Article ID: | iaor20071799 |
Country: | United Kingdom |
Volume: | 57 |
Issue: | 3 |
Start Page Number: | 281 |
End Page Number: | 289 |
Publication Date: | Mar 2006 |
Journal: | Journal of the Operational Research Society |
Authors: | Wang Q., Lei L., Fan C. |
As the third party logistics partners (carriers) take a more and more significant role in supply chain practices and customer service performance improvement, there is an emerging need for the studies on optimal channel coordination policies for business processes involving not only supplier and buyer (retailer), but also transportation partners. In this paper, we explicitly add a transportation partner with concave cost functions into the analysis for supplier–buyer channel coordination policies, and analyse the impact of coordination and pricing policies on supply chain profitability. The market demand is assumed to be a decreasing convex function of buyer's selling price (