Research on uniform purchasing based on the BLP model

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.