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Supplier
5 50 10 4
6 65 5
7 80 2 3
8 100 0
OPTIMIZE BID for
2
Supplier # 1
input cells 1
-5 0
Supplier Execution Reservation Position Status Quantity Profit
Bids
1 12 32.7142857143 1 ACTIVE 14.3285500107 26.5733378759
2 14 31 2 ACTIVE 14.2979574347 -0.04366997999
3 21 25 3 ACTIVE 40.0059994001 18.7277999594
4 31 19 4 ACTIVE 62.8193085058 11.08438144
5 64 6.73 5 ACTIVE 76.5029371329 13.3749643518
6 66 7 6 INACTIVE 76.5029371329 0
7 72 4.85 7 ACTIVE 82.6791900289 7.51826054066
8 100 0 8 ACTIVE 100 0
7
5
Supplier
-5 0 5 Profit15
10 20 25 30
x
x
x
x
x
x
INSTRUCTIONS TO USE THE SPREADSHEET
This file simulates the interaction between suppliers that compete for the procurement of a manufacturer.
The input from the suppliers are in the form of a pair of a reservation fee and an execution fee. For instance, if supplier 2 offers
These inputs are coloured in red and are presented in cells B16-C22
Once the inputs are introduced, you must hit the button "UPDATE ORDERS" in order to obtain the decision of the manufacture
the position is the rank in which the manufacturer calls the suppliers when it requests (exe
the status is the description of the competitive position of the suppliers, inactive meaning th
the quantity is the cumulated amount of capacity bought from a particular supplier plus all t
finally, the profit is the expected profit obtained by a supplier given all these bids, they are
One can optimize the profit of a given supplier either by doing it by hand (inputting new bids and hitting "UPDATE ORDERS"),
cells B3-C9
00], presented in cells E2-F4
. For instance, if supplier 2 offers a reservation price v=5 and an execution price w=80, then the manufacturer will pay 5 for every unit of cap
n the decision of the manufacturer. This information is shown in the columns next to the bids, and consist of
suppliers when it requests (executes) supply; for example if the position is 3, then two other suppliers are called before this particular supp
he suppliers, inactive meaning that the supplier gets zero orders from the manufacturer, and active meaning some order (can be very small
om a particular supplier plus all the suppliers with smaller position, therefore the "real" capacity reserved is given by the difference of the qu
er given all these bids, they are plotted in the graph of the spreadsheet
nd hitting "UPDATE ORDERS"), or otherwise by hitting "OPTIMIZE BID" after filling the cell F11 with the correct number; this last function re
rer will pay 5 for every unit of capacity it reserves and 80 for every unit of supply it requests.
rrect number; this last function returns an approximation of the optimal bid that can be improved by hand
the supplier with previous position