A profit-maximization heuristic for combinatorial bid construction with pre-existing network restrictions

Abstract

This paper proposes a heuristic approach for constructing combinatorial bids in TL transportation services procurement auctions. It considers the case where the carrier has already engaged on a set of transportation contracts before participating in the auction. The proposed heuristic identifies profitable new contracts and efficiently integrates them in the carrier exiting routes, and/or builds new routes for unused vehicles. Experimental results prove the efficiency of the proposed heuristic in terms of computing times and solutions quality.

Keywords:

• Combinatorial auctions
• TL operations
• bid construction
• heuristic

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the Canadian Natural Science and Engineering Council (NSERC) [grant number 2016-04482].