Solving the winner determination problem with discounted bids in transportation auctions

Chefi Triki (), Md. Rakibul Hasan and Adel Elomri
Additional contact information
Chefi Triki: University of Kent
Md. Rakibul Hasan: Hamad Bin Khalifa University
Adel Elomri: Hamad Bin Khalifa University

Annals of Operations Research, 2025, vol. 351, issue 1, No 3, 35-58

Abstract: Abstract 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.

Keywords: Transportation procurement; Empty trips; Combinatorial auctions; Discounted bids; Carbon emissions; Green prioritization (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10479-023-05457-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:351:y:2025:i:1:d:10.1007_s10479-023-05457-5

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-023-05457-5

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().