Auction bid generation using a scheduling system and risk attitudes
Original Publication Date: 2003-Aug-08
Included in the Prior Art Database: 2003-Aug-08
This invention is a methodology and software system for automatically generating recommended actions to supply chain participants in auctions, including forward auctions, reverse auctions, double-sided auctions, combinatorial, and multi-attribute auctions. It is a decision support system that can consider a group of auctions, such as all auctions for products in a given line of business and due in a particular time period. It can operate within the user?s IT environment, thereby revealing no private information to trading partners or intermediaries beyond the bids themselves. The system takes into account existing production conditions such as available production capacity as a function of time, current and predicted production rates and costs, raw material costs as a function of quantity and time, and current inventories of raw materials, work-in-process and finished goods. The system also takes into account current financial conditions, such as the bidder?s cost of money and estimated market prices for its products as a function of time. With these inputs plus the bidder?s estimates of the probability of winning a bid as a function of price, the decision support system generates multiple sets of recommended conditional bids and evaluates them according to bidder-specified criteria. These candidate sets of conditional bids are presented to the bidder for modification and final selection.