Abstracto

DESIGN OF TWO-STAGE BIDDING MODEL FOR SUPPLIER SELECTION

Nagabhushan S V , Sindhu Swamy D

Electronic procurement is defined as the outsourcing of goods or services via internet. The decision processes surrounding are complicated by the uncertainty involved in the outsourcing process and by poor supplier management. A major process in the e-procurement decision making is that of supplier selection process. In this study, focus is on supplier selection for an auto-mobile organization by proposing a two-stage bidding framework. In two stage bidding model, suppliers first submit their technical proposals, in accordance with the specifications, but without price. The objective of this exercise is to ensure that all technical proposals conform to the same acceptable technical standards and meet the technical solution as required by the buyer, by using genetic algorithm. So suppliers are evaluated on the basis of their technical bid at the first stage. After the evaluation of technical proposals, the selected suppliers are allowed to bid in second stage. In the second stage suppliers are invited to submit price proposals. Here the supplier who offers lowest financial bid will be awarded a contract.