Performance evaluation of an auction-based job allocation model for small- and medium-sized enterprises

Authors:
Govind Bajaj;Can Saygin;Scott E. Grasman;Ming C. Leu
Affiliations:
Engineering Management and Systems Engineering Department, Integrated Systems Facility, University of Missouri Rolla, Rolla, MO 65409, USA.;Engineering Management and Systems Engineering Department, Integrated Systems Facility, Intelligent Systems Center, University of Missouri Rolla, Rolla, MO 65409, USA.;Engineering Management and Systems Engineering Department, University of Missouri Rolla, Rolla, MO 65409, USA.;Mechanical and Aerospace Engineering Department, Intelligent Systems Center University of Missouri Rolla, Rolla, MO 65409, USA
Venue:
International Journal of Networking and Virtual Organisations
Year:
2006

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Abstract

This paper extends the application scope of a previouslydeveloped auction-based shop floor control model to the enterpriselevel and evaluates its performance for the coordination andcollaboration of spatially distributed Small- and Medium-sizedEnterprises (SMEs). The model uses the contract net protocol tofacilitate the negotiation process among SMEs and consists of twomain components: task proposal formulation and bid formulation. Anagent-based simulation environment is developed in ProModel toevaluate the impact of two negotiation factors and due date slackof tasks on tardiness, earliness and absolute due date deviation oftasks. A mixed-level factorial Design of Experiments (DOE) iscarried out by considering different levels of α, β andK, and the results of the simulation study are analysed usingAnalysis of Variance (ANOVA) in Minitab. This study shows that theauction-based model is effective for the task allocation amongSMEs, yet it is necessary to fine-tune the negotiation factorsbased on the due-date-related performance measures.