Order Allocation In The Supply Chain Based On The Quality Fluctuation

Along with the development of supply chain management, the competition in 21st century is no longer located among enterprises, but in all the supply chains. Order allocation in supply chains plays a more and more important strategic role in reducing operating costs, increasing operating efficiency and improving supply chain quality. In view of supplier capacity constraints and the uncertainty of market demand and supply, the core enterprises usually select several fixed suppliers according to multiple objectives at first, and then allocate orders according to the actual situation dynamically. In the multistage order allocation problem, a more accurate market forecast model considering the key factors that affect the market capacity is of important significance. And as a kind of important means dealing with the supply chain uncertainty, minimum quantity commitment contract has an important role in reducing the demand uncertainty influence of supply chain and promoting cooperation partnership. So establishing some order allocation models and developing appropriate solving methods according to the characteristics of the supply chain environment is of important academic and practical significance to enrich and perfect supply chain management and decision analysis theories and promote effective operation of supply chains.In the single stage order allocation model, the relationship between production batch and the product quality was established considering suppliers'production process shift in a two-stage supply chain consisting of one dominant manufacturer and several suppliers. Based on the different considerations of deciding suppliers'economic production quantity, and thinking of the purchase cost and expected after-sale loss cost together, two kinds of order allocation models were built. The constraint conditions included supplier capacity constraints and supplier relationship maintenance constraints. The models'superior solutions were obtained through the genetic algorithm, and relative comparison was made between the two models. The sensitivity analysis of pricing strategy changes of a single supplier was made based on the first model. Finally, the single phase order allocation model including quality constraints was established. This model decreased the short-term profits of the supply chain, but it keeps the supply chain product quality in a higher level. This may help the development of the supply chain from the long run.In the multistage order allocation model, the market forecast model was revised for the first, considering the influence of supply chain quality and product price to the market demand. The minimum quantity commitment constraint was increased comparing to the single stage, and the objective function changed into maximizing both supply chain profit and manufacturer's profit from only minimizing the total cost of the manufacturer in the single stage. Then, three order allocation models were established according to different assumptions, and the solutions was obtained through the enumeration method and the genetic algorithm. We found that the result obtained by genetic algorithm whose solving efficiency was much higher was very close to the optimal solution by enumeration method. Therefore, the genetic algorithm should be first considered to a large scale order allocation problem. Finally, the sensitivity analysis was made based on a single supplier quality fluctuation.