Optimal Coordinated Strategy Analysis for the Procurement Logistics of a Steel Group

• Main Authors: Lianbo Deng, Zhuqiang Qiu, Pengfei Liu, Wenzhong Xiao
• Format: Article
• Language: English
• Published: Hindawi Limited 2014-01-01
• Series: Mathematical Problems in Engineering
• Online Access: http://dx.doi.org/10.1155/2014/436512

This paper focuses on the optimization of an internal coordinated procurement logistics system in a steel group and the decision on the coordinated procurement strategy by minimizing the logistics costs. Considering the coordinated procurement strategy and the procurement logistics costs, the aim of the optimization model was to maximize the degree of quality satisfaction and to minimize the procurement logistics costs. The model was transformed into a single-objective model and solved using a simulated annealing algorithm. In the algorithm, the supplier of each subsidiary was selected according to the evaluation result for independent procurement. Finally, the effect of different parameters on the coordinated procurement strategy was analysed. The results showed that the coordinated strategy can clearly save procurement costs; that the strategy appears to be more cooperative when the quality requirement is not stricter; and that the coordinated costs have a strong effect on the coordinated procurement strategy.