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Mathematical Problems in Engineering
Volume 2014, Article ID 436512, 7 pages
http://dx.doi.org/10.1155/2014/436512
Research Article

Optimal Coordinated Strategy Analysis for the Procurement Logistics of a Steel Group

1School of Traffic and Transportation Engineering, Central South University, Changsha 410075, China
2School of Traffic and Transportation Engineering, Changsha University of Science & Technology, Changsha 410114, China

Received 17 February 2014; Accepted 19 May 2014; Published 4 June 2014

Academic Editor: Andy H. F. Chow

Copyright © 2014 Lianbo Deng et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper focuses on the optimization of an internal coordinated procurement logistics system in a steel group and the decision on the coordinated procurement strategy by minimizing the logistics costs. Considering the coordinated procurement strategy and the procurement logistics costs, the aim of the optimization model was to maximize the degree of quality satisfaction and to minimize the procurement logistics costs. The model was transformed into a single-objective model and solved using a simulated annealing algorithm. In the algorithm, the supplier of each subsidiary was selected according to the evaluation result for independent procurement. Finally, the effect of different parameters on the coordinated procurement strategy was analysed. The results showed that the coordinated strategy can clearly save procurement costs; that the strategy appears to be more cooperative when the quality requirement is not stricter; and that the coordinated costs have a strong effect on the coordinated procurement strategy.