IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v131y2019icp153-167.html
   My bibliography  Save this article

The impacts of logistics services on short life cycle products in a global supply chain

Author

Listed:
  • Shen, Bin
  • Xu, Xiaoyan
  • Guo, Shu

Abstract

In this study, we construct a three-echelon supply chain consisting of one global supplier, one local seller and one logistics service provider for products with short life cycles. We study the trade-off between transportation time and cost in a global supply chain. We find that the global supplier should decide the transportation mode when selling relatively short life cycle products, and the local seller should always decide the transportation mode when selling relatively long life cycle products. Our results provide important insights into how to manage logistics service leadership, enhance consumer surplus and social welfare in a global supply chain.

Suggested Citation

  • Shen, Bin & Xu, Xiaoyan & Guo, Shu, 2019. "The impacts of logistics services on short life cycle products in a global supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 153-167.
    • Handle: RePEc:eee:transe:v:131:y:2019:i:c:p:153-167
    DOI: 10.1016/j.tre.2019.07.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554519305459
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2019.07.013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tao Lu & Jan C. Fransoo & Chung-Yee Lee, 2017. "Carrier Portfolio Management for Shipping Seasonal Products," Operations Research, INFORMS, vol. 65(5), pages 1250-1266, October.
    2. Govindan, Kannan & Chaudhuri, Atanu, 2016. "Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 177-195.
    3. Nagurney, Anna & Saberi, Sara & Shukla, Shivani & Floden, Jonas, 2015. "Supply chain network competition in price and quality with multiple manufacturers and freight service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 248-267.
    4. Dong, Ciwei & Yang, Yunpeng & Zhao, Ming, 2018. "Dynamic selling strategy for a firm under asymmetric information: Direct selling vs. agent selling," International Journal of Production Economics, Elsevier, vol. 204(C), pages 204-213.
    5. Aguezzoul, Aicha, 2014. "Third-party logistics selection problem: A literature review on criteria and methods," Omega, Elsevier, vol. 49(C), pages 69-78.
    6. Wang, Yulan & Wallace, Stein W. & Shen, Bin & Choi, Tsan-Ming, 2015. "Service supply chain management: A review of operational models," European Journal of Operational Research, Elsevier, vol. 247(3), pages 685-698.
    7. Hu, Xiaojian & Wang, Guanxiong & Li, Xiaozheng & Zhang, Yue & Feng, Shuai & Yang, Aifeng, 2018. "Joint decision model of supplier selection and order allocation for the mass customization of logistics services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 76-95.
    8. Liu, Weihua & Wang, Yijia, 2015. "Quality control game model in logistics service supply chain based on different combinations of risk attitude," International Journal of Production Economics, Elsevier, vol. 161(C), pages 181-191.
    9. Zhao, Ming & Dong, Ciwei & Cheng, T.C.E., 2018. "Quality disclosure strategies for small business enterprises in a competitive marketplace," European Journal of Operational Research, Elsevier, vol. 270(1), pages 218-229.
    10. Wen, Xin & Ma, Hoi-Lam & Choi, Tsan-Ming & Sheu, Jiuh-Biing, 2019. "Impacts of the Belt and Road Initiative on the China-Europe trading route selections," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 581-604.
    11. Bin Shen & Hau-Ling Chan, 2017. "Forecast Information Sharing for Managing Supply Chains in the Big Data Era: Recent Development and Future Research," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-26, February.
    12. Li, Guo & Zhang, Lijun & Guan, Xu & Zheng, Junjun, 2016. "Impact of decision sequence on reliability enhancement with supply disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 25-38.
    13. Sun, X.T. & Chung, S.H. & Chan, Felix T.S., 2015. "Integrated scheduling of a multi-product multi-factory manufacturing system with maritime transport limits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 110-127.
