Effective response to RFQs and supplier development: A supplier's perspective

Ram Narasimhan, Srinivas Talluri and Santosh Mahapatra

International Journal of Production Economics, 2008, vol. 115, issue 2, 461-470

Abstract: Considering multiple attributes while evaluating request for quotes (RFQs) responses from suppliers is gaining significant importance in industrial procurement. While price has traditionally been the most important factor in evaluating RFQ responses, incorporation of non-price attributes such as quality and delivery performance is becoming essential and critical. Research on multi-attribute RFQs has received significant attention in an auction format with models addressing issues relating to auction mechanism design, winner determination, and auction dynamics, primarily from a buyer's perspective. There have been few approaches, if any, that have investigated the issue of response to multi-attribute RFQs from a supplier's perspective, which is the focus of this paper. Such an approach will assist a supplier in effectively responding to RFQs, thereby maximizing the likelihood of winning future contracts. It also indirectly assists in supplier development and helps foster competition among suppliers, which benefits both the buyers and the suppliers. We develop mathematical models that address this important issue and demonstrate their usefulness through an illustrative dataset.

Keywords: RFQ; procurement; Mathematical; programming; Multi-attribute; bids; Procurement (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925-5273(08)00207-7
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:115:y:2008:i:2:p:461-470

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().