A tender is a formal exercise of obtaining sealed bids for goods or services where the value is unknown, and where the specification can be non standard or complex.
The document outlining what is being procured, by when and in what quantities. It is typically sent to prospective suppliers at the start of the procurement process.
Analysing all the bid and discounts to work out the best winning combination for the purchaser.
This occurs when the winner of an auction bids too aggressively and the winning price is uneconomic. It is synonymous in e-auctions where there is transparency an emotional ‘reactive’ bidding takes place (rather than considered rational bidding).