Abstract

Combinatorial auctions are widely used for the procurement of transportation services. In these auctions, shippers act as auctioneers who need to outsource a number of transportation services to external carriers. Carriers compete by submitting bids on packages of shippers’ requests. After receiving all carriers’ bids, the shipper solves the well-known winner determination problem (WDP) in order to determine winning bids. This paper considers the WDP in a context where shipment volumes are not known with certainty. Based on the bi-level characteristic of the problem, a 2-stage robust formulation is proposed and solved using a constraint generation algorithm. Experimental results show a good performance of the proposed approach. We also evaluate, through an experimental analysis, the benefits of considering a robust rather than a deterministic WDP.

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