Project Scheduling in Decision-Theoretic Competitive Bidding | IEEE Conference Publication | IEEE Xplore

Project Scheduling in Decision-Theoretic Competitive Bidding


Abstract:

Accurate cost estimates for an incoming order are critical in formulating the optimal bidding strategy. When a firm is approaching its resource capacity in the short-run,...Show More

Abstract:

Accurate cost estimates for an incoming order are critical in formulating the optimal bidding strategy. When a firm is approaching its resource capacity in the short-run, adding a new job into the system may cause violations of the due date requirements, thus penalty costs arise. In this study we propose a two-stage scheduling-based optimal bidding model. Stage-I considers a resource-constrained project scheduling problem (RCPSP) minimizing the weighted tardiness (penalty costs). Due to the NP-completeness of the stage-I model, we propose a tabu search metaheuristic to obtain a high quality solution with reasonable computational time. The obtained cost estimates are then fed into the stage-II decision-theoretic competitive bidding model to find the optimal bidding price. Advantages and extensions of the proposed model are discussed.
Date of Conference: 16-21 July 2006
Date Added to IEEE Xplore: 11 September 2006
Print ISBN:0-7803-9487-9

ISSN Information:

Conference Location: Vancouver, BC

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