An integrated NPV-based supply chain configuration with third-party logistics services
Remica Aggarwal () and
S. P. Singh ()
Additional contact information
Remica Aggarwal: IIT Delhi
S. P. Singh: IIT Delhi
Journal of Revenue and Pricing Management, 2019, vol. 18, issue 5, 367-375
Abstract A well-designed supply chain configuration yields positive net value by creating benefits, reducing costs, and improving firm’s profitability. Nowadays, supply chain also includes third-party logistics service providers (3PLs) which are usually contracted by the supplier or manufacturer to supply integrated logistics services to the buyers or consumers. Efficient utilization of 3PLs is expected to bring benefits such as reducing total costs thereby maximizing profits. The purpose of this research paper is to propose a multi-objective optimization model to derive an integrated net present value-based supply chain configuration for a manufacturing enterprise incorporating the effect of third-party logistics service providers in an uncertain demand scenario. Firstly, the paper presents the conceptual framework considering the third-party logistics service providers for a manufacturing enterprise and thereafter a multi-objective optimization model is proposed to find a compromise solution to NPV maximization and total cost minimization. The model also makes use of Chance Constraint methodology to handle demand uncertainties.
Keywords: Supply chain configuration; Net present value; Third-party logistics service provider (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41272-019-00200-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.
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:pal:jorapm:v:18:y:2019:i:5:d:10.1057_s41272-019-00200-x
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Revenue and Pricing Management is currently edited by Ian Yeoman
More articles in Journal of Revenue and Pricing Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().