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An iterative auction for carrier collaboration in truckload pickup and delivery

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  • Lai, Minghui
  • Cai, Xiaoqiang
  • Hu, Qian

Abstract

While carriers can collaborate to reduce empty traveling miles in truckload shipping, this is difficult to realize because each party is self-interested who may not share his private information that is necessary for the cooperation. In this paper, we propose an iterative auction scheme, which enables carriers to collaborate by exchanging their shipping requests iteratively. The auction is shown to be incentive-compatible, individually rational, budget balanced, monotonic, and convergent. Computational experiments indicate that it has small efficiency loss and can significantly improve carriers’ profits. We also develop two acceleration methods and extend the auction to more general problems.

Suggested Citation

  • Lai, Minghui & Cai, Xiaoqiang & Hu, Qian, 2017. "An iterative auction for carrier collaboration in truckload pickup and delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 60-80.
    • Handle: RePEc:eee:transe:v:107:y:2017:i:c:p:60-80
    DOI: 10.1016/j.tre.2017.09.006
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    Cited by:

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    3. Gómez-Marín, Cristian Giovanny & Comi, Antonio & Serna-Urán, Conrado Augusto & Zapata-Cortés, Julián Andrés, 2024. "Fostering collaboration and coordination in urban delivery: a multi-agent microsimulation model," Research in Transportation Economics, Elsevier, vol. 103(C).
    4. Nassim Mrabti & Nadia Hamani & Laurent Delahoche, 2022. "A Comprehensive Literature Review on Sustainable Horizontal Collaboration," Sustainability, MDPI, vol. 14(18), pages 1-38, September.
    5. Guo, Wenjing & Zhang, Yimeng & Li, Wenfeng & Negenborn, Rudy R. & Atasoy, Bilge, 2024. "Augmented Lagrangian relaxation-based coordinated approach for global synchromodal transport planning with multiple operators," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    6. Lyu, Xiaohui & Chen, Haoxun & Wang, Nengmin & Yang, Zhen, 2019. "A multi-round exchange mechanism for carrier collaboration in less than truckload transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 38-59.
    7. Shao, Saijun & Xu, Su Xiu & Huang, George Q., 2020. "Variable neighborhood search and tabu search for auction-based waste collection synchronization," Transportation Research Part B: Methodological, Elsevier, vol. 133(C), pages 1-20.
    8. Xiao, Fei & Wang, Haijun & Guo, Shuojia & Guan, Xu & Liu, Baoshan, 2021. "Efficient and truthful multi-attribute auctions for crowdsourced delivery," International Journal of Production Economics, Elsevier, vol. 240(C).
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    13. Omar Abbaas & Jose A. Ventura, 2024. "An Iterative Procurement Combinatorial Auction Mechanism for the Multi-Item, Multi-Sourcing Supplier-Selection and Order-Allocation Problem under a Flexible Bidding Language and Price-Sensitive Demand," Mathematics, MDPI, vol. 12(14), pages 1-30, July.
    14. Margaretha Gansterer & Richard F. Hartl, 2020. "Shared resources in collaborative vehicle routing," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(1), pages 1-20, April.

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