ABSTRACT

This document explores the development of an online bidding system designed to

revolutionize the auction experience. The system prioritizes efficiency and user-
friendliness, offering features like streamlined bidding processes, and robust security.
This study delves into the key phases, including requirements analysis, system design,
feasibility assessment, and implementation strategies.

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 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to my instructor, Mr. Gopi Prajapati, for his
invaluable guidance and support throughout the development of this online bidding
system. His expertise system design, security protocols, software development proved
instrumental in overcoming challenges and ensuring the project's success. I am
particularly grateful for his patience and willingness to answer my questions, no matter
how complex. His encouragement and belief in my abilities kept me motivated
throughout the development process. Thank you, Mr. Prajapati, for playing a crucial role
in bringing this project to fruition.

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 LIST OF FIGURE

Figure 2. 1 : Use Case Diagram ................................................................................... 5

Figure 2. 2 : Gantt Chart ............................................................................................ 14

Figure 3. 1 : Level 0 DFD .......................................................................................... 15

Figure 3. 2 : Level 1 DFD .......................................................................................... 16
Figure 3. 3 : Level 2 DFD .......................................................................................... 17
Figure 3. 4 : ER-Diagram........................................................................................... 18
Figure 3. 5 : Relational Table ..................................................................................... 19
Figure 3. 6 : Class Diagram ....................................................................................... 20
Figure 3. 7 : Sequence Diagram ................................................................................. 21
Figure 3. 8 : State Diagram ........................................................................................ 22

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 LIST OF ABBREVIATION

AES Advanced Encryption Standard

AI Artificial Intelligence

AWS Amazon Web Services

APNS Apple Push Notification Services

APIs Application Programming Interfaces

BEP Break Even Points

DFD Data Flow Diagram

ER Entity-Relationship

FCM Firebase Cloud Messaging

IOS iPhone Operating System

MONGODB MONGO Database

SQL Structured Query Language

RBAC Role Base Access Control

SDKs Software Development Kits

SMS Short Message Service

SSL/TLS Secure Sockets Layer/Transport Layer Security

UI User Interface

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 TABLE OF CONTENTS

ABSTRACT ................................................................................................................. i

ACKNOWLEDGEMENT ........................................................................................... ii

LIST OF FIGURE ...................................................................................................... iii

LIST OF ABBREVIATION ....................................................................................... iv

CHAPTER 1 - INTRODUCTION ............................................................................... 1

1.1 Introduction ........................................................................................................... 1

1.2 Problem Statement ................................................................................................. 1

1.3 Objectives of an Online Bidding System ................................................................ 2

1.4 Scope and Limitation of Online Bidding System .................................................... 2

CHAPTER 2 - SYSTEM ANALYSIS ......................................................................... 3

2.1 Requirement Collection and Analysis .................................................................... 3

2.1.1 Requirement Determination Methods .................................................................. 3

2.1.2 Functional Requirements..................................................................................... 4

2.1.2.1 Use Case diagram ............................................................................................ 5

2.1.3 Non-functional Requirements ............................................................................. 6

2.2 Feasibility Study .................................................................................................... 6

2.2.1 Technical Feasibility ........................................................................................... 6

2.2.2.1 Break-Even Analysis ........................................................................................ 9

2.2.3 Operational Feasibility ...................................................................................... 11

2.2.4 Schedule Feasibility .......................................................................................... 12

2.2.4.1 Gantt chart ..................................................................................................... 14

CHAPTER 3 - SYSTEM DESIGN ............................................................................ 15

3.1- DFD (Data flow diagram) ................................................................................... 15

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3.2 ER Diagram and Relational table ......................................................................... 18

3.3 Class diagram ...................................................................................................... 20

3.4 Sequence Diagram ............................................................................................... 21

3.5 State Diagram ...................................................................................................... 22

CHAPTER 4 - CONCLUSION.................................................................................. 23

4.1 Conclusion........................................................................................................... 23

4.2 Enhancements ...................................................................................................... 23

REFERENCES .......................................................................................................... 24

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 CHAPTER 1 - INTRODUCTION

1.1 Introduction

The online bidding system is designed to facilitate quick and efficient way of bidding
services. The system aims to bridge the gap between bidder and organizer to fulfill the
quick response mechanism in the bidding process. By leveraging technology, the system
ensures timely response, better management of resources, and improved bidding
outcomes. The online bidding system is designed to provide an efficient and reliable
method for bidding through online process. The traditional methods of bidding are often
inefficient and lack transparency, leading to delays that can be time consuming. This
system will facilitate the bidding process transparent and easy to handle the outcomes
from it.

1.2 Problem Statement

In general traditional process of bidding is handle in presentation of bidder and organizer.

