What is forward auction in SAP MP-APP-DPE - Dynamic Pricing Engine?

SAP Term: forward auction

• Component: MP-APP-DPE

• Component Name: Dynamic Pricing Engine

• Description: Ascending auction which begins with the initiator's selling price. Interested bidders create successively increasing bids according to the rules defined for the opportunity. Winner determination can be based on several criteria including whether or not the reserve price set by the initiator was met.

Smart SAP Assistant

• Key Concepts: 
  A forward auction is a type of auction in which buyers bid on goods or services offered by a seller. In the context of SAP's Dynamic Pricing Engine (MP-APP-DPE), a forward auction is used to determine the optimal price for a product or service. The auction is conducted in real-time and the highest bidder wins the auction. 
  
  How to use it: 
  The Dynamic Pricing Engine (MP-APP-DPE) allows users to set up and manage forward auctions. The user can define the parameters of the auction, such as the starting price, the minimum and maximum bids, and the duration of the auction. Once the auction is set up, buyers can submit bids in real-time until the auction ends. The highest bidder wins the auction and pays the price they bid. 
  
  Tips & Tricks: 
  When setting up a forward auction, it is important to set realistic parameters that will attract buyers and ensure that the highest bidder pays a fair price for the product or service. It is also important to ensure that all bidders are aware of the rules of the auction before it begins. 
  
  Related Information: 
  The Dynamic Pricing Engine (MP-APP-DPE) also supports reverse auctions, which are similar to forward auctions but with different rules. In a reverse auction, buyers submit bids for a product or service and the lowest bidder wins.