IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i6p5421-d1101253.html
   My bibliography  Save this article

Coordination Decision-Making for Intelligent Transformation of Logistics Services under Capital Constraint

Author

Listed:
  • Guangmei Cao

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Yuesen Wang

    (School of Econ and Management, Shijiazhuang Tiedao University, Shijiazhuang 100044, China)

  • Honghu Gao

    (School of Management Engineering, Zhengzhou University of Aeronautics, Zhengzhou 450046, China)

  • Hao Liu

    (School of Management Engineering, Zhengzhou University of Aeronautics, Zhengzhou 450046, China)

  • Haibin Liu

    (School of Management Engineering, Zhengzhou University of Aeronautics, Zhengzhou 450046, China)

  • Zhigang Song

    (School of Management Engineering, Zhengzhou University of Aeronautics, Zhengzhou 450046, China)

  • Yuqing Fan

    (School of Management Engineering, Zhengzhou University of Aeronautics, Zhengzhou 450046, China)

Abstract

The intelligent transformation of logistics plays a significant role in meeting the diverse needs of customers, improving operational efficiency, and reducing carbon emissions in logistics activities. Therefore, to achieve sustainable development, logistics enterprises need to face the decision-making problem of intelligent logistics transformation. In this paper, we construct a Stackelberg game model between a financially constrained logistics-service provider (LSP) and a well-funded logistics-service integrator (LSI) and discuss the impact of the wholesale price contract, the cost-sharing contract, the revenue-sharing contract, the two-part tariff contract, and the hybrid cost-sharing and revenue-sharing contract on the intelligence level of logistics services, the profits of supply-chain members, and the channel for logistics-service demand. We found that the cost-sharing contract and the revenue-sharing contract cannot achieve Pareto improvement in the profits of supply-chain members. In addition, the increase in bank-loan interest rates would seriously weaken the level of intelligence and market demand for the entire logistics service. However, when consumers do not have high requirements for the intelligence of logistics services, the two-part power–price contract can create a win–win situation for supply-chain members and increase market demand within a certain range; on the contrary, a hybrid contract of cost sharing and revenue sharing is the best choice. Moreover, in the process of contract design for the intelligent transformation of logistics services, it is necessary to pay attention to the influence of the price-sensitivity coefficient on decision-making.