This leads a manual processing of bidding and time consuming for event organizing. In
old techniques there is lack of accessibility because participation of bidder geographical
distant cannot be participate timely. In these techniques there is low transparency in
bidder community. Traditional methods rely heavily on manual processes, which
increase errors and delays. There is a need for a new system that can facilitate quick and
accurate bidding system.

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1.3 Objectives of an Online Bidding System

 Develop an easy-to-use platform for bidding process.

 To increase scalability.
 To develop transparent bidding system.
 To increase the area of scalability.
 To reduce time of bidding process.
 To develop efficient system.

1.4 Scope and Limitation of Online Bidding System

Scope:

The implemented online auction system allowable for users who live in Nepal only. The
users can participate in auctioning only if they have created an account through the
registration form.

Limitations:

 Requires internet connectivity for operation.

 This system cannot give result at real time.
 User adaptation might take time due to resistance to change from traditional
methods.

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 CHAPTER 2 - SYSTEM ANALYSIS

System analysis involves studying and understanding the current educational

environment and processes to design an effective online bidding system. This chapter
provides a detailed examination of the requirement collection and analysis process,
ensuring that the online bidding system is designed to meet its intended goals effectively.

2.1 Requirement Collection and Analysis

Requirement collection and analysis are essential for identifying the functionalities and
features that the online bidding system must possess. This phase ensures that the system
aligns with the needs of users and stakeholders.

2.1.1 Requirement Determination Methods

 Interviews with auction handlers:

 This method provides in-depth insights into the day-to-day operations of the
auction process.

 Auction handlers have first hand experience with the system and can offer
valuable information about its strengths, weaknesses, challenges, and
opportunities for improvement.

 By understanding their perspective, potential solutions can be tailored to their

needs and workflows.

 Surveys with potential users:

 This method helps to capture a broader range of opinions and preferences from
the target audience.

 Surveys can be used to identify user needs, expectations, and pain points related
to the auction process.

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  By understanding what potential users want and expect, the system can be
designed to better meet their requirements.

 Observation of current bidding processes:

 This method provides a first hand look at how the auction system is used in
practice.

 By observing the bidding process, researchers can identify inefficiencies,

bottlenecks, and areas for improvement.

 This data can be used to inform the design of a new or improved system.

2.1.2 Functional Requirements

The functional requirements define the essential operations and capabilities of the online
bidding system. These requirements ensure the system meets user needs and supports
the bidding process effectively. Key functional requirements include:

 Registering users (Bidder).

 Bid accordingly to capabilities.
 Training of users to proceed bid.
 Sending notifications and updates to users.

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2.1.2.1 Use Case diagram

A use case diagram is a visual tool that outlines how users (or external systems) interact
with a system to accomplish specific goals. It provides a high-level view of the system's
functionality, showcasing the relationships between actors (users or systems), use cases
(system actions), and the system itself. By identifying actors, defining their goals, and
mapping out the system's responses, use case diagrams help ensure the system aligns
with user needs, facilitate communication among stakeholders, and serve as a foundation
for subsequent development phases.

Figure 2. 1 : Use case Diagram

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2.1.3 Non-functional Requirements

Non-functional requirements define the system attributes and constraints that ensure the
online bidding system performs efficiently and effectively. Non-functional requirements
are not related to the software's functional aspect. They can be the necessities that specify
the criteria that can be used to decide the operation instead of specific behaviors of the
system. These requirements cover areas such as performance, reliability, usability, and
security.

 Performance: The system should handle multiple concurrent users without

degradation in performance.
 Reliability: High availability and reliability are critical.
 Security: Data protection and user privacy must be ensured.

2.2 Feasibility Study

A feasibility study for an online bidding examines whether the implementation of an
online bidding system is practical and beneficial. It assesses the viability of the project,
whether it's a new initiative or an existing system being evaluated. The feasibility study
measures the potential benefits of the product development from a practical standpoint
and determines how beneficial the online bidding system will be for the organization.
The study typically covers several key aspects.

2.2.1 Technical Feasibility

User Interface (UI)

 Web Application: Modern frameworks like React.js or Angular make it feasible

to create responsive, user-friendly interfaces. The development complexity is
moderate, with well-documented libraries and community support.

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  Mobile Application: Cross-platform frameworks like Flutter or React Native
allow for efficient development for both iOS and Android, reducing the need for
separate codebases.

User Authentication and Authorization

 User Registration and Login: Established protocols like OAuth and JWT
provide secure and scalable solutions. Implementation is straightforward with
numerous libraries and services available.

 Role Management: RBAC can be implemented using middleware in backend

frameworks, making it relatively easy to manage different user roles.

Bidding and Scheduling System

 Scheduling and Dispatching: Task schedulers and jobs are standard practices in
backend development, making automated scheduling feasible. The complexity
lies in optimizing dispatch algorithms.

