Service capacity procurement in logistics service supply chain with demand updating and reciprocal behaviour
Wanying Wei and
European Journal of Industrial Engineering, 2021, vol. 15, issue 1, 35-66
This paper builds a logistics service supply chain consisting of a logistics service integrator (LSI) and a functional logistics service provider (FLSP), where they collaborate with a reciprocity contract. We aim to analyse the impact of reciprocity on the supply chain members' two-stage service capability procurement decisions under demand updating through a multi-method, combining game theory and a case study. We find that a reciprocity contract could provide a win-win situation and coordinate the supply chain when reciprocity factors are in an appropriate range. Moreover, the reciprocal behaviour of LSI can promote the reduction of wholesale prices, and the reciprocal behaviour of FLSP will increase the purchasing quantity as well as bring forward the purchasing time point of LSI. Lastly, the reciprocal behaviour of both parties is mutually reinforcing; that is, when one party increases its own reciprocity factor, the other party also increases its reciprocity factor as a return. [Received: 30 September 2018; Accepted: 11 February 2020]
Keywords: service capacity procurement; reciprocity contract; demand updating; case study. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ids:eujine:v:15:y:2021:i:1:p:35-66
Access Statistics for this article
More articles in European Journal of Industrial Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().