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Transportation service procurement problem with transit time

Author

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  • Hu, Qian
  • Zhang, Zhenzhen
  • Lim, Andrew

Abstract

In this work, we investigate transit time in transportation service procurement, which is conducted by shippers using auctions to purchase transportation service from carriers in the planning stage. Besides cost, we find that many shippers are most concerned with transit time in practice; shorter transit time indicates better transportation service. To minimize both the total cost and transit time, the problem faced by shippers is the biobjective transportation service procurement problem with transit time. To solve the problem, we introduce a biobjective integer programming model that can also accommodate some important business constraints. A biobjective branch-and-bound algorithm that finds all extreme supported nondominated solutions is developed. To speed up the algorithm, two fast feasibility checks, a network flow model for particular subproblems, and lower bounds from relaxation are proposed. In addition, a sophisticated heuristic is introduced to meet shipper’s requirements in some situations. Computational experiments on evaluating the performance of the algorithms are conducted on a set of test instances that are generated from practical data.

Suggested Citation

  • Hu, Qian & Zhang, Zhenzhen & Lim, Andrew, 2016. "Transportation service procurement problem with transit time," Transportation Research Part B: Methodological, Elsevier, vol. 86(C), pages 19-36.
    • Handle: RePEc:eee:transb:v:86:y:2016:i:c:p:19-36
    DOI: 10.1016/j.trb.2016.01.007
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    Citations

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    Cited by:

    1. Chung‐Yee Lee & Shengnan Shu & Zhou Xu, 2021. "Optimal Global Liner Service Procurement by Utilizing Liner Service Schedules," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 703-714, March.
    2. Wang, Junjin & Liu, Jiaguo & Zhang, Xin, 2020. "Service purchasing and market-entry problems in a shipping supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    3. Khurana, Archana & Adlakha, Veena & Lev, Benjamin, 2018. "Multi-index constrained transportation problem with bounds on availabilities, requirements and commodities," Operations Research Perspectives, Elsevier, vol. 5(C), pages 319-333.
    4. Fang Yang & Yao-Huei Huang, 2021. "An optimization approach for winner determination problem considering transportation cost discounts," Journal of Global Optimization, Springer, vol. 80(3), pages 711-728, July.
    5. Zhang, Juliang & Xiang, Jie & Cheng, T.C. Edwin & Hua, Guowei & Chen, Cheng, 2019. "An optimal efficient multi-attribute auction for transportation procurement with carriers having multi-unit supplies," Omega, Elsevier, vol. 83(C), pages 249-260.
    6. Zhang, Li-Hao & Liu, Chunxiao & Zhang, Cheng & Wang, Shanshan, 2023. "Upstream encroachment and downstream outsourcing in competing shipping supply chains," International Journal of Production Economics, Elsevier, vol. 255(C).
    7. Yu, Hao & Huang, Min & Chao, Xiuli & Yue, Xiaohang, 2022. "Truthful multi-attribute multi-unit double auctions for B2B e-commerce logistics service transactions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    8. Guo, Jiantao & Zhang, Juliang & Cheng, T.C.E. & Zhao, Shouting, 2022. "Truthful double auction mechanisms for online freight platforms with transaction costs," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 164-186.
    9. Aghdas Badiee & Hamed Kalantari & Chefi Triki, 2023. "Leader-based diffusion optimization model in transportation service procurement under heterogeneous drivers’ collaboration networks," Annals of Operations Research, Springer, vol. 322(1), pages 345-383, March.
    10. Lafkihi, Mariam & Pan, Shenle & Ballot, Eric, 2019. "Freight transportation service procurement: A literature review and future research opportunities in omnichannel E-commerce," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 348-365.

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