Next Article in Journal
A Static Hybrid Renewable Energy System for Off-Grid Supply
Previous Article in Journal
Enhancing the Learning Effectiveness of University of Science and Technology Students through Flipped Teaching in Chinese-Language Curriculum
Article

A Two-Stage Auction Mechanism for 3PL Supplier Selection under Risk Aversion

1
School of Economics and Management, Yanshan University, Qinhuangdao 066004, China
2
Faculty of Information Science and Engineering, Northeastern University, Shenyang 810819, China
*
Author to whom correspondence should be addressed.
Academic Editor: Dimitrios G. Konstantinides
Sustainability 2021, 13(17), 9745; https://0-doi-org.brum.beds.ac.uk/10.3390/su13179745
Received: 17 May 2021 / Revised: 24 August 2021 / Accepted: 27 August 2021 / Published: 30 August 2021
(This article belongs to the Special Issue Risk Theory Applications in Sustainable Economy)
The third party logistics (3PL) suppliers selection is a key issue in sustainable operation of fourth party logistics (4PL). A two-stage auction mechanism is designed for the selection of 3PL suppliers. Different from previous studies, the paper considers risk preference of 4PL integrators during the auction and uses the prospect theory to establish the auction scoring function of 4PL integrators. First, a first score sealed auction (FSSA) mechanism is used to solve the selection problem. However, the results show that FSSA is not an ideal method. Hence, the English auction (EA) mechanism is combined with the FSSA mechanism to form a two-stage auction. The FSSA is taken as the first stage auction, and the EA is taken as the second stage auction, and the two-stage auction mechanism is constructed. The two-stage auction can improve the utility of the 4PL integrator and the auction efficiency. In addition, for the degree of disclosure of attribute weights in the scoring function, two states, complete information and incomplete information is designed. In case analysis, the validity of the designed two-stage auction mechanism is verified. The 4PL integrator can obtain higher utility under the risk-neutral auction than the risk-averse auction. The complete information auction does not make the 4PL integrator obtain higher utility than the incomplete information auction. View Full-Text
Keywords: sustainable operation; supplier selection; two-stage auction; risk aversion; information disclosure sustainable operation; supplier selection; two-stage auction; risk aversion; information disclosure
Show Figures

Figure 1

MDPI and ACS Style

Lu, F.; Bi, H.; Feng, W.; Hu, Y.; Wang, S.; Zhang, X. A Two-Stage Auction Mechanism for 3PL Supplier Selection under Risk Aversion. Sustainability 2021, 13, 9745. https://0-doi-org.brum.beds.ac.uk/10.3390/su13179745

AMA Style

Lu F, Bi H, Feng W, Hu Y, Wang S, Zhang X. A Two-Stage Auction Mechanism for 3PL Supplier Selection under Risk Aversion. Sustainability. 2021; 13(17):9745. https://0-doi-org.brum.beds.ac.uk/10.3390/su13179745

Chicago/Turabian Style

Lu, Fuqiang, Hualing Bi, Wenjing Feng, Yanli Hu, Suxin Wang, and Xu Zhang. 2021. "A Two-Stage Auction Mechanism for 3PL Supplier Selection under Risk Aversion" Sustainability 13, no. 17: 9745. https://0-doi-org.brum.beds.ac.uk/10.3390/su13179745

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop