Research On A Joint Procurement Model Considering Freight Rate Discounts

With the advancement of economic globalization,the business environment of enterprises has changed,and competition has become increasingly fierce,resulting in a decline in the average profit of enterprises,and the traditional operation mode of fighting alone has become unsustainable.In the total cost,the procurement cost accounts for a large proportion and has a leverage effect on the company’s profits.For businesses to be competitive in the market,procurement costs must be reduced.Freight rate reductions are a significant way to save transportation costs,assisting businesses in doing so while also enhancing their negotiating position,cultivating connections with suppliers,and offering decision support for more efficient procurement management and operations.Therefore,the findings presented in this paper can assist businesses in lowering expenses and boosting profitability.Reducing resource waste and finding a solution to the issue of businesses affecting output owing to a shortage of goods are of major practical significance.The determination of enterprise demand,freight rate discounts,and the order batch problem when enterprises independently and collectively purchase are all taken into consideration in this essay.Also established are the single-item joint procurement model and the multi-item joint procurement model that takes freight rate discounts.The model is solved using the interior point method and conjugate gradient method,and the minimum core approach is utilized to assign the total cost of joint purchase.The sensitivity analysis of freight rate discount is completed in order to determine the influence of freight rate discount on total procurement cost.Finally,the feasibility of the model is verified by combining examples,and the following conclusions are drawn: First,joint procurement can reduce the total cost of procurement.The case verification shows that when businesses collectively buy,their total procurement costs can be cut by 10% to 50% by increasing the purchase amount and gaining lower freight rate savings.Second,collaborative procurement supports maintaining production continuity within a phase.Third,joint procurement can enable participating enterprises to obtain more favorable quantity discounts and freight rate discounts,which helps enterprises save total procurement costs and reduce risks.