• 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