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Solving the winner determination problem with discounted bids in transportation auctions

Triki, Chefi, Hasan, Md. Rakibul, Elomri, Adel (2023) Solving the winner determination problem with discounted bids in transportation auctions. Annals of Operations Research, . ISSN 0254-5330. E-ISSN 1572-9338. (doi:10.1007/s10479-023-05457-5) (KAR id:101928)


Continuing advances in modern technologies have transformed the procedure of transportation procurement through auctions in supply chain management (SCM). This study examines the online combinatorial auction (CA), which serves customers placed at the nodes of a transportation network, with particular consideration given to carbon emissions. The CA mechanism allows early shipments of the carriers to improve their load consolidation and reduce their repositioning trips. Sustainability and carbon emissions are considered by prioritizing the carrier’s carbon reduction performances. Two models are examined under the carbon emission regulations (Carbon tax and Cap-and-offset) to choose the winners in the CA. Our aim is to minimize the cost of transportation procurement and reduce carbon emissions by incorporating the green reputation-based winner determination problem within the procurement model. Computational experiments reveal the positive impact of prioritization and discounted offers in reducing both transportation costs and the number of empty trips. Indeed, our results show the introduction of the discounted bids allows a reduction of about 2% in the transportation cost for the shipper and 24% of empty movements, on average, for the carriers.

Item Type: Article
DOI/Identification number: 10.1007/s10479-023-05457-5
Uncontrolled keywords: Transportation procurement; Empty trips; Combinatorial auctions; Discounted; bids; Carbon emissions; Green prioritization
Subjects: H Social Sciences > HE Transportation and Communications
H Social Sciences > HF Commerce
Divisions: Divisions > Kent Business School - Division > Department of Analytics, Operations and Systems
Funders: University of Kent (
Depositing User: Chefi Triki
Date Deposited: 03 Jul 2023 11:33 UTC
Last Modified: 07 Jul 2023 14:10 UTC
Resource URI: (The current URI for this page, for reference purposes)

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