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Research on the Procurement Path Optimization Based on EOQ-JIT Cost Indifference Point

Author: BaiJingHui
Tutor: Wu
School: Chongqing Jiaotong University
Course: Logistics Engineering
Keywords: n times transportation eoq jit eoq-jit cost-indifference point shortagecost tsp ant system
CLC: F252
Type: Master's thesis
Year: 2012
Downloads: 22
Quote: 0
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Abstract


Enterprises have to face an important determination policy-inventory. Currently, EOQ and JIT are the most commonly procurement method used in all areas of the industry. EOQ or JIT, determines the different procurement cost, inventory cost, so as to affect the cost of the enterprise’s supply chain. In order to determine the procurement method, the existing EOQ and JIT comparing theory, compare the differences directly, and finally get EOQ-JIT cost balance point when comparision value is zero. And based on the size differences of the order quantity and balance point, comparisons hold series conclusions. This study is relatively mature. Face the large number of annual requirement, even if EOQ purchases a lot, it also needs to split into several procurement times a year, which means EOQ multiple shipments. EOQ n transportation system with the JIT cost comparison model which is different from the EOQ single transportation system with different models to fill gaps with the original theory.Owning to global warming, energy conservation has evolved into a political issue from pure academic issues. Therefore, China is under the enormous pressure from international community. During the two sessions of2012, energy conservation was taken as the adjustment of economic structure and the transfer economic development model. Shortage cost will lead to loss of sales profits till the incalculable loss of good. Energy conservation and shortage cost increase JIT procurement cost, so that under certain conditions, the EOQ procurement model is more economic.Combine with JIT under the influence of energy conservation, transport efficiency and EOQ ordering cost under the influence of transportation costs. To use path optimization model in order to export suitable transport path, then analyse with application of the ant colony algorithm to reduce transportation costs, improve transport efficiency and achieve energy conservation.The diverse current market commodities, in relatively saturated manufacturer, entrepreneurs think about how to integrate resources in order to earn money in the process. Retailers and even electricity supplier, multi-product sales model is accepted by consumers to accept for its ease of comparision among similar products in the relative small range. The conclusion of this case, not only analyze the equilibrium point, but also provide recommendations for retailers (or electricity supplier) corporate procurement methods and the choice of transport routes.

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CLC: > Economic > Economic planning and management > Material economic > Material flow
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