Multiple‐buyer procurement auctions framework for humanitarian supply chain management

Abstract

PurposeThe purpose of this paper is to address the inefficiency in resource allocation for disaster relief procurement operations. It presents a holistic and reconfigurable procurement auctions‐based framework which includes the announcement construction, bid construction and bid evaluation phases.Design/methodology/approachThe holistic framework is developed in a way that auctioneers and bidders compete amongst each other in multiple rounds of the procurement auction. Humanitarian organization in disaster locations are considered as auctioneers (buyers) and suppliers are considered as bidders.FindingsUnique system parameters (e.g. announcement options, priority of items, bidder strategies, etc.) are introduced to represent the disaster relief environment in a practical way. The framework is verified by simulation and optimization techniques using the system characteristics of the disaster relief environment as an input. Based on the parameters and their values, behavioural changes of auctioneers and suppliers are observed.Originality/valueCombining the three phases of procurement auctions is unique both in the auction literature and in the disaster relief research, and it helps the humanitarian organizations supply the immediate and long‐term requirements in the disaster location more efficiently.