OPTIMIZATION‐BASED PROCUREMENT FOR TRANSPORTATION SERVICES

Chris Caplice · Yossi Sheffi

213 citations0/0 files storedJournal of Business Logistics

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Outsourcing and Supply Chain Management Vehicle Routing Optimization Methods Logistics and Transportation Systems

Abstract

This paper presents the concept of optimization‐based procurement for transportation services. The approach allows both the shipper and carriers to benefit through the use of a collaborative approach to securing and managing a strategic relationship. Because the shipper's assignment problem involves a combinatorial number of choices and cannot be easily executed manually, the procurement process benefits strongly from the use of optimization. The authors introduce the optimization‐based procurement process, briefly analyze the theoretical issues, and discuss lessons learned from its application in practice over the last several years.

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References

1986The Economic Institutions of Capitalism 1999Auction Theory: A Guide to the Literature 2003Combinatorial Auctions: A Survey 1971Competitive Bidding in High-Risk Situations 2000Auctions on the Internet: What’s Being Auctioned, and How?

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2004Combinatorial Auctions in the Procurement of Transportation Services 2010Solutions to the request reassignment problem in collaborative carrier networks 2022Multi-objective optimization for improved project management: Current status and future directions 2005Combinatorial Auctions for Truckload Transportation 2005Approximation algorithms for the bid construction problem in combinatorial auctions for the procurement of freight transportation contracts 2007Electronic Markets for Truckload Transportation 2013A robust winner determination problem for combinatorial transportation auctions under uncertain shipment volumes 2016Efficient Multi‐Attribute Multi‐Unit Auctions for B2B E‐Commerce Logistics

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