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A Study On Procurement Bidding Model In Supply Chain

Posted on:2006-08-17Degree:MasterType:Thesis
Country:ChinaCandidate:Y L SongFull Text:PDF
GTID:2166360152471997Subject:Business management
Abstract/Summary:PDF Full Text Request
Procurement bidding have been using by more and more companies. Therefore, companies needs scientific and systematic results to guild their procurement policicies. Focusing on such practical needs, this paper attempts to study several decision-making operation problems in procurement bidding in supply chain. The thesis begins to introduce the basic concepts in the auction and bidding theory, including the basic models together with the benchmark model. Based on them, we summarize the researchs on procurement bidding in supply chains. The main contribution of this thesis includes the following three aspects. First, this thesis studies a model of procurement bidding with asymmetric location. It is presented that how should the firm design its procurement policy so as to maximize its expected surplus subject to the constraints imposed by its lack of knowledge of the bidder's costs. The analytical results is based on the theorem of Myerson. Second, a bidding decision-making model for multi-object and multi-bidder simultaneous independent procurement bidding is improved here. The bidder's optimal strategy for the procurement bidding is studied. We consider that the suppliers have an output constraint, and if someone wins the contract, he must pay it for this. In addition, we use linear programming based methods for the buyer to decide the allocation of objects to every bidder to minimize the buyer's procurement cost. Third, the thesis studies a procurement bidding model with opportunity cost. It is presented that under this condition, the optimal policy for the buyer is to choose the bidder who minimizes a given "adjusted cost"function. By applying operation research, the optimal procurement decision and the buy's transfer function are presented explicitly. We show that the chosen firm is paid a price including an information rent, which decreases as the firms' cost increases. Finally, some conclusions and limitations of the thesis and further researches based on the dissertation are discussed.
Keywords/Search Tags:Supply chain, Procurement bidding, Optimal strategy, Model
PDF Full Text Request
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