Study On Material Purchasing And Inventory Of International Projects

The development of economic globalization promotes the prosperity of international engineering market and the development of international project’s logistics. International project logistics is for large electric power, petrochemical, metallurgy, and other construction projects. International logistics service meets the project schedule and offers large cargo or multinational logistics solutions for large-scale construction projects. Therefore, the international project’s logistics plays a key role in the successfui completion of the international project. The procurement and inventory are the key to international engineering logistics operation, which affects the international project’s schedule, quality and cost.First, the characteristics and operation processes of international project’s logistics procurement are discussed. A comparative analysis is utilized in comparing Vendor Management Inventory, Joint Management Inventory, Collaborative Planning Forecasting and Replenishment, and Joint Management Inventory is applied to international projects.Second, in view of status quo and existing problems of international project procurement mode, procurement organization structure, and supplier management, the corresponding optimization strategy is applied.Lastly, a joint inventory optimization model with uncertain demand is established, and then Genetic Algorithms is applied to solve the model. The model is used to solve international projects example, by contrasting with the traditional optimization model. The optimization model is proved to be more effective than traditional optimization model in reducing the inventory cost of supplier and contractor.