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Telephone Companies Analyze Price Quotations with Bellcore's PDSS Software

Author

Listed:
  • Paul Katz

    (Software Systems, Bellcore, 331 Newman Springs Road, Room 2Z337, Red Bank, New Jersey 07701)

  • Amir Sadrian

    (Operations Analysis and Network Reliability, Bellcore, 331 Newman Springs Road, Room 2X209, Red Bank, New Jersey 07701)

  • Patrick Tendick

    (Operations Analysis and Network Reliability, Bellcore, 331 Newman Springs Road, Room 2Z207, Red Bank, New Jersey 07701)

Abstract

Increasingly, organizations that buy many products from several suppliers solicit discounts based on the total dollar volume of business awarded. Bellcore developed PDSS, a user-friendly, PC-based decision support program that assists telephone companies in analyzing price quotations under business volume discounts. PDSS uses a mixed-integer-programming model to minimize the total cost of purchases subject to several types of constraints and may save an organization five to 15 percent on purchase costs. Since its initial release, PDSS has been applied successfully to categories of products with a total purchase cost of more than $600 million.

Suggested Citation

  • Paul Katz & Amir Sadrian & Patrick Tendick, 1994. "Telephone Companies Analyze Price Quotations with Bellcore's PDSS Software," Interfaces, INFORMS, vol. 24(1), pages 50-63, February.
    • Handle: RePEc:inm:orinte:v:24:y:1994:i:1:p:50-63
    DOI: 10.1287/inte.24.1.50
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    Citations

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    Cited by:

    1. Pamela Pen-Erh Pei & David Simchi-Levi & Tunay I. Tunca, 2011. "Sourcing Flexibility, Spot Trading, and Procurement Contract Structure," Operations Research, INFORMS, vol. 59(3), pages 578-601, June.
    2. Joris van de Klundert & Jeroen Kuipers & Frits C. R. Spieksma & Maarten Winkels, 2005. "Selecting Telecommunication Carriers to Obtain Volume Discounts," Interfaces, INFORMS, vol. 35(2), pages 124-132, April.
    3. Peter C. Bell & Chris K. Anderson, 2002. "In Search of Strategic Operations Research/Management Science," Interfaces, INFORMS, vol. 32(2), pages 28-40, April.
    4. Xiangling Hu & Charles Munson & Stergios Fotopoulos, 2012. "Purchasing decisions under stochastic prices: Approximate solutions for order time, order quantity and supplier selection," Annals of Operations Research, Springer, vol. 201(1), pages 287-305, December.
    5. Gail Hohner & John Rich & Ed Ng & Grant Reid & Andrew J. Davenport & Jayant R. Kalagnanam & Ho Soo Lee & Chae An, 2003. "Combinatorial and Quantity-Discount Procurement Auctions Benefit Mars, Incorporated and Its Suppliers," Interfaces, INFORMS, vol. 33(1), pages 23-35, February.
    6. Peter C. Bell & Chris K. Anderson & Stephen P. Kaiser, 2003. "Strategic Operations Research and the Edelman Prize Finalist Applications 1989--1998," Operations Research, INFORMS, vol. 51(1), pages 17-31, February.
    7. Asif Muzaffar & Shiming Deng & Muhammad Nasir Malik, 2020. "Contracting mechanism with imperfect information in a two-level supply chain," Operational Research, Springer, vol. 20(1), pages 349-368, March.

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