Solving a sealed-bid reverse auction problem by multiple-criterion decision-making methods
This study presents a model for solving the sealed-bid, multiple-issue reverse auction problem, using multiple-criterion decision-making approaches, such that the interests of both the buyer and the supplier are satisfied. On the supplier side, the bid construction process is formulated as a fuzzy m...
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| Vydáno v: | Computers & mathematics with applications (1987) Ročník 56; číslo 12; s. 3261 - 3274 |
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| Médium: | Journal Article |
| Jazyk: | angličtina |
| Vydáno: |
Elsevier Ltd
01.12.2008
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| Témata: | |
| ISSN: | 0898-1221, 1873-7668 |
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| Abstract | This study presents a model for solving the sealed-bid, multiple-issue reverse auction problem, using multiple-criterion decision-making approaches, such that the interests of both the buyer and the supplier are satisfied. On the supplier side, the bid construction process is formulated as a fuzzy multiple-objective programming problem, and is solved using an exhausted enumeration algorithm which adjusts the production plan in accordance with the buyer’s demand, based on the current master production schedule (MPS) and the available-to-promise (ATP) inventory. The use of the information of MPS and ATP enables the supplier to make accurate estimates of the production costs associated with specific delivery dates, and thus facilitates the construction of a bid which is both profitable and likely to secure the contract. On the buyer side, the winner determination process is treated as a multiple-attribute decision-making problem, and is solved using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. The validity of the proposed approach is demonstrated via an illustrative example. |
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| AbstractList | This study presents a model for solving the sealed-bid, multiple-issue reverse auction problem, using multiple-criterion decision-making approaches, such that the interests of both the buyer and the supplier are satisfied. On the supplier side, the bid construction process is formulated as a fuzzy multiple-objective programming problem, and is solved using an exhausted enumeration algorithm which adjusts the production plan in accordance with the buyer's demand, based on the current master production schedule (MPS) and the available-to-promise (ATP) inventory. The use of the information of MPS and ATP enables the supplier to make accurate estimates of the production costs associated with specific delivery dates, and thus facilitates the construction of a bid which is both profitable and likely to secure the contract. On the buyer side, the winner determination process is treated as a multiple-attribute decision-making problem, and is solved using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. The validity of the proposed approach is demonstrated via an illustrative example. |
| Author | Cheng, Chi-Bin |
| Author_xml | – sequence: 1 givenname: Chi-Bin surname: Cheng fullname: Cheng, Chi-Bin email: cbcheng@mail.tku.edu.tw organization: Department of Information Management, Tamkang University, 151 Ying-chuan Road, Tamsui, Taipei County, Taiwan |
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| Cites_doi | 10.1016/j.indmarman.2003.08.012 10.2307/2555940 10.1016/S0925-5273(02)00260-8 10.1287/mnsc.1040.0230 10.1080/1367556021000026718 10.1007/BFb0053680 10.1287/mnsc.49.11.1529.20588 10.1016/j.dss.2005.02.009 10.1016/S0167-9236(00)00075-0 10.1057/jors.1993.7 10.2307/2555752 10.1016/j.rcim.2005.12.002 10.1016/j.ejor.2003.05.001 10.1108/13598540410527042 10.1023/A:1012837207691 10.1016/j.ejor.2003.07.014 10.1016/S0019-8501(02)00257-2 10.1016/S0360-1315(97)00002-X 10.1016/S0377-2217(98)00101-5 10.1108/13598540010347299 10.1016/0925-5273(95)00199-9 10.1287/mnsc.17.4.B141 10.1016/j.indmarman.2004.12.003 10.1108/13598540110399066 10.1016/j.ejor.2005.04.023 |
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| Keywords | Electronic procurement Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) Multiple-attribute decision making Fuzzy multiple-objective programming Reverse auction Available to promise inventory |
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| SubjectTerms | Algorithms ATP Available to promise inventory Construction contracts Decision making Delivery scheduling Electronic procurement Fuzzy Fuzzy multiple-objective programming Mathematical models Multiple-attribute decision making Reverse auction Suppliers Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) |
| Title | Solving a sealed-bid reverse auction problem by multiple-criterion decision-making methods |
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