Damian R. Beil
Stephen M. Ross School of Business, University of Michigan, Ann Arbor, Michigan 48109, email@example.com
This tutorial introduces the basic ingredients of procurement auction research. After discussing the classic market-pricing logic of the open-descending auction, we demonstrate how simple modeling embellishments can extend the market-pricing auction logic to also capture key operational realities and trade-offs encountered in procurement practice. This tutorial should be of value to anyone interested in studying competitive bidding in supply chains.
Key word: competitive bidding; auctions; procurement; sourcing; supply chain
The 2010 volume of the TutORials in Operations Research series will be available to people who have registered for the 2010 INFORMS Annual Meeting. All INFORMS members will be able to access TutORials after January 1, 2011. Printed TutORials books from this and previous years can also be ordered here, along with CDs from 2005 to 2009.
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D. B. Beil. 2010. Procurement auctions. J. J. Hasenbein, ed. TutORials in Operations Research, Vol. 7. INFORMS, Hanover, MD, pp. 248–259.
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