Notifications and Alerts

 SMS/Email Notifications: Services like Twilio and SendGrid provide APIs for
easy integration of SMS and email notifications, making this feature highly
feasible.

 In-App Notifications: FCM and APNs are well-supported for mobile push
notifications, with plenty of resources and documentation available.

Payment Integration

 Online Payments: Payment gateways like eSewa and Khalti offer secure, easy-
to-integrate solutions. Their comprehensive SDKs and APIs simplify the
development process.

 Insurance Integration: This can be more complex due to the need for API
integration with various insurance providers, but it is feasible with proper
coordination and use of standardized protocols.

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Backend Infrastructure

 Server-Side Logic: Frameworks like Node.js, Django are mature and have
extensive libraries to support the required functionalities. Server management
and scaling are well-handled by cloud services.

 Database: Relational databases like PostgreSQL and MySQL, as well as NoSQL

options like MongoDB, provide flexible and scalable data storage solutions.

Cloud Hosting

 Scalable Infrastructure: Cloud providers like AWS, Azure, and Google Cloud
offer scalable infrastructure, load balancing, and automated scaling features,
making it feasible to handle varying loads and ensure high availability.

Security and Compliance

 Data Security: Encryption protocols like SSL/TLS for data in transit and AES
for data at rest are standard and well-supported.

 Compliance: Adherence to regulations can be complex but feasible with the use
of compliance management tools and regular audits.

Analytics and Reporting

 Usage Analytics: Tools like Google Analytics provide comprehensive solutions

for tracking and analyzing user behavior.

 Reporting Tools: Business intelligence tools and custom dashboards can be built
using frameworks like Tableau or custom solutions in Python or R.

2.2.2 Financial Feasibility

Development Costs

 Initial development costs include hiring a team of developers, designers, and

project managers, which can be significant. However, leveraging open-source
tools and cloud services can reduce some costs.

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Ongoing Maintenance

 Regular updates, server costs, and potential scaling based on user growth will
require continuous investment. Cloud hosting can help manage and predict these
costs more effectively.

Revenue Potential

 Monetization options like subscription models, partnerships event organizer and

insurance companies, or transaction fees can offset the costs over time, making
the project financially feasible.

2.2.2.1 Break-Even Analysis

Payback Analysis and Break-Even Analysis are financial metrics used to determine
how long it will take for an investment to generate enough savings or revenue to cover
its initial costs. These analyses are crucial in understanding the financial feasibility of
the online bidding system.

Payback Analysis:

Initial Investment Costs: Calculate all upfront costs, including hardware, software,
installation, training, and any initial setup costs.

Annual Savings/Revenue: Estimate the annual savings or additional revenue generated

by implementing the online bidding system. This may include reduced travelling costs,
savings on communication, increased administrative efficiency, and potential Booking
fees increases due to enhanced Booking experiences.

Payback Period: Determine the payback period by dividing the initial investment by the
annual savings or revenue. The payback period is the time it takes for the project to
recoup its initial investment.

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Break-Even Analysis:

Fixed Costs: List all fixed costs associated with the online bidding project, such as initial
setup costs, salaries of support staff, and maintenance costs.

Variable Costs: Identify variable costs that change with usage, such as subscription fees
for software or cloud services.

Total Costs: Calculate the total costs (fixed + variable) over a specific period.

Revenue/Savings Per Unit: Estimate the revenue or savings generated per unit of
measure (e.g., per bid).

Break-Even Point: Calculate the break-even point, which is the number of units needed
to cover the total costs. The break-even point is where total revenue or savings equals
total costs.

Example Calculation:

Initial Investment Costs:

Hardware: Rs 50,000

Software: Rs 20,000

Installation: Rs 10,000

Training: Rs 5,000

Total Initial Investment: Rs 85,000

Annual Savings/Revenue:

Reduced Costs: Rs 15,000

Savings on Communication: Rs 10,000

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Increased Efficiency: Rs 5,000

Total Annual Savings: Rs 30,000

Payback Period:

Payback Period= Rs85,000 / Rs30,000 = 2.83 years

Break-Even Analysis:

Fixed Costs: Rs 85,000

Variable Costs: Rs 100 per bid

Revenue/Savings per bid: Rs 300

Break-Even Point (number of bidder):

Break-Even Point= Rs85,000 Rs300 - Rs100 = 425 bidder

2.2.3 Operational Feasibility

Stakeholder Coordination

 Coordination with event organizer, bidder, and sponsor companies is crucial.

Establishing these relationships can be challenging but feasible with a dedicated
partnership team.

Scalability

 The system must handle varying loads efficiently. Using cloud infrastructure
ensures scalability, though this requires careful planning and resource
management.

