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Chinese Journal of Management Science ›› 2013, Vol. ›› Issue (2): 84-90.

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Research on Pricing Decisions and Efficiency in a Two-Level Logistics Service Supply Chain

LI Jian-feng1,2, CHEN Shi-ping1, YI Rong-hua2, HUANG Zu-qing2, TANG Yi-bing2   

  1. 1. Business School, University of Shanghai for Science & Technology, Shanghai 200093, China;
    2. College of Economics and Management, China Jiliang University, Hangzhou 310018, China
  • Received:2012-01-23 Revised:2012-12-30 Online:2013-04-30 Published:2013-04-25

Abstract: According to the principle of profit maximization, the pricing and efficiency of two-stage logistics service supply chain are discussed under the conditions of demand uncertainty. Based on four market combinations between vendors and integrators, the integrator-led Stackelberg game model is developed, the optimal pricing and optimal order quantity of integrators are found out, and the efficiency of two-stage logistics service supply with different market combinations are compared. Lastly, numerical example is used to evaluate the optimal pricing and optimal order quantity of integrators. The descending order of the efficiency values with four market combinations is verified. The results show that the optimal pricing and optimal order quantity of integrators are affected by both the market types of vendors and integrators. There is peak efficiency of logisitics service supplly chain when the market of integrators is oligopolistic and the vendors market is a perfect competition one. And the efficiency is lowest when the integrators' market is monopdistic and the market of vendors is digopolistic.

Key words: logistics service supply chain, pricing, efficiency, game, logistics

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