 Assessing the interaction of price optimisation and system-wide transportation selection on a third-party logistics providerYong Joo Lee and Timothy Baker () International Journal of Services and Operations Management, 2011, vol. 9, issue 1, 111-139 Abstract: We utilise a non-linear integer programming model of ABC's (the name of the company has been disguised) combined forward-reverse logistics system that enables them to enhance their strategic planning in three ways: 1) improve their pricing on both outbound and inbound items for clients; 2) systemically select better transportation options; 3) systemically select better outsourcing options. We compare the recommendations from this model against the most representative (i.e., baseline) model for ABC's system in the extant literature. This baseline model does not perform 1-3. We show that considering 1-2 simultaneously results in significantly higher system-wide profits than just 1 alone, and that this profit increase is enhanced when ABC is operating in higher price elasticity markets. These results have promise to generalise to other third party logistics providers since their systems are similar. Keywords: supply chain management; SCM; reverse logistics; pricing; price optimisation; transport selection; third party logistics; 3PL providers; nonlinear integer programming; NLIP; strategic planning. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsoma:v:9:y:2011:i:1:p:111-139 Access Statistics for this article More articles in International Journal of Services and Operations Management from Inderscience Enterprises Ltd |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.