Auction-based transport services allocation in Physical Inter-net: a simulation framework

Shenle Pan (shenle.pan@mines-paristech.fr), Xiaozhou Xu (xiaozhou.xu@me.com) and Eric Ballot (eric.ballot@mines-paristech.fr)
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Shenle Pan: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique
Xiaozhou Xu: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique
Eric Ballot: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique

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Abstract: The Physical Internet concept proposes a new way to move goods towards customers across a network of interconnected logistics services. According to this concept, the containerized goods travel form one hub to another until reaching their final destination. This principle implies that each container finds the best service on its route. The logistics service providers and then the carriers offer services (transport between hubs) accordingly. In this way, the allocation of a service to a provider becomes more dynamic and an efficient mechanism between offers and demands is required. We propose a combinatorial auction mechanism based on mechanism design theory to efficiently allocate bundles of containers to transport services. The hypotheses are described and the mechanism is divided into different processes called rules. The con-tribution of this work is based on the ability of the Physical Internet to reallocate a container to carrier at each hub if it improves the routing of the container and the utilization of the logistics network resources. An exam-ple illustrates how the proposed mechanism will work at the level of a single hub and how container bundles are allocated to carriers.

Keywords: Physical Internet; Transport service allocation; Combinatorial Auction; Mechanism Design (search for similar items in EconPapers)
Date: 2014-08-27
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Citations: View citations in EconPapers (1)

Published in 5th International Conference on Information Systems, Logistics and Supply Chain CONNECTING WORLDS ILS 2014, Aug 2014, Breda, Netherlands

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01113274

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