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2013 (Vol. 5, Issue: 19)
Article Information:

Research on TPL Service Level and Pricing Models in Supply Chain Coordination and Benefits Allocation

Ju Chunhua, Bao Fuguang and Wang Zongge
Corresponding Author:  Bao Fuguang 

Key words:  Game theory, profit allocation, supply chain, service level, synergy and coordination, ,
Vol. 5 , (19): 4709-4715
Submitted Accepted Published
September 27, 2012 December 11, 2012 May 10, 2013
Abstract:

Research on the method to strengthen the cooperation among members to achieve win-win result is an important subject in SCM. Nevertheless, most studies to date on supply chain pricing have only assumed that the market demand is only influenced by retail price but not by logistics service level. That is why our work is concerned with logistics service and product pricing strategies in supply chain consisting of the manufacturer, the retailer and the TPL provider. For three-echelon supply chain system with TPL service level, use game theory to analyze its pricing, production, service levels and profit allocation. Three different models are discussed which are based on Stackelberg games and cooperative game. We find that the whole supply chain profit brought by collaborative decision-making is much higher than it independent decision-making brings based on the research. And it can increase the whole profit through reasonable setting of allocation proportion of profit. The study proposes multiple effective distribution methods of supply chain profit and takes an example to perform empirical analysis on the results to proof effectiveness.
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  Cite this Reference:
Ju Chunhua, Bao Fuguang and Wang Zongge, 2013. Research on TPL Service Level and Pricing Models in Supply Chain Coordination and Benefits Allocation.  Research Journal of Applied Sciences, Engineering and Technology, 5(19): 4709-4715.
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ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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