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Pricing and Service Quality Guarantee Decisions in Logistics Service Supply Chain with Fairness Concern

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  • Ni Du

    (School of Business, Central South University, Changsha, P. R. China2College of Engineering, Hunan Agricultural University, Changsha, P. R. China)

  • Qinglan Han

    (School of Business, Central South University, Changsha 410083, P. R. China)

Abstract

Although existing contributions that explore service quality guarantee problem of a logistic service supply chain (LSSC) consider fairness concern behavior of one member, little attention is paid to considering the combination of members’ fairness concern and the joint decision of pricing and service quality guarantee in LSSC. Therefore, it is necessary to research how different fairness concern affects the joint decision of pricing and service quality guarantee in an LSSC. First considering a price and quality-sensitive logistics service market, a basic model without fairness concern of a customized LSSC is established. Then, a new model with fairness concern of a decentralized LSSC is constructed based on the basic model. The optimal decision of the LSSC with fairness concern is investigated in three cases. In each case, we analyze the effect of fairness concern on the optimal decision, and the expected profits and utilities. Finally, some numerical studies are shown to verify our theoretical analyses and some managerial insights are given.

Suggested Citation

  • Ni Du & Qinglan Han, 2018. "Pricing and Service Quality Guarantee Decisions in Logistics Service Supply Chain with Fairness Concern," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(05), pages 1-41, October.
    • Handle: RePEc:wsi:apjorx:v:35:y:2018:i:05:n:s0217595918500367
    DOI: 10.1142/S0217595918500367
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    Cited by:

    1. Anchal Gupta & Rajesh Kumar Singh & Sachin Kr Mangla, 2022. "Evaluation of logistics providers for sustainable service quality: Analytics based decision making framework," Annals of Operations Research, Springer, vol. 315(2), pages 1617-1664, August.
    2. Jili Kong & Ziyu Chen & Xiaoping Liu, 2022. "A Review of Logistics Pricing Research Based on Game Theory," Sustainability, MDPI, vol. 14(17), pages 1-20, August.
    3. Guangsheng Zhang & Xiao Wang & Yu Zhang & Jiayun Kang, 2022. "Research on the Emission Reduction Decision of Cost-Sharing Logistics Service Supply Chain in the O2O Model," Sustainability, MDPI, vol. 14(20), pages 1-21, October.

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