be long-time consuming,which,to a certain extend,leads to the supply uncertainty on/in the procurement of engineering materials.Although the suppliers have been seriously investigated and evaluated in the early stage,we still cannot guarantee the stability of them in the long-term supply project.Once a supply disruption occurs,it will bring a series of troubles to the project construction schedule.Therefore,this thesis will carry out a research on material procurement in the case of supply disruptions.Procurement strategies for engineering projects can be divided into various types.This thesis summarizes previous studies and finds that,compared with other procurement strategies,the dual sourcing procurement strategies has stronger robustness,which can more effectively reduce the supply disruption risks,and therefore enhance the stability of supply chain.Transshipment is a special method of dealing with risks.Given that there are limited studies on the application of transshipment in the procurement of engineering materials,this thesis also considers the introduction of transshipment as an emergency strategy to better cope with/mitigate the supply disruption risks.This thesis takes the bulk materials of engineering procurement as the research object,and analyzes the underlying procurement risks with a full consideration of its characteristics,by adopting the dual sourcing procurement mode,this thesis is expected to determine the procurement strategies and the optimal procurement quantity at each stage with the methods of model building and mathematical programming.Based on the newsboy model and with an aim at the minimum expected cost,this thesis establishes an order decision-making model of the bulk goods with the dual sourcing procurement mode,and then introduces the transshipment mechanism to further construct the model in order to establish an order decision model based on the dual sourcing procurement mode with a consideration of transshipment.In this thesis,the validity of the model is further examined from the opinion of order quantity decision.In the meantime,the influences of supply disruption probability and transshipment volume on purchasing strategies under dual sourcing purchasing strategies are analyzed through numerical examples.Through the analysis of the risk of supply disruptions of engineering project material procurement and the construction of the model,the purchasing strategies and the optimal quantity of purchasing at each stage are identified to mitigate the risk of supply disruptions,and to enhance the engineering material procurement management risk resistance ability in this article.The conclusions are as follows:(1)Under the dual sourcing procurement strategies,the material department can control the total order quantity to achieve the minimum cost through the adjustment of the internal order quantity under the condition that the total order quantity tends to be unchanged.It can also be proved that the application of purchasing quantity decision based on the dual sourcing purchasing strategies in the engineering field is feasible.By comparing the difference between the optimal quantity of order,the total order quantity and the minimum expected cost with or without the demand satisfaction rate,we can see that the demand satisfaction rate has a great influence on the decision-making of the material department.Therefore,considering the demand satisfaction rate in this model is more conducive to reducing the supply disruption risk.(2)The change in the order volume between the main supplier and the backup supplier is actually a trade-off between cost and risk.The material department prefers suppliers with low order costs and low risk of supply interruption,but due to the risk of interruption,both suppliers have orders.When the probability of supply disruption between the two is equal,the order quantity of the main supplier is always greater than that of the backup supplier,because the main supplier’s quotation is lower if other conditions are the same.(3)By comparing the values of optimal order quantity,total order quantity,and minimum expected cost under whether to introduce transshipment,it can be found that the values of the variables when transshipment is considered are all lower than the case of not considering transshipment.The decision-making of the situation played an optimizing role.It is feasible to introduce transshipment into the dual sourcing procurement strategies to make purchase quantity decision-making in the engineering field.When there is transshipment,the material department is more tolerant of the risk of supply disruption from the main supplier.In addition,suppliers with a high probability of interruption are more sensitive to changes in the available transshipment volume,because the transshipment risk is lower,and the material department is more inclined to consider transshipment instead of suppliers with a high probability.