Combinatorial Bid Generation Problem for Transportation Service Procurement
Abstract
In combinatorial auctions, solving the bid generation problem (BGP) for bidders is critical to achieving efficiency. However, in the recent surge of combinatorial auction research, little attention has been paid to the BGP. In this paper, the BGP faced by transportation service providers is studied. First, the bidder's optimality criterion of a combinatorial bid is clarified, and then the focus is on the bundling method when an OR bid language is used. Through examples, bundles generated by solving the optimal truck routing problem were examined, and it was found that the resulting bid might not be optimal. This heuristic is compared with a simple nearest insertion method. The simulation result shows that whereas the former outperforms the latter in most cases, many times the latter outperforms the former by 5% to 8%.
Get full access to this article
View all access and purchase options for this article.
References
1. Rothkopf M. Peke A. and Harstad R. Computational Manageable Combinational Auctions, Management Science, Vol. 44, 1998, pp. 1131–1147.
2. Andersson A. Tenhunen M. and Ygge F. Integer Programming for Combinatorial Auction Winner Determination. Proc., 4th International Conference on Multi-agent Systems (ICMAS), Boston, 2000, pp. 108–121.
3. Xia M. Koehler G. J. and Whinston A. B. Pricing Combinatorial Auctions. European Journal of Operational Research, Vol. 154, 2004, pp. 251–270.
4. Nisan N. Bidding and Allocation in Combinatorial Auctions. Proc., 2nd ACM Conference on Electronic Commerce, Minneapolis, Minn., 2000, pp. 1–12.
5. Boutilier C. and Hoos H. Bidding Language for Combinatorial Auctions. Proc., 17th International Joint Conference on Artificial Intelligence (IJCAI), Seattle, Wash., 2001, pp. 1211–1216.
6. Rassenti S. J. Smith V. L. and Bulfin R. L. A Combinatorial Auction Mechanism for Airport Time Slot Allocation. The Bell Journal of Economics, Vol. 13, 1982, pp. 402–417.
7. Cramton P. Spectrum Auctions, Handbook of Telecommunications Economics (Cave M. Majumdar S. and Vogelsang I., eds.), Elsevier Science, Amsterdam, 2002, pp. 605–639.
8. Hohner G. Rich J. Ng E. Reid G. Davenport A. J. Kalagnanam R. Lee H. S. and An C. Combinatorial and Quantity-Discount Procurement Auctions Benefit Mars, Incorporated and Its Suppliers. Interfaces, Vol. 33, 2003, pp. 23–35.
9. Epstein R. Henriquez L. Catalan J. Weintraub G. Y. and Martinez C. A Combinatorial Auction Improves School Meals in Chile. Interfaces, Vol. 32, 2002, pp. 1–14.
10. Caplice C. An Optimization Based Bidding Process: A New Framework for Shipper-Carrier Relationship. Ph.D. thesis. School of Engineering, Massachusetts Institute of Technology, Cambridge, 1996.
11. Kelly F. and Steinberg R. A Combinatorial Auction with Multiple Winners for Universal Service. Management Science, Vol. 46, 2003, pp. 586–596.
12. Ledyard J. O. Olson M. Porter D. Swanson J. A. and Torma D. P. The First Use of a Combined-Value Auction for Transportation Services. Interfaces, Vol. 32, 2002, pp. 4–12.
13. Song J. and Regan A. C. Approximation Algorithms for the Bid Construction Problem in Combinatorial Auctions for the Procurement of Freight Transportation Contracts. ITS-UCI Working Paper, University of California, Irvine, 2002.
14. Song J. and Regan A. C. Combinatorial Auctions for Transportation Service Procurement: The Carrier Perspective. In Transportation Research Record: Journal of the Transportation Research Board, No. 1833, Transportation Research Board of the National Academies, Washington, D.C., 2003, pp. 40–46.
15. Figliozzi M. A. Mahmassani H. S. and Jaillet P. Framework for the Study of Carrier Strategies in an Auction–Based Transportation Marketplace. In Transportation Research Record: Journal of the Transportation Research Board, No. 1854, Transportation Research Board of the National Academies, Washington, D.C., 2003, pp. 162–170.
16. McGill J. and van Ryzin G. Revenue Management: Research Overview and Prospects. Transportation Science, Vol. 33, 1999, pp. 233–256.
Cite article
Cite article
Cite article
OR
Download to reference manager
If you have citation software installed, you can download article citation data to the citation manager of your choice
Information, rights and permissions
Information
Published In
Article first published: January 2005
Issue published: January 2005
Authors
Metrics and citations
Metrics
Journals metrics
This article was published in Transportation Research Record: Journal of the Transportation Research Board.
VIEW ALL JOURNAL METRICSArticle usage*
Total views and downloads: 59
*Article usage tracking started in December 2016
Altmetric
See the impact this article is making through the number of times it’s been read, and the Altmetric Score.
Learn more about the Altmetric Scores
Articles citing this one
Receive email alerts when this article is cited
Web of Science: 0
Crossref: 23
- Designing mechanisms for crowdsourced urban parcel delivery
- Multi-objective optimisation model under multiplex weighted drivers’ c...
- Research on truckload transportation procurement: A review, framework,...
- Leader-based diffusion optimization model in transportation service pr...
- Combinatorial-Based Auction For The Transportation Procurement: An Opt...
- An exact method for the combinatorial bids generation problem with unc...
- Online crowdsourced truck delivery using historical information
- A Bid Generation Problem in Truckload Transportation Service Procureme...
- Exact and hybrid heuristic methods to solve the combinatorial bid cons...
- Combinatorial Auction for Truckload Transportation Service Procurement...
- Pushing frontiers in auction-based transport collaborations
- A profit-maximization heuristic for combinatorial bid construction wit...
- Exact and heuristic solution approaches for the bid construction probl...
- Freight transportation service procurement: A literature review and fu...
- A bi-level programming for transportation services procurement based o...
- Timber selling policies using bundle-based auction: The case of public...
- Centralized bundle generation in auction-based collaborative transport...
- Adaptive large neighborhood search for the pickup and delivery problem...
- Pricing and Segmentation of Stochastic Demand in Less-Than-Truckload C...
- Benefits of in-Vehicle Consolidation in Less than Truckload Freight Tr...
- Auctions and bidding
- Auctions and bidding: A guide for computer scientists
- Toward an Intelligent Brokerage Platform...
Figures and tables
Figures & Media
Tables
View Options
Get access
Access options
If you have access to journal content via a personal subscription, university, library, employer or society, select from the options below:
loading institutional access options
Alternatively, view purchase options below:
Purchase 24 hour online access to view and download content.
Access journal content via a DeepDyve subscription or find out more about this option.
