1457. Contract design for the third-party logistics firm: logistics service vs financial service
Invited abstract in session TA-29: Pricing and Contract Design in Logistics & Networks, stream Pricing and Revenue Management Innovations.
Tuesday, 8:30-10:00Room: Maurice Keyworth 1.04
Authors (first author is the speaker)
| 1. | Chen LI
|
| Department of Operations and Supply Chain Management, Tianjin University |
Abstract
In recent years, small and medium-sized enterprises (SMEs) play a major role in economic growth. Due to low credit rating and nonstandard financial documents, SMEs are difficult to meet the financing conditions and standards of banks, resulting in the financing difficulties. The integrated logistics and financial service (IFLs) of third-party logistics (3PL) firms provides a new method to solve the financing problem. In the paper, we study a two-level supply chain with a 3PL firm and a small or medium-sized retailer and explore how the 3PL firm provides joint logistics and financial services to the budget-constrained retailer with different budget levels, and how to design the service contract to obtain a win-win situation. We consider pricing problems in three scenarios: the benchmark contract, the integrated service contract and the bargaining contract and obtain equilibrium solutions. Finally, a numerical analysis is executed to explore the influence of retailers' own budgets on members' selection of contracts.
Keywords
- Game Theory
- Logistics
- Finance and Banking
Status: accepted
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