Research on order policy based on multi-stage dynamic programming

Abstract:
In order to study the problem of selecting suppliers and ordering different categories of raw materials, a decision-making method combined with evaluation models and dynamic planningis proposed based on relevant data from suppliers between 2016 and 2020. Firstly, an evaluation model applying gray correlation analysis and entropy weight method is developed to narrow down the range of suppliers waiting to be selected, and then a multi-stage dynamic planning model is established to make a decision on the order policy. After that, it is analyzed empirically. And the final results demonstrates that the selected suppliers supply raw materials stably, the order policy is feasible for long -term implementation and the total cost of it is low.