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The impacts of logistics service integrators overconfidence behaviour on supply chain decision under demand surge
Tianjin Univ, Peoples R China.
Tianjin Univ, Peoples R China.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.ORCID iD: 0000-0003-3058-7431
Tianjin Univ, Peoples R China.
2018 (English)In: European Journal of Industrial Engineering, ISSN 1751-5254, E-ISSN 1751-5262, Vol. 12, no 4, p. 558-597Article in journal (Refereed) Published
Abstract [en]

This paper studies a two-echelon logistics service supply chain (LSSC) composed of one logistics service integrator (LSI) and one functional logistics service provider (FLSP). We develop a two-period service capacity procurement model where market demand surges in the second period. The LSI, as the Stackelberg game leader, tends to be overconfident when market demand surges. The results show that when the demand surges in the second period, if the overconfident purchasing capacity of LSI cannot meet the market demand, the overconfidence behaviour will negatively affect LSI s optimal pricing. Besides, the overconfidence behaviour leads to the lowest service level of the FLSP in the second period under demand surge. However, such negative impacts can be reduced or even eliminated in certain conditions through the FLSP-led mechanism and the dynamic wholesale price mechanism. The numerical simulation and the case study from China are used to illustrate the model and draw some conclusions.

Place, publisher, year, edition, pages
INDERSCIENCE ENTERPRISES LTD , 2018. Vol. 12, no 4, p. 558-597
Keywords [en]
logistics service capacity procurement; overconfidence; demand surge; pricing decision; service level decision
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:liu:diva-151530DOI: 10.1504/EJIE.2018.093634ISI: 000444011200004OAI: oai:DiVA.org:liu-151530DiVA, id: diva2:1250586
Note

Funding Agencies|National Natural Science Foundation of China [71672121, 71372156]; Independent Innovation Foundation of Tianjin University

Available from: 2018-09-24 Created: 2018-09-24 Last updated: 2019-06-27

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
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