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Simulation-Based Optimization Research on Outsourcing Procurement Cost

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Bio-Inspired Computational Intelligence and Applications (LSMS 2007)

Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 4688))

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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.

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Kang Li Minrui Fei George William Irwin Shiwei Ma

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© 2007 Springer-Verlag Berlin Heidelberg

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Jia, J., Wang, Z., Pan, X. (2007). Simulation-Based Optimization Research on Outsourcing Procurement Cost. In: Li, K., Fei, M., Irwin, G.W., Ma, S. (eds) Bio-Inspired Computational Intelligence and Applications. LSMS 2007. Lecture Notes in Computer Science, vol 4688. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-74769-7_20

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  • DOI: https://doi.org/10.1007/978-3-540-74769-7_20

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-74768-0

  • Online ISBN: 978-3-540-74769-7

  • eBook Packages: Computer ScienceComputer Science (R0)

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