Bid price optimization for truckload carriers in simultaneous transportation procurement auctions

Gültekin Kuyzu, Çağla Gül Akyol, Özlem Ergun and Martin Savelsbergh

Transportation Research Part B: Methodological, 2015, vol. 73, issue C, 34-58

Abstract: We study simultaneous transportation procurement auctions from a truckload carrier’s perspective. We formulate a stochastic bid price optimization model aimed at maximizing the carrier’s expected profit. The model accounts for synergies among lanes and competing carriers’ bid patterns. We develop an iterative coordinate search algorithm to find high-quality solutions. The benefits of employing the bid price optimization technology are demonstrated through computational experiments involving a simulated marketplace.

Keywords: Simultaneous auctions; Bidding; Truckload transportation; Stochastic optimization (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (16)

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DOI: 10.1016/j.trb.2014.11.012

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