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Discount auctions for procuring heterogeneous items

Published: 15 August 2005 Publication History

Abstract

e-Procurement is an Internet based business process for sourcing direct or indirect materials. In this paper we propose an auction mechanism called as discount auctions for procuring multiple items. The bid from a supplier consists of individual costs for each of the items and a discount function, which specifies the discount over the number of items. We show that such a bid is more meaningful and cost effective in terms of bid preparation and communication in common procurement scenarios. The bid evaluation problem is modeled as a mixed integer linear program and various structures in the problem that can be exploited for developing algorithms are explored. A heuristic based on linear programming relaxation is proposed to determine a feasible solution to the problem and its closeness to optimality is studied with computational experiments.

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Cited By

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  • (2014)Revenue deficiency under second-price auctions in a supply-chain settingEuropean Journal of Operational Research10.1016/j.ejor.2013.07.041233:1(131-144)Online publication date: Feb-2014
  • (2008)Optimal buying from online retailers offering total value discountsProceedings of the 10th international conference on Electronic commerce10.1145/1409540.1409568(1-5)Online publication date: 19-Aug-2008
  • (2006)Branch on priceProceedings of the Second international conference on Algorithmic Aspects in Information and Management10.1007/11775096_35(375-386)Online publication date: 20-Jun-2006
  • Show More Cited By

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  1. Discount auctions for procuring heterogeneous items

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    cover image ACM Other conferences
    ICEC '05: Proceedings of the 7th international conference on Electronic commerce
    August 2005
    957 pages
    ISBN:1595931120
    DOI:10.1145/1089551
    • Conference Chairs:
    • Qi Li,
    • Ting-Peng Liang
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    Association for Computing Machinery

    New York, NY, United States

    Publication History

    Published: 15 August 2005

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    Author Tags

    1. discount auctions
    2. e-commerce
    3. e-procurement

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    View all
    • (2014)Revenue deficiency under second-price auctions in a supply-chain settingEuropean Journal of Operational Research10.1016/j.ejor.2013.07.041233:1(131-144)Online publication date: Feb-2014
    • (2008)Optimal buying from online retailers offering total value discountsProceedings of the 10th international conference on Electronic commerce10.1145/1409540.1409568(1-5)Online publication date: 19-Aug-2008
    • (2006)Branch on priceProceedings of the Second international conference on Algorithmic Aspects in Information and Management10.1007/11775096_35(375-386)Online publication date: 20-Jun-2006
    • (2005)Winner determination in discount auctionsProceedings of the First international conference on Internet and Network Economics10.1007/11600930_88(868-877)Online publication date: 15-Dec-2005

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