Performance analysis of reverse auction mechanisms based on Petri nets

Xiaodan Zhang,Huajun Tang,Zhiwu Li,Yun Huang

doi:10.1177/1687814017724085

Abstract

As a methodology of resource location and allocation, reverse auctions are one of the most important activities in supply chains. There are four main auction mechanisms in auction theory, ascending...

Highlights

A supply chain composed of logistics, information flow, and capital flow is determined by reverse auctions, which have become an effective and efficient way of achieving lower acquisition costs, lower costs for new suppliers to enter a market, and better market efficiency
In order to reveal the result of a better auction mechanism, simulation data are given based on Petri nets
colored timed Petri nets (CTPN) is used as the modeling technique embedded in several programming methods to analyze two reverse auction mechanisms

Summary

Introduction

A supply chain composed of logistics, information flow, and capital flow is determined by reverse auctions, which have become an effective and efficient way of achieving lower acquisition costs, lower costs for new suppliers to enter a market, and better market efficiency. Advances in Mechanical Engineering field of supply chain management (SCM), little work on auctions is presented. This research conducts two Petri net models for a static sealed-bid reverse auction and a dynamic online reverse auction, respectively. In order to reveal the result of a better auction mechanism, simulation data are given based on Petri nets. Section ‘‘Literature review’’ presents a literature review on supply chains, auctions, and Petri nets. In sections ‘‘A static sealed-bid reverse auction model’’ and ‘‘A dynamic descending-bid online reverse auction model,’’ a static sealed-bid reverse auction and a dynamic online reverse auction Petri net models are studied, respectively. Section ‘‘A Petri net model for comparing two mechanisms’’ reports the contrastive simulation results and section ‘‘Conclusions’’ concludes this article

Literature review

Method

Time 6

A Petri net model for comparing two mechanisms

Conclusion