Research On Purchasing Strategy Of H Enterprise Based On Loss Avoidance

The traditional newsboy model is often based on the assumption of "rational person",and there is always a deviation between the optimal decision and the actual decision of the operator.The study found that managers can not keep completely rational when making decisions.In the face of possible gains and losses,managers will be more sensitive to losses.Therefore,the newsboy model considering loss avoidance has more practical significance.At the same time,in the process of enterprise production and operation,supply interruption events emerge one after another.National policies,environmental protection requirements,natural disasters,sudden epidemics,etc.will,to a certain extent,lead to problems in the supply chain supply system of some enterprises,which will affect consumers’ purchase,and also have a great impact on enterprise reputation.Therefore,when risks and opportunities coexist,enterprises pay more attention to supply interruption,and procurement management is one of the effective strategies to deal with market supply risks.Through the comparison and optimization of procurement strategies,we can provide enterprises with more secure and reliable procurement strategies suitable for enterprise development.Considering the above factors,the following research is carried out in this paper:(1)Starting from the manufacturer’s procurement strategy selection,this paper divides the modeling into single source procurement and dual source procurement models.At the same time,there are dual source procurement based on backup suppliers and dual source procurement based on different suppliers in dual source procurement.Based on the newsboy model,taking full account of the shortage loss,return compensation,interruption probability and loss avoidance coefficient of the enterprise,the influence of each factor under different models on the optimal decision is discussed in the case analysis,which provides reference for the enterprise’s procurement strategy decision under different scenarios;(2)Starting from the limited rational type of manufacturers,this paper combines the actual situation of enterprises to believe that manufacturers are loss avoidant,and at the same time divides into avoidance of overbooking loss and avoidance of out-of-stock loss,with the help of two loss avoidance coefficients to measure the loss aversion of manufacturers,and combines the loss avoidance of manufacturers with the level of supplier supply interruption,expands the research scope of the loss avoidance newsboy model,and provides a new research idea for future researchers;(3)Combined with the production and operation data of enterprise H,the numerical analysis software is used to compare and analyze the manufacturers’ optimal purchase strategy decisions under the influence of different parameters,which provides a reference for the supply chain emergency purchase management of enterprise H,and also provides a basis for other enterprises’ purchase strategy decisions under the situation of loss avoidance.It is found that the manufacturer’s loss avoidance coefficient will cause manufacturer decision bias under different procurement strategies,and the direction and magnitude of the impact are different.Product order volume does not always move in the same direction as the manufacturer’s utility,and high order volume does not mean efficient use.With the support of H enterprise’s data,the purchase volume based on unreliable dual-source procurement is always the largest,while the expected utility based on the backup dual-source procurement strategy is always the best.In the loss avoidance manufacturer’s decision,single-source procurement has completely lost its advantage.So the research results of this article have certain reference value for the optimization of procurement strategies of H enterprise.Enterprises should increase investment in supplier development and management,and replace existing single source procurement strategies with dual source procurement.