A multi-attribute reverse auction decision making model based on multi-objective programming

Abstract

Multi-attribute reverse auction has been widely used for the centralized procurements of large enter-prise groups. The Enter-prises procure goods according to their price and quality attributes, then bid attributes are usually classified into technical attributes and business attributes, which are evaluated by technical experts and business managers whose objectives are different. Technicians are aimed at making good performance and quality optimal, while managers want to minimize the cost. This paper focuses on the development process of reverse auction and tells the features of multi-attribute reverse auction. Then a multi-objective programming model has been established considering the buyer’s utility and cost to be the objectives according to the preferences of technicians and managers. Besides, Genetic Algorithms (GA) is applied to solve the calculation to demonstrate utility and availability of the model. Finally, an example is taken to make readers easier to understand.