This paper presents a procurement model for a multinational oil company with affiliate plants located worldwide. The proposed model uses a quantity discount relationship to reduce the total procurement cost. We use a non-linear programming method to solve the model and make comparisons with the current approach used by the oil company. The proposed approach has several distinct advantages: assured minimum cost, ease of data management, flexibility in design, and accuracy in results.
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Shenzhen Univ, Res Inst Business Analyt & Supply Chain Management, Coll Management, Shenzhen 518060, Peoples R ChinaShenzhen Univ, Res Inst Business Analyt & Supply Chain Management, Coll Management, Shenzhen 518060, Peoples R China
Qian, Xiaohu
Yin, Mingqiang
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Liaoning Petrochem Univ, Coll Informat & Control Engn, Fushun 113001, Liaoning, Peoples R ChinaShenzhen Univ, Res Inst Business Analyt & Supply Chain Management, Coll Management, Shenzhen 518060, Peoples R China
Yin, Mingqiang
Li, Xin
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Shenzhen Univ, Res Inst Business Analyt & Supply Chain Management, Coll Management, Shenzhen 518060, Peoples R China
Educ Univ Hong Kong, Dept Math & Informat Technol, Hong Kong, Peoples R ChinaShenzhen Univ, Res Inst Business Analyt & Supply Chain Management, Coll Management, Shenzhen 518060, Peoples R China
Li, Xin
Zhang, Qingyu
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Shenzhen Univ, Res Inst Business Analyt & Supply Chain Management, Coll Management, Shenzhen 518060, Peoples R ChinaShenzhen Univ, Res Inst Business Analyt & Supply Chain Management, Coll Management, Shenzhen 518060, Peoples R China
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Northeastern Univ, Coll Informat Sci & Engn, State Key Lab Synthet Automat Proc Ind, Shenyang 110819, Liaoning, Peoples R ChinaNortheastern Univ, Coll Informat Sci & Engn, State Key Lab Synthet Automat Proc Ind, Shenyang 110819, Liaoning, Peoples R China
Liang, Renchao
Wang, Junwei
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Univ Hong Kong, Dept Ind & Mfg Syst Engn, Hong Kong, Peoples R ChinaNortheastern Univ, Coll Informat Sci & Engn, State Key Lab Synthet Automat Proc Ind, Shenyang 110819, Liaoning, Peoples R China
Wang, Junwei
Huang, Min
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Northeastern Univ, Coll Informat Sci & Engn, State Key Lab Synthet Automat Proc Ind, Shenyang 110819, Liaoning, Peoples R ChinaNortheastern Univ, Coll Informat Sci & Engn, State Key Lab Synthet Automat Proc Ind, Shenyang 110819, Liaoning, Peoples R China
Huang, Min
Jiang, Zhong-Zhong
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Northeastern Univ, Sch Business Adm & Inst Behav & Serv Operat Manag, Shenyang 110819, Liaoning, Peoples R China
Northeastern Univ, Minist Educ, Key Lab Data Analyt & Optimizat Smart Ind, Boston, MA 02115 USANortheastern Univ, Coll Informat Sci & Engn, State Key Lab Synthet Automat Proc Ind, Shenyang 110819, Liaoning, Peoples R China