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Modeling the Pre Auction Stage The Truckload Case

In: Innovations in Distribution Logistics

Author

Listed:
  • Gianfranco Guastaroba

    (Department of Quantitative Methods)

  • Renata Mansini

    (Department of Electronics for Automation)

  • M Grazia Speranza

    (Department of Quantitative Methods)

Abstract

Summary In transportation service procurement, shipper and carriers cost functions for serving a pair of origin-destination points, usually called lanes, are highly dependent on the opportunity to serve neighboring lanes. Traditional single-item auctions do not allow to capture this type of preferences. On the contrary, they are perfectly modeled in combinatorial auctions where bids on bundles of items are allowed. In transportation service procurement the management of a combinatorial auction can be seen as a three-stage process. Each stage involves several complex decision making problems. All such problems have relevant practical implications but only some of them have received attention in the literature. In the present paper we focus on the pre-auction stage for transportation procurement. In particular, we analyze the problem of a shipper who has to decide between undertaking and/or outsourcing (through an auction) his transportation requests. The problem has never been analyzed before.We propose two different models for the problem in the truckload case and provide their computational comparison on randomly generated instances.

Suggested Citation

  • Gianfranco Guastaroba & Renata Mansini & M Grazia Speranza, 2009. "Modeling the Pre Auction Stage The Truckload Case," Lecture Notes in Economics and Mathematical Systems, in: Jo A.E.E. Nunen & M. Grazia Speranza & Luca Bertazzi (ed.), Innovations in Distribution Logistics, chapter 11, pages 219-233, Springer.
    • Handle: RePEc:spr:lnechp:978-3-540-92944-4_11
    DOI: 10.1007/978-3-540-92944-4_11
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    Citations

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    Cited by:

    1. Yang, Fang & Huang, Yao-Huei, 2020. "Linearization technique with superior expressions for centralized planning problem with discount policy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 542(C).
    2. Colombi, Marco & Mansini, Renata, 2014. "New results for the Directed Profitable Rural Postman Problem," European Journal of Operational Research, Elsevier, vol. 238(3), pages 760-773.
    3. 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).
    4. 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.
    5. Ávila, Thais & Corberán, Ángel & Plana, Isaac & Sanchis, José M., 2016. "A branch-and-cut algorithm for the profitable windy rural postman problem," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1092-1101.
    6. 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.

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