Shipper Decision Support for the Acceptance of Bids during the Procurement of Transport Services
Combinatorial reverse auctions can be used by shippers in order to procure transportation services from carriers. After carriers have submitted their bids, a shipper has to decide about the allocation of transport services to carriers, i.e., a shipper has to solve the winner determination problem of the auction. This paper focuses on a bicriteria winner determination problem in which a shipper has to select a subset of the set of bids and simultaneously decide about the desired trade-off between total transportation costs and the quality of the entire transportation services. To solve this bicriteria optimization problem a metaheuristic is developed that computes a set of non-dominated solutions based on the concepts of multi-start, large neighborhood search and a bicriteria branch-and-bound procedure. Compared to previous results in the literature, the proposed algorithm is able to improve the set of non-dominated solutions for 14 out of 30 benchmark instances.
KeywordsCandidate List Transport Service Combinatorial Auction Improvement Phase Large Neighborhood Search
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