Intelligent Cyber Logistics Using Reverse Auction in Electronic Commerce

Abstract

In electronic markets, customers can purchase products online. In addition, the seller or an Internet shopping mall has to deliver the products to the buyers. Transportation agencies can be chosen to deliver the products from an Internet shopping mall. Much research about efficient and automatic delivery scheduling has been carried out on delivery-ordering. By and large, transportation agencies need to maintain not only a cooperative relationship but also a competitive relationship among themselves to meet with customers' preferences for their purchases. This article suggests an intelligent, cyber-logistic framework as a multiagent system and presents designs for an intelligent software-agent structure to maintain this cooperative and competitive relationship. This intelligent cyber-logistic system consists of shopping mall agents, a broker agent, and delivery and scheduling agents. These components, based on the concept of reverse auction, lead to improvement in the overall system efficiency as well as increased profits for each transportation company. Traditionally, in researching vehicle routing problems (VRP), the cooperative and competitive relationships among the transportation companies have not been addressed. However, in this article, we have addressed these issues. We also suggest the reverse method of auction, which solves VRP for their own trucks to provide the transportation of goods for the shopping malls. After finding their own solution, the transportation company can bid with its own cost of delivery. We have used the constraint satisfaction problems solving method to conduct truck scheduling for each transportation agency. To perform the delivery-ordering process between agents, we have defined the logisticsKQML to represent the message protocol of upper level. Finally, we have evaluated the cyber-logistic system using reverse auction by a simulation experiment and have discussed further research and drawn conclusions.