Telephone Companies Analyze Price Quotations with Bellcore's PDSS Software

Paul Katz, Amir Sadrian and Patrick Tendick
Additional contact information
Paul Katz: Software Systems, Bellcore, 331 Newman Springs Road, Room 2Z337, Red Bank, New Jersey 07701
Amir Sadrian: Operations Analysis and Network Reliability, Bellcore, 331 Newman Springs Road, Room 2X209, Red Bank, New Jersey 07701
Patrick Tendick: Operations Analysis and Network Reliability, Bellcore, 331 Newman Springs Road, Room 2Z207, Red Bank, New Jersey 07701

Interfaces, 1994, vol. 24, issue 1, 50-63

Abstract: Increasingly, organizations that buy many products from several suppliers solicit discounts based on the total dollar volume of business awarded. Bellcore developed PDSS, a user-friendly, PC-based decision support program that assists telephone companies in analyzing price quotations under business volume discounts. PDSS uses a mixed-integer-programming model to minimize the total cost of purchases subject to several types of constraints and may save an organization five to 15 percent on purchase costs. Since its initial release, PDSS has been applied successfully to categories of products with a total purchase cost of more than $600 million.

Keywords: industries: communications; decision analysis: systems (search for similar items in EconPapers)
Date: 1994
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