Purchase Logistics System Simulation And Optimization Of King King

Along with the rapid development of China’s economy, only rely on squeezing the product cost to improve profit margins or cutting the prize to promote market competitiveness is no longer suitable for the traditional manufacturing industry. Logistics, as the third-profit source, is being gained more and more attention from organizations. Reducing the logistics cost and improving the logistics system construction has been becaming a breakthrough for organizations to boost profits and promote the competitive marketplace. For manufacturing enterprises, purchasing logistics is not only the beginning process within its whole logistics, but also is the beginning to lower the costs and increase logistics efficiency.Purchasing is gradually progressing toward international, electronic and professional as the technology of the information and logistics never stop moving forward. How to optimizing the purchasing logistics process and lower the purchasing costs have become one of the key problem for enterprise to consider. This paper attempted to solve this problem by computer modeling and simulating.Firstly, this paper introduced the relevant theory about purchasing and system emulation, including the difference between the broad and narrow areas of purchasing; the principle of purchasing; the influence of purchasing leverage effect on corporate profit; the definition of purchasing management and its development state, the definition of purchasing logistics; systems theory; system simulating theory and its basic steps. Those above theories would lay the theory foundation for future modeling and simulating. We focus on introducing the Flexsim software in the system simulating technology, and that is also one of the main software this paper used in the system simulating process. Then, this paper introduced the current situation of KingKing Group which is the simulation objective in this paper and focus on introduced its purchasing logistics. This paper gradually established the Flexsim model of KingKing’s purchasing logistics based on the analysis of the purchasing statistics in one of its given project, and find its purchasing logistics bottle-neck. Aiming at this issue, we optimized the process and revised the established model by applying the RFID technology. From the result of operational from revised model, the operational efficiency in whole purchasing logistics has been improved. Thus, this paper could provide the reference for the practical decision making.