Quantity-Split Strategy under Two-Contractor Competitive Procurement Environment
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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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.
- Administration and Management
- Economics and Cost Analysis