1. ¹National University of Singapore, Singapore
2. ²Hong Kong University of Science and Technology, Hong Kong
3. ³Singapore Management University, Singapore

Correspondence: B Rodrigues, School of Business, Singapore Management University, 50 Stamford Road, Singapore 178899, Singapore. E-mail: br@smu.edu.sg

Received June 2004; Accepted September 2005; Published online 28 December 2005.

Abstract

This paper extends carrier assignment models used in winner determination auctions for transportation procurement to include shipper non-price objectives and carrier transit point costs. The models are unlike traditional carrier assignment models which incorporate only carrier lane bids, and different from combinatorial auction models which focus on packets of lanes without considering transit point costs. We develop solutions, including metaheuristics, for the new models and through computational experimentation show that the algorithms work well and can be easily implemented.