Using multi-attribute combinatorial auctions for resource allocation

Abstract

Social concerns about the environment and global warming suggest that industries must focus on reducing energy consumption, due to its social impact and changing laws. Furthermore, the smart grid will bring time-dependent tariffs that pose new challenges to the optimisation of resource allocation. In this paper we address the problem of optimising energy consumption in manufacturing processes by means of multi-attribute combinatorial auctions, so that resource price, delivery time, and energy consumed (and therefore environmental impact) are minimised. The proposed mechanism is tested with simulated data based on real examples, showing the impact of incorporating energy into task allocation problems. It is then compared with a sequential auction method