The Supplier Selection of Enterprise in Horizontal Merger Based on Cost Optimization

Articles

The Supplier Selection of Enterprise in Horizontal Merger Based on Cost Optimization [MASS 2014]
Author(s)
Haiyan Yan
ABSTRACT
Merger is a crucial method for enterprises to achieve scale expanding and prompt technology updating. However, the history has witnessed considerable failures. As a result, how to achieve the goal through internal and external integration has become the focal issue for enterprises and researchers. From the aspect of cost optimization, this paper deals with supplier selection in horizontal merger. In this paper, purchase cost is divided into raw material cost, logistics cost, transaction cost and default cost and is analyzed by a mathematical model of purchase cost minimization. By solving the mathematical model, the optimal integration has been obtained. In addition, an example analysis is conducted and the best project is gained by lingo software. It is suggested that mathematic model method is feasible to solve the problem of supplier integration in horizontal merger.
KEYWORDS
Supplier Selection, Enterprise, Horizontal Merger, Cost Optimization
References