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Integrating production scheduling and transportation procurement through combinatorial auctions

Triki, Chefi, Piya, Sujan, Fu, Liang-Liang (2020) Integrating production scheduling and transportation procurement through combinatorial auctions. Networks, 76 (2). pp. 147-163. ISSN 0028-3045. E-ISSN 1097-0037. (doi:10.1002/net.21967) (KAR id:91639)

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This study uses the winner determination problem (WDP) to integrate auction transportation procurement with decisions related to production scheduling. The basic problem arises when a manufacturer has to clear a combinatorial auction to decide whether to cover transportation needs by using the in-house fleet or to procure transportation through auction. Thus, the manufacturer should include an additional decision level by integrating the WDP with production scheduling to gain efficiency and achieve savings in the logistics system. To the best of our knowledge, this is the first time production and transportation procurement problems are being solved simultaneously in an integrated manner. The study proposes a mathematical formulation and develops two heuristic approaches for solving the integrated problem. Extensive computational experiments and sensitivity analyses are reported to validate the model, assess the performance of the heuristics, and show the effect of integration on total cost. © 2020 The Authors. Networks published by Wiley Periodicals LLC.

Item Type: Article
DOI/Identification number: 10.1002/net.21967
Uncontrolled keywords: Fleet operations; Heuristic methods; Production control; Scheduling; Sensitivity analysis, Combinatorial auction; Computational experiment; Heuristic approach; Mathematical formulation; Production and transportations; Production Scheduling; Transportation needs; Winner determination problem, Manufacture
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Analytics, Operations and Systems
Depositing User: Chefi Triki
Date Deposited: 18 Nov 2021 09:47 UTC
Last Modified: 19 Nov 2021 10:19 UTC
Resource URI: (The current URI for this page, for reference purposes)
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