Minimum and Maximum Bid Quantities
The number of items that the supplier bids for. Buyer users can define the maximum bid quantity and minimum bid quantity. Both Buyers and Suppliers can enter bid quantities.
Definition for Suppliers
For suppliers, minimum and maximum bid quantities are bid fields. Refer to the
definitions below:
- Minimum bid quantity is the minimum quantity of items for which a bid is valid.
- Maximum bid quantity is the maximum quantity of items for which a bid is valid.
Definition for Buyers
For buyers, minimum and maximum bid quantities are item-definition fields:
- Minimum bid quantity is the minimum number of items for which suppliers must submit a bid. Quantities below this number are not accepted by the system.
- Maximum bid quantity is the maximum number of items for which suppliers can submit a bid. Quantities above this number are not accepted by the system.
You can avoid entering values in these fields, if you do not want to constrain suppliers on the quantities for which they want to submit bids.
Optimal Minimum Bid Quantity values
If the minimum bid quantity entered by suppliers is too high, it reduces the chance of an award, especially if partial bidding is enabled in the RFx.
The following table indicates how the Minimum Bid Quantity value affects RFx
awards:
| Minimum Bid Quantity value | Effect |
|---|---|
| Greater than Minimum Desired Quantity | Even if the bid is the best bid, buyers may not want excess quantity and may reject the bid for awarding. |
| Equal to Minimum Desired Quantity | Eliminates the possibility of a partial award. The bid must be the best bid for the RFx to be awarded to the supplier. |
| Less than Minimum Desired Quantity | The lesser the minimum desired quantity the higher the chances of
being awarded a part of the RFx. Note: Although this option may force you
to provide a high price per unit, you can provide Business Volume
Discounts or Volume Discount bids instead of entering a high value for
the minimum desired quantity.
|