Research On Procurement Oriented Reverse Multi-attribute Auction Model And Bidding Strategy

Procurement is the most critical and first step in the process of enterprise operation, directly determines the cost and quality of products, and the final economic efficiency of enterprises. With the development and popularization of network technology, online reverse multi-attribute auction as a new procurement method is showing a broad application prospect and gradually replacing the traditional manual offline procurement method, because it has a great advantage that it can maximize to satisfy the diverse demand of the purchaser, and give full play to all suppliers’ competitive advantage to increase the profit for both purchaser and supplier. Online reverse multi-attribute auction, with the help of information and network technology, makes the information transfer, and the communication and negotiation between purchaser and suppliers convenient, and thus accelerates the procurement process, improves the efficiency of the procurement, and saves the transaction cost of purchaser and suppliers. Emerging IT technology can automate the key links of procurement process, especially the negotiation process between purchaser and suppliers, to improve the transparency of the market, which can effectively reduce rent-seeking behavior, control secret operations, prevent fraud, collusion and other immoral behaviors, and more effectively ensure the whole of auction process is fair, just and open.By studying objective needs of reverse multi-attribute auction in the process of actual procurement, combined with current domestic and overseas research status of reverse multi-attribute auction, we found that, in the existing single-unit reverse multi-attribute auction models, premises and assumptions of models are too many, coefficient values are fixed and quality attribute constraints are not concluded, etc. While the multi-unit reverse multi-attribute auction models also have the problem of low efficiency of market allocation. The above problems caused the existing models can not completely fit the objective needs of actual online multi-attribute procurement auctions, which become one of the bottlenecks to hinder online multi-attribute auction widely to be used in the real world. It is not conducive to the rapid development of online government procurement and B2 B transactions. This problem needs to be further studied and resolved.Aiming at these problems of current reverse multi-attribute auction models, this paper was based on the reality of multi-attribute procurement auction and mainly discussed the following aspects:First, this paper analyzed the auction characteristics and criteria of auction classification, discussed the reverse multi-attribute auction rules, characteristics and influencing factors, comparatively analyzed the relation between the reverse multi-attribute auctions and the reverse single-attribute auction, and the relation between the reverse multi-attribute auction and the traditional tendering and bidding. These analyses provided a theoretical basis for the following establishment of model.Second, aiming at the problems and shortcomings of the current one-unit commodity procurement reverse multi-attribute auction models, we designed a more perfect auction model which is much closer to the actual application, namely based on the asymmetric bidders reverse multi-attribute English auction model with the constraints of the minimum quality attributes bidding values. Then for the improved model, a set of optimal bidding strategies were developed and their optimality was proved theoretically. The mathematical properties of the optimal bidding values also were analyzed and the corresponding actual economic implications were explained. Last, the validation of the previous analysis results was demonstrated by comparing the two examples of auction process.Third, aiming at the problems and shortcomings of the current multi-unit commodity procurement reverse multi-attribute auction models, based on the basic idea of the secondary price discrimination that suppliers can bid separately and offer the different unit price for the different amount of the same configuration type of commodity, we designed a highly efficient multi-unit commodity procurement reverse multi-attribute English auction model, and then developed a set of bidding strategies according to the new model.Last, we established the theory model of the optimal market allocation efficiency, designed the computer simulation experiment of multi-unit commodity procurement reverse multi-attribute auction, and developed multi-unit commodity procurement reverse multi-attribute English auction simulation software system. Aiming at the previous designed multi-unit commodity procurement reverse multi-attribute auction model, we researched on its market allocation efficiency by digital simulation experiment and then validated the advantage of the new model compared with the others.In this paper, some limitations of existing models were solved effectively by improving the existing multi-attribute auction model. The theoretical significance of this research is the multi-attribute auction was analyzed systematically and the multi-attribute auction models and the corresponding bidding strategies were enriched. The practical significance is providing more suitable procurement method for purchaser and bidding decision support for suppliers, and especially laying the corresponding technical foundation for online automatic bidding. The results of this research will promote online multi-attribute auction to be further applied in practice, and particularly help to promote the rapid development of online government procurement and B2 B transactions.