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Auction Optimal Allocation for an OEM-Supplier System in Automotive Manufacturing Industry

Author: ZhangQinQin
Tutor: LiQuanLin
School: Tsinghua University
Course: Management Science and Engineering
Keywords: OEM parts supplier automotive manufacturing auction allocation strategy M/D/1/n queue
CLC: F426.471;F224
Type: Master's thesis
Year: 2008
Downloads: 86
Quote: 0
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Abstract


In this paper, we provide an auction analysis for an automotive manufacturing system with OEM mechanism. This system is constructed by an automobile manufacturer (denoted as OEM) and some suppliers for supplying m different types of automotive parts. We assume that the OEM is centralized and can dominate all the suppliers; while it is driven by market demands. It is worthwhile to note that such an OEM-supplier system is the basic manufacturing mode in automotive industry of China, whilst China has an active, flourish and promising automotive market in the world. For this OEM-supplier system, we construct a mathematical model for studying the optimal auction allocation among the OEM and these suppliers for procurement of one type of parts based on a reasonable business mode. Specifically, we deal with the OEM-supplier system from two different conditions: Complete information and incomplete information, and provide an optimal auction allocation strategy by means of the multi-objective decision making. Furthermore, we use the M/D/1/n queue to analyze the service level of the OEM under the optimal auction allocated strategy. We also extend the basic model for discussing procurement problem for m different types of parts and give out the optimal deliverable time setting strategy for the OEM. Finally, we give numerical examples and simulation experimentations to indicate that our method is effective for analyzing automotive manufacturing systems, and specifically for automotive industry of China.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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