Quantity-Split Strategy under Two-Contractor Competitive Procurement Environment

Abstract

This report discusses the various market scenarios that provide bid price manipulation opportunities under the dual source competition environment. Two different quantity-split strategies were developed one for the case when one of the suppliers does not have the capacity to produce the majority of the annual quantity requirement and the other for the case when neither contractor is interested in using low prices to capture the larger share of annual quantity. Keywords: Dual sourcing, Quantity split, Production rate, Cost estimation, Pricing strategy.

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 1988
Accession Number
ADA199517

Entities

People

  • Dan C. Boger
  • Shu S. Liao

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Algorithms
  • Business Administration
  • Case Studies
  • Computer Programs
  • Contractors
  • Contracts
  • Data Sets
  • Government Procurement
  • Governments
  • Management Personnel
  • Mathematical Models
  • Procurement
  • Production Rate
  • Verification
  • Weapon Systems

Readers

  • Government Contracting/Procurement.
  • Team-Based Human-Centered Cognitive Task Decision Making and Information Performance.