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Transportation service procurement in periodic sealed double auctions with stochastic demand and supply

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  • Xu, Su Xiu
  • Huang, George Q.

Abstract

This paper presents a double auction model to study transportation service procurement (TSP) in a dynamic single-lane transportation environment. Although this paper is motivated by a third-party logistics e-marketplace, the underlying model is applicable in the general bilateral exchange contexts. We first address TSP in a transportation spot market with stochastic but balanced or “symmetric” demand and supply. A periodic sealed double auction (PSDA) is proposed for TSP. Using a packing approach that considers possible bids and/or asks in an integral manner, we then devise a modified PSDA (M-PSDA) to address TSP with “asymmetric” demand and supply.

Suggested Citation

  • Xu, Su Xiu & Huang, George Q., 2013. "Transportation service procurement in periodic sealed double auctions with stochastic demand and supply," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 136-160.
    • Handle: RePEc:eee:transb:v:56:y:2013:i:c:p:136-160
    DOI: 10.1016/j.trb.2013.07.015
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