Quantum computation based bundling optimization for combinatorial auction in freight service procurements

• A new mechanism with two round biddings for combinatorial auctions in freight service procurements is suggested.
• Bundling optimization is described as a model with two criteria on price complementation and combination consistency.
• A Quantum Evolutionary Algorithm (QEA) is developed for the model solution.
• Non-zero element encoding scheme and β-based rotation gate are designed for QEA.

Combinatorial auction is a useful trade manner for transportation service procurements in e-marketplaces. To enhance the competition of combinatorial auction, a novel auction mechanism of two-round bidding with bundling optimization is proposed. As the recommended the auction mechanism, the shipper/auctioneer integrates the objects into several bundles based on the bidding results of first round auction. Then, carriers/bidders bid for the object bundles in second round. The bundling optimization is described as a multi-objective model with two criteria on price complementation and combination consistency. A Quantum Evolutionary Algorithm (QEA) with β-based rotation gate and the encoding scheme based on non-zero elements in complementary coefficient matrix is developed for the model solution. Comparing with a Contrast Genetic Algorithm, QEA can achieve better computational performances for small and middle size problems.