Transportation procurement problem (TPP) is the problem of setting transportation service prices, delivery timing and quantity, and controlling costs and capacity to reduce empty movements and improve market efficiency. The purchase of transportation service is traditionally achieved using a request for proposal and long-term contracts. However, as business relationships become ever more flexible and dynamic, there has been an increasing need to hedge the risks of traditional transportation procurement such as entrance of new carriers and sudden drop in fuel price. This thesis proposes a holistic aution-based solution for the TPP. Four typical scenarios are investigated. The first scenario incorporates bilateral bidding into auction mechanism design for multi-unit TPP. This scenario considers one-sided Vickrey-Clarke-Groves (O-VCG) combinatorial auctions for a complex transportation marketplace with multiple lanes. This scenario then designs three alternative multi-unit trade reduction (MTR) mechanisms for the bilateral exchange transportation marketplace where all the lanes are partitioned into distinct markets. Proposed mechanisms ensure incentive compatibility, individual rationality, budget balance and asymptotical efficiency. The second scenario presents a double auction model for the TPP in a dynamic single-lane transportation environment. This scenario first addresses the TPP in a transportation spot market with stochastic but balanced or “symmetric” demand and supply. A periodic sealed double auction (PSDA) is proposed. This scenario then devises a modified PSDA (M-PSDA) to address the TPP with “asymmetric” demand and supply. The auctioneer is likely to gain higher profits from setting a relatively short auction length. However, it is optimal to run the auction (either PSDA or MPSDA) with a relatively large auction length, when maximizing either the social welfare or the utility of shippers and carriers (agents). When the degree of supply-demand imbalance is low, the auctioneer’s myopic optimal expected profit under supply-demand imbalance is larger than that under symmetric demand and supply. This third scenario presents an auction-based model for the TPP in make-toorder systems. The optimality of dynamic base-stock type (S(x)-like policy) is established. The optimal allocation can be achieved by running an O-VCG auction or a first-price auction with closed-form reserve prices. By mild technical modifications, the results derived in the infinite horizon case can all be extended to the finite horizon case. The fourth scenario proposes allocatively efficient auction mechanisms for the distributed transportation procurement problem (DTPP), which is generally the problem of matching demands and supplies over a transportation network. This scenario constructs an O-VCG combinatorial auction for the DTPP where carriers are allowed to bid on bundles of lanes. To simplify the execution of auction, this scenario next proposes a primal-dual Vickrey (PDV) auction based on insights from the known Ausubel auctions and the primal-dual algorithm. The PDV auction realizes VCG payments and truthful bidding under the condition of seller-submodularity, which implies that the effect of each individual carrier is decreasing when the coalition increases. / published_or_final_version / Industrial and Manufacturing Systems Engineering / Doctoral / Doctor of Philosophy

This research project specifically investigates the use of information processing strategies by organizational buyers in the first stage of the supplier selection process, the selection of an evoked set of qualified suppliers. In this selection process it is hypothesized that the buyer's use of evaluation functions or information processing strategies is influenced by the task faced by the buyer. The varying levels of risk, familiarity and informational requirements of the buying situation should impact the use of the information processing strategies. Structured protocols--written descriptions of compensatory and noncompensatory information processing strategies--were used to determine the evaluation function which organizational buyers use to qualify suppliers into an evoked set. The data was collected in a field study of 135 organizational buyers from 76 different organizations. The subjects were interviewed about purchases they were presently working on in which suppliers had been selected but the final purchase decision was still pending. Identification of the buying task, new task, modified rebuy, and straight rebuy also utilized the structured protocol technique. Written descriptions, based on the constitutive definitions of Robinson and Farris (1967), were used to address the following research question: Is there a difference in the decision rules or information processing strategies utilized by organizational buyers in the development of an evoked set of qualified suppliers when the buyer is qualifying suppliers for a new task, modified rebuy, or straight rebuy buying task? In addition to the information gathered via the structured protocols, information was gathered about the level of risk, familiarity and information requirements of the purchasing task. This was done to gain a better understanding of the use of information-processing strategies by organizational buyers. Analysis of the data indicates that the buying task is related to the choice of an information-processing strategy. The data also support the contention that the organizational buyer will utilize any of the information-processing strategies in the selection of an evoked set of suppliers. Although the buying task was found to significantly influence the use of the information-processing strategies, the study shows that all of the strategies were reported as being used for each of the buying tasks. In addition to finding that the buying task influences the choice of an information-processing strategy, the data support the model of information processing presented. The model addressed the impact that risk, familiarity, and information load had on the use of the evaluation functions. The risk node of the model was supported by two of the five risk variables included in the study: product homogeneity and supplier homogeneity. At the familiarity nodes of the model, the subjective measures of familiarity which support the model are supplier familiarity and frequency of product purchase. Supplier familiarity was found to be significantly different between the weighted and unweighted compensatory strategies. The significant difference in the level of familiarity found in the use of the conjunctive and disjunctive information processing strategies is associated with the frequency of product purchase. The final nodal section of the information-processing model which was supported is the comparison of the conjunctive and lexicographic strategies. The lexicographic strategy was found to be used when there was a higher perceived number of suppliers capable of supplying the needed product. In general this study has shown that the situation in which suppliers are selected impacts the use of an information-processing strategy. The findings are consistent with the research and hypothesizing associated with the use of information-processing strategies by consumers.

