A Bid Evaluation Method for Multi-attribute Online Reverse Auction
With rapid development of economy and society, online reverse auctions play an important role in procurement. In traditional reverse auctions. Buyers and sellers just compete on the price of the subject, regardless of other attributes like quality, perfor
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A Bid Evaluation Method for Multi-attribute Online Reverse Auction Ling Li, Xing Liu and Zhineng Hu
Abstract With rapid development of economy and society, online reverse auctions play an important role in procurement. In traditional reverse auctions. Buyers and sellers just compete on the price of the subject, regardless of other attributes like quality, performance, reliability and so on. However, this can not meet the real needs of the tender. Multi-attribute reverse auctions become more rational way. This paper study on the single item, multi-attribute reverse auction. Aiming at address the issues how to determine the total score of bidding program. This study focus on the bid evaluation method. Giving a more reasonable way to handle multiple expert scoring. This method can help to reduce the impact caused by the subjective preference. This paper use the Entropy-weight method to determine the weight of each attribute, and use normal distribution based method to integrate scores of each expert for attributes. Combining with these two method not only can improve auction efficiency, but also ensure fair in evaluation bidding process. Keywords Bid evaluation · Multi-attribute bid · Reverse auction · Online procurement · Entropy-weight method
102.1 Introduction With the advent of the Internet in our business world, e-commerce has changed the whole outlook of traditional auction ways. E-procurement is one of the procurement method based on the Internet. It is also an important part of e-commerce and have also been used by a number of large corporations in business-to-business transactions. L. Li · Z. Hu (B) Uncertainty Decision-Making Laboratory, Sichuan University, Chengdu 610065, People’s Republic of China e-mail: [email protected] X. Liu Business School, Sichuan University, Chengdu 610065, People’s Republic of China © Springer Science+Business Media Singapore 2017 J. Xu et al. (eds.), Proceedings of the Tenth International Conference on Management Science and Engineering Management, Advances in Intelligent Systems and Computing 502, DOI 10.1007/978-981-10-1837-4_102
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Many of them have saved millions of dollars through online reverse auction usage in comparison to traditional procurement approaches [6]. The reverse auction different from the traditional auctions. It generally apply to a buyer and a number of potential sellers, such as the art auction. According to increasing demand of online reverse auction, how to choose the best one among many bid program become a key. The winner determination problem (WDP) is to find the winner of bids from the existing bids, and it is a computationally hard problem in multi-attribute reverse auction [3]. Among the existing literature, more and more attention is being paid to multi-attribute online reverse auction (MAORA). For multi-attribute single item procurement auction, Che [8] gave the auction model about two factors of the price and quality. His model select the highest one of the utility function as the best auction bidder. Branco [5] designed
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