Seo Sang-Koo, Journal of Internet Computing and Services, Vol. 5, No. 4, pp. 53-62, Aug. 2004
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Keywords: e-logistics, brokering optimization, electronic commerce

Abstract

This paper presents a study on the optimization for brokering between cargos and ships for future e-logistics. The primary contribution of this research is that we establish an optimization model by formalizing the criteria for the brokering such as time constraints, weight constraints, and preference values between cargos and ships. Another important contribution is that we not only investigate the complexity and the tractability of the optimal brokering problem but present how to evaluate the performance of the optimization program through an experiment. We first derive the preference values between cargos and ships using the time and the weight constraints. These preference values between each pair of cargos and ships are assigned to corresponding binary decision variables as coefficients in the objective function. The optimization model selects pairs of cargos and ships in a way that the sum of the preference values is maximized while satisfying given constraints. Experiment shows that the Davis-Putnam based optimization program finds optimal solutions in reasonable time for the problems with less than 90 decision variables.

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