    14. Hau-Ling Chan & Bin Shen & Yajun Cai, 2018. "Quick response strategy with cleaner technology in a supply chain: coordination and win-win situation analysis," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3397-3408, May.
    15. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    16. Kay-Yut Chen & Murat Kaya & Özalp Özer, 2008. "Dual Sales Channel Management with Service Competition," Manufacturing & Service Operations Management, INFORMS, vol. 10(4), pages 654-675, June.
    17. Tsan-Ming Choi & T. C. E. Cheng & Xiande Zhao & Xiang Li & Yongjian Li & Xiaoqiang Cai & Jun Shan, 2016. "Service Channel Choice for Supply Chain: Who is Better Off by Undertaking the Service?," Production and Operations Management, Production and Operations Management Society, vol. 25(3), pages 516-534, March.
    18. Xiong, Yu & Zhao, Quanwu & Zhou, Yu, 2016. "Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 176(C), pages 21-28.
    19. Abbas A. Kurawarwala & Hirofumi Matsuo, 1996. "Forecasting and Inventory Management of Short Life-Cycle Products," Operations Research, INFORMS, vol. 44(1), pages 131-150, February.
    20. Weihua Liu & Shuqing Wang & DongLei Zhu & Di Wang & Xinran Shen, 2018. "Order allocation of logistics service supply chain with fairness concern and demand updating: model analysis and empirical examination," Annals of Operations Research, Springer, vol. 268(1), pages 177-213, September.
    21. Bin Shen & Qingying Li & Ciwei Dong & Vincent Quan, 2016. "Design outsourcing in the fashion supply chain: OEM versus ODM," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(2), pages 259-268, February.
    22. Patil, Rahul & Avittathur, Balram & Shah, Janat, 2010. "Supply chain strategies based on recourse model for very short life cycle products," International Journal of Production Economics, Elsevier, vol. 128(1), pages 3-10, November.
    23. Xuanming Su, 2009. "Consumer Returns Policies and Supply Chain Performance," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 595-612, March.
    24. 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.
    25. Cai, Xiaoqiang & Chen, Jian & Xiao, Yongbo & Xu, Xiaolin & Yu, Gang, 2013. "Fresh-product supply chain management with logistics outsourcing," Omega, Elsevier, vol. 41(4), pages 752-765.
    26. Chen, Xu & Wang, Xiaojun & Chan, Hing Kai, 2017. "Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 268-281.
    27. Marasco, Alessandra, 2008. "Third-party logistics: A literature review," International Journal of Production Economics, Elsevier, vol. 113(1), pages 127-147, May.
    28. Meixell, Mary J. & Gargeya, Vidyaranya B., 2005. "Global supply chain design: A literature review and critique," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 531-550, November.
    29. Venus Lun, Y.H. & Lai, Kee-hung & Wong, Christina W.Y. & Cheng, T.C.E., 2015. "Greening propensity and performance implications for logistics service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 50-62.
    30. Bin Shen & Tsan-Ming Choi & Stefan Minner, 2019. "A review on supply chain contracting with information considerations: information updating and information asymmetry," International Journal of Production Research, Taylor & Francis Journals, vol. 57(15-16), pages 4898-4936, August.
    31. Gérard P. Cachon & Martin A. Lariviere, 2005. "Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations," Management Science, INFORMS, vol. 51(1), pages 30-44, January.
    32. Choi, Tsan-Ming & Wen, Xin & Sun, Xuting & Chung, Sai-Ho, 2019. "The mean-variance approach for global supply chain risk analysis with air logistics in the blockchain technology era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 178-191.
    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. Yuyan Wang & Zhaoqing Yu & Liang Shen & Runjie Fan & Rongyun Tang, 2021. "Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences," Mathematics, MDPI, vol. 9(3), pages 1-23, January.
    2. Fung, Yi-Ning & Chan, Hau-Ling & Choi, Tsan-Ming & Liu, Rong, 2021. "Sustainable product development processes in fashion: Supply chains structures and classifications," International Journal of Production Economics, Elsevier, vol. 231(C).
