Bid No-Bid Decision Case Study

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Lin and Chen (2004) made a detailed study on Bid/no-bid decision-making – a fuzzy linguistic approach. Bid/no-bid decision-making is a critical activity for a contractor. Bid/no-bid decision is uncertain and complex. Nature, competition, value of the bid opportunity, resource capabilities, and the reputation of the company are very important to the bid/no-bid decision and hence fuzzy logic approach is adopted. Here assessments are subjectively in linguistic terms, and screening criteria is done by weighting by their corresponding importance using fuzzy values. For example, evaluation a bid opportunity of an international co-development commercial airplane project in Taiwan, it shows how this method can provide the analyst with more accurate and precise results and saves economy of the company. The successful bidding strategies are a key factor for the existence of a particular contracting company. With regard to preventing an organization from wasting its energies in…show more content…
This paper discusses a novel fuzzy competition and attitude based bidding strategy (FCA-Bid), in which the final best bid is selected on the basis of the attitude of all the bidders and the competition for all those goods in the prevailing market. The calculation of attitudes is basically dependable on the bidding item’s attribute assessment, and it uses the fuzzy sets technique to assess uncertainty of the bidding process, also it uses heuristic rules to determine the attitude of bidding agents. The competition in the market is also determined by the bidding strategy (based on mainly two factors i.e. total no. of the bidders participating and the total time elapsed for an auction) using Mamdani’s Direct Method. Finally the final price of the best bid will be found out depending on the assessed attitude and the competition in the prevailing market using fuzzy reasoning

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