Quantity-split strategy under two-contractor competitive procurement environment
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Authors
Boger, Dan C.
Liao, Shu S.
Subjects
Dual Sourcing
quantity split
production rate
cost estimation
pricing strategy
quantity split
production rate
cost estimation
pricing strategy
Advisors
Date of Issue
1988-08
Date
1988-08
Publisher
Monterey, CA; Naval Postgraduate School
Language
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
Type
Technical Report
Description
Series/Report No
Department
Organization
Identifiers
NPS Report Number
NPS-54-88-008
Sponsors
Prepared for: Naval Air Systems Command
Cost Analysis Division
Washington, D. C. 20361
Funding
N001987WR7382W
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.