    3. Yu, Yunlong & Xiao, Tiaojun, 2021. "Analysis of cold-chain service outsourcing modes in a fresh agri-product supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    4. Jiaying Xu & Qingfeng Meng & Yuqing Chen & Jia Zhao, 2023. "Dual-Channel Pricing Decisions for Product Recycling in Green Supply Chain Operations: Considering the Impact of Consumer Loss Aversion," IJERPH, MDPI, vol. 20(3), pages 1-15, January.
    5. Choi, Tsan-Ming & Luo, Suyuan, 2019. "Data quality challenges for sustainable fashion supply chain operations in emerging markets: Roles of blockchain, government sponsors and environment taxes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 139-152.
    6. Choi, Tsan-Ming, 2020. "Innovative “Bring-Service-Near-Your-Home” operations under Corona-Virus (COVID-19/SARS-CoV-2) outbreak: Can logistics become the Messiah?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    7. Yang, Xiaolin & Gou, Qinglong & Wang, Xin & Zhang, Juzhi, 2022. "Does bonus motivate streamers to perform better? An analysis of compensation mechanisms for live streaming platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    8. 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).
    9. Baozhuang Niu & Zhipeng Dai & Lei Chen, 2022. "Information leakage in a cross-border logistics supply chain considering demand uncertainty and signal inference," Annals of Operations Research, Springer, vol. 309(2), pages 785-816, February.
    10. Xiaomeng Zhang & Qilan Zhao & Jianjun Zhang & Xiongping Yue, 2023. "Logistics Service Supply Chain Vertical Integration Decisions under Service Efficiency Competition," Sustainability, MDPI, vol. 15(5), pages 1-23, February.
    11. Kumar, Patanjal & Baraiya, Rajendra & Das, Debashree & Jakhar, Suresh Kumar & Xu, Lei & Mangla, Sachin Kumar, 2021. "Social responsibility and cost-learning in dyadic supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    12. Ivanov, Dmitry & Dolgui, Alexandre & Sokolov, Boris, 2022. "Cloud supply chain: Integrating Industry 4.0 and digital platforms in the “Supply Chain-as-a-Service”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    13. Liu, Jia-Cai & Sheu, Jiuh-Biing & Li, Deng-Feng & Dai, Yong-Wu, 2021. "Collaborative profit allocation schemes for logistics enterprise coalitions with incomplete information," Omega, Elsevier, vol. 101(C).
    14. Choi, Tsan-Ming, 2020. "Internet based elastic logistics platforms for fashion quick response systems in the digital era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    15. Prajapati, Dhirendra & Pratap, Saurabh & Zhang, Mengdi & Lakshay, & Huang, George Q., 2022. "Sustainable forward-reverse logistics for multi-product delivery and pickup in B2C E-commerce towards the circular economy," International Journal of Production Economics, Elsevier, vol. 253(C).
    16. Wu, Huamin & Li, Guo & Zheng, Hong & Zhang, Xuefeng, 2022. "Contingent channel strategies for combating brand spillover in a co-opetitive supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    17. Mariusz Kmiecik, 2022. "Logistics Coordination Based on Inventory Management and Transportation Planning by Third-Party Logistics (3PL)," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    18. Zheng, Zhijun & Li, Gang & Cheng, T.C.E & Wu, Feng, 2022. "Offline supplementary service strategies for the online marketplace: Third-party service or marketplace service?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    19. Lou, Yaqi & Feng, Lipan & He, Shuguang & He, Zhen & Zhao, Xiukun, 2020. "Logistics service outsourcing choices in a retailer-led supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    20. Niu, Baozhuang & Yu, Xinhu & Dong, Jian, 2023. "Could AI livestream perform better than KOL in cross-border operations?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    21. Niu, Baozhuang & Liu, Jiayun & Zhang, Jianhua & Chen, Kanglin, 2024. "Promised-delivery-time-driven reselling facing global platform's private label competition: Game analysis and data validation," Omega, Elsevier, vol. 123(C).

