Determination Of Optimal Purchasing Quantity Under Supply Chain Purchasing Mode

Supply chain management is an integrated managerial theory and method. In contrast with the tradition managerial modes which only fix eyes upon sectional optimization, supply chain management can be used to realize synchronic operation and benefit maximization by business reengineering and optimization in the whole supply chain from the standpoint of the systems theory. For modern enterprises, the purchase management based on the theory of supply chain management is an important approach to making resources decisions and enhancing its core competitive capacity. To cut down the cost, improve the operation efficiency and economic benefit, this management mode endeavor to optimize the purchase flow, improve the purchase strategy, control the inventory scientifically, and build up the strategic cooperative relationship with suppliers.Firstly, this paper sets forth background and focus of this article, and then generally introduces the theory of supply chain and supply chain management. Secondly, based on the comparison between the traditional purchase management and the purchase management under the supply chain conditions, this paper attaches importance on the discussion of the composition of the purchase organization system and the total cost of ownership. After summarizing several determination means of optimal purchasing quantity based on the traditional inventory control modes, the paper analyzes multiform means of ordering and discount pricing, develops several bi-level programming models to maximize the profit of supplier and the profit of purchaser separatively when wholesale unit price and retail unit price changing with order quantity and demand quantity changing with retail unit price, and then presents efficient solution. Meanwhile, the paper profoundly analyzes coordinative discount models on the basis of dealing with the supplier and the distributor as a whole for supply chain management in order to maximize the total profit, and then presents efficient solution. At the last, considering the complex and difficult situations in business purchasing process, this paper supplies some suggestions for the future research.