Bid price optimization for truckload carriers in simultaneous transportation procurement auctions
Akyol, Cagla Gul
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We study simultaneous transportation procurement auctions from a truckload carrier's perspective. We formulate a stochastic bid price optimization model aimed at maximizing the carrier's expected profit. The model accounts for synergies among lanes and competing carriers' bid patterns. We develop an iterative coordinate search algorithm to find high-quality solutions. The benefits of employing the bid price optimization technology are demonstrated through computational experiments involving a simulated marketplace. (C) 2014 Elsevier Ltd. All rights reserved.