Simulation-Based Optimization Research on Outsourcing Procurement Cost.

To solve the cost control problem of outsourcing procurement inherent in the complexness and difficulty for mathematical analysis, this paper established a simulation-based cost Optimization framework. Firstly, we adopted Poisson process to simulate multi-supplier outsourcing market environment, the procurement cost expectations objective function and constraints of the model was introduced. Secondly, taking decision strategy as feedback variables, procurement cost optimization model was proposed. Thirdly, several key technologies for algorithm implement were described. Finally, based on the history demand of an aircraft model factory, numerical simulation is carried out to show that this optimization model can effectively reduce the outsourcing procurement total cost and outsourcing parts inventory fluctuation. [ABSTRACT FROM AUTHOR]