Analysis of logistics service supply chain for the One Belt and One Road initiative of China

Xiaotong Liu, Kai Zhang, Bokui Chen, Jun Zhou and Lixin Miao

Transportation Research Part E: Logistics and Transportation Review, 2018, vol. 117, issue C, 23-39

Abstract: This paper explored the supply chain coordination issues arising from the One Belt and One Road initiative (OBOR), and investigated the impacts of the cost sharing contract on the key decisions for logistics service supply chain with mass customization. Our motivation was derived from the growing individualized demands for logistics service in the OBOR region. In this study, a logistics services supply chain, consisting of one functional logistic service provider (FLSP) and one logistics service integrator (LSI), was considered and performed on the OBOR. Based on a game theoretic approach, the supply chain performance was evaluated with four models of the cost sharing contract between the FLSP and the LSI, respectively. As a result, several key managerial insights were discovered in our modeling study. More importantly, the impacts of cost-sharing on the key decisions of each player was analyzed in details, and the interaction mechanism of mass customization was also estimated. From our perspective, it will be indeed beneficial to improving logistics service in the OBOR region.

Keywords: One Belt and One Road; Logistics service supply chain; Mass customization; Game theory; Cost-sharing contract (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (41)

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DOI: 10.1016/j.tre.2018.01.019

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