Skip to main content
SpringerLink
Log in

Location-based techniques for the synergy approximation in combinatorial transportation auctions

  • Original Paper
  • Published:
Optimization Letters Aims and scope Submit manuscript

Abstract

The use of combinatorial auctions for the procurement of transportation services is investigated in this paper. We focus on the carrier viewpoint who is interested in submitting to the auction a selected bundle of loads that avoids some of the empty movement of the vehicles in his transportation network and that increases his profits. For this purpose we develop an optimization approach based on the use of the location techniques, usually used in the context of facility planning. Mathematically, this means maximizing the synergy among the bundle’s auctioned loads from one side and between the auctioned and the pre-existing loads from the other side. We show the validity of our approach by using first an illustrative example and then by applying it to solve a real-life problem related to a logistics company installed in the Arabic Gulf region.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8

Similar content being viewed by others

References

  1. An, N., Elmaghraby, W., Keskinocak, P.: Bidding strategies and their impact on revenues in combinatorial auctions. J. Revenue Pricing Manag. 3(4), 337–357 (2005)

    Article  Google Scholar 

  2. Caplice, C.: An optimization based bidding process: a new framework for shipper-carrier relationships, Ph.D. Thesis, Department of Civil and Environmental Engineering, School of Engineering, MIT (1996)

  3. Chang, T.S.: Decision support for truckload carriers in one-shot combinatorial auctions. Transp. Res. Part B 43, 522–541 (2009)

    Article  Google Scholar 

  4. Daskin, M.S.: Network and discrete location: models. In: Algorithms and Application, 2nd edn. Wiley, New Jersey (2013)

  5. De Vries, S., Vohra, S.: Combinatorial a uctions: a survey. INFORMS J. Comput. 15(3), 284–309 (2003)

    Article  MathSciNet  MATH  Google Scholar 

  6. Elmaghraby, W., Keskinocak, P.: Combinatorial auctions in procurement. In: Harrison, T.P., Lee, H.L., Neale, J.J. (eds.) The Practice of Supply Chain Management, pp. 245–258. Kluwer, Norwell (2003)

    Google Scholar 

  7. Ergun, O., Kuyzu, G., Savelsbergh, M.: Bid price optimization for simultaneous truckload transportation procurement auctions. In: Georgia Tech, Technical report. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.118.6096&rep=rep1&type=pdf (2007)

  8. Fernandes, I.F., Aloise, D., Aloise, D.J., Hansen, P., Liberti, L.: On the Weber facility location problem with limited distances and side constraints. Optim. Lett. 8(2), 407–424 (2014)

    Article  MathSciNet  MATH  Google Scholar 

  9. Ghiani, G., Manni, E., Triki, C.: The lane covering problem with time windows. J. Discret. Math. Sci. Cryptogr. 11(1), 67–81 (2008)

    Article  MATH  Google Scholar 

  10. Gunluk, O., Ladanyi, L., De Vries, S.: A branch-and-price algorithm and new test problems for spectrum auctions. Manag. Sci. 51(3), 391–406 (2005)

    Article  MATH  Google Scholar 

  11. Hale, T.S., Hale, L.C.: Aggregation technique for location problems with one-dimensional forbidden regions. Int. J. Ind. Eng. Theory Appl. Pract. 7(2), 133–139 (2000)

    MathSciNet  Google Scholar 

  12. Ivanova, E., Stoilov, T.: Solution of optimization continuous centre location problems as web service. In: Proceedings of the International Conference on Computer Systems and Technologies—CompSysTech’06, pp. IIIA.20-1-6. Veliko Tarnovo, Bulgaria (2006)

  13. Kelly, F., Steinberg, R.: A combinatorial auction with multiple winners for universal service. Manag. Sci. 46(4), 586–596 (2000)

    Article  MATH  Google Scholar 

  14. Klamroth, K.: Single-facility location problems with barriers. In: Springer Series in Operations Research. Springer, Berlin (2002)

  15. Kwon, R.H., Lee, C.-G., Ma, Z.: An integrated combinatorial auction mechanism for truckload transportation procurement. In: Working Paper. University of Toronto, Toronto (2005)

