Develop MH based order acceptance strategies and
investigate their effects on the total expected "
profit through a long-term operation in EPC projects under a competitive bidding situation
A long-term operation by using a simulation model describing the relations among the volume of
MH for cost estimation, the accepted orders, revenues, and the profits in EPC projects with competitive bidding.
Based on the simulation experiments, we reveal that the contractor must avoid bidding and accepting excessive
orders to improve the expected profit through a long-term operation in EPC projects. Although the contractor
usually tries, in practice, to accept as many orders as possible to mitigate the risk of losing
many orders in competitive bidding, Furthermore,we show that the MH based
order acceptance strategies, which control the volume of accepted orders (VAO) based on the target
revenue at each period with the upper limit constraint on the accepted orders, are effective in achieving