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User Adoption

 Ensuring the system meets user needs and provides a reliable service will drive
adoption. User feedback loops and continuous improvement are essential for
long-term operational success.

2.2.4 Schedule Feasibility

Schedule feasibility assesses whether the proposed timeline for implementing the online
bidding system project is realistic and achievable. It involves evaluating the project's
milestones, resource allocation, and potential risks to ensure that the project can be
completed on time

Phase 1: Planning (10 days)

 Define project scope and objectives.

 Conduct feasibility studies.
 Develop project plan and timeline.
 Allocate resources and budget.

Phase 2: Development (30 days)

 Procure necessary hardware and software.

 Develop or configure online bidding system.
 Integrate with existing systems.

Phase 3: Testing (15 days)

 Conduct pilot testing in a few bidding process.

 Gather feedback and identify issues
 Make necessary adjustments

Phase 4: Training (5 days)

 Develop training materials and programs

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 Conduct training sessions for bidder and staff
 Provide ongoing support during the transition

Phase 5: Implementation (10 days)

 Roll out the bidding system to all users

 Monitor initial usage and address any issues
 Gather feedback for continuous improvement

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2.2.4.1 Gantt chart

A Gantt chart is a visual representation of a project schedule. It provides a clear overview

of tasks, their start and end dates, and the overall project timeline. This bar chart format
makes it easy to identify dependencies, milestones, and potential bottlenecks.

GANTT CHART
2/1/2024 2/11/2024 2/21/2024 3/2/2024 3/12/2024 3/22/2024 4/1/2024 4/11/2024

Planning

Development

Testing

Training

Implementation

Figure 2. 2 : Gantt Chart

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 CHAPTER 3 - SYSTEM DESIGN

3.1- DFD (Data flow diagram)

A Data Flow Diagram (DFD) is a graphical representation of the flow of data within a
system. It visually maps out how data is input, processed, stored, and output. DFDs are
essential for understanding the logic of a system without getting bogged down in
implementation details.

Figure 3. 1 : Level 0 DFD

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Figure 3. 2 : Level 1 DFD

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Figure 3. 3 : Level 2 DFD

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3.2 ER Diagram and Relational table

An ERD is a visual representation of the relationships between entities within a database.

It's a blueprint for designing databases, helping to understand the structure and
organization of data.

Figure 3. 4 : ER-Diagram

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A relational table is a fundamental structure in a relational database. It consists of rows
and columns, where each row represents a record and each column represents an attribute
or field.

Bidder

Place bid Get Bid Result Signup Login

varchar varchar varchar varchar

Administrator

Validate Registration Approve

varchar varchar varchar

Evaluator

Get Bid Provide Bid Results

varchar varchar

Figure 3. 5 : Relational Table

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3.3 Class diagram

A class diagram is a static structural diagram in UML (Unified Modeling Language) that
describes the structure of a system by showing the system's classes, their attributes,
operations (or methods), and the relationships among objects.

Figure 3. 6 : Class Diagram

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3.4 Sequence Diagram

A sequence diagram is a type of interaction diagram that shows how objects interact with
each other over time. It depicts the flow of messages between objects, emphasizing the
order in which the messages occur.

Figure 3. 7 : Sequence Diagram

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3.5 State Diagram

A state diagram, also known as a state machine diagram, is a visual representation of the
possible states of a system or object and the transitions between those states. It's
particularly useful for modeling the behavior of reactive systems that respond to external
events.

Figure 3. 8 : State Diagram

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 CHAPTER 4 - CONCLUSION

4.1 Conclusion
The “Online Bidding” was successfully designed and is tested for accuracy and quality.
During this project we have accomplished all the objectives and this project meets the
needs of the organization. The developed will be used in searching, retrieving and
generating information for the concerned requests.

4.2 Enhancements

Future enhancements may include:

 AI can be used to create intelligent bidding assistants that suggest bids based on
user preferences, market analysis, and real-time data.
 Integrating gamification elements like leaderboards and progress bars can
increase user engagement and make the bidding process more interactive.
 Employing machine learning algorithms can help identify and prevent suspicious
bidding activity, ensuring fair competition.
 Integrating with translation services and international payment systems can
expand the reach of online auctions to a wider audience.

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 REFERENCES

[1]. Bichler M. An experimental analysis of multiattribute auctions. Decision Support

Systems, 2000, 29(3): 249- 268.

[2]. Sandholm T. Approaches to winner determination in combinatorial auctions.

Decision Support Systems, 2000, 28(1-2): 165-176.

[3]. Ren C. Research and Design of Online Auction System Based on the Campus
Network Using UML. In 2009 Second Pacific-Asia Conference on Web Mining and
Web-based Application, 6-7 June 2009, pp. 129-133

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