Bidding to procure supply in newsvendor networks. (English) Zbl 1525.90008
Summary: We develop a model to determine the optimal bids a trade agent submits to sellers in a B2B market. The trade agent bids at multiple supply locations and allocates the goods procured after bidding to fulfill the demand of multiple clients. We analyze the structural properties of the trade agent’s expected profit function and the optimal bids.
MSC:
| 90B05 | Inventory, storage, reservoirs |
| 90B10 | Deterministic network models in operations research |
| 91B26 | Auctions, bargaining, bidding and selling, and other market models |
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