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Bid price optimization for truckload carriers in simultaneous transportation procurement auctions

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  • Kuyzu, Gültekin
  • Akyol, Çağla Gül
  • Ergun, Özlem
  • Savelsbergh, Martin

Abstract

We study simultaneous transportation procurement auctions from a truckload carrier’s perspective. We formulate a stochastic bid price optimization model aimed at maximizing the carrier’s expected profit. The model accounts for synergies among lanes and competing carriers’ bid patterns. We develop an iterative coordinate search algorithm to find high-quality solutions. The benefits of employing the bid price optimization technology are demonstrated through computational experiments involving a simulated marketplace.

Suggested Citation

  • Kuyzu, Gültekin & Akyol, Çağla Gül & Ergun, Özlem & Savelsbergh, Martin, 2015. "Bid price optimization for truckload carriers in simultaneous transportation procurement auctions," Transportation Research Part B: Methodological, Elsevier, vol. 73(C), pages 34-58.
    • Handle: RePEc:eee:transb:v:73:y:2015:i:c:p:34-58
    DOI: 10.1016/j.trb.2014.11.012
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    References listed on IDEAS

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    Cited by:

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    4. Xu, Su Xiu & Cheng, Meng & Huang, George Q., 2015. "Efficient intermodal transportation auctions for B2B e-commerce logistics with transaction costs," Transportation Research Part B: Methodological, Elsevier, vol. 80(C), pages 322-337.
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    8. Kangye Tan & Fang Xu & Xiaozhao Fang & Chunsheng Li, 2023. "Research on Location Selection for Urban Networks of Less-than-Truckload Express Enterprises Based on Improved Immune Optimization Algorithm," Mathematics, MDPI, vol. 11(6), pages 1-20, March.
    9. Hammami, Farouk & Rekik, Monia & Coelho, Leandro C., 2021. "Exact and hybrid heuristic methods to solve the combinatorial bid construction problem with stochastic prices in truckload transportation services procurement auctions," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 204-229.
    10. Clavijo López, Christian & Crama, Yves & Pironet, Thierry & Semet, Frédéric, 2024. "Multi-period distribution networks with purchase commitment contracts," European Journal of Operational Research, Elsevier, vol. 312(2), pages 556-572.
    11. Gansterer, Margaretha & Hartl, Richard F. & Savelsbergh, Martin, 2020. "The value of information in auction-based carrier collaborations," International Journal of Production Economics, Elsevier, vol. 221(C).
    12. Park, Arim & Chen, Roger & Cho, Soohyun & Zhao, Yao, 2023. "The determinants of online matching platforms for freight services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
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    14. Bin Qiao & Shenle Pan & Eric Ballot, 2016. "Less-than-truckload Dynamic Pricing Model in Physical Internet," Post-Print hal-01326416, HAL.
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    16. Mesa-Arango, Rodrigo & Ukkusuri, Satish V., 2015. "Demand clustering in freight logistics networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 36-51.

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