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Vickrey Auction Theory-based Procurement Tenders Marked

Posted on:2012-06-12Degree:MasterType:Thesis
Country:ChinaCandidate:L DaiFull Text:PDF
GTID:2219330335498708Subject:Logistics Engineering
Abstract/Summary:PDF Full Text Request
With the intensification of market competition, profit margins continue to drop. Enterprises have to find ways to reduce costs from all aspects of operations in order to obtain the best economic benefits. As an international group of transnational retail buyers, in addition to transportation cost and labor cost control, how to obtain the best purchase price, how to maintain long-term and stable strategic cooperation with suppliers, become the key factors in influence enterprise competitiveness and increase profits side.This article plans to adopt theory research and case analysis method of combining, take the second-price sealed auction model (Villiam Vickrey) as the theoretical basis, to reverse auction theory as technical guidance. Using the theory of incomplete information with optimal strategy direct at the existing procurement model of K enterprise, analysis the benefits and disadvantages of this model based on its organizational structure and the purchasing process.Combined with the inquiry experience and data collected during the course of internship for modeling analysis, to make optimal selection strategy after calculating the company revenue cost between two ways of the lowest bid prices procurement and the Second low-cost procurement.The traditional lowest price for a single standard procurement model has been unable to meet the development needs of modern enterprises, while the ability of suppliers to consider their own conditions and the proportion will grow. Finally, the thesis sought to integration of inquiry procurement and Auction Purchase, Establish a Second price sealed procurement model with multi-attribute standard weight which could suitable for existing companies purchasing process.The ultimate goal is to achieve the company's interests optimize and suppliers incentive compatibility, make a viable system of suppliers bidding for future procurement activities as much as possible while reducing unnecessary costs to achieve mutual benefit and win-win.
Keywords/Search Tags:Vickrey auction theory, Reverse Auction, Tendering procedures, Second price sealed procurement, Standard multi-attribute
PDF Full Text Request
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