Pricing and Demand Segmentation of Bids in Truckload Combinatorial Auctions

Constructing bids for a truckload combinatorial auction is a challenging problem faced by trucking firms. Several bidding advisory models have been proposed to bundle lanes considering their synergetic effects. These models are based on cost minimization approaches. However, they do not capture pricing and demand segmentation. Pricing is a key competitive advantage that maximizes profits when it is properly combined with cost minimization. Similarly, demand segmentation allows carriers to fully benefit from these auctions. This paper introduces BM∘T, a bidding advisory model for truckload combinatorial auctions that can be used by trucking practitioners to bundle lanes and overcome these limitations. Numerical experiments show the benefits and efficiency of the package.

• Supplemental Notes:
  • This paper was sponsored by TRB committee AT060 Trucking Industry Research.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Mesa-Arango, Rodrigo
  • Ukkusuri, Satish V
• Conference:
  • Transportation Research Board 94th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2015-1-11 to 2015-1-15
• Date: 2015

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 21p
• Monograph Title: TRB 94th Annual Meeting Compendium of Papers

Subject/Index Terms

• TRT Terms: Algorithms; Bids; Carriers; Freight transportation; Pricing; Procurement; Shipper demand; Trucking
• Subject Areas: Freight Transportation; Motor Carriers; Planning and Forecasting; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01554266
• Record Type: Publication
• Report/Paper Numbers: 15-4291
• Files: TRIS, TRB, ATRI
• Created Date: Feb 26 2015 9:49AM