CBR And Cost Control Based Procurement Decision

After development for 130 years, automotive becomes an industry of intense competition. In order to accelerate products to the market and reduce product costs, automotive enterprises must build up close strategic cooperative partnership with suppliers for a win-win purpose.Under this circumstance, it is very important to select strategic suppliers and make procurement decisions, which is costly, time consuming and effort consuming. Thus it is a new topic in supplier decision management how to reduce management cost and improve work efficiency during scientific evaluation, which is also the focus of this article.This article first introduces the importance of supplier management and using PDCA Cycle, describes the six phases of the supplier and procurement management process. These correlative and circulatory phases form the substance of supplier management and procurement management. An enterprise should first find and then evaluate and analyze potential suppliers. Those who pass the first round evaluation are invited to procurement bidding. And after several rounds of quotation and negotiation, the one who wins the bidding will get the procurement contract and become one of the official suppliers. At this phase, the enterprise will sign the strategic cooperative partnership with the suppliers of critical parts or core technology suppliers. To ensure the supplier product quality, the procurement department tracks the procurement orders, implements supplier quality management and select suppliers according to supplier review results. Thus excellent suppliers survive while new potential suppliers replace the eliminated ones.For a more scientific and agile strategic supplier selection, this article refers to the Case Based Reasoning and BP neutral network theories, and sets up a CBR based supplier selection model and a comprehensive BP neutral network based supplier evaluation system.The CBR based supplier selection model includes case study, storage, reasoning, match, reuse and modification. When selecting suppliers during procurement, it first searches the case database for the fittest and the most matching suppliers. The most matching supplier is directly reused, or case modification and re-matching are needed if no matches are found. BP neutral network algorithm is applied for case matching and then implemented through the supplier comprehensive evaluation system. The BP neutral network model in this article has a typical three-layer structure. Its input layer consists of nine neurons and its hidden layer consists of five neutron models, and it builds the BP neutral network through MATLAB. By comparing the training algorithms, this article uses the Levenberg-Marquart algorithm which has better constringency speed and high precision, so that network constringency is completed after the satisfying 20 trainings.Procurement decision is one of the most critical activities in enterprise procurement, which concerns the core benefit of an enterprise. Thus this article analyzes the procurement cost and control methodology from the aspects of procurement material cost, management cost and storage cost, and then by using decision tree, helps enterprises analyze and make the final procurement decisions.