Shipper decision support for the acceptance of bids during the procurement of transport services

  • Authors:
  • Tobias Buer;Herbert Kopfer

  • Affiliations:
  • University of Bremen, Bremen, Germany;University of Bremen, Bremen, Germany

  • Venue:
  • ICCL'11 Proceedings of the Second international conference on Computational logistics
  • Year:
  • 2011

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Abstract

Combinatorial reverse auctions can be used by shippers in order to procure transportation services from carriers. After carriers have submitted their bids, a shipper has to decide about the allocation of transport services to carriers, i. e., a shipper has to solve the winner determination problem of the auction. This paper focuses on a bicriteria winner determination problem in which a shipper has to select a subset of the set of bids and simultaneously decide about the desired trade-off between total transportation costs and the quality of the entire transportation services. To solve this bicriteria optimization problem a metaheuristic is developed that computes a set of non-dominated solutions based on the concepts of multi-start, large neighborhood search and a bicriteria branch-and-bound procedure. Compared to previous results in the literature, the proposed algorithm is able to improve the set of non-dominated solutions for 14 out of 30 benchmark instances.