Strategic Sourcing Suppliers Optimization To Select Model Study

In context of global economic integration, the product's overall profit margins become smaller and smaller. The competition among enterprises has been more and more intense. It is difficult to increase profits from the traditional production process. Thus the big profit margin of procurement is being discovered. So the enterprises all have to benefit from the procurement. However, the Strategic Purchasing is better tool than traditional one to improving the competitiveness of enterprises, which not only saves the cost of procurement for the enterprise, but more follow-up costs. Supplier optimal selection model is based on this context to be carried out.The theory of Total Cost of Ownership(TCO) and Genetic Algorithm-Back Propagation Networks(GA-BP) are used in the Supplier optimal selection model. The theory of TCO is called "cradle-to-grave" approach. It attempts to quantify all costs-and revenues-associated with a particular purchase. Secondly, GA-BP Algorithm integrates Genetic Algorithm with Back Propagation Networks. It gets their respective merits. Then the time is saved so much through proving computing speed, and the accuracy is increased largely. The Supplier optimal selection model become more complete and practical.Finally, The theory of Total Cost of Ownership(TCO) and Genetic Algorithm-Back Propagation Networks(GA-BP) are exercised in the Supplier optimal selection model. At the same time, the model is simulated on the software of MATLAB7.7. Furthermore, the result is compared with BP Networks. It is showed that the Supplier optimal selection model is practical and the speed and accuracy are improved greatly.