Operations Research, Systems Engineering and Industrial Engineering Commons^™

Deciding On The Appropriateness Of B2b Reverse Auction Technology Adoption: An Ahp Approach Combined With Integer Programming, Tobias Schoenherr

Journal of International Technology and Information Management

Although Business-to-Business online reverse auctions have emerged as a promising purchasing tool, no research has been found that provides a model to assess the reverse auction decision in a systematic way. This paper fills this gap by presenting an integrated approach, utilizing Analytic Hierarchy Process techniques and an Integer Programming Formulation, to decide whether Reverse Auction Technology (RAT) adoption is cost-effective and appropriate. The model developed is a practical decision support tool that allows for the consideration of both qualitative and quantitative decision factors, and for the adoption of multiple modes of RATs, which are contrasted to traditional purchasing.