Design of Combinatorial Auctions for Allocation and Procurement Processes

Schwind, Michael

doi:10.1109/icect.2005.36

Cited by 11 publications

(10 citation statements)

References 19 publications

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“…At this point, we will not discuss the game theory implications concerning truthful bidding and incentive compatibility, because the delivery costs that provide the basis for the formation of the bid prices in each profit center are calculated solely by the DynaRoute server and are therefore difficult to manipulate (Schwind 2005). Figure 10 illustrates three ComEx clients generating combinatorial bids (B i , p i ) with bid prices p i (represented by squares) for cluster bundle B i (represented by ovals) and send them to the ComEx server.…”

Section: (C) Validation Processmentioning

confidence: 99%

“…Combinatorial auctions are increasingly gaining influence as an allocation method for industrial procurement and distribution processes (Schwind 2005). Typical domains are supply chain management, resource allocation in distributed computer systems, and exchanges for logistics services (Stockheim and Schwind 2004;Schwind et al 2006).…”

Section: Combinatorial Auctions For Logistics Exchangesmentioning

confidence: 99%

“…However, our combinatorial auction approch encounters some severe problems that have to be solved in order to achieve this result. Four major issues have been identified as being critical for the application of combinatorial auctions (Schwind 2005):…”

Section: Introductionmentioning

confidence: 99%

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A combinatorial intra-enterprise exchange for logistics services

Schwind

Gujo

Vykoukal

2008

Inf Syst E-Bus Manage

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The exchange of cargo capacities is a well established approach in logistics. However, only few logistics marketplaces are able to take into consideration synergies that can be generated by combining different transportation routes of different logistics carrierps. In order to exploit these synergies, we designed and implemented the combinatorial exchange mechanism ComEx for the intra-enterprise exchange of delivery orders in a logistics company organized in a profit center structure. Each profit center is able to release delivery orders to an adjacent profit center if the geographic locations of the customers allow for a reduced-cost delivery by the adjacent profit center. We demonstrate that by using the ComEx mechanism, the total cost of transportation of our logistics company can be reduced by up to 14%. Since our iterative auction mechanism is very complex and therefore resourceintensive, we reduce the complexity by applying a convex hull approach combined with a distance-based cost estimator.

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Section: (C) Validation Processmentioning

confidence: 99%

Section: Combinatorial Auctions For Logistics Exchangesmentioning

confidence: 99%

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A combinatorial intra-enterprise exchange for logistics services

Schwind

Gujo

Vykoukal

2008

Inf Syst E-Bus Manage

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“…This is the case in domains like supply chain management scheduling, procurement or logistics (Schwind 2005). One application of CAs in the sector of logistics is to use them for the exchange of transportation capacities while taking the synergies that are generated by the appropriate allocation of bundles of transportation tasks to different carriers into consideration .…”

Section: Case 3: Combinatorial Auctionsmentioning

confidence: 99%

Standardizing Interactive Pricing for Electronic Business

Schwind¹,

Hinz²,

Stockheim³

et al. 2008

REMA

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A b s t r a c tInteractive pricing, the subset of dynamic pricing where buyers and sellers enter a computer mediated price-negotiation process, has stimulated academic interest ever since the introduction of Internet-related B2C and B2B applications. However, this has not yet led to the widespread use of standardized interactive pricing mechanisms within industrial applications. A recent study suggests that applicants expect the integration of interactive pricing mechanisms into existing IT infrastructure to be very costly due to high customization efforts. The standardization of interactive pricing should thus be a first step towards enabling a wider use of these mechanisms. Building on the classification of the range of dynamic pricing methods, we analyze existing business standards that should be capable of describing interactive pricing mechanisms. Our analysis reveals the shortcomings of recent business standards which therefore require the development of an enhanced model for interactive pricing applications. Addressing this issue we propose a model that integrates a price communication language with a process description format for the customization of interactive pricing mechanisms. The paper concludes with three case studies illustrating the use of our model.

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“…For each atomic bid b i j a request is sent to the DynaRoute server to determine the delivery costs associated with this bid. At this point, the game-theoretical implications concerning truthful bidding and incentive compatibility will not be discussed, because the delivery costs that provide the basis for the formation of the bid prices in each logistics service provider are calculated solely by the DynaRoute server and are therefore difficult to manipulate [12].…”

Section: ) Utility Factor For Customersmentioning

confidence: 99%

Multi-attribute Inter-enterprise Exchange of Logistics Services

Gujo¹

2008

2008 10th IEEE Conference on E-Commerce Technology and the Fifth IEEE Conference on Enterprise Computing, E-Commerce and E-Serv

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The exchange of inter-enterprise and intraenterprise logistics services in the transport logistics sector has recently become more important. Nevertheless, only a few approaches are able to take into consideration the synergy effects between the customer orders in the case of the outsourcing process and the preferences of customers. In this article, an approach is introduced which offers a solution based on combinatorial auctions and multi-attribute bid formation, considers tradeoffs between an optimum allocation of customer orders and a maximum fulfillment of customer preferences in accordance with the strategy of the enterprise, and provides a customer satisfaction index in order to optimize a strategy of logistics service providers in terms of customer loyalty. The simulation results show that the consideration of customer preferences has a significant influence on savings, and that it is also possible to increase the number of fulfilled customer preferences without a significant reduction of savings. I. INTRODUCTIONIncreasing competitive pressure and cost pressure demand new strategies of logistics service providers (or enterprises). On the one hand, the delivery costs have to be reduced, on the other hand, customer preferences have to be met in order to achieve customer loyalty and to hold market position. To solve this problem, logistics service providers participate in various electronic exchanges in order to exchange unfavorable delivery orders and to reduce delivery costs. Only a few approaches are able to take into consideration the synergy effects between the customer delivery orders in case of the outsourcing process and the preferences of the customers. In this article, an approach is introduced which offers a solution based on combinatorial auctions and multi-attribute bid formation, and concentrates on finding the trade-off between an optimum allocation of customer delivery orders and a maximum allowance of customer preferences in accordance with the strategy of logistics service providers. The optimal allocation of delivery tasks helps the logistics services providers to reduce their delivery costs, whereas customer satisfaction indirectly helps to maximize the logistics services providers' return by increasing customer loyalty. The appropriate combination of these two factors is crucial to the exchange model presented here.The paper is organized as follows: In section II, an overview of the literature on multi-attribute auctions and combinatorial auctions is presented. In section III, an overview of the functional principle of ComEx exchange, the interaction between

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Design of Combinatorial Auctions for Allocation and Procurement Processes

Cited by 11 publications

References 19 publications

A combinatorial intra-enterprise exchange for logistics services

A combinatorial intra-enterprise exchange for logistics services

Standardizing Interactive Pricing for Electronic Business

Multi-attribute Inter-enterprise Exchange of Logistics Services

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