Analytical Approach of Virtual Auction Scheme to Joint Purchase of Leisure Farms

摘要

Since Taiwan became a member of the World Trade Organization (WTO), farmers and distributors have been free to import their agricultural products into Taiwan. One of the feasible solutions to the intrusion of foreign produce has been to establish leisure farms in Taiwan. However, so many leisure farms are emerging that a new problem has been created: how to reduce the costs of producing agricultural products. In order to solve possible purchase problems that a virtual organization may face in the supply chains, we present through the application of auction mechanism a feasible purchase pattern for a virtual organization in purchasing raw materials when they face upstream suppliers. This study describes an application of the theoretical model of auction mechanism to the purchase mechanism of a virtual organization within the context of virtual organization in supply chains. Feasible purchase methods for introduction of auction mechanism under the situation of one virtual organization to single and several raw material suppliers. By means of analysis and the application of auction mechanism, this study establishment of an auction mechanism model under one-to-several situation and proposes several feasible and effective ways of helping leisure farms that use virtual organization to reduce their costs.