Orders accept strategy by contractor

In projects the contractor usually tries to accept as many orders as possible so as to mitigate the risk of losing many orders under competitive bidding situations. Thus he tends to accept excessive volume of orders especially when the number of accepted orders has large variability. Since the contractor needs more Resources and Facilities for carrying out the projects of the excessive orders he loss the balance of available Resources and Facilities for cost estimation and project execution at the following several periods. The reduced Resources and Facilities for cost estimation makes the cost estimation accuracy worse and decreases the total expected profit. In this paper we investigate the acceptance of the order by Contractor with using a linear programming model.