DocumentCode
2611923
Title
Service pricing strategy for third party logistics corporations implementing VMI
Author
Zhao, Lindu ; Tang, Lei
Author_Institution
Southeast Univ., Nanjing
fYear
2007
fDate
2-4 Dec. 2007
Firstpage
1442
Lastpage
1446
Abstract
To let the service pricing strategy of third party logistics corporations satisfy each supply chain partner\´s "participation constraints" and "incentive-compatibility constraints", consequently promote the formation of new alliance and guarantee its stability. Applying Stackelberg game, the transfers of cost structures and the changes of profit functions in two models: manufacturer implementing VMI services model and the third party logistics corporation implementing VMI services model, are analyzed respectively, and the service pricing strategy for third party logistics corporations implementing VMI is obtained. Results of the example show that: after putting related service pricing strategy in practice, the third party logistics corporations implementing VMI can increase total profits of the supply chain; and the changes of the productions\´ price elasticity in final consumption market have little effects on the service pricing decision-making The results are helpful to apply third party logistics and VMI mode widely in practice.
Keywords
decision making; game theory; pricing; supply chains; Stackelberg game; decision making; incentive-compatibility constraints; participation constraints; service pricing; supply chain; third party logistics; vendor management inventory; Cost function; Decision making; Elasticity; Game theory; Logistics; Pricing; Production; Stability; Supply chains; Virtual manufacturing; Stackelberg game; VMI; incentive price; service pricing; supply chain management;
fLanguage
English
Publisher
ieee
Conference_Titel
Industrial Engineering and Engineering Management, 2007 IEEE International Conference on
Conference_Location
Singapore
Print_ISBN
978-1-4244-1529-8
Electronic_ISBN
978-1-4244-1529-8
Type
conf
DOI
10.1109/IEEM.2007.4419431
Filename
4419431
Link To Document