Winner determination for logistics service procurement auctions under disruption risks and quantity discounts

Mingqiang Yin, Xiaohu Qian, Min Huang, Qingyu Zhang

Abstract: Highlights•A nonlinear winner determination (WD) with disruptions and discounts is studied.•Fortification and outside option policies are integrated to address disruptions.•The nonlinear WD is reformulated as a linear one by a superior expression method.•An effective approximation method is developed to obtain near-optimal solutions.•Managerial implications are drawn for 4PLs and 3PLs in the logistics industry.