Hub-and-Spoke Logistics Network Considering Pricing and Co-Opetition

Jian Zhou, Kexin Xu, Yuxiu Zhao, Haoran Zheng and Zhengnan Dong
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Jian Zhou: School of Management, Shanghai University, Shanghai 200444, China
Kexin Xu: School of Management, Shanghai University, Shanghai 200444, China
Yuxiu Zhao: School of Management, Shanghai University, Shanghai 200444, China
Haoran Zheng: School of Economics, Shanghai University, Shanghai 200444, China
Zhengnan Dong: School of Science, Shanghai University, Shanghai 200444, China

Sustainability, 2021, vol. 13, issue 17, 1-21

Abstract: With the rapid development of the logistics market, the construction of an efficient “channel + hub + network” logistics system, that is, a hub-and-spoke logistics network, is of great importance to enterprises. In particular, how to reduce costs and increase efficiency in both the construction of network facilities and actual operations, and to formulate reasonable prices for the logistics service needs in the entire market are crucial strategies and decisions for enterprises. Under such a background, this article starts from the perspective of duopoly logistics enterprises that jointly build networks and allow the transfer of surplus capacity and carbon credits, and studies the hub-and-spoke logistics network design that also considers the relationship between service pricing and co-opetition. Considering the corporate profit and difficulty of implementation as a whole, the co-opetition is a better choice than the complete competition and perfect cooperation. In addition, the remaining capacity of the company, the transfer of carbon credits, the joint construction and sharing of hubs, and strategic cooperation in the area of corporate common pricing under the price framework agreement are conducive to the realization of an increase in corporate operating profits, a better market share and more favorable pricing.

Keywords: hub-and-spoke logistics network; co-opetition; service pricing; bi-objective mixed integer non-linear programming (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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