Winner Determination with Sustainable-Flexible Considerations Under Demand Uncertainty in Transportation Service Procurement Auctions

An Effective Two-Stage Algorithm for the Bid Generation Problem in the Transportation Service Market

“…To address this challenge, by considering both winning probability and conditional profit, Tan et al [10] broadened standard auction models by introducing the Cobb-Douglas function, enabling a more intricate evaluation of bidder preferences. Owing to the great complexity of BGPs in nature, most research has considered various factors such as capacity [7], auction game strategy [8], route optimization and collaborative transportation [5,6,9], bi-level programming and bundle generation problems (BuGP) [11,12], the online combinatorial auction (CA) [13,14], truckload (TL) transportation [5,[15][16][17], and fourth-party logistics (4PL) [18,19].…”

“…To alleviate these risks, a novel two-phase stochastic winner determination model is introduced, incorporating a comprehensive hybrid mitigation approach that encompasses reinforcement, reservation, and external option strategies. Furthermore, drawing upon a multifaceted decision-making approach, Qian et al [19] formulated linear constraints tailored to each bidder's sustainability and flexibility metrics. Subsequently, they seamlessly integrated an external option policy into their framework, de-veloping a sophisticated two-phase stochastic model that accurately determines sustainable and flexible winners.…”