Orders accept strategy by contractor

In projects, the contractor usually tries to accept as many orders as possible so as to mitigate the risk of losing many orders under competitive bidding situations. Thus, he tends to accept excessive volume of orders especially whenthe number of accepted orders has large variability. Since the contractor needs more Resources and Facilities for carrying out the projects of the excessive orders , he loss the balance of available Resources and Facilities for costestimation and project execution at the following several periods. The reduced Resources and Facilities for cost estimation makes the cost estimation accuracy worse, and decreases the total expected profit. In this paper, we investigate the acceptance of the order by Contractor with using a linear programming model

Keywords:

linear programming , Orders , Contractor , dynamic ranking