Winner determination problem (WDP) with supply curve

Abstract

This paper presents a WDP with supply curve to help the buyer determine the winners and assign optimum quantities to them while multiattributes of capacity-constrained suppliers are considered in a reverse auction setting. A key challenge faced by the buyer is that unqualified suppliers may cause dire losses and the WDP is NP-hard. This paper combines the qualification process with the WDP for the first time to relieve the potential losses from the buyer's aspect. Based on this idea, a two stage mechanism is proposed. In the first stage, a Fuzzy Technique for Order Preference by Similarity to Ideal Solution (FTOPSIS) method that integrates with the Correlation Coefficient and Standard Deviation (CCSD) approach for determining the weights of attributes is addressed to select high quality suppliers. In the second stage, a multiobjective programming for WDP is proposed and a heuristics is adopted to solve it. Finally, a numerical example is presented to demonstrate the applicability of the proposed method.