Contract design for 4PL service supply chain and its Pareto improvement
نویسنده
چکیده
Considering the probability of the logistics business successfully completed is influenced by the effort level of 4PL and 3PL, it will cause bilateral moral risk in the case that both sides of the factors of production cannot be checked. Using the principal-agent theory, the paper discusses both sides contracts in the centralized decision and distributed decision, founding that short-term contract in distributed decision can’t make both sides realize system revenue maximization; In this paper, we develop a long-term development contract programming model to improve the system benefits by introducing earnings discount factor and designing contract on reservation revenue of 3PL which is called secondary revenue-sharing contract, where improving benefits is important. Numerical simulations are presented to show that long-term development contract programming model have good effects and verify the related conclusions. Key–Words: 4PL, principal-agent, 3PL, Contract design, Pareto improvement
منابع مشابه
Two-level supply chain quality improvement through a wholesale price coordination contract on pricing, quality and services
Nowadays, competitive market creates the necessity of quality improvement in different levels of supply chains (SCs). This paper contributes to the SC coordination literature and proposes a bilateral coordination contract for optimizing pricing decisions along with quality improvement decisions in different echelons of a real case of a cell phone SC. The SC comprises a manufacturer who deals wi...
متن کاملExploring New Competences in the Logistics Industry: The Intermediation Role of 4PL
Over the past few years, logistics service providers (LSPs) have become players whose role is essential in explaining and anticipating supply chain governance in most of the Western countries. They are indeed omnipresent in product flow management, from supplier factories to store shelves, including assembly units. The most efficient LSPs are far from restricting themselves to activities of tra...
متن کاملModel of 4PL’s Outsourcing Logistics Coordination Based on Service Quality
The paper establishes a supply chain coordinating model based on single 4PL-multy 3PL. Considering goods loss and damage, it comes to the conclusion that the fixed revenue-sharing contract couldn't be coordination when the yields was relative to the efforts of 3PL and 4PL. In order to get the coordination, we first model a fixed revenue-sharing contract based on side payment using L-F model and...
متن کاملCoordinating a Seller-Buyer Supply Chain with a Proper Allocation of Chain’s Surplus Profit Using a General Side-Payment Contract
In this paper, seller-buyer supply chain coordination with general side-payment contracts is introduced to gain the maximum possible chain profit. In our model, the logistics costs for both buyer and seller are considered and the final demand is also supposed to be a decreasing function of the retail price. Since parties aim to maximize their individual profits, the contractual parameters are s...
متن کاملTwo-Wholesale-Price Contracts: Push, Pull, and Advance-Purchase Discount Contracts
The allocation of inventory ownership affects the inventory availability in a supply chain, which in turn determines the supply chain performance. In this paper, we consider a supplier-retailer supply chain in which the supplier starts production well in advance of the selling season, and the retailer is offered two ordering opportunities at different points in time. An early order is allowed b...
متن کامل