An auction-enabled collaborative routing mechanism for omnichannel on-demand logistics through transshipment

Nowadays’ on-demand logistics operations are carried out on separate delivery networks from competitive contractors, with redundant resources and high costs. This article proposes a new paradigm to deal with industrial and societal challenges, developing an auction-enabled collaborative routing mechanism for omnichannel on-demand logistics in a real-time transshipment network. The authors consider an online service platform for real-time management of on-demand pickup and delivery tasks, where multiple freight shippers can trade with multiple freight carriers. Freight shippers are retailers or individual customers, while freight carriers are a group of logistics service providers. The platform acts as the auctioneer. A two-stage combinational auction mechanism is designed for dynamic on-demand task (re)allocation. Tactical-level auctioning and operational-level routing decisions are optimized together. The transshipment-based task generation method is used to identify uneconomic paths from carrier’s real-time network for outsourcing. A transshipment-based routing algorithm is developed to enable each carrier to make decentralized decisions for network reconstruction and transportation bidding. The authors' model aims to improve the overall social welfare while bringing benefits to stakeholders involved. The computational results have shown positive society impacts. Specifically, shippers’ payments can be saved while carriers’ profits are increased compared with other operative models which have been investigated in previous research studies or industry. In addition, a substantial reduction in CO₂ emissions and vehicles required can be achieved. The main reason for the improvement in social welfare is due to the optimal network achieved through collaboration. The authors also numerically analyze the impacts of three key factors: growth in demand density, urgency of tasks and flexible auction interval.

• Record URL:
  • https://doi.org/10.1016/j.tre.2020.102206
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S1366554520308486
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • © 2021 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
• Authors:
  • Guo, Chaojie
  • Thompson, Russell G
  • Foliente, Greg
  • Kong, Xiang T R
• Publication Date: 2021-2

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 146
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Economic impacts; Environmental impacts; Freight transportation; Logistics; Optimization; Pickup and delivery service; Routing
• Subject Areas: Economics; Freight Transportation; Planning and Forecasting;

Filing Info

• Accession Number: 01771433
• Record Type: Publication
• Files: TRIS
• Created Date: May 10 2021 6:30PM