Combinatorial Auctions in the Procurement of Transportation Services

  title={Combinatorial Auctions in the Procurement of Transportation Services},
  author={Yossi Sheffi},
Most shippers use annual auctions to procure transportation services, leading to annual contracts. By using combinatorial auctions they can reduce their operating costs while protecting carriers from winning lanes that do not fit their networks, thereby improving carriers’ operations as well. Combinatorial auctions account for carriers’ economies of scope, which many consider more important than economies of scale in transportation operations. Any transportation procurement procedure, however… CONTINUE READING
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