Suggested Citation

  • Guangmei Cao & Yuesen Wang & Honghu Gao & Hao Liu & Haibin Liu & Zhigang Song & Yuqing Fan, 2023. "Coordination Decision-Making for Intelligent Transformation of Logistics Services under Capital Constraint," Sustainability, MDPI, vol. 15(6), pages 1-25, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:5421-:d:1101253
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/6/5421/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/6/5421/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Weihua Liu & Xuan Zhao & Runze Wu, 2015. "Revenue-Sharing Contract Models for Logistics Service Supply Chains with Mass Customization Service," Mathematical Problems in Engineering, Hindawi, vol. 2015, pages 1-21, September.
    2. Chen Yang & Shulin Lan & Lihui Wang, 2019. "Research on coordinated development between metropolitan economy and logistics using big data and Haken model," International Journal of Production Research, Taylor & Francis Journals, vol. 57(4), pages 1176-1189, February.
    3. Hosseini-Motlagh, Seyyed-Mahdi & Govindan, Kannan & Nematollahi, Mohammadreza & Jokar, Abbas, 2019. "An adjustable bi-level wholesale price contract for coordinating a supply chain under scenario-based stochastic demand," International Journal of Production Economics, Elsevier, vol. 214(C), pages 175-195.
    4. Hao Liu & Haodong Chen & Hengyi Zhang & Haibin Liu & Xingwang Yu & Shiqing Zhang, 2022. "Contract Design of Logistics Service Supply Chain Based on Smart Transformation," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    5. Nouri, Mina & Hosseini-Motlagh, Seyyed-Mahdi & Nematollahi, Mohammadreza & Sarker, Bhaba R., 2018. "Coordinating manufacturer's innovation and retailer's promotion and replenishment using a compensation-based wholesale price contract," International Journal of Production Economics, Elsevier, vol. 198(C), pages 11-24.
    6. repec:bla:jindec:v:49:y:2001:i:3:p:223-45 is not listed on IDEAS
    7. Bin Dan & Shuguang Zhang & Maosen Zhou, 2018. "Strategies for warranty service in a dual-channel supply chain with value-added service competition," International Journal of Production Research, Taylor & Francis Journals, vol. 56(17), pages 5677-5699, September.
    8. Wang, Jianxin & Lim, Ming K. & Zhan, Yuanzhu & Wang, XiaoFeng, 2020. "An intelligent logistics service system for enhancing dispatching operations in an IoT environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    9. Jingna Ji & Dengli Tang & Jiansheng Huang, 2022. "Green Credit Financing and Emission Reduction Decisions in a Retailer-Dominated Supply Chain with Capital Constraint," Sustainability, MDPI, vol. 14(17), pages 1-26, August.
    10. Qin, Juanjuan & Fu, Huiping & Wang, Ziping & Xia, Liangjie, 2021. "Financing and carbon emission reduction strategies of capital-constrained manufacturers in E-commerce supply chains," International Journal of Production Economics, Elsevier, vol. 241(C).
    11. Chen, Xiangfeng, 2015. "A model of trade credit in a capital-constrained distribution channel," International Journal of Production Economics, Elsevier, vol. 159(C), pages 347-357.
    12. James D. Dana, Jr. & Kathryn E. Spier, 2001. "Revenue Sharing and Vertical Control in the Video Rental Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 223-245, September.
    13. Fatemeh Sabouhi & Ali Bozorgi-Amiri & Mohammad Moshref-Javadi & Mehdi Heydari, 2019. "An integrated routing and scheduling model for evacuation and commodity distribution in large-scale disaster relief operations: a case study," Annals of Operations Research, Springer, vol. 283(1), pages 643-677, December.
    14. Huang, Shuai & Fan, Zhi-Ping & Wang, Ningning, 2020. "Green subsidy modes and pricing strategy in a capital-constrained supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    15. Liu, Weihua & Wang, Di & Shen, Xinran & Yan, Xiaoyu & Wei, Wanying, 2018. "The impacts of distributional and peer-induced fairness concerns on the decision-making of order allocation in logistics service supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 102-122.
    16. An, Simin & Li, Bo & Song, Dongping & Chen, Xue, 2021. "Green credit financing versus trade credit financing in a supply chain with carbon emission limits," European Journal of Operational Research, Elsevier, vol. 292(1), pages 125-142.
    17. Niu, Baozhuang & Dai, Zhipeng & Liu, Yaoqi & Jin, Yong, 2022. "The role of Physical Internet in building trackable and sustainable logistics service supply chains: A game analysis," International Journal of Production Economics, Elsevier, vol. 247(C).
    18. Weihua Liu & Shangsong Long & Shuang Wei & Dong Xie & Jingkun Wang & Xinyun Liu, 2022. "Smart logistics ecological cooperation with data sharing and platform empowerment: an examination with evolutionary game model," International Journal of Production Research, Taylor & Francis Journals, vol. 60(13), pages 4295-4315, July.
    19. Weihua Liu & Jiahui Zhang & Jiahe Hou & Siyu Wang, 2021. "Effect of intelligent logistics transformation announcements on shareholder value: Evidence from Chinese listed firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1194-1219, July.
    20. Xiao, Shuang & Sethi, Suresh P. & Liu, Mengqi & Ma, Shihua, 2017. "Coordinating contracts for a financially constrained supply chain," Omega, Elsevier, vol. 72(C), pages 71-86.
    21. Wang, Bangjun & Ji, Feng & Zheng, Jie & Xie, Kejia & Feng, Zhaolei, 2021. "Carbon emission reduction of coal-fired power supply chain enterprises under the revenue sharing contract: Perspective of coordination game," Energy Economics, Elsevier, vol. 102(C).
    22. El Ouardighi, Fouad, 2014. "Supply quality management with optimal wholesale price and revenue sharing contracts: A two-stage game approach," International Journal of Production Economics, Elsevier, vol. 156(C), pages 260-268.
    23. Guillaume Roels & Uday S. Karmarkar & Scott Carr, 2010. "Contracting for Collaborative Services," Management Science, INFORMS, vol. 56(5), pages 849-863, May.
    24. Tsan‐Ming Choi & Stein W. Wallace & Yulan Wang, 2018. "Big Data Analytics in Operations Management," Production and Operations Management, Production and Operations Management Society, vol. 27(10), pages 1868-1883, October.