No description available.

Procurement has been viewed as a Cinderella function, merely rendering service to core functions such as operations/production, engineering, R&D and marketing. The activities of procurement have been mundane and repetitive in nature. The importance of procurement can be understood by looking at the cost of goods sold as reflected in each company’s financial statement. In some companies this cost is more than 70% of sales revenue. World class companies realised this and elevated the procurement function to strategic levels. However, lagging companies still operate as if it is fifty years ago. The aim of this study is to determine whether companies are adapting new methods of procurement instead of pitting suppliers against each other in search of the lowest purchase price. A sample of 30 procurement managers was drawn from the 2006 Financial Mail 100 SA Best Companies. It comprised managers of companies stemming from different industries ranging from petrochemicals and banking services to hospitality, etcetera. These companies were chosen because they are the best in their class. Data was collected using questionnaires developed by the researcher and e-mailed to respondents. Regression analysis was conducted and it was established that there is a positive relationship between information sharing and trust. There seems to be a negative relationship between trust and communication. It was noted with dismay that a large contingent of procurement personnel who are supposed to uplift the status of procurement do not possess post-matriculation qualifications. This poses a serious drawback since these procurement personnel are supposed to transact with highly qualified sales representatives from the supplier companies. It is therefore recommended that companies be selective in their procurement approaches, tendering for leverage items, negotiating for strategic items and using a procurement card for shop items. Supplier performance measurement must be conducted to improve performance and partnerships formed with high performing suppliers. The skills levels of procurement officials need to be upgraded to enable them to deal with new challenges. / Thesis (MBA)-University of KwaZulu-Natal, Westville, 2009. / Sasol Secunda Shared Services and Kumba Iron Ore.

The research aims to identify ways to enhance the supplier selection process for large transformers at Eskom. The research was based on the hypothesis that there are significant opportunities to increase the effectiveness and efficiency of transformer purchases at Eskom. Large transformers are a strategic commodity for Eskom, due to the criticality and impact of the commodity on Eskorn's business. Eskom plans to spend R2.2 billion on transformers over the next five years. This indicates a substantial financial spend on the commodity. The opportunities that could be derived from transformer purchases are not only quantitative but also qualitative. The commodity, therefore, requires strategic effort in order to maximise the opportunities. The key findings of the research were as follows: • Transformer purchases and the organisational entity is complex, as it entails numerous stakeholders, complex systems, people and processes. • Eskom has not progressed from 'procurement management' to 'supply management'. • Eskom has a decentralised approach to transformer procurement, despite the strategic nature of the commodity and the fact that it purchases across the three main Eskorn Divisions. Procurement requirements are not consolidated. • There is a lack of communication and collaboration across and within Divisions. • There are no purchasing strategies, methodologies or tools to enhance the procurement process. • Procurement Officers lack knowledge on many well known methodologies, commodity knowledge, market knowledge, and supplier knowledge. • There is no focus on supplier relationship management. • Suppliers have indicated substantial opportunities for transformer procurement at Eskom. Implementing 8 World-Class SourcingProcess at Eskom with specificreference to the SupplifJr Selection Process for Large Transformers Pagei . The key recommendations based on the findings of the research are as follows: • Supply management personnel should be trained in world-class methodologies like total cost of ownership (TeO), strategic sourcing, supplier economics, supplier analysis, market research, etc. • A centralised approach to the procurement of strategic items must be instituted. This should result in a single person being responsible and accountable for Eskom's Supply management. • A collaborative approach must be encouraged by means of cross-functional teams. • Opportunities identified in the research must be implemented by a cross-functional team whom should be responsible and accountable for the implementation of the opportunities identified. • Supplier relationships must be initiated and effectively managed by the cross-functional team leaders. • The implementation must be monitored and tracked by the project sponsor. If the above recommendations are implemented Eskom would realise significant opportunities in large transformer purchases at Eskom. Should the recommendations be implemented on other commodities Eskom would achieve quantum leap improvements to Supply Management. / Thesis (M.Com.)-University of KwaZulu-Natal, 2005.

Thesis (MProjMgmt)--University of South Australia, 2000

Thesis (Ph.D.)--Hong Kong University of Science and Technology, 2008. / Includes bibliographical references (leaves 126-137). Also available in electronic version.

Thesis (Ph.D)--Management, Georgia Institute of Technology, 2008. / Committee Chair: Wu, D.J.; Committee Member: Keskinocak, Pinar; Committee Member: Narasimhan, Sridhar; Committee Member: Toktay, Beril; Committee Member: Zhang, Han.

Thesis (Ph. D.)--Ohio State University, 2008. / Title from first page of PDF file. Includes bibliographical references (p. 364-398).

Thesis (Ph.D.)--Institut Europeen d'Administration des Affaires (France), 2005. / Co-Chairs: Arnoud De Meyer, Luk Van Wassenhove. Includes bibliographical references.