This study proposes a new and highly efficient dynamic combinatorial auction mechanism–the N‐bilateral optimized combinatorial auction (N‐BOCA). N‐BOCA is a flexible iterative combinatorial auction model that offers more optimized trading for multiple suppliers and purchasers in the supply chain than one‐sided combinatorial auction. We design the N‐BOCA model from the perspectives of market architecture, trading rules, and decision strategy for winner determination, the decision strategy for winner determination needs flexible optimization modeling capability. Thus rule‐based reasoning was applied for reflecting the flexible decision strategies. We also show the viability of N‐BOCA through Paired Samples T‐test experimentation. It shows that N‐BOCA yields higher purchase efficiency and effectiveness than the one‐auctioneer to multi‐bidders (1‐to‐N) combinatorial auction mechanism.