    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. Wang, Di & Liu, Weihua & Shen, Xinran & Wei, Wanying, 2019. "Service order allocation under uncertain demand: Risk aversion, peer competition, and relationship strength," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 293-311.
    2. Wen, Xin & Choi, Tsan-Ming & Chung, Sai-Ho, 2019. "Fashion retail supply chain management: A review of operational models," International Journal of Production Economics, Elsevier, vol. 207(C), pages 34-55.
    3. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    4. Ciwei Dong & Qingying Li & Bin Shen & Xun Tong, 2019. "Sustainability in Supply Chains with Behavioral Concerns," Sustainability, MDPI, vol. 11(15), pages 1-7, July.
    5. Wang, Yingjia & Lin, Jiaxin & Choi, Tsan-Ming, 2020. "Gray market and counterfeiting in supply chains: A review of the operations literature and implications to luxury industries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    6. Choi, Tsan-Ming & Liu, Na, 2019. "Optimal advertisement budget allocation and coordination in luxury fashion supply chains with multiple brand-tier products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 95-107.
    7. Shen, Bin & Xu, Xiaoyan & Chan, Hau Ling & Choi, Tsan-Ming, 2021. "Collaborative innovation in supply chain systems: Value creation and leadership structure," International Journal of Production Economics, Elsevier, vol. 235(C).
    8. Choi, Tsan-Ming & Guo, Shu, 2020. "Is a ‘free lunch’ a good lunch? The performance of zero wholesale price-based supply-chain contracts," European Journal of Operational Research, Elsevier, vol. 285(1), pages 237-246.
    9. Wang, Kai & Ding, Peiqi & Zhao, Ruiqing, 2021. "Strategic credit sales to express retail under asymmetric default risk and stochastic market demand," Omega, Elsevier, vol. 101(C).
    10. Duan, Housheng & Deng, Sijing & Song, Haiqing & Xu, Jiayan, 2021. "The impacts of sales efforts and mode of payment on the competition between agent and retailer," Omega, Elsevier, vol. 103(C).
    11. Liu, Weihua & Long, Shangsong & Wei, Shuang, 2022. "Correlation mechanism between smart technology and smart supply chain innovation performance: A multi-case study from China's companies with Physical Internet," International Journal of Production Economics, Elsevier, vol. 245(C).
    12. Yaoguang Zhong & Fangfang Guo & Zhiqiang Wang & Huajun Tang, 2019. "Coordination Analysis of Revenue Sharing in E-Commerce Logistics Service Supply Chain With Cooperative Distribution," SAGE Open, , vol. 9(3), pages 21582440198, August.
    13. Choi, Tsan-Ming & Wang, Yingjia & Shen, Bin, 2022. "Selling to Profit-Target-Oriented retailers: Optimal supply chain contracting with bargaining," International Journal of Production Economics, Elsevier, vol. 250(C).
    14. Wu, Qing & Mu, Yinping & Feng, Yi, 2015. "Coordinating contracts for fresh product outsourcing logistics channels with power structures," International Journal of Production Economics, Elsevier, vol. 160(C), pages 94-105.
    15. 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.
    16. Lou, Yaqi & Feng, Lipan & He, Shuguang & He, Zhen & Zhao, Xiukun, 2020. "Logistics service outsourcing choices in a retailer-led supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    17. Abhishek Srivastava & Abhishek Chakraborty & Arqum Mateen, 2022. "Role of power imbalance on channel coordination under greening investments," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1522-1554, December.
    18. Shuna Wang & Zhi-Hua Hu, 2021. "Green Logistics Service Supply Chain Games Considering Risk Preference in Fuzzy Environments," Sustainability, MDPI, vol. 13(14), pages 1-32, July.
    19. Niu, Baozhuang & Zeng, Fanzhuo & Liu, Yaoqi, 2021. "Firms’ introduction of internet-based installment: Incremental demand vs. cash opportunity cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    20. Wu, Sihong & Huang, Xinli & Fan, Di & Su, Yiyi & Li, Yongjian, 2023. "Cluster linkages in the global production networks: Exploring the impacts on the expansion of emerging market multinationals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).

    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:eee:transe:v:131:y:2019:i:c:p:153-167. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    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.