An Agent-based Computational Economics Model for Supplier Selection Problem: Application for Phoenix-Tucson Regional Freight Model

Supplier selection is considered a critical logistics choice in the emerging agent-based freight transportation models. The outcome of this logistics decision identifies trade relationships between business establishments (agents) and determines commodity flows between production and consumption points in markets. A robust supplier selection model is very important to accurate prediction of supply chains and freight flows between origins and destinations. Various approaches have been used to model supplier selection process. This paper introduces an agent-based computational economics approach for supplier selection problem. The proposed model combines behavioral science with computational methods to model economic processes in forming supply chain and to capture both behavioral and economical aspects of supplier selection problem. The model uses results of literature to determine a system for suppliers and buyers preferences in forming supply chain and applies a cutting-edge market-clearing algorithm, developed by Roth and Peranson, to match best supplier-buyer pairs and allocate commodity flows between them. The proposed model is implemented in a behavior-based supply chain and freight transportation model for the Phoenix and Tucson megaregions.

• Supplemental Notes:
  • This paper was sponsored by TRB committee AT015 Standing Committee on Freight Transportation Planning and Logistics.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Pourabdollahi, Zahra
  • Ehlen, Mark A
  • Livshits, Vladimir
  • Nippani, Sreevatsa
  • Zhu, Haidong
• Conference:
  • Transportation Research Board 96th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2017-1-8 to 2017-1-12
• Date: 2017

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; Maps; References; Tables;
• Pagination: 16p
• Monograph Title: TRB 96th Annual Meeting Compendium of Papers

Subject/Index Terms

• TRT Terms: Algorithms; Behavior; Commodity flow; Economic models; Freight transportation; Logistics; Origin and destination; Suppliers; Supply chain management
• Geographic Terms: Phoenix (Arizona); Tucson (Arizona)
• Subject Areas: Freight Transportation; Planning and Forecasting;

Filing Info

• Accession Number: 01627890
• Record Type: Publication
• Report/Paper Numbers: 17-03499
• Files: TRIS, TRB, ATRI
• Created Date: Feb 28 2017 1:55PM