TITLE:
Model of 4PL’s Outsourcing Logistics Coordination Based on Service Quality
AUTHORS:
Bin Ding, Hui Zheng
KEYWORDS:
Fixed Revenue-Sharing Contract, Side Payment, 3PL Coordination, Principal-Agent Model, L-F Game Theory
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.4 No.7,
July
24,
2014
ABSTRACT: The paper establishes
a supply chain coordinating model based on single 4PL-multy 3PL. Considering
goods loss and damage, it comes to the conclusion that the fixed revenue-sharing
contract couldn't be coordination when the yields was relative to the efforts
of 3PL and 4PL. In order to get the coordination, we first model a fixed
revenue-sharing contract based on side payment using L-F model and the theory
of principal-agent on the premise of symmetric information. Then, we analyze
the application of this model when the information is asymmetric. The result
shows that the symmetric model can get the coordinating while the optimal
efforts of asymmetric information model depend on the 3PL’s performance. At last,
we check the analysis using a traditional sample.