Simulation-based optimization research on outsourcing procurement cost

  • Authors:

  • Jiangming Jia;Zhengxiao Wang;Xiaohong Pan

  • Affiliations:

  • Institute of Modern Manufacture Engineering, Zhejiang University, Hangzhou, P.R. China;Institute of Modern Manufacture Engineering, Zhejiang University, Hangzhou, P.R. China;Institute of Modern Manufacture Engineering, Zhejiang University, Hangzhou, P.R. China

  • Venue:
  • LSMS'07 Proceedings of the Life system modeling and simulation 2007 international conference on Bio-Inspired computational intelligence and applications
  • Year:
  • 2007

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Abstract

To solve the cost control problem of outsourcing procurement inherent in the complexness and difficulty for mathematical analysis, this paper established a simulation-based cost Optimization framework. Firstly, we adopted Poisson process to simulate multi-supplier outsourcing market environment, the procurement cost expectations objective function and constraints of the model was introduced. Secondly, taking decision strategy as feedback variables, procurement cost optimization model was proposed. Thirdly, several key technologies for algorithm implement were described. Finally, based on the history demand of an aircraft model factory, numerical simulation is carried out to show that this optimization model can effectively reduce the outsourcing procurement total cost and outsourcing parts inventory fluctuation.