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Model of 4PL’s Outsourcing Logistics Coordination Based on Service Quality

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DOI: 10.4236/ajibm.2014.47046    3,096 Downloads   4,061 Views   Citations
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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.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Ding, B. and Zheng, H. (2014) Model of 4PL’s Outsourcing Logistics Coordination Based on Service Quality. American Journal of Industrial and Business Management, 4, 376-384. doi: 10.4236/ajibm.2014.47046.

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