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Optimal operational strategies of capital-constrained supply chain with logistics service and price dependent demand under 3PL financing service

  • Chuan ZhangEmail author
  • Ling-Wei Fan
  • Yu-Xin Tian
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Abstract

In a supply chain finance (SCF) system composed of a manufacturer, a retailer and a third-party logistics (3PL) enterprise, the market demand is dependent on the logistics service level and the retail price. This paper investigates the optimal operational strategies for the SCF system with the 3PL financing service when the retailer or the manufacturer is stuck with capital constraint, respectively. By constructing and solving Stackelberg game models, we obtain the optimal operational strategies of the above two scenarios, and combined with the sensitivity analysis of relevant parameters, we obtain the following conclusions. (1) For the SCF system with a capital-constrained retailer, except the manufacturer’s optimal wholesale price remains unchanged, other participants’ optimal decisions and the optimal profits of each participant increase with the logistics service sensitivity coefficient; except the manufacturer’s optimal wholesale price remains unchanged, other participants’ optimal decisions and the optimal profits of each participant decrease with the logistics service cost efficiency. (2) For the SCF system with a capital-constrained manufacturer, the optimal decisions and profits of supply chain participants increase with the logistics service sensitivity coefficient; the optimal decisions and profits of supply chain participants decrease with the logistics service cost efficiency. Our analysis suggests that the retailer and manufacturer must take into account 3PL enterprise’s decisions (logistics service level and logistics service price) under the 3PL financing service mode before making decisions.

Keywords

Supply chain finance 3PL financing service Logistics service level Capital constraint Stackelberg game 

Notes

Acknowledgements

This study was funded by the National Social Science Fund of China (19BGL229).

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

Ethical approval

This article does not contain any studies with human participants or animals performed by any of the authors.

Informed consent

Informed consent was obtained from all individual participants included in the study.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019
corrected publication 2019

Authors and Affiliations

  1. 1.School of Business AdministrationNortheastern UniversityShenyangChina

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