Research On Profits Allocation Between Buyer And Supplier In Multi-Attribute Reverse Auction

In the context of the rapid development of e-commerce, traditional procurement patternhas been unable to adapt to the requirements of enterprises to maximize the reduction ofprocurement costs and gain a competitive advantage in the worldwide. But online reverseauction technology, as a new e-procurement tool, has got lots of attention because it hasoutstanding advantages in reducing purchasing costs and improving procurement efficiencyetc. More and more enterprises begin to use this technology to purchase products or servicesin the worldwide. But at the same time, traditional single-attribute reverse auction does thecooperation between buyer and suppliers a lot of harm for excessive squeezing suppliers’profits. And multi-attribute reverse auction mechanism provides the possibility ofestablishing and maintaining long-term cooperation relationship between buyer and supplier.Therefore, the main purpose of this paper is to explore the profits allocation and theconditions of achieving the cooperation between buyer and supplier in multi-attributereverse auction. A simulation experiment is used to verify the conclusions, and on this basis,the buyer-supplier relationship management strategy is proposed.This paper focuses on the profits allocation between buyer and supplier inmulti-attribute reverse auction. From the perspective of non-cooperation and cooperation, itrespectively constructs the non-cooperative and the cooperative game models. First of all, itanalyzes the factors affecting the profits allocation in the two cases, as well as the conditionsof establishing and developing the cooperation, and determines the proportion of profitsallocation. Secondly, on the basis of benchmark model, the models and assumptions areadjusted to combine with the actual situation. The risk aversion coefficient and the changeof cost are introduced into the models to explore the impacts of the enterprises’ risk attitudesand the change of costs on the result of profits allocation. And then, this paper does asimulation experiment and gets the graphical interface by MATLAB7.0to verify theconclusions got from the model analysis, including:1) the factors affecting both sides’non-cooperative profits are the scoring function parameters, the supplier’s cost coefficientand cost parameters, as well as the number of bidders.2) the factors affecting the totalcooperative profits are the buyer’s attribute preferences, and the supplier’s cost coefficientand cost parameters;3) the proportion of the cooperative profits allocation is affected by therisk aversion coefficient, it is related to both sides’ non-cooperative profits, but has nothing to do with their bargaining powers;4) the cooperative relationship can be carried into effectonly if the auction transaction costs and the production cost variations are within a certainrange;5) to achieve a long-term cooperation, the proportion should be able to maximizeboth sides’ utility. Finally, the paper provides the maintaining and improving strategies ofbuyer-supplier relationship in multi-attribute reverse auction, including reasonably designscoring function, pay attention to the non-price attributes, the selection of suitable suppliers,the distribution of profits should deal with the level of risk-taking, and establishing the trustmechanism with information sharing and the feedback mechanism of profits allocation.