  16. Lee, H.L., Neale, J.J. (eds.): The practice of supply chain management, pp. 245–258. Kluwer, Norwell (2003)

  17. Lee, C.-G., Kwon, R.H., Ma, Z.: A carrier’s optimal bid generation problem in combinatorial auctions for transportation procurement. Transp. Res. Part E 43, 173–191 (2007)

    Article  Google Scholar 

  18. Menezes, F.M.: On the optimality of Treasury Bill auctions. Econ. Lett. 49(3), 273–279 (1995)

    Article  MATH  Google Scholar 

  19. Musmanno, R., Scordino, N., Triki, C., Violi, A.: A multistage formulation for gencos in a multi-auction electricity market. IMA J. Manag. Math. 21(2), 165–181 (2010)

    Article  MathSciNet  MATH  Google Scholar 

  20. Rassenti, S.J., Smith, L., Bulfin, R.L.: A combinatorial mechanism for airport time slot allocation. Bell J. Econ. 13, 402–417 (1982)

    Article  Google Scholar 

  21. Remli, N., Rekik, M.: A robust winner determination problem for combinatorial transportation auctions under uncertain shipment volumes. Transp. Res. Part C 35, 204–217 (2013)

    Article  Google Scholar 

  22. Rodrigo, A.G.: Procurement of transportation services in spot markets under a double-auction scheme with elastic demand. Transp. Res. Part B 41(9), 1067–1078 (2007)

    Article  Google Scholar 

  23. Sarkar, A., Batta, R., Nagi, R.: Commentary on facility location in the presence of congested regions with the rectilinear distance metric. Soc. Econ. Plan. Sci. 38, 291–306 (2004)

    Article  Google Scholar 

  24. Sheffi, Y.: Combinatorial auction in the procurement of transportation service. Interface 34(4), 245–252 (2004)

    Article  Google Scholar 

  25. Song, J., Regan, A.: Combinatorial auctions for transportation service procurement: the carrier perspective. Transp. Res. Rec. 40–46, 2004 (1833)

    Google Scholar 

  26. Song, J., Regan, A.: Approximation algorithms for the bid construction problem in combinatorial auctions for the procurement of freight transportation contracts. Transp. Res. Part B 39, 914–933 (2005)

    Article  Google Scholar 

  27. Tompkins, J.A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A.: Facilities Planning, 4th edn. Wiley, New York (2010)

    Google Scholar 

  28. Triki, C., Conejo, A., Garces, L.: Short-term trading for electricity producers. In: Bertocchi, M.I., Consigli, G., Dempster, M.A.H. (eds.) Stochastic Optimization Methods in Finance and Energy, pp. 181–201. Springer, Berlin (2011)

  29. Triki, C., Beraldi, P., Gross, G.: Optimal capacity allocation in multi-auction electricity markets under uncertainty. Comput. Oper. Res. 32(2), 201–217 (2005)

    Article  MathSciNet  MATH  Google Scholar 

  30. Triki, C., Oprea, S., Beraldi, P., Crainic, T.: The stochastic bid generation problem in combinatorial transportation auctions. Eur. J. Oper. Res. 236, 991–999 (2014)

    Article  MathSciNet  MATH  Google Scholar 

  31. Ueasangkomsate, P., Lohatepanont, M.: Bidding strategies for carrier in combinatorial transportation auction. Int. J. Bus. Res. Manag. 3(1), 1–17 (2012)

    Google Scholar 

  32. Wang, X., Xia, M.: Combinatorial bid generation problem for transportation service procurement. Transp. Res. Rec. 189–198, 2005 (1923)

    Google Scholar 

Download references

Acknowledgments

The research leading to these results has received Project Funding from The Research Council of Sultanate of Oman under Research Agreement No. ORG/SQU/ICT/14/028.

Author information

Authors and Affiliations

  1. Department of Mechanical and Industrial Engineering, Sultan Qaboos University, Muscat, Oman

    Chefi Triki

  2. Department of Engineering for Innovation, University of Salento, Lecce, Italy

    Chefi Triki

Authors
  1. Chefi Triki
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Chefi Triki.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Triki, C. Location-based techniques for the synergy approximation in combinatorial transportation auctions. Optim Lett 10, 1125–1139 (2016). https://doi.org/10.1007/s11590-015-0909-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11590-015-0909-0

Keywords

Search

Navigation