Uncertainty in competitive bidding: A framework for product-service systems

Melanie E. Kreye, Linda B. Newnes, Yee-Mey Goh

Research output: Contribution to journalArticle

  • 15 Citations

Abstract

Owing to servitisation, manufacturing companies are increasingly required to compete through the provision of services around their products. The contracts for these services are often allocated through competitive bidding where the potential suppliers submit a price bid to the customer. The pricing decision is influenced by various uncertainties. This article proposes a conceptual framework depicting these influencing uncertainties on the bidding strategy. This framework is based on three empirical studies with industry investigating different viewpoints on the decision-making process. The intention is to support the pricing decision when competitively bidding for a service contract. The framework can be applied to specific competitive bidding situations to identify the influencing uncertainties, model them and depict their influences on the pricing decision.
LanguageEnglish
Pages462-477
Number of pages16
JournalProduction Planning and Control
Volume25
Issue number6
Early online date1 Aug 2012
DOIs
StatusPublished - 1 Apr 2014

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Costs
Industry
Decision making
Product-service systems
Competitive bidding
Pricing decisions
Uncertainty
Service economy
Model uncertainty
Suppliers
Bidding
Conceptual framework
Bidding strategy
Empirical study
Decision-making process
Bid
Manufacturing companies

Keywords

  • Uncertainty
  • bidding strategy
  • competitive bidding
  • pricing
  • Decision making

Cite this

Uncertainty in competitive bidding : A framework for product-service systems. / Kreye, Melanie E.; Newnes, Linda B.; Goh, Yee-Mey.

In: Production Planning and Control, Vol. 25, No. 6, 01.04.2014, p. 462-477.

Research output: Contribution to journalArticle

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