Linear Valuation

The Linear valuation (formerly called the Inelastic valuation) should only be used in unique situations.

Below is the Linear Valuation in the Desktop interface.

Below is the Linear Valuation in the Espress interface.

With a Linear valuation, your agent offers the same unit price regardless of the quantity requested. At first this might at first seem desirable, but it may be impractical. Because the Resource agent ranks bids based on unit price offered, the result is a take-it-or-leave-it offer by your agent. You receive an allocation only if the market price stays at or below your offered price. Your agent is not empowered, as in other valuations, to offer a higher unit price for a lower quantity to continue contending for an allocation.

Two configurable parameters determine the behavior of the Linear valuation.

• “Qty” sets the maximum quantity desired. Your agent initially bids for this amount, and, if it is unsuccessful, may only request a lower amount at the same unit price.
• “Value” sets the maximum amount of out-of-pocket cost you are willing to pay for the maximum quantity desired. The unit price that your agent will offer in its bids is the “Value” divided by the “Qty.”

Note that with a Linear valuation the cost and valuation curves are identical, so the graph only shows the cost (green) curve.