Multiattribute electronic procurement using goal programming

Kameshwaran, S and Narahari, Y and Rosa, Charles H and Kulkarni, Devadatta M and Tew, Jeffrey D (2007) Multiattribute electronic procurement using goal programming. In: European Journal of Operational Research, 179 (2). pp. 518-536.

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Abstract

One of the key challenges of current day electronic procurement systems is to enable procurement decisions transcend beyond a single attribute such as cost. Consequently, multiattribute procurement have emerged as an important research direction. In this paper, we develop a multiattribute e-procurement system for procuring large volume of a single item. Our system is motivated by an industrial procurement scenario for procuring raw material. The procurement scenario demands multiattribute bids, volume discount cost functions, inclusion of business constraints, and consideration of multiple criteria in bid evaluation. We develop a generic framework for an e- procurement system that meets the above requirements. The bid evaluation problem is formulated as a mixed linear integer multiple criteria optimization problem and goal programming is used as the solution technique. We present a case study for which we illustrate the proposed approach and a heuristic is proposed to handle the computational complexity arising out of the cost functions used in the bids.

Item Type:	Journal Article
Publication:	European Journal of Operational Research
Publisher:	Elsevier
Additional Information:	Copyright of this article belongs to Elsevier.
Keywords:	Goal programming;E-Procurement;Multiattribute auctions;Multiple criteria optimization;Configurable bids;Business rules;Volume discount cost functions;Bid evaluation problem;Mixed integer linear program
Department/Centre:	Division of Electrical Sciences > Computer Science & Automation
Date Deposited:	07 Feb 2007
Last Modified:	19 Sep 2010 04:34
URI:	http://eprints.iisc.ac.in/id/eprint/9691

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