Optimal bundled procurement with technology acquisition
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    Abstract:

    In order to obtain advanced technology, technology buyers usually adopt the bundled procurement strategy which includes both product and technology’ Technology buyers’ decisions on purchase quantity and allocation proportion in different suppliers will directly determine their total revenue when there are multiple technology suppliers on the market. Using a Cobb-Douglas function to express the utility in bundled procurement and a MNL model of technology bundle purchase to model the consumer behaviors, the paper studies the optimal decisions of purchase quantity and allocation proportion in different suppliers and the technology importer’s optimal decision in the process of technology introduction. With the MNL model, the optimal purchase quantity and allocation proportion can be determined to maximize technology buyers’ revenues. Further-more, the bi-parameter decision problem is studied and the optimal conditions are given. At last, a numerical example is given to show the effectiveness of the model.

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  • Online: April 12,2018
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