Weconsideranoutsourcinglogisticschannelwhereadistributorprocuresaquantityofafreshproduct
and outsourceshislogisticsoperationstoathirdpartylogisticsserviceprovider(TPLSP),whoselogistics
service qualityandpriceaffecttheproductsellablequantityandqualityonthemarket,andthe
distributor's orderdecision,respectively.Thedistributorsetshisorderquantityandproductsellingprice.
The determinationsoflogisticsservicequalityandpricedependonthechannelpowerstructures.We
investigateeach firm's decisionsunderatraditionalunitpricingcontractinthethreepowerbalance
scenarios wherethedistributorortheTPLSPhasthechannelpower,ortheyhaveequalpower.The
equilibriumresultsshowthatthepowerstructureshaveanimportantinfluence oncontractdesign,each
firm's decisionbehaviorsandchannelperformances.Wefurtherdeveloptwonovelincentivemechan-
isms tocoordinatethedecentralizedchannelconsideringtheriskpreferenceoftheTPLSP.Computa-
tional studiesshowthatthepowerstructures'influences increasewhiletheeffectsoflogisticsservice
qualityonproductquantityandqualityincrease,andillustratetheseincentivemechanismscanachieve
full channelcoordinationandwin–win outcomes.
Weconsideranoutsourcinglogisticschannelwhereadistributorprocuresaquantityofafreshproductand outsourceshislogisticsoperationstoathirdpartylogisticsserviceprovider(TPLSP),whoselogisticsservice qualityandpriceaffecttheproductsellablequantityandqualityonthemarket,andthedistributor's orderdecision,respectively.Thedistributorsetshisorderquantityandproductsellingprice.The determinationsoflogisticsservicequalityandpricedependonthechannelpowerstructures.Weinvestigateeach firm's decisionsunderatraditionalunitpricingcontractinthethreepowerbalancescenarios wherethedistributorortheTPLSPhasthechannelpower,ortheyhaveequalpower.Theequilibriumresultsshowthatthepowerstructureshaveanimportantinfluence oncontractdesign,eachfirm's decisionbehaviorsandchannelperformances.Wefurtherdeveloptwonovelincentivemechan-isms tocoordinatethedecentralizedchannelconsideringtheriskpreferenceoftheTPLSP.Computa-tional studiesshowthatthepowerstructures'influences increasewhiletheeffectsoflogisticsservicequalityonproductquantityandqualityincrease,andillustratetheseincentivemechanismscanachievefull channelcoordinationandwin–win outcomes.
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