Approximation algorithms for the bid construction problem in combinatorial auctions for the procurement of freight transportation contracts

Song, Jiongjiong; Regan, Amelia

doi:10.1016/j.trb.2004.11.003

Cited by 94 publications

(40 citation statements)

References 21 publications

(13 reference statements)

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“…Besides these studies, there have been numerous attempts to determine algorithms to solve this type of NP-hard problem [28]. Caplice [29] proposed some heuristic algorithms to assist carriers in generating open loop tours, closed loop tours, inbound/outbound reload packages, and short haul packages using expected savings based on historical load volumes.…”

Section: Literature Reviewmentioning

confidence: 99%

Transportation Service Procurement Bid Construction Problem from Less Than Truckload Perspective

Yan

et al. 2018

Mathematical Problems in Engineering

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This paper presents mixed integer programming for a transportation service procurement bid construction problem from a less than full truckload perspective, in which the bidders (carriers) generate their best bid (package) using a bundled price to maximize their utility and increase the chance of winning the business. The models are developed from both the carriers and shippers perspectives to establish a relationship between the quoted price and the likelihood of winning to assist the carriers in balancing the potential benefits and the possibility of winning the bid. An intelligent algorithm based on Particle Swarm Optimization is then designed to solve the proposed model and hypothetical data sets are used to test the effectiveness and efficiency of the proposed model and algorithm.

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Section: Literature Reviewmentioning

confidence: 99%

Transportation Service Procurement Bid Construction Problem from Less Than Truckload Perspective

Yan

et al. 2018

Mathematical Problems in Engineering

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“…Over the last decade, a large emphasis on advances in transportation industry has been put on collaboration efforts of shipper-shipper [6], carrier-carrier [7,8] and shipper-carrier [9] types. The main reason is the significant amount of empty trips leading to additional costs and higher rates for carriers, hence the constant struggle to maintain profitability.…”

Section: City Logistics and Digital Marketplacesmentioning

confidence: 99%

“…alternatively, combinatorial auctions deal with multiple items put out for bidding where bidders can bid on combinations of these items. These, in the transportation industry [11], are used for procurement of long-term contracts for serving packages of lanes [8,[12][13][14][15][16][17]. In case of transportation industry and an online marketplace negotiation scenario the items put out to bid are lanes or loads with specified demands.…”

Section: City Logistics and Digital Marketplacesmentioning

confidence: 99%

Towards sustainable urban logistics: The evolution of digital marketplace

Giordani¹,

Archetti²,

Djordjević³

et al. 2017

Int. J. TDI

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Many existing industrial solutions for transportation services assume tightly controlled optimization scenarios where the price does not take a centre role, yet these models heavily rely on long-term business relationships between shippers and carriers. a number of solutions have been proposed for auction-based marketplaces with market-clearing property models, where supply and demand dictate the price and through innovation and improve transparency and efficiency. The overall objectives of these efforts are aimed at finding a balance that assures maximizing capital efficiency, maximizing customer satisfaction and minimizing logistical complexity, hence maximizing scalability. Some uberlike experiences have recently emerged, introducing fresh perspectives and putting back the spotlight on the potential of digital markets in transportation industry.In this article, we take a look at how the ideas of digital marketplaces have evolved over time and specifically consider how the lessons learned can be applied in last-mile urban logistics. We also present a prototype marketplace for urban city logistics and draw initial conclusions. Keywords: auctions in freight, digital marketplace, last-mile urban logistics, multi-attribute auctions1 INTrODucTION even in an industry like trucking which is quite resistant to innovation and modernization, the latest era of easily available and always connected gPS-enabled smartphones is reshaping existing ideas and transport practices. by leveraging truck drivers' smartphones easier, faster and more direct iteration is enabled between the drivers and nearby companies in need of shipping services. This market liberalization assumes skipping classical brokers and uses an online service acting as a digital broker: this solution gives autonomy also to small trucking firms and independent truckers, while enabling shorter response time, more efficient routes to pick up and delivery and a better payload.The idea of transportation marketplaces is not new, but the rise of Internet sites and the tech industry 15 years ago had brought a number of start-ups, attempting to modernize the way shippers and carriers worked together. They failed mainly due to the lack of understanding of how the market worked, empowering the shipper and discouraging the carriers with the goal simply driving down the cost for the shipper.The difference is that this time around the new solutions are built not aside but around basic concept of transportation being a relationship-based business. Indeed, trusted relationships are crucial as they also impact customer service and satisfaction which translates to shipper's brand and reputation. It is why the vast majority of freight is still being transported by contracted carriers and does not use the spot market. This is the reason why the newest solutions [1] don't exclude having 'preferred carriers' in order to solve the inefficiency and division of the local trucking industry in urban last-mile logistics. This time around the emphasis is on having a balanced add...

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“…However, combinatorial auctions involve many inherently difficult problems. As mentioned in Song and Regan (2005), we face the bid construction problem, where bidders have to compute bids over different job combinations; and the winner determination problem, where jobs have to be allocated among a group of bidders. In addition, we face the profit sharing problem (Krajewska and Kopfer 2006) and these procedures might not be directly applicable in situations where jobs arrive at different points in time.…”

Section: Model Of the Transportation Marketmentioning

confidence: 99%

Interaction between intelligent agent strategies for real-time transportation planning

Mes

Heijden

Schuur

2011

Cent Eur J Oper Res

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In this paper we study the real-time scheduling of time-sensitive full truckload pickup-and-delivery jobs. The problem involves the allocation of jobs to a fixed set of vehicles which might belong to different collaborating transportation agencies. A recently proposed solution methodology for this problem is the use of a multi-agent system where shipper agents offer jobs through sequential auctions and vehicle agents bid on these jobs. In this paper we consider such a system where both the vehicle agents and the shipper agents are using profit maximizing look-ahead strategies. Our main contribution is that we study the interrelation of these strategies and their impact on the system-wide logistical costs. From our simulation results, we conclude that the system-wide logistical costs (i) are always reduced by using the look-ahead strategies instead of a myopic strategy (10-20%) and (ii) the joint effect of two look-ahead strategies is larger than the effect of an individual strategy. To provide an indication of the savings that might be realized under centralized decision making, we benchmark our results against an integer programming approach.

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Approximation algorithms for the bid construction problem in combinatorial auctions for the procurement of freight transportation contracts

Cited by 94 publications

References 21 publications

Transportation Service Procurement Bid Construction Problem from Less Than Truckload Perspective

Transportation Service Procurement Bid Construction Problem from Less Than Truckload Perspective

Towards sustainable urban logistics: The evolution of digital marketplace

Interaction between intelligent agent strategies for real-time transportation planning

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