The logistics service market has recently grown much in Korea in comparisons with other industry fields. Nowadays, order is processed through auction in most of industry fields for collusion prevention. In logistics service contract auction is also e...
The logistics service market has recently grown much in Korea in comparisons with other industry fields. Nowadays, order is processed through auction in most of industry fields for collusion prevention. In logistics service contract auction is also emerging as a fair ordering method. The objective of the study is to develop bidding policies based on the terms of the contract of the transportation auction for the logistics company to overcome more severe competition. A statistical analysis is carried out for increasing probability and expected value for wining bid according to various scenarios. An illustrative example problem is carried out for demonstrating the applicability, which actually reflects real-world auction among a steel company and transportation companies.