Joint logistics and financial services by a 3PL firm

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dc.contributor.author Chen, Xiangfeng
dc.contributor.author Cai, Gangshu
dc.date.accessioned 2011-10-13T18:21:53Z
dc.date.available 2011-10-13T18:21:53Z
dc.date.issued 2011-10-13
dc.identifier.uri http://hdl.handle.net/2097/12376
dc.description.abstract Integrated logistics and financial services have been practiced by third party logistics (3PL) firms for years; however, the literature has been silent on the value of 3PL firms as credit providers in budget-constrained supply chains. This paper investigates an extended supply chain model with a supplier, a budget-constrained retailer, a bank, and a 3PL firm, in which the retailer has insufficient initial budget and may borrow or obtain trade credit from either a bank (traditional role) or a 3PL firm (control role). Our analysis indicates that the control role model yields higher profits not only for the 3PL firm but also for the supplier, the retailer, and the entire supply chain. In comparison with a supplier credit model where the supplier provides the trade credit, the control role model yields a better performance for the supply chain as long as the 3PL firm’s marginal profit is greater than that of the supplier. We further demonstrate that, for all players, both the control role and supplier credit models can outperform the classic newsvendor model without budget constraint. en_US
dc.relation.uri http://www.sciencedirect.com/science/article/pii/S0377221711004164 en_US
dc.subject Third party logistics (3PL) en_US
dc.subject Budget-constrained retailer en_US
dc.subject Supply chain en_US
dc.subject Financial services en_US
dc.title Joint logistics and financial services by a 3PL firm en_US
dc.type Article (author version) en_US
dc.date.published 2011 en_US
dc.citation.doi doi:10.1016/j.ejor.2011.05.010 en_US
dc.citation.epage 587 en_US
dc.citation.issue 3 en_US
dc.citation.jtitle European Journal of Operational Research en_US
dc.citation.spage 579 en_US
dc.citation.volume 214 en_US
dc.contributor.authoreid gcai en_US

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