Title | ||
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Outsourcing Logistics Channel Coordination With Logistics Service Levels Dependent Market Demand |
Abstract | ||
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The purpose of this paper is to resolve the coordination problems of an outsourcing logistics channel constituted by a Third Party Logistics Service Provider (TPLSP) and a client. High levels of logistics service that the TPLSP provides have a significant impact on customer demand for the client's products. When customer demand is not influenced by levels of logistics service, a properly designed revenue-sharing contract can achieve channel coordination and a win-win outcome. When customer demand is influenced by levels of logistics service, a properly designed combination contract with revenue-sharing and service-cost-sharing can achieve channel coordination and a win-win outcome. Under a revenue-sharing contract and a combination contract with revenue-sharing and service-cost-sharing, the TPLSP needs to undertake some inventory risk. |
Year | DOI | Venue |
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2009 | 10.1504/IJSTM.2009.022525 | INTERNATIONAL JOURNAL OF SERVICES TECHNOLOGY AND MANAGEMENT |
Keywords | Field | DocType |
outsourcing, logistics service, incentives, channel coordination, revenue-sharing, service-cost-sharing, game theory | Channel coordination,Economics,Service level objective,Integrated logistics support,Service level,Outsourcing,Service provider,Service level requirement,Humanitarian Logistics,Marketing | Journal |
Volume | Issue | ISSN |
11 | 2 | 1460-6720 |
Citations | PageRank | References |
2 | 0.38 | 8 |
Authors | ||
2 |