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Reputation-based winner determination problem for combinatorial transportation procurement auctions

Author

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  • M Rekik

    (1] Interuniversity Research Center on Enterprise Networks, Logistics and, Transportation (CIRRELT), Quebec, Canada[2] Department of Operations and Decision Systems, Université Laval, Québec, Canada)

  • S Mellouli

    (1] Research and Transfer Center on Enterprise Architecture, Quebec, Canada[2] Department of Information Systems, Université Laval, Québec, Canada)

Abstract

This paper proposes a reputation-based winner determination problem for transportation procurement auctions where the allocation of long-term contracts to carriers is decided with respect to both bid ask-prices and carriers reputation. The objective is to manage the trade-off between transport costs and the quality of service during operations. Carriers reputation is translated into unexpected hidden cost that represents the possible additional cost that the shipper may incur when dealing with a set of winning carriers. This cost depends essentially on the carriers reputation as evaluated by the shipper running the auction. To evaluate carriers reputations, the shipper uses a number of service attributes with different weights depending on shipping contracts.

Suggested Citation

  • M Rekik & S Mellouli, 2012. "Reputation-based winner determination problem for combinatorial transportation procurement auctions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(10), pages 1400-1409, October.
    • Handle: RePEc:pal:jorsoc:v:63:y:2012:i:10:p:1400-1409
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    Citations

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    Cited by:

    1. Acocella, Angela & Caplice, Chris & Sheffi, Yossi, 2020. "Elephants or goldfish?: An empirical analysis of carrier reciprocity in dynamic freight markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    2. Jothi Basu, R. & Bai, Ruibin & Palaniappan, PL.K., 2015. "A strategic approach to improve sustainability in transportation service procurement," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 152-168.
    3. Dellbrügge, Marius & Brilka, Tim & Kreuz, Felix & Clausen, Uwe, 2022. "Auction design in strategic freight procurement," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 295-325, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    4. Xiaohu Qian & Mingqiang Yin & Felix T. S. Chan & Kai Yue, 2023. "Winner Determination with Sustainable-Flexible Considerations Under Demand Uncertainty in Transportation Service Procurement Auctions," Networks and Spatial Economics, Springer, vol. 23(4), pages 953-984, December.
    5. Triki, Chefi & Oprea, Simona & Beraldi, Patriza & Crainic, Teodor Gabriel, 2014. "The stochastic bid generation problem in combinatorial transportation auctions," European Journal of Operational Research, Elsevier, vol. 236(3), pages 991-999.
    6. Sijing Deng & Jiayan Xu, 2020. "Ex ante and Ex post Subcontracting between Two Competing Bidders," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(01), pages 1-22, January.
    7. Feki, Yassin & Hajji, Adnène & Rekik, Monia, 2016. "A hedging policy for carriers’ selection under availability and demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 149-165.
    8. Izdebski, Mariusz & Jacyna-Gołda, Ilona & Gołda, Paweł, 2022. "Minimisation of the probability of serious road accidents in the transport of dangerous goods," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    9. 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).
    10. 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.
    11. 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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