Study On The Operation Coordination Between The Manufacturer And The Suppliers Based On Supply Chain

The paper studies the coordination and optimization of materials supply between manufacturer and the suppliers. Driven by materials demand of production for manufacturer, materials supply and its operation coordination is decided to more manufacturers rather than suppliers. Decisions of materials supply includes:1 fundamental framework and scale of materials supply --- supply base decision revolve about supplier number decision and purchasing style; 2 materials replenishment quantity and frequency decision revolve about order quantity decision; 3 process optimization decisions of materials replenishment.The most important factors affecting supply base scale are the added profit and supply risk deduced by supplier number reduction. The paper presents a supplier number optimized model which shows Standardization of parts, production scale, positive incentive for suppliers and its effective to manufacturer is increased with supplier number reduction, but the supply risk is also increased with supplier number reduction. So supply base decision is relevant with risk strategy of an enterprise and added-profit. Whether to choose JIT purchasing or EOQ purchasing decided on purchasing cost. JIT purchasing has advantages such as low inventory, low space occupation for stocks while EOQ purchasing has production and transportation scales. About which one is better is a decision in comprehensive consideration of production set up cost, storage cost, inventory cost, order cost, information cost, transportation cost et al, a different cost model is addressed for choosing JIT or EOQ purchasing.The paper presents order quantity models respectively in single product-single supplier, single product-multi-supplier and multi-product- single supplier situations. Order cost has two forms of fixed order cost and variable order costs. EOQ moder is revised based on the fact that variable rather than fixed cost has impact of order volume. For the total operation cost, it is better for system optimization of manufacturer and the suppliers than optimizing by manufacturer and the suppliers respectively. All the operation costs of order, inventory, transportation and materials handling is involved in the model. The order quantity is bigger than the tradition EOQ because suppliers inventory cost is involved. As transportation cost is concerned, the order quantity is much bigger. When considering the different production methods, the order quantity model is expanded and detailed in MTP, MTO and ATO model respectively. In MTO, besides considering objective of minimizing the total cost, production scale and time constraint are vital concern. A 0-1integer programming is presented to solve the problem of order joint in multi-product, single supplier which has a cost saving objective different form the traditional JRP model.Information is an important coordination method in replenishment process. Information technology promoting trade and operation efficiency directly; information sharing and communication base IT reduces the inventory and supports decision-making; strategic information cooperation such as common forecast and planning help understand the whole situation. In terms of replenishment process improvement, the activity based on cost management is a method to balance and optimize replenishment process.