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Sharing Logistics Service Supply Chain with Revenue-Sharing vs. Cost-Sharing Contracts

Author

Listed:
  • Ying Luo
  • Qiang Wei
  • Xinyu Gou
  • Dai Dai
  • Yiran Zhou

Abstract

The purpose of this study is to explore the design of equity cooperation mechanism in the sharing logistics service supply chain. This study designs a two-echelon logistics service supply chain composed of an urban joint distribution company and N logistics companies. The urban joint distribution company is jointly established by N logistics companies based on specific shares of equity investment. We establish sharing logistics service supply chain models under revenue-sharing or cost-sharing contracts. Revenue-sharing factor or cost-sharing factor is the equity cooperation parameter. When the members of the supply chain choose to cooperate in revenue-sharing or cost-sharing mechanism, not all cooperation scenarios considered in the study can achieve Pareto improvement of the total profit of the supply chain, but at least one situation can achieve Pareto improvement. This study provides feasible solutions for logistics companies to join the sharing logistics service platform and provides a reference for the operation of a joint distribution platform established by logistics companies. New results and managerial insights are derived by the sharing logistics service supply chain with revenue-sharing vs cost-sharing contracts, which enriches the interfaces of the operation of the sharing logistics service supply chain.

Suggested Citation

  • Ying Luo & Qiang Wei & Xinyu Gou & Dai Dai & Yiran Zhou, 2021. "Sharing Logistics Service Supply Chain with Revenue-Sharing vs. Cost-Sharing Contracts," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-31, January.
    • Handle: RePEc:hin:jnlmpe:8841536
    DOI: 10.1155/2021/8841536
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    Cited by:

    1. Prashanth Nagendra Bharadwaj, 2024. "Empirical Examination of the Relationship between Supply Chain Effectiveness and a Company’s Overall Success," Administrative Sciences, MDPI, vol. 14(4), pages 1-25, April.
    2. Boyi Zhang & Shaojian Qu, 2023. "Green Supply Chain Game: Decision-Making and Coordination Mechanism Design," Sustainability, MDPI, vol. 15(21), pages 1-25, November.
    3. Guanqiao Pan & Hongchao Jiang & Qianhui Jin & Tianyi Zhao & Jiajun Wang & Li Wang, 2021. "Study on the Sharing Transportation Based on Game Theory," Sustainability, MDPI, vol. 13(16), pages 1-28, August.

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