Solving the winner determination problem with discounted bids in transportation auctions

Abstract Continuing advances in modern technologies have transformed the procedure of transportation procurement through auctions supply chain management (SCM). This study examines online combinatorial auction (CA), which serves customers placed at nodes a network, with particular consideration given to carbon emissions. The CA mechanism allows early shipments carriers improve their load consolidation and reduce repositioning trips. Sustainability emissions are considered by prioritizing carrier’s reduction performances. Two models examined under emission regulations (Carbon tax Cap-and-offset) choose winners CA. Our aim is minimize cost incorporating green reputation-based winner determination problem within model. Computational experiments reveal positive impact prioritization discounted offers reducing both costs number empty Indeed, our results show introduction bids about 2% for shipper 24% movements, on average, carriers.