Research on uniform purchasing based on the BLP model

Yaoguang Hu*, Yushun Fan, Tianmiao Wang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

To improve the cooperation decision-making across group enterprise uniform purchase, a decision-making model based on bilevel programming was proposed. To realize the holistic benefit of group and solve the cooperation between maximize profit of product department and benefit optimization of inner-supplier, a bilevel programming model was established, where the upper level was product department and the lower level was inner-supplier, and the group production resources were shared among them. To get an optimal solution, the lower level programming problem was translated into dual problem and the "k-th best" algorithm was used. Finally, the result of a given instance about a group's uniform purchase has demonstrated the practical value and validity of the model.

Original languageEnglish
Pages (from-to)52-55
Number of pages4
JournalZhongguo Jixie Gongcheng/China Mechanical Engineering
Volume18
Issue number1
Publication statusPublished - 10 Jan 2007

Keywords

  • BLP (bilevel programming)
  • Purchase decision
  • Supply chain
  • Uniform purchasing

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