Solving a Seal-Bid Reverse Auction by Fuzzy Multiple objective programming

Chi-Bin Cheng, Yu-Ru Syau, Rung-Tsung Tzeng.

This study solves a sealed-bid and multiple issue reverse auction problem. At the supplier side, the bidding process is formulated as a fuzzy multiple objective programming to assist the supplier determining its optimum offer, while at the buyer side, the selection of the best offer from suppliers is considered as a multiple attribute decision making problem and is solved by the TOPSIS method. The solution to the supplier’s fuzzy multiple objective problem is obtained by a heuristic algorithm that adjusts the production plan to fulfill the buyer’s demand based on the information of current master production schedule and available-to-promise inventory.

PDF full paper