Abstract:One of the key issues in transportation systems is allocating shipping orders to the most appropriate drivers, in the shortest time and with the maximum profit. Many studies were carried out in the transportation service procurement process for allocating orders, but none of them considered driver-to-driver interactions and applied information diffusion concepts as a framework to maximize the profit, due to the lack of a framework to model the interactions. In this paper, we present a weighted drivers' collabo… Show more
“…Collaboration among the parties is common in transportation research [71]. Carriers can collaborate to construct a feasible bid for their profit maximization.…”
This paper conducts a literature review on freight transport service procurements (FTSP) and explores the application of combinatorial auctions (CAs) mechanism and the mathematical modeling approach of the associated problems. It provides an overview of modeling the problems and their solution strategies. The results demonstrate that there has been limited scholarly attention to sustainable issues, risk mitigation and the stochastic nature of parameters. Finally, several promising future directions for FTSP research have been proposed, including FTSP for green orientation in the context of carbon reduction, shipper's reputation, carrier collaboration for bid generation, etc.INDEX TERMS Literature review, combinatorial auction, FTSP problems, mathematical modeling, logistics and supply chain management.
“…Collaboration among the parties is common in transportation research [71]. Carriers can collaborate to construct a feasible bid for their profit maximization.…”
This paper conducts a literature review on freight transport service procurements (FTSP) and explores the application of combinatorial auctions (CAs) mechanism and the mathematical modeling approach of the associated problems. It provides an overview of modeling the problems and their solution strategies. The results demonstrate that there has been limited scholarly attention to sustainable issues, risk mitigation and the stochastic nature of parameters. Finally, several promising future directions for FTSP research have been proposed, including FTSP for green orientation in the context of carbon reduction, shipper's reputation, carrier collaboration for bid generation, etc.INDEX TERMS Literature review, combinatorial auction, FTSP problems, mathematical modeling, logistics and supply chain management.
Continuing advances in modern technologies have transformed the procedure of transportation procurement through auctions in supply chain management (SCM). This study examines the online combinatorial auction (CA), which serves customers placed at the nodes of a transportation network, with particular consideration given to carbon emissions. The CA mechanism allows early shipments of the carriers to improve their load consolidation and reduce their repositioning trips. Sustainability and carbon emissions are considered by prioritizing the carrier’s carbon reduction performances. Two models are examined under the carbon emission regulations (Carbon tax and Cap-and-offset) to choose the winners in the CA. Our aim is to minimize the cost of transportation procurement and reduce carbon emissions by incorporating the green reputation-based winner determination problem within the procurement model. Computational experiments reveal the positive impact of prioritization and discounted offers in reducing both transportation costs and the number of empty trips. Indeed, our results show the introduction of the discounted bids allows a reduction of about 2% in the transportation cost for the shipper and 24% of empty movements, on average, for the carriers.
Companies are constantly looking for new strategies to improve their logistics performance and ensure their competitiveness in the global market. This article provides a new scheme for managing the selection of shared customers for a logistics company. The new mechanism proposes the use of the auction as a tool to manage the selection of shared clients through the coalition pool. Thus, all unprofitable shared customers will be pushed to the pool for outsourcing by the other collaborating carriers. Then, some profitable auctioned ones will be selected. The selection system is designed based on solving a vehicle routing problem that aims to maximize the carrier's profit in a decentralized context. At first, a mixed integer linear programing model is derived to solve the deterministic version of the problem. Then in order to efficiently address the stochastic version of the problem, a simulation-based optimization model is developed. This model is employed to solve a real case study of a parcel delivery company, considering the travel times as a bimodal distribution. A comparative study is conducted to demonstrate the effectiveness of the auction approach in managing shared customers. The results of our study reveal that the proposed auction approach efficiently manages the shared customers which leads to the substantial increase of 22.65% in profits for the delivery company. These findings have significant implications for logistics companies seeking to improve their performance and competitiveness in the global market.
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