Supply chain activity-used cost analysis and its application in profit optimization

Analyzing the activities incurring cost and studying the cost structure in supply chain, this paper builds and improves supply chain cost model. Considering the indirect investment cost allocation and minimum order quantity, establishes the net-profit optimization model for distributor, in which the adjustable parts of customer order quantities are the decision variables. The model and its result are beneficial for supply chain coordination. Using evolutionary programming algorithm, simulations are carried out for practical problems in enterprise.