    25. Schlereth, Christian & Stepanchuk, Tanja & Skiera, Bernd, 2010. "Optimization and analysis of the profitability of tariff structures with two-part tariffs," European Journal of Operational Research, Elsevier, vol. 206(3), pages 691-701, November.
    26. Chongqi Wu & Kunpeng Li & Tianqin Shi, 2017. "Supply chain coordination with two-part tariffs under information asymmetry," International Journal of Production Research, Taylor & Francis Journals, vol. 55(9), pages 2575-2589, May.
    27. Haifeng Zhao & Bin Lin & Wanqing Mao & Yang Ye, 2014. "Differential Game Analyses of Logistics Service Supply Chain Coordination by Cost Sharing Contract," Journal of Applied Mathematics, Hindawi, vol. 2014, pages 1-10, April.
    28. Panos Kouvelis & Wenhui Zhao, 2016. "Supply Chain Contract Design Under Financial Constraints and Bankruptcy Costs," Management Science, INFORMS, vol. 62(8), pages 2341-2357, August.
    29. Srinivasa Raghavan, N.R. & Mishra, Vinit Kumar, 2011. "Short-term financing in a cash-constrained supply chain," International Journal of Production Economics, Elsevier, vol. 134(2), pages 407-412, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jialu Ji & Hongxing Zheng & Jia Qi & Mingjun Ji & Lingrui Kong & Shengzhong Ji, 2023. "Financial and Logistical Service Strategy of Third-Party Logistics Enterprises in Cross-Border E-Commerce Environment," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    2. Yongming Lu & Yuning Tan, 2023. "Coordination Mechanism of Revenue Sharing Contracts in Port Supply Chains: A Case Study of China’s Nantong Port," Sustainability, MDPI, vol. 15(14), pages 1-14, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hao Liu & Haodong Chen & Hengyi Zhang & Haibin Liu & Xingwang Yu & Shiqing Zhang, 2022. "Contract Design of Logistics Service Supply Chain Based on Smart Transformation," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    2. Liu, Weihua & Zhang, Jiahui & Shi, Yangyan & Lee, Paul Tae-Woo & Liang, Yanjie, 2022. "Intelligent logistics transformation problems in efficient commodity distribution," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    3. Zhen, Zhiyuan & Jiang, Lan & Yan, Qiang, 2024. "The evolution of portfolio financing equilibrium in a risk-averse supply chain under a partial trade credit policy," Finance Research Letters, Elsevier, vol. 62(PA).
    4. Huang, Jing & Yang, Wensheng & Tu, Yiliu, 2020. "Financing mode decision in a supply chain with financial constraint," International Journal of Production Economics, Elsevier, vol. 220(C).
    5. Cao, Erbao & Du, Lingxia & Ruan, Junhu, 2019. "Financing preferences and performance for an emission-dependent supply chain: Supplier vs. bank," International Journal of Production Economics, Elsevier, vol. 208(C), pages 383-399.
    6. Xie, Xiaofeng & Shi, Xinyu & Gu, Jing & Xu, Xun, 2023. "Examining the Contagion Effect of Credit Risk in a Supply Chain under Trade Credit and Bank Loan Offering," Omega, Elsevier, vol. 115(C).
    7. Ata Allah Taleizadeh & Aria Zaker Safaei & Arijit Bhattacharya & Alireza Amjadian, 2022. "Online peer-to-peer lending platform and supply chain finance decisions and strategies," Annals of Operations Research, Springer, vol. 315(1), pages 397-427, August.
    8. Fedorov, Semyon & Lavrutich, Maria & Hagspiel, Verena & Lerdahl, Thomas, 2022. "Risk and benefit sharing schemes in oil exploration and production," Energy Economics, Elsevier, vol. 116(C).
    9. Kelei Xue & Guohua Sun & Tongtong Yao, 2022. "Incentive Mechanisms for Carbon Emission Abatement Considering Consumers’ Low-Carbon Awareness under Cap-and-Trade Regulation," IJERPH, MDPI, vol. 19(7), pages 1-27, March.
    10. Yanyan Zheng & Jin Zhang & Mengyuan Wang & Peng Liu & Tong Shu, 2023. "Low-Carbon Manufacturing or Not? Equilibrium Decisions for Capital-Constrained News Vendors with Subsidy and Carbon Tax," Sustainability, MDPI, vol. 15(15), pages 1-23, July.
    11. Priya, Bhawna & Biswas, Indranil & Thürer, Matthias & Avittathur, Balram, 2023. "How to finance the supply chain when you are small? Clearance sale and loan payment timing in financially constrained supply chains," International Journal of Production Economics, Elsevier, vol. 263(C).
    12. Xie, Xiaofeng & Chen, Xiangfeng & Xu, Xun & Gu, Jing, 2024. "Financing a dual capital-constrained supply chain: Profit enhancement and diffusion effect of default risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 181(C).
    13. Shi, Jinzhao & Liu, Dian & Du, Qiang & Cheng, T.C.E., 2023. "The role of the procurement commitment contract in a low-carbon supply chain with a capital-constrained supplier," International Journal of Production Economics, Elsevier, vol. 255(C).
    14. Wang, Wei & Feng, Lipan & Li, Yongjian & Xu, Fangchao & Deng, Qianzhou, 2020. "Role of financial leasing in a capital-constrained service supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    15. Qin, Juanjuan & Fu, Huiping & Wang, Ziping & Xia, Liangjie, 2021. "Financing and carbon emission reduction strategies of capital-constrained manufacturers in E-commerce supply chains," International Journal of Production Economics, Elsevier, vol. 241(C).
    16. Kelei Xue & Guohua Sun, 2022. "Impacts of Supply Chain Competition on Firms’ Carbon Emission Reduction and Social Welfare under Cap-and-Trade Regulation," IJERPH, MDPI, vol. 19(6), pages 1-25, March.
    17. Huimin Liu & Zengqing Wei & Dingyuan Hu & Jinyu Yang & Dazhi Linghu, 2024. "Robust Financing Decisions of Green Supply Chain under Market Risk," Sustainability, MDPI, vol. 16(18), pages 1-22, September.
    18. Bo Li & Zijia Du & Minxue Wang, 2022. "Financing preference and the role of credit insurance in a green supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3882-3897, December.
    19. Yan, Nina & Xu, Xun & Huang, Wenyi, 2021. "Supplier's capacity investment strategy with factoring finance," International Journal of Production Economics, Elsevier, vol. 238(C).
    20. Xu, Xinhan & Chen, Xiangfeng & Jia, Fu & Brown, Steve & Gong, Yu & Xu, Yifan, 2018. "Supply chain finance: A systematic literature review and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 204(C), pages 160-173.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:5421-:d:1101253. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.