A Simulation Analysis of Dynamic Fuzzy Bidding Strategy

• Main Authors: Yu-ting Chang, 張毓婷
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/47307211585686885405

碩士 === 義守大學 === 工業工程與管理學系碩士班 === 95 === Electronic auction is a new trend in global business competition. A supplier needs to develop a strategy to construct a competitive offer in a quick bidding process. This study considers a supply chain which is composed of a brand enterprise and two partnering suppliers. Suppliers either compete for internal orders from this brand enterprise or receive external orders from other customers. The brand enterprise allocates orders based on price, delivery date, and supplier performance. This study applies the concept of fuzzy theory to improve the defects of binary logic and develops several fuzzy bidding rules based on a supplier’s internal and external conditions: order attractiveness, current work load level, and recent bidding performance. A supplier can switch among different fuzzy bidding rules (aggressive rule, cooperative rule, and conservative rule) to determine the bidding price and promised delivery date. A supplier will attempt to reduce order tardiness cost so that net profit increases, while the goal of the brand enterprise is to make suppliers offer more competitive bids and maintain order delivery performance. Our simulation experiment sets up various scenarios and compares different bidding strategy. Numerical results show that the dynamic fuzzy bidding strategy outperforms strategies based on static. We also find that as time evolves, the order allocation rule set by the brand enterprise can significantly affect suppliers to be more aggressive or cooperative in the bidding process.